What changed in this filing

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Item 7. Management’s Discussion and Analysis

2023-04-14 compared with 2022-04-15 · 43 added, 51 removed, 91 unchanged (51% of the section changed)

3 unchanged sentences

Ended December 31, 2022 and 2021

Our net revenue for the year ended December 31,

2021 was $64,702,018 as compared with $44,910,006 for the year ended December 31, 2020.

These numbers reflect an increase of 44% year

over year on our consolidated Revenues.

When looking at the numbers by subsidiary, we have

the following breakout for the years ended December 31, 2021 and 2020:

Our net revenue for the year ended December 31, 2022 was $93,203,532

as compared with $64,702,018 for the year ended December 31, 2021.

These numbers reflect an increase of 44% year over year on our consolidated

When looking at the numbers by subsidiary, we have the following

breakout for the years ended December 31, 2022 and 2021:

December 31, 2022

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SwissLink Carrier AG

The continued growth of our revenue is the result

of the development of our business strategy, which includes the strengthening of our commercial and operating activities and new acquisitions.

If net revenues continue growing at a similar rate

for the next twelve months, we believe that the company will reach a total consolidated revenue of approximately $90 million by December

The continued growth of our revenue is the result of the development of

our business strategy, which includes the strengthening of our commercial and operating activities and new acquisitions.

If net revenues continue growing at a similar rate for the next twelve

months, we believe that the company will reach a total consolidated revenue of approximately $105 million by December 31, 2023.

Cost of Revenue

Our total cost of sales for the year ended December

31, 2021 was $63,168,303 as compared with $43,947,654 for the year ended December 31, 2020.

When looking at the numbers by subsidiary, we have

the following breakout for the years ended December 31, 2021 and 2020:

Our total cost of sales for the year ended December 31, 2022 was

$91,412,016 as compared with $63,168,303 for the year ended December 31, 2021.

When looking at the numbers by subsidiary, we have the following

breakout for the years ended December 31, 2021 and 2020:

Cost of revenue

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incurs to deliver services to its customers.

These costs primarily consist of usage charges for calls and SMS terminated in vendor’s

These costs primarily consist of usage charges for calls and SMS terminated in our vendor’s

The behavior in the costs shows a logical correlation with the behavior

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termination cost.

Our gross margin, which is simply the difference

between our revenues and our cost of sales, discussed above, increased from $962,352 in 2020 to $1,533,715 in 2021.

We expect an increase in the gross margin for the next twelve months as

a result of having better termination costs.

Our gross margin, which is simply the difference between our

revenues and our cost of sales, discussed above, increased from $1,533,715 in 2021 to $1,791,516 in 2022;

represented an increase of

17% year over year

Operating Expenses

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Office, Facility and Other

Commissions Financial Expenses

Stock-based compensation

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Global Money One

The most significant difference is generated by iQSTEL which is basically

due to the Stock-based compensation.

This item includes compensation to Management, Directors and other professional service providers.

No allowance for doubtful accounts were established

due to additional controls already implemented within the commercial area and collection team.

Advertising corresponds to the third-party consultancy for the design and

implementation of a Social Media communication strategy oriented to build and enhance our companies and brand image and a marketing program

for the Regulation A offering.

All other items were stable from one year to the other, which allows us

to affirm that the cost structure of the company is under control.

The increment in the overall Operating Expenses is due to the new additions

of Whisl and Smartbiz, totaling $1,333,813.

This was partially offset by the $868,298 reduction in Operating Expenses by the remaining

companies most significantly by iQSTEL, whose expenses were reduced by $1,143,210.

Other Expenses

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as compared with other expenses of $880,085 for the year ended December 31, 2021.

The reduction in Other Expenses in 2021 compared to

2020 is due to the significant reduction in the interest expense of $3,509,323 for the year ended December 31, 2020 to $675,481 for the

year ended December 31, 2021.

The increase in Other Expenses in 2022 compared to 2021

is due to the Change in fair value of derivative liabilities of $(2,650,369) for the year ended December 31, 2022 from a positive $317,080

for the year ended December 31, 2021.

We finished the year ended December 31, 2022 with a loss of $5,865,761

as compared to a loss of $3,864,001 during the year ended December 31, 2021.

This represents an improvement in our financial results year

over year, due to an increment in the Gross Revenue and a significant reduction of the Interest Expenses.

The amount of year 2022 is highly impacted by the $(2,650,369)

change in fair value of the derivative liabilities .

Liquidity and Capital Resources

As of December 31, 2022 we had total current assets of $6,436,590, compared

with current liabilities of $2,363,015, resulting in a positive working capital of $4,203,509 and a current ratio of approximately 2.78

This compares with the working capital deficiency of $4,330,355 and the current ratio of 0.45 to 1 at December 31, 2020.

with current liabilities of $6,451,679, resulting in a negative working capital of $15,089 and a current ratio of approximately 0.99 to

Following is a table with summary data from the consolidated statement

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Net cash used in operating activities

$ (3,152,181 )

$ (2,116,174 )

Net cash used in investing activities

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Our negative investing cash flow for 2022

is largely due to the acquisition of property, equipment, and intangible assets of $230,900 and an increase of loans to related parties

is largely due to the acquisition of Whisl and Smartbiz of $1,889,132 and the purchase of $112,074 of equipment.

Financing activities provided $1,767,982 for the year ended December 31,

2021, as compared with $2,662,756 provided for the year ended December 31, 2020.

Our positive financing cash flow in 2021 was largely

the result of the $6,336,250 net proceeds from the subscription of new common stock under our Regulation A offering.

2022, as compared to $6,250,980 provided for the year ended December 31, 2021.

Our positive financing cash flow in 2022 was largely the

result of the $1,100,000 from the issuance of new common stock, $400,000 from the exercise of stock options and $500,000 from the issuance

of common stock purchase options.

Based upon our current financial condition, we do not have sufficient cash

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The Company has received

the qualification of an Offering Statement under Regulation A for the sale of up to 80,000,000 common stocks.

the qualification of an Offering Statement under Form S-1 for the sale of up to 10,000,000 common stocks.

This offering is being conducted

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are discussed in detail in the footnotes to our financial statements included in this Annual Report on Form 10-K for the year ended December

however, we consider our critical accounting policies to be those related to allowance for doubtful accounts, valuation of assets,

significant estimates in the valuation of convertible debt and income taxes.

Management bases its estimates and judgments on historical

experience and other factors that are believed to be reasonable under the circumstances.

Actual results may differ from these estimates

under different assumptions or conditions.

See the Consolidated Financial Statements in this Annual Report for a complete discussion of

our significant accounting policies.

however, we consider our critical accounting policies to be those related to the allowance for doubtful accounts, valuation

of assets, significant estimates in the valuation of financial instruments and income taxes.

Management bases its estimates and judgments

on historical experience and other factors that are believed to be reasonable under the circumstances.

Actual results may differ from

these estimates under different assumptions or conditions.

See the Consolidated Financial Statements in this Annual Report for a complete

discussion of our significant accounting policies.

Off Balance Sheet Arrangements

5 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.

What changed 10-K

Item 7. Management’s Discussion and Analysis