What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-04-01 compared with 2023-04-14 · 112 added, 90 removed, 218 unchanged (48% of the section changed)

Company Description

(the “Company”) (OTC Pink:

IQST) (www.iqstel.com)

is a technology company offering a wide array of services to global telecommunications and technology industries with presence in 13 countries.

The Company has an extensive portfolio of products and services for its

clients such as:

SMS, VoIP, 4G & 5G international infrastructure connectivity, Cloud-PBX, OmniChannel Marketing, IoT services, blockchain

and payment solutions.

These services are grouped within four business divisions:

Telecom, Fintech, Electric vehicles and Metaverse

The company operates its business through its wholly-owned subsidiary Etelix.com

USA, LLC (“Etelix”) (www.etelix.com) ;

and its majority-owned subsidiaries SwissLink

Carrier AG (www.swisslink-carrier.com), QGlobal SMS (https://www.qglobalsms.com/), Smart Gas (http://iotsmartgas.com/) and ItsBChain (http://itsbchain.com/),

Whisl Telecom LLC (www.whisl.com), and Smartbiz Telecom LLC (www.smartbiztel.com).

The information contained on our websites is not incorporated

by reference into this Annual Report, and such information should not be considered to be part of this Annual Report.

iQSTEL, formerly known as PureSnax International, Inc., was incorporated

under the laws of the State of Nevada on June 24, 2011.

PureSnax was previously a wellness brand focused on bringing healthy snacks and

foods to consumers.

On March 8, 2017, PureSnax exited a previous License Agreement with a Canadian snack food Licensor.

From March of

2017 until its acquisition of Etelix.com USA, LLC, PureSnax was working to develop its own brand and its own products for manufacture,

distribution, sales and marketing of various products within the health foods and snacks industry and to pursue related business opportunities.

PureSnax acquired Etelix.com USA, LLC on June 25, 2018.

The company left the healthy snacks and foods business to focus on the Telecommunications

On August 30, 2018, PureSnax changed its name to “iQSTEL Inc.”

and received a new CUSIP number:

46265G107, as well as a new trading symbol “IQST” in order to better resemble its new name.

iQSTEL also changed the Standard Industrial Classification (SIC Code) to 4813, Telephone Communications, Except Radiotelephone.

On April 1, 2019, the Company entered into a Company

Purchase Agreement (the “Purchase Agreement”) by and between the Company and the Ralf Kohler (the “Seller”), which

agreement provides for the purchase of 51% of the equity and certain assets of SwissLink Carrier AG (“SwissLink”) (www.swisslink-carrier.com),

a Swiss corporation, by the Company.

On February 10, 2020, the Company entered into a Company

Acquisition Agreement (the “Agreement”) with Jesus Vega regarding the acquisition of 51% of the shares in QGlobal, LLC (“QGlobal”).

QGlobal is a company with the capacity to provide Short Messages (SMS), A2P and P2P messaging services.

On February 21, 2020, the Company entered into a Company

Acquisition Agreement (the “Agreement”) with Miguel Scavo regarding the acquisition of 75% of the shares in ItsBchain, LLC

(“ItsBchain”) a company specialized in the development of Blockchain applications for telecommunications.

On April 15, 2020, the Company entered into a Company

Acquisition Agreement (the “Agreement”) with Francisco Bunt regarding the acquisition of 51% of the shares in loT Labs, LLC

(“loT Labs”).

The loT Labs’ principal business activity is the sale of SMS between USA and Mexico.

On November 12, 2020, the Company entered into partnership

Agreement (the “Agreement”) with PAYMENT VIRTUAL MOBILE SOLUTIONS, LLC (PayVMS), a Delaware Corporation regarding the incorporation

of Global Money One Inc, in which iQSTEL owns 75% of the shares and PayVMS owns the remaining 25%.

Global Money One is a Fintech company

with a complete infrastructure to provide top-up services, international remittances and prepaid debit cards.

On October 1, 2021, the Company entered into an agreement

with Jesus Vega regarding the acquisition of the remaining 49% of the shares in QGlobal, LLC (“QGlobal”).

By means of this

transaction iQSTEL increased its ownership in QGlobal to 100%.

On May 13, 2022, the Company entered into a Company

Acquisition Agreement regarding the acquisition of 51% of the shares in Whisl telecom LLC (“Whisl”) .

On June 1, 2022, the Company entered into a Company

Acquisition Agreement regarding the acquisition of 51% of the shares in Smartbiz Telecom LLC (“Smartbiz”).

(the “Company”) (OTCQX:

IQST) (www.iqstel.com) is a technology company with presence in 19 countries and 70 employees that is offering leading-edge services through

its business divisions.

Our Telecom Division, which

represents the majority of current operations and which also represents the source for all of our revenues for the financial periods presented,

offers VoIP, SMS, proprietary Internet of Things (IoT) solutions (www.iotsmartgas.com and www.iotsmarttank.com), and international fiber-optic

connectivity through its subsidiaries:

Etelix (www.etelix.com), SwissLink Carrier (www.swisslink-carrier.com), Smartbiz Telecom (www.smartbiztel.com),

Whisl Telecom (www.whisl.com), IoT Labs (www.iotlabs.mx), and QGlobal SMS (www.qglobalsms.com).

Our developing Fintech Business

Line (www.globalmoneyone.com) (www.maxmo.vip) offers a complete Fintech ecosystem MasterCard Debit Card, US Bank Account (No SSN Needed),

Mobile App/Wallet (Remittances, Mobile Top Up).

Our Fintech subsidiary, Global Money One, is to provide immigrants access to reliable

financial services that makes it easier to manage their money and stay connected with their families back home.

Our developing BlockChain

Platform Business Line (www.itsbchain.com) offers our proprietary Mobile Number Portability Application (MNPA) to serve the in-country

portability needs through its subsidiary, itsBchain.

Our developing Electric Vehicle

(EV) Business Line (www.evoss.net) offers electric motorcycles for work and recreational use in the USA, Spain, Portugal, Panama, Colombia,

and Venezuela.

EVOSS is also working on the development of an EV Mid Speed Car to serve the niche of the 2nd car in the family.

Our Artificial Intelligence

(AI)-Enhanced Metaverse Division (information and content) is currently developing a groundbreaking white-label solution designed specifically

for corporations, businesses, and the telecommunications industry.

Delivering a full suite of immersive content services, creating a

comprehensive virtual experience that can be accessed through the Web or our proprietary mobile apps.

The features include up to four

simultaneous video screens for versatile content presentation, various virtual halls such as the main hall, home hall, auditorium, exhibition

space, shopping center, and meeting rooms.

Stands for mobile application downloads, clickable gates for immediate purchasing, and direct

communication tools are seamlessly integrated to foster collaboration, engagement, and interactivity.

It goes beyond traditional virtual

spaces by utilizing cutting-edge AI technology.

This ensures video conferencing and real-time communication with other users within the

Metaverse, offering our customers a collective and fully immersive experience that caters to diverse needs such as content acquisition,

entertainment, and shared virtual experiences.

It is a future-ready platform that encourages creativity, connectivity, and collaboration

like never before.

The information contained on our websites is not incorporated by reference

into this Quarterly Report on Form 10-Q and should not be considered part of this or any other report filed with the SEC.

Operating Subsidiaries

69 unchanged sentences

These services include:

• International

Voice Termination for carriers.

Inbound / Origination.

Toll-Free Numbers.

(Private Branch Exchange) for small businesses.

• International Voice Termination

for carriers.

• US/Canada Inbound / Origination.

• Global DIDs.

• Global Toll-Free Numbers.

• PBX (Private Branch Exchange)

for small businesses.

• SIP Trunking.

The voice services represented in year 2023 46.85% of the total revenue

of the company ($67,698,574 out of the total $144,502,351) while in year 2022 voice services represented 42.50% of the total revenue ($39,614,081

out from a total of $64,702,018).

Gross Margin in the voice services increased from 4.72% in year 2021 to

5.81% in year 2022.

This is the result of the incorporation to our portfolio of product with higher gross margins.

We expect this gross

margin to increase in year 2023.

out of the total $93,203,532).

All our subsidiaries carried 4.2 billion minutes of voice during year 2023,

compared to 670 million in year 2021.

compared to 2.7 billion in year 2022.

This represents an increase of 56% year over year.

20 unchanged sentences

while it was 57.50% in year 2022.

Gross margin in the SMS business decreases in 2022 to 0.40% from 0.54% in year 2021.

Gross margin in the SMS business increases in 2023 to 0.62% from 0.40% in year 2022.

But it is important

28 unchanged sentences

to another instantly.

The Company has done research covering

35 countries where number portability is mandatory by law.

Those 35 countries have a total of 3.3 billion population and 4.0 billion of

phone lines that can be ported from one carrier to another.

It is estimated that an average of 5% of the total phone lines are ported

Number portability is executed and supervised

by a third independent party, who act as a data-base administrator and has the responsibility to guarantee all transactions requested

by the customers will be completed and his/her phone number will be ported from Carrier A to Carrier B.

In the countries under our analysis

there are 11 different data-base administrators.

In terms of dollar value, the number portability

market in the countries under our analysis is estimated over $86 million per year.

This is based in the actual cost carriers and/or customers

have to pay to get the lines ported.

Revenues of the Data Base Administrators comes from a monthly fee charged to all participant carriers,

plus a fee for every transaction completed over the platform.

The Company has done research covering 35 countries where number

portability is mandatory by law.

Those 35 countries have a total of 3.3 billion population and 4.0 billion of phone lines that can be

ported from one carrier to another.

It is estimated that an average of 5% of the total phone lines are ported every year.

Number portability is executed and supervised by a third independent

party, who act as a data-base administrator and has the responsibility to guarantee all transactions requested by the customers will be

completed and his/her phone number will be ported from Carrier A to Carrier B.

In the countries under our analysis there are 11 different

data-base administrators.

In terms of dollar value, the number portability market in the

countries under our analysis is estimated over $86 million per year.

This is based in the actual cost carriers and/or customers have to

pay to get the lines ported.

Revenues of the Data Base Administrators comes from a monthly fee charged to all participant carriers, plus

a fee for every transaction completed over the platform.

The monthly fee and the transactions fee vary from country to country.

Our objective is to offer the market conformed

by data-based administrators a solution a much more cost effective solution;

which will not only reduce the operating cost, but that will

also make the transactions to complete faster without any additional CAPEX.

Our objective is to offer the market conformed by data-based

administrators a solution a much more cost effective solution;

which will not only reduce the operating cost, but that will also make

the transactions to complete faster without any additional CAPEX.

Our mobile number portability solution is now being tested prior

88 unchanged sentences

iQSTEL, including all subsidiaries, has 70 employees as of December 31,

Corporate History

iQSTEL, formerly known as PureSnax International, Inc., was incorporated

under the laws of the State of Nevada on June 24, 2011.

PureSnax was previously a wellness brand focused on bringing healthy snacks and

foods to consumers.

On March 8, 2017, PureSnax exited a previous License Agreement with a Canadian snack food Licensor.

From March of

2017 until its acquisition of Etelix.com USA, LLC, PureSnax was working to develop its own brand and its own products for manufacture,

distribution, sales and marketing of various products within the health foods and snacks industry and to pursue related business opportunities.

PureSnax acquired Etelix.com USA, LLC on June 25, 2018.

The company left the healthy snacks and foods business to focus on the Telecommunications

On August 30, 2018, PureSnax changed its name to “iQSTEL Inc.”

and received a new CUSIP number:

46265G107, as well as a new trading symbol “IQST” in order to better resemble its new name.

iQSTEL also changed the Standard Industrial Classification (SIC Code) to 4813, Telephone Communications, Except Radiotelephone.

On April 1, 2019, the Company entered into a Company

Purchase Agreement by and between the Company and the Ralf Kohler (the “Seller”), which agreement provides for the purchase

of 51% of the equity and certain assets of SwissLink Carrier AG (“SwissLink”) (www.swisslink-carrier.com), a Swiss corporation,

by the Company.

On February 10, 2020, the Company entered into a Company

Acquisition Agreement with Jesus Vega regarding the acquisition of 51% of the shares in QGlobal, LLC (“QGlobal”).

is a company with the capacity to provide Short Messages (SMS), A2P and P2P messaging services.

On February 21, 2020, the Company entered into a Company

Acquisition Agreement with Miguel Scavo regarding the acquisition of 75% of the shares in ItsBchain, LLC (“ItsBchain”) a company

specialized in the development of Blockchain applications for telecommunications.

On April 15, 2020, the Company entered into a Company

Acquisition Agreement with Francisco Bunt regarding the acquisition of 51% of the shares in loT Labs, LLC (“loT Labs”).

loT Labs’ principal business activity is the sale of SMS between USA and Mexico.

On November 12, 2020, the Company entered into partnership

Agreement with PAYMENT VIRTUAL MOBILE SOLUTIONS, LLC (PayVMS), a Delaware Corporation regarding the incorporation of Global Money One

Inc, in which iQSTEL owns 75% of the shares and PayVMS owns the remaining 25%.

Global Money One is a Fintech company with a complete infrastructure

to provide top-up services, international remittances and prepaid debit cards.