18 unchanged sentences
Results of Operations
−Removed: Our total revenue reported for the three months ended June 30, 2020 was $11,130,086, compared with $4,253,359 for the three months ended June 30, 2019.
+Added: Our total revenue reported for the three months ended September 30, 2020 was $13,291,698, compared with $4,172,547 for the three months ended September 30, 2019.
These numbers reflect an increase of 218.55% quarter over quarter on our consolidated revenues.
−Removed: Our total revenue reported for the six months ended June 30, 2020 was $16,147,498, compared with $8,416,562 for the six months ended June 30, 2019.
−Removed: When looking at the numbers by subsidiary, we have the following breakout for the six months ended June 30, 2020:
−Removed: Six Months Ended
−Removed: June 30, 2020
+Added: Our total revenue reported for the nine months ended September 30, 2020 was $29,439,196, compared with $12,589,109 for the nine months ended September 30, 2019.
+Added: When looking at the numbers by subsidiary, we have the following breakout for the nine months ended September 30, 2020:
+Added: September 30,
Etelix.com USA, LLC
2 unchanged sentences
Cost of Revenues
−Removed: Our total cost of revenues for the three months ended June 30, 2020 increased to $10,397,778, compared with $4,345,087 for the three months ended June 30, 2019.
−Removed: Our total cost of revenues for the six months ended June 30, 2020 increased to $15,576,331, compared with $8,072,713 for the six months ended June 30, 2019.
+Added: Our total cost of revenues for the three months ended September 30, 2020 increased to $13,158,685, compared with $3,929,137 for the three months ended September 30, 2019.
+Added: Our total cost of revenues for the nine months ended September 30, 2020 increased to $28,735,016, compared with $12,001,850 for the nine months ended September 30, 2019.
Our cost of revenues consists of direct charges from vendors that the Company incurs to deliver services to its customers.
1 unchanged sentence
The behavior in the costs shows a logical correlation with the behavior of the revenue commented above.
−Removed: We have reac-hed a higher volume of sales and every additional unit sold (minutes and SMS) has its corresponding termination cost.
+Added: We have reached a higher volume of sales and every additional unit sold (minutes and SMS) has its corresponding termination cost.
Operating Expenses
−Removed: Operating expenses increased to $905,016 for the three months ended June 30, 2020 from $341,553 for the three months ended June 30, 2019.
−Removed: Operating expenses increased to $2,202,543 for the six months ended June 30, 2020 from $532,060 for the six months ended June 30, 2019.
−Removed: The detail by major category for the six months ended June 30, 2020 and 2019 is reflected in the table below.
−Removed: Six Months Ended June 30,
+Added: Operating expenses increased to $958,787 for the three months ended September 30, 2020 from $492,782 for the three months ended September 30, 2019.
+Added: Operating expenses increased to $3,161,330 for the nine months ended September 30, 2020 from $1,024,842 for the nine months ended September 30, 2019.
+Added: The detail by major category for the nine months ended September 30, 2020 and 2019 is reflected in the table below.
+Added: Nine Months Ended September 30,
Salaries, Wages and Benefits
7 unchanged sentences
Total Operating Expense
−Removed: The main reasons for the overall increase in operating expenses for the six months ended June 30, 2020 compared to the same period of 2019 is that in 2020 we are reflecting the costs corresponding to 5 operating subsidiaries (Etelix.com, Swisslink, ItsBchain, QGlobal and IoT Labs) plus the corporate costs corresponding to iQSTEL itself;
−Removed: while in 2019 operating expenses corresponded only to one subsidiary and corporate costs of iQSTEL;
+Added: The main reasons for the overall increase in operating expenses for the nine months ended September 30, 2020 compared to the same period of 2019 is that in 2020 we are reflecting the costs corresponding to 5 operating subsidiaries (Etelix.com, SwissLink, ItsBchain, QGlobal and IoT Labs) plus the corporate costs corresponding to iQSTEL itself;
+Added: while in 2019 operating expenses corresponded only to Etelix, a portion corresponding to SwissLink (this subsidiary is consolidated since August 15, 2019) and corporate costs of iQSTEL;
as shown in the table below.
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
The most significant difference is generated by iQSTEL which is due to the following:
3 unchanged sentences
Operating Income
−Removed: The Company showed negative Operating Income for the three months ended June 30, 2020 of $172,708 compared with a negative result of $433,281 for the three months ended June 30, 2019;
−Removed: which is a positive variation quarter over quarter.
−Removed: The Company showed negative Operating Income for the six months ended June 30, 2020 of $1,627,117 compared with a negative result of $188,211 for the six months ended June 30, 2019.
−Removed: The increase of the numbers for the six month period above is primarily due to the costs associated with the operation of the public entity (iQSTEL, Inc.) estimated in the amount of $1,587,992.
−Removed: When looking at the results of our operating subsidiaries, we notice a very good performance of each of them, particularly in the three months ended in June 30, 2020.
−Removed: Three Months Ended
−Removed: Six Months Ended
−Removed: Total Revenue
−Removed: Cost of revenue
−Removed: Total Cost of Revenue
−Removed: Operating Expenses
−Removed: Total Operating Expenses
−Removed: Operating Income (Loss)
+Added: The Company showed negative Operating Income for the three months ended September 30, 2020 of $825,774 compared with a negative result of $249,372 for the three months ended September 30, 2019.
+Added: The Company showed negative Operating Income for the nine months ended September 30, 2020 of $2,457,150 compared with a negative result of $437,583 for the nine months ended September 30, 2019.
+Added: The increase of the numbers for the nine month period above is primarily due to the costs associated with the operation of the public entity (iQSTEL, Inc.) estimated in the amount of $2,242,336.
Other Expenses/Other Income
−Removed: We had other income of $1,550,173 for the three months ended June 30, 2020, as compared with other expenses of $50,960 for the same period ended 2019.
−Removed: We had other expenses of $900,362 for the six months ended June 30, 2020, as compared with other expenses of $1,321,608 for the same period ended 2019.
−Removed: The decrease in other expenses is a result of the positive change in fair value of derivative liabilities, and the gain on settlement of debts of $283,230.
−Removed: We finished the three months ended June 30, 2020 with a net income of $1,377,465, as compared to a loss of $484,241 during the three months ended June 30, 2019.
−Removed: We finished the six months ended June 30, 2020 with a loss of $2,531,738, as compared to a loss of $1,509,819 during the six months ended June 30, 2019.
+Added: We had other expenses of $144,451 for the three months ended September 30, 2020, as compared with other expenses of $3,268,651 for the same period ended 2019.
+Added: We had other expenses of $1,044,813 for the nine months ended September 30, 2020, as compared with other expenses of $4,590,259 for the same period ended 2019.
+Added: The decrease in other expenses is a result of the positive change in fair value of derivative liabilities.
+Added: We finished the three months ended September 30, 2020 with a net loss of $970,225, as compared to a loss of $3,517,171 during the three months ended September 30, 2019.
+Added: We finished the nine months ended September 30, 2020 with a loss of $3,501,963, as compared to a loss of $5,026,990 during the nine months ended September 30, 2019.
The reasons for specific components are discussed above.
3 unchanged sentences
Liquidity and Capital Resources
−Removed: As of June 30, 2020, we had total current assets of $3,853,302 and current liabilities of $8,515,969, resulting in a working capital deficit of $4,662,667.
+Added: As of September 30, 2020, we had total current assets of $2,968,653 and current liabilities of $7,940,889, resulting in a working capital deficit of $4,972,236.
This compares with the working capital deficit of $7,707,148 at December 31, 2019.
This decrease in working capital deficit, as discussed in more detail below, is primarily the result of the increase of $376,831 in the cash position and a reduction of $4,085,931 in the derivative liabilities.
−Removed: Our operating activities used $1,126,307 in the six months ended June 30, 2020 as compared with $667,737 used in operating activities in the six months ended June 30, 2019.
−Removed: Investing activities provided $2,550 for the six months ended June 30, 2020.
+Added: Our operating activities used $1,526,513 in the nine months ended September 30, 2020 as compared with $1,331,051 used in operating activities in the nine months ended September 30, 2019.
+Added: Investing activities used $79,324 for the nine months ended September 30, 2020.
Uses of funds on investing activities were the purchase of property and equipment for value of $78,306 and net payment of loans between related parties of $17,187.
−Removed: Main source of funds in the Investing activities was resulting from the acquisition of subsidiary IoT Labs of $75,781.
−Removed: Financing activities provided $1,626,500 in the six months ended June 30, 2020 compared with $743,653 provided in the six months ended June 30, 2019.
+Added: Financing activities provided $1,968,632 in the nine months ended September 30, 2020 compared with $1,327,978 provided in the nine months ended September 30, 2019.
Our positive financing cash flow in 2020 was largely the result of the net proceeds from loans $325,833, net proceeds from convertible notes $927,810;
8 unchanged sentences
There can be no assurance that such additional financing will be available to us on acceptable terms or at all.
−Removed: Although our operations are influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during the six month period ended June 30, 2020.
+Added: Although our operations are influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during the nine month period ended September 30, 2020.
Critical Accounting Polices
3 unchanged sentences
Off Balance Sheet Arrangements
−Removed: As of June 30, 2020, there were no off-balance sheet arrangements.
+Added: As of September 30, 2020, there were no off-balance sheet arrangements.
Recent Accounting Pronouncements
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.