iQSTEL Inc 10-Q

Item 1. Financial Statements Our unaudited consolidated financial statements included in this Form 10-Q are as follows: F-1 Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024; F-2 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (unaudited); F-3 Consolidated Statements of Stockholder’s Equity for nine months ended September 30, 2025 and 2024 (unaudited). F-4 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited); and F-5 Notes to Consolidated Financial Statements (unaudited). These interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended September 30, 2025 are not necessarily indicative of the results that can be expected for the full year. 3 Table of Contents IQSTEL INC Consolidated Balance Sheets September 30, 2025 (Unaudited) December 31, 2024 ASSETS Current Assets Cash $ 2,259,432 $ 2,510,357 Accounts receivable, net 23,979,191 57,158,967 Inventory 30,658 30,658 Due from related parties 668,177 630,715 Prepaid and other current assets 2,900,271 2,684,349 Total Current Assets 29,837,729 63,015,046 Property and equipment, net 670,642 561,802 Intangible assets, net 7,077,715 7,438,654 Goodwill 7,958,601 6,750,045 Deferred tax assets 243,108 243,108 Other assets 1,098,405 999,083 TOTAL ASSETS $ 46,886,200 $ 79,007,738 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 7,942,825 $ 2,129,241 Accrued and other current liabilities 15,009,370 55,624,784 Contract liabilities 887,408 — Due to related parties 65,829 26,613 Loans payable - net of discount of $ 105,323 and $ 62,898 , respectively 2,674,548 2,455,641 Loans payable - related parties 211,050 720,485 Convertible notes - net of discount of $ 7,671 and $ 138,654 , respectively 1,166,471 1,864,432 Contingent liability for acquisition of subsidiary 285,175 1,000,000 Stock payable for acquisition of subsidiary 500,000 — Total Current Liabilities 28,742,676 63,821,196 Convertible notes - net of discount of $ 0 and $ 210,296 — 3,011,926 Loans payable, non-current 34,118 — Employee benefits, non-current 256,130 274,353 TOTAL LIABILITIES 29,032,924 67,107,475 Stockholders' Equity Preferred stock: 1,200,000 authorized; $ 0.001 par value Series A Preferred stock: 10,000 designated; $ 0.001 par value, 10,000 shares issued and outstanding 10 10 Series B Preferred stock: 200,000 designated; $ 0.001 par value, 42,108 and 35,537 shares issued and outstanding, respectively 42 36 Series C Preferred stock: 200,000 designated; $ 0.001 par value, No shares issued and outstanding — — Series D Preferred stock: 100,000 designated; $ 0.001 par value, 37,110 and 0 shares issued and outstanding, respectively 37 — Common stock: 26,000,000 and 3,750,000 authorized; $ 0.001 par value 3,832,470 and 2,537,209 shares issued and outstanding, respectively 3,833 2,537 Additional paid in capital 52,140,091 39,943,924 Accumulated deficit ( 38,945,805 ) ( 32,703,410 ) Accumulated other comprehensive loss ( 25,340 ) ( 25,340 ) Equity attributed to stockholders of IQSTEL Inc. 13,172,868 7,217,757 Equity attributable to noncontrolling interests 4,680,408 4,682,506 TOTAL STOCKHOLDERS' EQUITY 17,853,276 11,900,263 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 46,886,200 $ 79,007,738 The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 1 Table of Contents IQSTEL INC Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues $ 102,867,553 $ 54,249,614 $ 232,683,605 $ 184,346,412 Cost of revenue 100,126,838 52,229,695 226,136,445 178,737,687 Gross profit 2,740,715 2,019,919 6,547,160 5,608,725 Operating expenses General and administration 3,299,798 2,076,472 8,366,698 6,144,677 Total operating expenses 3,299,798 2,076,472 8,366,698 6,144,677 Operating loss ( 559,083 ) ( 56,553 ) ( 1,819,538 ) ( 535,952 ) Other income (expense) Other income 48,739 7,006 94,253 88,151 Other expenses ( 55,058 ) ( 5,770 ) ( 134,804 ) ( 6,620 ) Interest expense ( 342,659 ) ( 672,266 ) ( 1,333,503 ) ( 1,533,820 ) Change in fair value of derivative liabilities — 51,721 — ( 1,063,789 ) Loss on settlement of debt ( 1,345,889 ) ( 27,537 ) ( 2,224,481 ) ( 130,197 ) Loss on settlement of salary payable — — ( 216,981 ) — Total other expense ( 1,694,867 ) ( 646,846 ) ( 3,815,516 ) ( 2,646,275 ) Net loss before provision for income taxes ( 2,253,950 ) ( 703,399 ) ( 5,635,054 ) ( 3,182,227 ) Income taxes ( 71,919 ) ( 69,605 ) ( 184,190 ) ( 134,880 ) Net loss ( 2,325,869 ) ( 773,004 ) ( 5,819,244 ) ( 3,317,107 ) Less: Net income attributable to noncontrolling interests 140,961 150,784 212,522 424,600 Net loss attributed to IQSTEL Inc. $ ( 2,466,830 ) $ ( 923,788 ) $ ( 6,031,766 ) $ ( 3,741,707 ) Comprehensive loss Net loss $ ( 2,325,869 ) $ ( 773,004 ) $ ( 5,819,244 ) $ ( 3,317,107 ) Total loss ( 2,325,869 ) $ ( 773,004 ) $ ( 5,819,244 ) $ ( 3,317,107 ) Less: Comprehensive income attributable to noncontrolling interests 140,961 150,784 212,522 424,600 Net comprehensive loss attributed to IQSTEL Inc. $ ( 2,466,830 ) $ ( 923,788 ) $ ( 6,031,766 ) $ ( 3,741,707 ) Basic and diluted loss per common share $ ( 0.68 ) $ ( 0.40 ) $ ( 1.97 ) $ ( 1.67 ) Weighted average number of common shares outstanding - Basic and diluted 3,635,616 2,303,557 3,076,480 2,241,409 The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 2 Table of Contents IQSTEL INC Consolidated Statements of Changes in Stockholders’ Equity For the three and nine months ended September 30, 2025 and 2024 (Unaudited) Series A Preferred Stock Series B Preferred Stock Series D Preferred Stock Common Stock Shares Amount Shares Amount Shares Amount Shares Amount Additional Paid in Capital Accumulated Deficit Accumulated Comprehensive Loss Total Non Controlling Interest Total Stockholders' Equity Balance - December 31, 2024 10,000 $ 10 35,537 $ 36 — $ — 2,537,209 $ 2,537 $ 39,943,924 $ ( 32,703,410 ) $ ( 25,340 ) $ 7,217,757 $ 4,682,506 $ 11,900,263 Common stock issued for compensation — — — — — — 1,875 2 32,813 — — 32,815 — 32,815 Common stock issued for conversion of debt — — — — — — 94,981 95 835,739 — — 835,834 — 835,834 Common stock issued for common stock payable — — — — — — 3,563 4 ( 4 ) — — — — — Dividend to non-controlling interest — — — — — — — — — ( 68,645 ) — ( 68,645 ) — ( 68,645 ) Net income (loss) — — — — — — — — — ( 1,157,958 ) — ( 1,157,958 ) 13,497 ( 1,144,461 ) Balance - March 31, 2025 10,000 $ 10 35,537 $ 36 — $ — 2,637,628 $ 2,638 $ 40,812,472 $ ( 33,930,013 ) $ ( 25,340 ) $ 6,859,803 $ 4,696,003 $ 11,555,806 Series B Preferred stock issued for settlement of salary payable — — 6,571 6 — — — — 848,475 — 848,481 — 848,481 Common stock issued for compensation — — — — — — 1,875 2 22,381 — — 22,383 — 22,383 Common stock issued for conversion of debt — — — — — — 599,933 600 2,391,470 — — 2,392,070 — 2,392,070 Common stock issued for settlement of debt — — — — — — 264,980 265 1,886,393 — — 1,886,658 — 1,886,658 Reverse split adjustment — — — — — — 38 — — — — — — — Dividend to non-controlling interest — — — — — — — — — ( 68,484 ) — ( 68,484 ) — ( 68,484 ) Net income (loss) — — — — — — — — — ( 2,406,978 ) — ( 2,406,978 ) 58,064 ( 2,348,914 ) Balance - June 30, 2025 10,000 $ 10 42,108 $ 42 — $ — 3,504,454 $ 3,505 $ 45,961,191 $ ( 36,405,475 ) $ ( 25,340 ) $ 9,533,933 $ 4,754,067 $ 14,288,000 Series D Preferred stock issued for settlement of debt — — — — 37,110 37 — — 4,708,295 — — 4,708,332 — 4,708,332 Common stock issued for conversion of debt — — — — — — 293,741 294 1,231,494 — — 1,231,788 — 1,231,788 Common stock issued for compensation — — — — — — 1,875 2 15,943 — — 15,945 — 15,945 Common stock issued for service — — — — — — 32,400 32 223,168 — — 223,200 — 223,200 Dividend to non-controlling interest — — — — — — — — — ( 73,500 ) — ( 73,500 ) — ( 73,500 ) Acquisition of subsidiary — — — — — — — — — — — — ( 214,620 ) ( 214,620 ) Net income (loss) — — — — — — — — — ( 2,466,830 ) — ( 2,466,830 ) 140,961 ( 2,325,869 ) Balance - September 30, 2025 10,000 $ 10 42,108 $ 42 37,110 $ 37 3,832,470 $ 3,833 $ 52,140,091 $ ( 38,945,805 ) $ ( 25,340 ) $ 13,172,868 $ 4,680,408 $ 17,853,276 Series A Preferred Stock Series B Preferred Stock Common Stock Shares Amount Shares Amount Shares Amount Additional Paid in Capital Accumulated Deficit Accumulated Comprehensive Loss Total Non Controlling Interest Total Stockholders' Equity Balance - December 31, 2023 10,000 $ 10 31,080 31 — — 2,151,620 $ 2,152 $ 34,530,862 $ ( 26,084,133 ) $ ( 25,340 ) $ 8,423,582 $ ( 377,710 ) $ 8,045,872 Common stock issued for compensation — — — — — — 1,875 2 31,063 — — 31,065 — 31,065 Common stock issued for settlement of debt — — — — — — 22,125 22 279,638 — — 279,660 — 279,660 Common stock issued in conjunction with convertible notes — — — — — — 44,192 44 597,733 — — 597,777 — 597,777 Net income (loss) — — — — — — — — — ( 809,767 ) — ( 809,767 ) 229,551 ( 580,216 ) Balance - March 31, 2024 10,000 $ 10 31,080 31 — — 2,219,812 $ 2,220 $ 35,439,296 $ ( 26,893,900 ) $ ( 25,340 ) $ 8,522,317 $ ( 148,159 ) $ 8,374,158 Common stock issued for compensation — — — — — — 1,875 2 46,598 — — 46,600 — 46,600 Common stock issued for warrant exercises — — — — — — 22,778 23 399,977 — — 400,000 — 400,000 Resolution of derivative liabilities upon exercise of warrant — — — — — — — — 239,323 — — 239,323 — 239,323 Acquisition of subsidiary — — — — — — — — — — — — 475,685 475,685 Net income (loss) — — — — — — — — — ( 2,008,152 ) — ( 2,008,152 ) 44,265 ( 1,963,887 ) Balance - June 30, 2024 10,000 $ 10 31,080 31 — — 2,244,465 $ 2,245 $ 36,125,194 $ ( 28,902,052 ) $ ( 25,340 ) $ 7,200,088 $ 371,791 $ 7,571,879 Common stock issued for conversion of debt — — — — — — 38,305 38 337,045 — — 337,083 — 337,083 Common stock issued for compensation — — — — — — 1,875 2 31,818 — — 31,820 — 31,820 Common stock issued for warrant exercises — — — — — — 42,563 43 174,957 — — 175,000 — 175,000 Common stock payable — — — — — — — — 100,000 — — 100,000 — 100,000 Resolution of derivative liabilities upon exercise of warrant — — — — — — — — 646,520 — — 646,520 — 646,520 Net income (loss) — — — — — — — — — ( 923,788 ) — ( 923,788 ) 150,784 ( 773,004 ) Balance - September 30, 2024 10,000 $ 10 31,080 31 — — 2,327,208 $ 2,328 $ 37,415,534 $ ( 29,825,840 ) $ ( 25,340 ) $ 7,566,723 $ 522,575 $ 8,089,298 The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 3 Table of Contents IQSTEL INC Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 5,819,244 ) $ ( 3,317,107 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock based compensation 294,343 109,485 Bad debt expense 4,536 1,801 Depreciation and amortization 450,142 104,061 Amortization of debt discount 385,721 856,922 Change in fair value of derivative liabilities — 1,063,789 Loss on settlement of debt 2,224,481 130,197 Loss on settlement of salary payable 216,981 — Changes in operating assets and liabilities: Accounts receivable 44,188,082 11,789,409 Inventory — ( 3,537 ) Prepaid and other assets ( 130,466 ) ( 434,217 ) Accounts payable 416,773 ( 8,331,945 ) Accrued and other current liabilities ( 44,833,669 ) ( 4,495,509 ) Net cash used in operating activities ( 2,602,320 ) ( 2,526,651 ) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of subsidiary, net of cash received of $129,531 and $769,879, respectively ( 70,469 ) ( 2,730,121 ) Purchase of property and equipment ( 111,400 ) ( 134,016 ) Payment of loan receivable - related party ( 37,462 ) ( 119,832 ) Collection of amounts due from related parties — 33,602 Net cash used in investing activities ( 219,331 ) ( 2,950,367 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from loans payable 5,465,000 2,011,100 Repayments of loans payable ( 28,214 ) ( 669,121 ) Repayments of note payable issued for acquisition of subsidiary ( 2,048,190 ) — Proceeds from loans payable - related parties — 1,000,000 Repayment of loans payable - related parties ( 530,471 ) ( 333,378 ) Proceeds from common stock payable — 100,000 Proceeds from exercise of warrants — 575,000 Proceeds from stock purchase option — 100,000 Proceeds from convertible notes 987,500 3,997,500 Repayment of convertible notes ( 1,064,269 ) ( 541,612 ) Dividend paid to non-controlling interest ( 210,630 ) — Net cash provided by financing activities 2,570,726 6,239,489 Effect of exchange rate changes on cash — — Net change in cash ( 250,925 ) 762,471 Cash, beginning of period 2,510,357 1,362,668 Cash, end of period $ 2,259,432 $ 2,125,139 Supplemental cash flow information Cash paid for interest $ 342,976 $ 480,431 Cash paid for taxes $ 202,274 $ — Non-cash transactions: Series B Preferred stock issued for settlement of salary payable $ 848,480 $ — Series D Preferred stock issued for settlement of debt $ 4,708,332 $ — Common stock issued for settlement of debt $ 1,886,658 $ 279,660 Common stock issued in connection with convertible notes $ — $ 597,777 Common stock issued for conversion of debt $ 4,459,692 $ 337,083 Cashless warrant exercised $ — $ 1,815 Common stock issued for common stock payable $ 4 $ — Resolution of derivative liabilities $ — $ 885,843 Note payable issued for acquisition of subsidiary $ 1,100,000 $ 2,000,000 Contingent liability for acquisition of subsidiary $ 285,175 $ 1,000,000 Stock payable for acquisition of subsidiary $ 500,000 $ — Purchase of vehicle with financing loan and a related party advance $ 86,643 $ — The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 4 Table of Contents IQSTEL INC Notes to the Unaudited Consolidated Financial Statements September 30, 2025 NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS Organization and Operations IQSTEL Inc. (“IQSTEL”, “we”, “us”, or the “Company”) was incorporated under the laws of the State of Nevada on June 24, 2011 under the name of B-Maven Inc. The Company changed its name to PureSnax International, Inc. on September 18, 2015, and more recently it changed its name to IQSTEL Inc. on August 7, 2018. The Company has been engaged in the business of telecommunication services as a wholesale carrier of voice, SMS and data for other telecom companies around the World with over 603 active interconnection agreements with mobile companies, fixed line companies and other wholesale carriers. The Company is a technology company with a presence in 20 countries and approximately 100 employees that is offering leading-edge services through its four business divisions. The Telecom Division, which represents the majority of current operations and which also represents 94% of all of the Company’s revenues, offers VoIP, SMS, proprietary Internet of Things (IoT) solutions, and international fiber-optic connectivity through its subsidiaries: Etelix.com USA, LLC, SwissLink Carrier AG, Smartbiz Telecom LLC, Whisl Telecom LLC, IoT Labs, LLC, QGlobal SMS, LLC, and QXTEL LIMITED. Also under the Telecom Division, the Company’s developing Blockchain Platform Business Line offers our proprietary Mobile Number Portability Application (MNPA) to serve the in-country portability needs through its subsidiary, ItsBchain, LLC. The Company’s developing Fintech Business Line offers a complete Fintech ecosystem MasterCard Debit Card, US Bank Account (No SSN Needed), Mobile App/Wallet (Remittances, Mobile Top Up). The Company’s Fintech subsidiary, Global Money One Inc., 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. Additionally, Globetopper LLC (www.globetopper.com) our most recent acquisitions, plays a strategic role in supporting the expansion and integration of our business divisions. Through its operations, the Company continues to strengthen its global presence and enhance the synergy in Fintech segments through its solution for gift card programs, currently representing 6% of our revenues for the nine months ended September 30, 2025. The Company’s developing Electric Vehicle (EV) Business Line 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. The Company’s developing Artificial Intelligence (AI)-Enhanced Metaverse Division offers a 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. NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. F- 5 Table of Contents In the opinion of the Company’s management, the accompanying unaudited interim consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2025 and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 31, 2025. Consolidation Policy The consolidated financial statements of the Company include the accounts of the Company and its owned subsidiaries, Etelix.com USA, LLC (“Etelix”), SwissLink Carrier AG (“Swisslink”), ITSBCHAIN, LLC (“ItsBchain”), QGLOBAL SMS, LLC (“QGlobal”), IoT Labs, LLC (“IoT Labs”), Global Money One Inc (“Global Money One”), Whisl Telecom LLC (“Whisl”), Smartbiz Telecom LLC (“Smartbiz”), QXTEL LIMITED (“QXTEL”) and Globetopper LLC (“Globetopper”). All significant intercompany balances and transactions have been eliminated in consolidation. Business Combinations In accordance with Accounting Standards Codification (ASC) 805-10, “ Business Combinations ”, the Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining non-controlling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed and non-controlling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or non-controlling interests made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is re-measured to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. Reverse stock split The Company announced a reverse stock split effective on May 2, 2025 (the “Market Effective Date”). The Board of Directors of the Company approved a reverse stock split of the Company’s authorized, issued and outstanding shares of common stock, par value $ 0.001 per share (the “Common Stock”), at a ratio of 1-for-80. All issued and outstanding common stock, options and warrants to purchase common stock and per share amounts contained in this Report have been adjusted retroactively to reflect the change in capital structure for all periods presented. All share and per share information in these financial statements retroactively reflect this reverse stock split. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments. Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had no cash equivalents at September 30, 2025 and December 31, 2024. F- 6 Table of Contents Accounts Receivable and Allowance for Uncollectible Accounts Substantially all of the Company’s accounts receivable balance is related to trade receivables. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company estimates expected credit losses related to accounts receivable balances based on a review of available and relevant information including current economic conditions, projected economic conditions, historical loss experience, account aging, and other factors that could affect collectability. During the nine months ended September 30, 2025 and 2024, the Company recorded bad debt expense of $ 4,536 and $ 1,801 , respectively. Net Income (Loss) Per Share of Common Stock The Company has adopted Accounting Standards Codification ASC 260, ” Earnings per Share ” which requires presentation of basic earnings per share on the face of the statements of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic earnings per share computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants unless the result would be antidilutive. Dilutive potential common shares include outstanding Series B Preferred stock and convertible notes, and these were excluded from the computation of diluted net loss per share as the result was anti-dilutive for the three and nine months ended September 30, 2025 and 2024. The following represents a reconciliation of the numerators of the basic and diluted earnings per share computation for the three and nine months ended September 30, 2025 and 2024: Net loss attributed to common stockholders of IQSTEL Inc. Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Net loss attributed to IQSTEL Inc. $ ( 2,466,830 ) $ ( 923,788 ) $ ( 6,031,766 ) $ ( 3,741,707 ) Undeclared divided on Series D Preferred Stock ( 13,916 ) — ( 13,916 ) — Net loss attributed to common stockholders of IQSTEL Inc. $ ( 2,480,746 ) $ ( 923,788 ) $ ( 6,045,682 ) $ ( 3,741,707 ) Weighted average number of common shares outstanding - Basic and diluted 3,635,616 2,303,557 3,076,480 2,241,409 Basic and diluted loss per common share $ ( 0.68 ) $ ( 0.40 ) $ ( 1.97 ) $ ( 1.67 ) Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents, accounts receivable, and related party payables. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. Based on the Federal Deposit Insurance Corporation (FDIC) applicable in the United Sates, Switzerland’s deposit protection system (Esisuisse) and the Financial Services Compensation Scheme (FSCS) applicable in the U.K., 47.21% of our cash and cash equivalent are protected by the applicable government insurance limits. F- 7 Table of Contents During the nine months ended September 30, 2025, we had 31 customers representing 87.4 % of our revenue compared to 22 customers representing 87.7 % of our revenue for the nine months ended September 30, 2024. This is a significant improvement in the revenue concentration. For the nine months ended September 30, 2025 and 2024, 37.6 % and 38.3 % of revenue, respectively, comes from customers under prepayment conditions, which means there are no credit or bad debt risks on that portion of the customers’ portfolio. Approximately 80 % of total accounts receivable are concentrated in balances from the Company’s top 25 customers as of September 30, 2025 compared to the same percentage concentrated in 11 companies as of December 31, 2024. The largest customer as of September 30, 2025 represented 8.75 % of the total compared to 40.39 % as of December 31, 2024. This concentration may expose the Company to a medium-to-low level of credit risk, as most of these customers are bilateral, meaning they also have accounts payable with the Company. Financial Instruments The Company follows ASC 820, “ Fair Value Measurements and Disclosures, ” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of our financial instruments, including, cash; accounts receivable; prepaid and other current assets; accounts payable; accrued liabilities and other current liabilities; and due from/to related parties approximate their fair values due to the short-term maturities of these financial instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due to related parties due to their related party nature. F- 8 Table of Contents Revenue Recognition The Company recognizes revenue related to monthly usage charges and other recurring charges during the period in which the telecommunication services are rendered, provided that persuasive evidence of a sales arrangement exists, and collection is reasonably assured. Management considers persuasive evidence of a sales arrangement to be a written interconnection agreement. The Company’s payment terms vary by client. Usage charges refer to the fees that customers are billed based on their actual usage of the services. For voice services, this typically means charges are based on the duration of calls made. For SMS (text messaging), it usually means charges per message sent. Other recurring charges are referred to charges for services such as (1) Global DIDs, (2) Global Toll-Free Numbers, (3) PBX (Private Branch Exchange) for small businesses, and (4) SIP Trunking. The provision of these services usually has set-up fees and are offered on a subscription or month-to-month basis. Revenue is reported on a gross basis since the Company acts as the principal in the transaction, meaning it has control over the goods or services before they are transferred to the customer. This includes having the primary responsibility for fulfilling the contract and determining the price. With respect to the specific performance obligations of the Company in its contracts with its customers, our standard service agreement establishes the following: • The Company agrees to furnish to Customer, and Customer agrees to purchase from the Company, International Long Distance telecommunication services and/or SMS services at the rates agreed to in writing by the Parties. • The Company will provide, operate and maintain communications equipment, international links and network administration and support in the United States and other countries as may be agreed upon. • The Company will be responsible for its own expenses and will provide, operate, and maintain transmission facilities required to link its domestic network with the other Party's nearest point of presence (POP). • The Company shall provide Customer all required IP network addresses, Domain Name Server (DNS) information and, if necessary, the associated prefixes used to exchange voice traffic as provided on the provisioning form. • The Company shall take all appropriate security measures to protect its network from fraudulent traffic coming from unknown or unauthorized sources. Any and all IP and network information received by the Company from Customer for the purposes of this agreement shall be strictly confidential, and disclosed only to those employees or personnel with a need to know. The Company recognizes revenue from telecommunication services in accordance with ASC 606. Topic 606 establishes a comprehensive 5 step framework for determining revenue recognition. Under this framework, the Company considers each service a single performance obligation, since typically, the Company provides a series of distinct services. Under ASC 606, voice and SMS termination services typically qualify for over time recognition because the customer receives and consumes the benefits as the entity performs • Each call or message is terminated in real time. • The customer cannot "stockpile" the service — it's consumed instantly. • The service is indivisible and recurring, with no alternative use. In the case of the services provided by Globetopper, the Company recognizes revenue in accordance with ASC 606, "Revenue from Contracts with Customers." Under this standard, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration to which the Company expects to be entitled. F- 9 Table of Contents The Company’s primary performance obligation is the transfer of digital prepaid products to customers upon purchase. Revenue is recognized at a point in time when the digital prepaid products are made available to the customer, as this is when the customer obtains control and can benefit from the use of the products. The Company has evaluated additional services, including API integration and technical support, and determined that these services are not distinct performance obligations. These services are highly interdependent and integrated with the primary obligation to deliver digital prepaid products. As such, revenue recognition for these services is bundled with the primary performance obligation and recognized at the same point in time. The transaction price is determined based on the pricing appendix provided to customers at the time of contract signing, with the Company reserving the right to adjust prices with a three-day notice. Since the Company has only one primary performance obligation, there is no allocation of the transaction price across multiple obligations. The application of the 5 step Topic 606 revenue recognition framework to the Company's operations is depicted as follows: Topic 606 Conceptual Framework Related Company Policy & Procedures Step 1 Identify the contract(s) with customer A contract is defined as an approved mutual agreement between the Company and a customer setting performance obligation, and criteria that must be met in accordance with the Company's customary commercial business practices and entered into with the probable expectation that all estimated consideration will be realized in the ordinary course of business. Step 2 Identify the performance obligations Performance obligations are identified in the customer agreement, and any subsequent amendments stated in per minute, time and message usage criteria; and digital prepaid products. The Company considers each service a single performance obligation, including instances where the Company provides a series of services that are substantially the same and have the same pattern of transfer. Step 3 Determine the transaction price The transaction price is determined at contract inception and is subsequently reviewed periodically to reflect applicable rate amendments, trends in regulatory, market conditions and usage of service and products by a customer. The transaction price excludes amounts collected on behalf of third parties such as sales taxes and regulatory fees. Step 4 Allocate the transaction price to the performance obligations The transaction price is allocated to each performance obligation based on the standalone contractual selling price of the time measured service, net of any related discount. Step 5 Recognize revenue when the entity satisfies a performance obligation The Company recognizes revenues from contracts with customers when control of the usage of the services and digital prepaid products has been transferred to the customer, as recorded and measured by the Company's internal information systems. Revenues are recognized at the probable amount of consideration expected in exchange for transferring control of usage. F- 10 Table of Contents Cost of revenue Costs of revenue represent direct charges from vendors that the Company incurs to deliver services to its customers. These costs primarily consist of usage charges for calls terminated in vendors’ networks. Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2024-03 Final Standard on Income Statement: Disaggregation of Income Statement Expenses , which requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This guidance will be effective for us on January 1, 2027. The Company is currently evaluating the impact of adopting ASU 2024-03. The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial statements. NOTE 3 - GOING CONCERN The Company's consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has suffered recurring losses from operations, negative working capital and does not have an established source of revenues sufficient to cover its operating costs. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its business plan and eventually attain profitable operations. During the next year, the Company's foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing in the industry and continuing its marketing efforts. The Company may experience a cash shortfall and be required to raise additional capital. Historically, the Company has relied upon funds from its stockholders, lines of credit, options and secured and unsecured loans from third parties. Management may raise additional capital through future public or private offerings of the Company's stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company's failure to do so could have a material and adverse effect upon its operations and its stockholders. NOTE 4 – PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets at September 30, 2025 and December 31, 2024 consisted of the following: September 30, December 31, 2025 2024 Other receivable $ 228,169 $ 115,685 Prepaid expenses 2,111,006 2,020,288 Advance payment 21,000 21,000 Tax receivable 53,893 42,673 Deposit for acquisition of asset 357,500 356,000 Security deposit 128,703 128,703 Total $ 2,900,271 $ 2,684,349 F- 11 Table of Contents NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment at September 30, 2025 and December 31, 2024 consisted of the following: September 30, December 31, 2025 2024 Telecommunication equipment $ 709,417 $ 709,417 Telecommunication software 800,247 690,742 Vehicle 86,643 — Other equipment 157,831 155,935 Total property and equipment 1,754,138 1,556,094 Accumulated depreciation and amortization ( 1,083,496 ) ( 994,292 ) Total property and equipment $ 670,642 $ 561,802 Depreciation expense for the nine months ended September 30, 2025 and 2024 amounted to $ 89,204 and $ 104,061 , respectively. NOTE 6 – INTANGIBLE ASSETS Intangible assets at September 30, 2025 and December 31, 2024 consisted of the following: 2025 Useful life Gross carrying amount Accumulated amortization Net carrying amount New gas regulator intangible Not yet in service $ 99,592 $ — 99,592 Interconnection agreements 16 years 7,700,000 ( 721,877 ) 6,978,123 $ 7,799,592 $ ( 721,877 ) $ 7,077,715 2024 Useful life Gross carrying amount Accumulated amortization Net carrying amount New gas regulator intangible Not yet in service $ 99,592 $ — 99,592 Interconnection agreements 16 years 7,700,000 ( 360,938 ) 7,339,062 $ 7,799,592 $ ( 360,938 ) $ 7,438,654 Amortization expense for the nine months ended September 30, 2025 and 2024 amounted to $360,938 and $0, respectively. The following table outlines the estimated future amortization expense as of September 30, 2025: 2025 (3 months remaining) $ 120,312 2026 481,250 2027 481,250 2028 481,250 2029 481,250 Thereafter 4,932,811 $ 6,978,123 F- 12 Table of Contents NOTE 7 – ACCRUED AND OTHER CURRENT LIABILITIES Accrued and other current liabilities at September 30, 2025 and December 31, 2024 consisted of the following September 30, December 31, 2025 2024 Accrued liabilities $ 1,148,363 $ 928,858 Cost provision 13,276,570 53,939,336 Accrued interest 92,450 118,204 Salary payable - management 73,363 420,447 Salary payable and employee benefit 77,709 88,357 Other current liabilities 340,915 129,582 Total $ 15,009,370 $ 55,624,784 NOTE 8 - LOANS PAYABLE Loans payable at September 30, 2025 and December 31, 2024 consisted of the following: September 30, December 31, Interest 2025 2024 Term rate Martus $ 97,401 $ 103,738 Note was issued on October 23, 2018 and due on January 2, 2026 5.0 % Darlene Covid19 60,703 80,019 Note was issued on April 1, 2020 and due on March 31, 2026 0.0 % Promissory note payable — 217,391 Note was issued June 11, 2024 and due on June 11, 2025 2.0 % Promissory note payable - acquisition of QXTEL — 1,275,000 Note was issued April 1, 2024 and due on June 30, 2025 4.9 % Promissory note payable — 271,739 Note was issued July 16, 2024 and due on July 16, 2025 2.0 % Promissory note payable — 271,739 Note was issued July 31, 2024 and due on July 31, 2025 2.0 % Promissory note payable — 190,217 Note was issued September 23, 2024 and due on September 23, 2025 2.0 % Promissory note payable — 108,696 Note was issued October 4, 2024 and due on September 23, 2025 2.0 % Promissory note payable - acquisition of QXTEL 226,810 — Note was issued February 3, 2025 and due on September 30, 2025 4.9 % Promissory note payable 794,737 — Note was issued July 16, 2025 and due on February 26, 2026 24.0 % Promissory note payable 794,737 — Note was issued August 8, 2025 and due on March 21, 2026 24.0 % Promissory note payable 794,737 — Note was issued September 11, 2025 and due on April 24, 2026 24.0 % Financing loan 44,865 — Loan was issued in July 2025 and the monthly payment amount is $ 1,149 for 48 months 7.87 % Total 2,813,990 2,518,539 Less: Unamortized debt discount ( 105,323 ) ( 62,898 ) Total loans payable 2,708,667 2,455,641 Less: Current portion of loans payable ( 2,674,548 ) ( 2,455,641 ) Long-term loans payable $ 34,118 $ — F- 13 Table of Contents Loans payable - related parties at September 30, 2025 and December 31, 2024 consisted of the following: September 30, December 31, 2025 2024 49% of Shareholder of SwissLink $ 21,606 $ 21,606 49% of Shareholder of SwissLink 133,865 219,894 Minority Shareholder of QXTEL 55,579 478,985 Total 211,050 720,485 Less: Current portion of loans payable - related parties 211,050 720,485 Long-term loans payable - related parties $ — $ — During the nine months ended September 30, 2025 and 2024, the Company borrowed from third parties totaling $ 5,825,583 and $ 2,011,100 , which includes original issue discount and financing costs of $ 360,583 and $ 0 and repaid the principal amount of $ 2,076,404 and $ 669,121 , respectively. During the nine months ended September 30, 2025, the Company issued a note payable of $ 1,000,000 for the earn out payment related to the April 1, 2024 acquisition of a subsidiary. During the nine months ended September 30, 2025, the Company issued a note payable of $ 100,000 for the consideration related to the July 1, 2025 acquisition of a subsidiary. These notes were fully repaid during the nine months ended September 30, 2025. During the nine months ended September 30, 2025 and 2024, the Company recorded interest expense of $ 353,964 and $ 121,806 and recognized amortization of discount, included in interest expense, of $ 106,770 and $ 163,406 , respectively. During the nine months ended September 30, 2025, the Company settled loans as follows; • Principal amount and accrued interest of 5 notes payable issued in June through October 2024 by issuing 264,980 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $ 801,255 . • Principal amount and accrued interest of 3 notes payable issued in June 2025 by issuing 22,131 shares of Series D Preferred Stock. As a result, the Company recorded a loss on settlement of debt of $ 804,599 . • Principal amount and accrued interest of 4 notes payable issued in January through May 2025 by issuing 14,979 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $ 541,290 . During the nine months ended September 30, 2024, the Company settled 2 loans as follows: • Principal amount and accrued interest of a note payable issued in April 2023 by issuing 1,770,000 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $ 102,660 . • Principal amount of future receipts loan issued in April 2024 by early settlement. As a result, the Company recorded a loss on settlement of debt of $ 27,537 . F- 14 Table of Contents NOTE 9 - CONVERTIBLE LOANS Convertible loans at September 30, 2025 and December 31, 2024 consisted of the following: September 30, December 31, 2025 2024 Issued in fiscal year 2024 $ 753,090 $ 5,225,308 Issued in fiscal year 2025 421,053 — Total convertible notes payable 1,174,142 5,225,308 Less: Unamortized debt discount ( 7,672 ) ( 348,950 ) Total convertible notes 1,166,470 4,876,358 Less: current portion of convertible notes 1,166,471 1,864,432 Long-term convertible notes $ — $ 3,011,926 During the nine months ended September 30, 2025 and 2024, the Company recorded interest expense of $ 593,818 and $ 555,092 and recognized amortization of discount, included in interest expense, of $ 278,951 and $ 693,516 , respectively. Conversion During the nine months ended September 30, 2025, one note holder converted notes with principal amounts of $ 4,153,343 , debt discount of $ 129,570 , accrued interest of $ 420,919 and conversion fee of $ 15,000 into 988,655 shares of common stock. During the three months ended September 30, 2025, one note holder converted notes with principal amounts of $ 931,121 , debt discount of $ 1,918 , accrued interest of $ 302,586 and conversion fee of $ 7,500 into 293,742 shares of common stock. Settlement During the nine months ended September 30, 2025, the Company settled the principal amount of convertible notes of $ 671,870 , debt discount of $ 58,573 and accrued interest of $ 34,366 issued in June 2024 through February 2025 to two notes holders by paying cash of $ 725,000 . As a result, the Company recorded a loss on settlement of debt of $ 77,337 . Issued in fiscal year 2025 During the nine months ended September 30, 2025, the Company borrowed amounts from third parties totaling $ 1,113,316 , which includes original issue discount and financing costs of $ 125,816 . Principal Issuance Maturity Interest Payment amount date Date rate schedule $ 471,000 February 26, 202 5 December 30, 2025 14 % 5 payments, one payment of $ 268,470 and four payments of $67,118, beginning in August 2025 $ 116,000 February 26, 2025 December 30, 2025 14 % 5 payments, one payment of $ 66,120 and four payments of $ 16,530 , beginning in August 2025 $ 526,316 March 4, 2025 December 5, 2025 24 % The outstanding balance shall be paid on December 5, 2025 The notes are convertible at the option of the holders at any time following an event of default, and the conversion price is 75% multiplied by the lowest trading price of Company’s common stock during the 10 trading days prior to the conversion date. Certain notes allow for the conversion price to be a fixed price of $8.80 per share. F- 15 Table of Contents Issued in fiscal year 2024 In January 24, 2024, we entered into a securities purchase agreement (the “SPA”) with M2B Funding Corp., a Florida corporation, for it to purchase up to the principal amount of $ 3,888,889 in secured convertible promissory notes (the “Notes”) for an aggregate purchase price of $ 3,500,000 (the “Purchase Price”), which Notes are convertible into shares (“Conversion Shares”) of our common stock with an initial conversion price of $ 8.80 per share. Each noteholder received shares of common stock (“Kicker Shares”) in an amount equal to ten percent of the principal amount of any Note issued divided by $8.80. The Notes are secured by all of our assets under a Security Agreement signed with the SPA. The initial tranche was executed in January 2024 for $ 2,222,222 in face value of Notes and 25,253 Kicker Shares, with an original issue discount of $ 222,222 ; second and third tranches were executed in March 2024 for $ 1,111,111 and $ 555,556 , respectively, in face value of Notes and 12,627 and 6,314 Kicker Shares, with an original issue discount of $ 111,111 and $ 55,556 , respectively. Each one year note bears interest at 18 % per annum. In October 2024, we entered into a Memorandum of Understanding (the “Agreement”) with M2B Funding Corp. to extend the maturity date on three promissory notes in exchange for stock consideration. Pursuant to the Agreement, the following promissory notes were extended by 12 months from their original date of maturity: • First Note: Originally due January 1, 2025, with an outstanding amount of $ 1,888,889 , extended to January 1, 2026 . • Second Note: Originally due March 12, 2025, with an outstanding amount of $ 1,111,111 , extended to March 12, 2026 . • Third Note: Originally due March 25, 2025, with an outstanding amount of $ 555,556 , extended to March 25, 2026 . In consideration for this extension, the Company issued 8,081 restricted common shares. As a result of the extension, the Company recognized the loss on debt extinguishment of $ 297,878 as debt extinguishment and debt discount of $ 61,818 as debt modification during the year ended December 31, 2024. Additionally, during the year ended December 31, 2024, the Company borrowed amounts from a third party totaling $ 2,413,707 , which includes original issue discount and financing costs of $ 248,707 . Principal Issuance Maturity Interest Payment amount date Date rate schedule $ 146,900 March 7, 2024 January 15, 2025 12 % 10 payments each in the amount of $ 16,453 beginning on April 15, 2024 $ 177,100 March 7, 2024 January 15, 2025 14 % 5 payments, one payment of $ 100,947 and four payments of $ 25,237 , beginning in September 2024 $ 179,400 July 10, 2024 April 30, 2025 14 % 9 payments each in the amount of $ 22,724 beginning on August 30, 2024 $ 151,960 September 16, 2024 July 15, 2025 14 % 5 payments, one payment of $ 86,617 and four payments of $ 21,654 , beginning in March 2025 $ 179,400 October 15, 2024 July 15, 2025 14 % 9 payments each in the amount of $ 22,724 beginning on November 30, 2024 $ 1,578,947 December 6, 2024 June 4, 2025 24 % Outstanding balance shall be paid on June 4, 2025 The notes are convertible at the option of the holders at any time following an event of default, and the conversion price is 75% multiplied by the lowest trading price of Company’s common stock during the 10 trading days prior to the conversion date. Certain notes allow for the conversion price to be a fixed price of $12.0 per share. F- 16 Table of Contents NOTE 10 – STOCKHOLDERS’ EQUITY Common Stock The Board of Directors of the Company approved a reverse stock split of the Company’s authorized, issued and outstanding shares of Common Stock at a ratio of 1-for-80, effective on May 2, 2025. The Company amended its certificate of incorporation to reduce the number of authorized shares of Common Stock that it may issue from 300,000,000 shares to 3,750,000 shares and subsequently to 26,000,000 shares with a par value of $ 0.001 per share. During the nine months ended September 30, 2025, the Company issued 1,295,261 shares of common stock, valued at fair market value on issuance as follows: • 5,625 shares for compensation to our directors valued at $ 71,143 . • 988,655 shares for conversion of debt of $ 4,459,692 . • 264,980 shares for settlement of debt of $ 1,886,658 . • 32,400 shares for service valued at $ 223,200 . • 3,563 shares for common stock payable value at $ 82,194 . • 38 shares for reverse stock split adjustment. At September 30, 2025 and December 31, 2024, 3,832,470 and 2,537,209 shares of common stock were issued and outstanding, respectively. Series A Preferred Stock On November 3, 2020, pursuant to Article III of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series A Preferred Stock, consisting of up 10,000 shares, par value $ 0.001 . Under the Certificate of Designation, holders of Series A Preferred Stock will participate on an equal basis per-share with holders of our common stock in any distribution upon winding up, dissolution, or liquidation . Holders of Series A Preferred Stock are entitled to vote together with the holders of our common stock on all matters submitted to stockholders at a rate of 51% of the total vote of stockholders. The rights of the holders of Series A Preferred Stock are defined in the relevant Certificate of Designation filed with the Nevada Secretary of State on November 3, 2020. At September 30, 2025 and December 31, 2024, 10,000 shares of Series A Preferred Stock were issued and outstanding. Series B Preferred Stock On November 11, 2020, pursuant to Article III of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series B Preferred Stock, consisting of up 200,000 shares, par value $ 0.001 . Under the Certificate of Designation, holders of Series B Preferred Stock will receive a liquidation preference of $81 per share in any distribution upon winding up, dissolution, or liquidation of the Company before junior security holders, as provided in the designation . Holders of Series B Preferred Stock are entitled to receive as, when, and if declared by the Board of Directors, dividends in kind at an annual rate equal to twenty four percent (24%) of $81 per share for each of the then outstanding shares of Series B Preferred Stock, calculated on the basis of a 360-day year consisting of twelve 30-day months . Holders of Series B Preferred Stock do not have voting rights but may convert into common stock after twelve months from the issuance date, at a conversion rate of twelve point five (12.5) shares of Common Stock for every one (1) share of Series B Preferred Stock. Upon conversion, the shares are subject to a one-year restriction on sales into the market of no more than 5% previous month’s stock liquidity. F- 17 Table of Contents During the nine months ended September 30, 2025, the Company issued 6,571 shares of Series B Preferred Stock to settle salary payable for our CEO and CFO of $ 631,500 . As a result, the Company recorded a loss on settlement of salary payable of $ 216,981 . At September 30, 2025 and December 31, 2024, 42,108 and 35,537 shares of Series B Preferred Stock were issued and outstanding, respectively. Series C Preferred Stock On January 7, 2021, pursuant to Article III of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series C Preferred Stock, consisting of up 200,000 shares, par value $ 0.001 . Under the Certificate of Designation, holders of Series C Preferred Stock will rank junior to the Series B Preferred Stock, but on par with common stock and Series A Preferred Stock in any distribution upon winding up, dissolution, or liquidation of the company, as provided in the designation . The holders of shares of Series C Preferred Stock have no dividend rights except as may be declared by the Board in its sole and absolute discretion, out of funds legally available for that purpose . Holders of Series C Preferred Stock do not have voting rights but may convert into common stock after twenty four months from the issuance date, at a conversion rate of twelve point five (12.5) shares of Common Stock for every one (1) share of Series C Preferred Stock. Upon conversion, the shares are subject to a one-year restriction on sales into the market of no more than 5% previous month’s stock liquidity. The rights of the holders of Series C Preferred Stock are defined in the relevant Certificate of Designation filed with the Nevada Secretary of State on January 7, 2021. At September 30, 2025 and December 31, 2024, no Series C Preferred Stock was issued or outstanding. Series D Preferred Stock On July 7, 2025, the Company filed a First Amended and Restated Certificate of Designation for the Series D Preferred Stock with the Secretary of State of Nevada to amend and restate the terms of its Series D Preferred Stock, originally established on November 3, 2023, increasing the authorized shares from 75,000 to 100,000 and revising the terms as described below. • Dividend Rights: 12% cumulative dividend, payable as, when, and if declared by the Board of Directors, calculated on a 360-day year, accruing from the date of issuance and ceasing the day prior to conversion, with pro rata dividends for partial-year holdings. • Conversion Rights: Following three months from the issuance date, the Series D Preferred Stock is convertible into common stock at a rate of 12.5 shares of common stock per share, subject to adjustment for stock splits, dividends, or reorganizations, removing the prior requirement for conversion only upon a note default. • Redemption Provisions: Optional redemption by the Company at 105% of the price paid by the holder, upon not more than three trading days’ notice. • Liquidation Preference: Senior to common stock, Series A Preferred Stock, and Series C Preferred Stock, and on parity with Series B Preferred Stock, in any liquidation, dissolution, or winding up of the Company. • Voting Rights: No voting rights, except as required by law or for amendments to the Certificate of Designation or Articles of Incorporation that would alter the Series D Preferred Stock’s rights. • Leak-Out Restriction: After three months, conversions to common stock and sales are limited to 10% of the average daily trading volume of the Company’s common stock per holder. During the nine months ended September 30, 2025, the Company issued 37,110 shares of Series D Preferred Stock for settlement of debt of $ 4,708,332 . At September 30, 2025 and December 31, 2024, 37,110 and 0 shares of Series D Preferred Stock were issued or outstanding, respectively. F- 18 Table of Contents NOTE 11 - RELATED PARTY TRANSACTIONS Due from related party During the nine months ended September 30, 2025 and 2024, the Company loaned $ 39,462 and $ 119,832 and collected $ 2,000 and $ 0 , respectively to a related party. At September 30, 2025 and December 31, 2024, the Company had amounts due from related parties of $ 668,177 and $ 630,715 , respectively. The loans are unsecured, non-interest bearing and due on demand. Due to related parties At September 30, 2025 and December 31, 2024, the Company had amounts due to related parties of $ 65,829 and $ 26,613 , respectively. For the nine months ended September 30, 2025, a related party paid $ 39,216 to purchase a vehicle on behalf of the Company. The amounts are unsecured, non-interest bearing and due on demand. Employment agreements On June 23, 2025, the board of directors of the Company approved amended employment agreements in favor of its Chief Executive Officer, Leandro Iglesias, and its Chief Financial Officer, Alvaro Quintana Cardona. In case the monthly remuneration is not set in full on time , the amended agreements provide that Messrs. Iglesias and Quintana may convert their accrued salary/bonus into shares of common stock or Series B Preferred Stock of the Company. For common stock, the number of shares issuable is determined by considering the average price per share of common stock on the Nasdaq Capital Market during the last 10 days and applying a discount of 25% and then dividing the accrued salary by the average price per share. For Series B Preferred stock, the number of shares issuable is determined by considering the discounted average price per share of common stock on the Nasdaq Capital Market during the last 10 days, dividing the accrued salary by the discounted average price per share, and then dividing that number of shares by 12.5. During the nine months ended September 30, 2025, the Company issued 6,571 shares of Series B Preferred Stock to settle salary payable for our CEO and CFO of $ 631,500 . As a result, the Company recorded a loss on settlement of salary payable of $ 216,981 . During the nine months ended September 30, 2025 and 2024, the Company recorded management salaries of $ 760,500 and $ 634,500 , and stock-based compensation bonuses of $ 71,145 and $ 109,485 , respectively. During the three months ended September 30, 2025 and 2024, the Company recorded management salaries of $ 211,500 and $ 211,500 , and stock-based compensation bonuses of $ 15,945 and $ 31,820 , respectively. At September 30, 2025 and December 31, 2024, the Company recorded and accrued management salaries of $ 73,365 and $ 420,447 , respectively. NOTE 12 – COMMITMENTS AND CONTINGENCIES Leases and Long-term Contracts The Company has not entered into any long-term leases, contracts or commitments. The Company leases facilities which the term is 12 months . For the nine months ended September 30, 2025 and 2024, the Company incurred rent expense of $ 24,328 and $ 21,335 , respectively. F- 19 Table of Contents NOTE 13 – ACQUISITION On May 29, 2025, the Company entered into a Unit Purchase Agreement (the “Agreement”) with Craig Span (the “Seller”) and Globetopper, LLC, a Delaware limited liability company ( “Globetopper”), pursuant to which the Company agreed to acquire fifty-one percent ( 51 % ) of the membership interests of Globetopper (the “Transferred Membership Interest”) from the Seller. Pursuant to the Agreement, the Company acquired the Transferred Membership Interests of Globetopper for a total purchase price consisting of $ 700,000 , payable as follows: $50,000 upon execution of the Agreement; $50,000 in cash on the closing date; $50,000 in cash 30 days after the closing date, secured by a promissory note and pledge agreement; $50,000 in cash 60 days after the closing date, secured by a promissory note and pledge agreement; $500,000 in restricted common shares of the Company, calculated at a 20% discount to the volume weighted average price (VWAP) during the five days preceding the closing date . Additional payments based on Globetopper’s EBITDA growth, payable in common shares of the Company at a 20% discount to the greater of the VWAP during the five days following the applicable period or preceding the payment date, will be payable as follows: • September 30, 2026: 50% of the positive difference between EBITDA at acquisition and EBITDA 12 months post-Closing. • September 30, 2027: 50% of the positive difference between EBITDA 12 months and 24 months post-Closing. The acquisition was closed on July 1, 2025. Globetopper has been included in our consolidated results of operations since the acquisition date. The Company will invest up to $1,200,000 in Globetopper over 24 months post-Closing in monthly installments of $50,000, subject to the achievement of specified quarterly financial targets. The following table summarizes the fair value of the consideration paid by the Company: July 1, Fair Value of Consideration: 2025 Cash $ 100,000 Promissory note 100,000 IQSTEL common stock 500,000 Contingent liability 285,175 Total Purchase Price $ 985,175 The following table summarizes the preliminary identifiable assets acquired and liabilities assumed upon acquisition of Globetopper and the calculation of goodwill: Total purchase price $ 985,175 Assets Acquired: Cash 129,531 Prepaid expenses and other current assets 306,310 Total identifiable assets 435,841 Liabilities Assumed: Other current liabilities ( 71,580 ) Contract liabilities ( 703,262 ) Line of credit ( 99,000 ) Total liabilities assumed ( 873,842 ) Net assets ( 438,001 ) Non-controlling interest - 49% 214,620 Total net assets ( 223,381 ) Goodwill $ 1,208,556 F- 20 Table of Contents Unaudited combined proforma results of operations for the three and nine months ended September 30, 2025 and 2024 as though the Company acquired Globetopper on January 1, 2024, are set forth below: Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues $ 102,867,553 $ 62,183,464 $ 258,349,274 $ 212,841,207 Cost of revenues 100,126,838 59,991,984 251,263,440 206,623,461 Gross profit 2,740,715 2,191,480 7,085,834 6,217,746 Operating expenses 3,299,798 2,231,896 8,692,708 6,647,307 Operating loss ( 559,083 ) ( 40,416 ) ( 1,606,874 ) ( 429,561 ) Other expense ( 1,694,867 ) ( 651,416 ) ( 3,819,843 ) ( 2,648,705 ) Income tax ( 71,919 ) ( 69,605 ) ( 184,190 ) ( 134,880 ) Net loss $ ( 2,325,869 ) $ ( 761,437 ) $ ( 5,610,907 ) $ ( 3,213,146 ) NOTE 14 - SEGMENT The Company operates in two industry segments, telecommunication services and fintech services, and three geographic segments, USA, UK and Switzerland, where current assets and equipment are located. The Company's chief operating decision maker ("CODM") is its chief financial officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. The CODM uses operating activities and net assets to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow, the allocation of budget between cost of sales and operating expenses and the management of assets. The following table shows reportable operating activities information by industrial segment for the three and nine months ended September 30, 2025. The Company has two industrial segments since the Company acquired Globetopper LLC in July 2025: Three months ended September 30, 2025 NOTE 14 - SEGMENT - Operating Activities by Industrial and Geographic Segment (Details) Telecom Fintech Corporate Elimination Total Revenues $ 104,223,026 $ 14,290,694 $ 51,000 $ ( 15,697,167 ) $ 102,867,553 Cost of revenue 101,662,238 13,979,041 24,870 ( 15,539,311 ) 100,126,838 Gross profit 2,560,788 311,653 26,130 ( 157,856 ) 2,740,715 Operating expenses 1,813,617 234,069 1,415,967 ( 163,855 ) 3,299,798 Operating income (loss) 747,171 77,584 ( 1,389,837 ) 5,999 ( 559,083 ) Other expense ( 10,287 ) ( 1,823 ) ( 1,600,257 ) ( 82,500 ) ( 1,694,867 ) Income tax expense ( 71,919 ) — — — ( 71,919 ) Net income (loss) $ 664,965 $ 75,761 $ ( 2,990,094 ) $ ( 76,501 ) $ ( 2,325,869 ) F- 21 Table of Contents Nine months ended September 30, 2025 Telecom Fintech Corporate Elimination Total Revenues $ 259,271,211 $ 14,290,694 $ 152,511 $ ( 41,030,811 ) $ 232,683,605 Cost of revenue 252,782,854 13,979,041 24,870 ( 40,650,320 ) 226,136,445 Gross profit 6,488,357 311,653 127,641 ( 380,491 ) 6,547,160 Operating expenses 5,022,836 234,069 3,508,630 ( 398,837 ) 8,366,698 Operating income (loss) 1,465,521 77,584 ( 3,380,989 ) 18,346 ( 1,819,538 ) Other expense ( 49,625 ) ( 1,823 ) ( 3,541,722 ) ( 222,346 ) ( 3,815,516 ) Income tax expense ( 184,190 ) — — — ( 184,190 ) Net income (loss) $ 1,231,706 $ 75,761 $ ( 6,922,711 ) $ ( 204,000 ) $ ( 5,819,244 ) The following table shows operating activities information by geographic segment for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, 2025 USA Switzerland UK Elimination Total Revenues $ 63,220,535 $ 10,692,833 $ 44,651,352 $ ( 15,697,167 ) $ 102,867,553 Cost of revenue 61,782,827 10,493,611 43,389,711 ( 15,539,311 ) 100,126,838 Gross profit 1,437,708 199,222 1,261,641 ( 157,856 ) 2,740,715 Operating expenses Salaries, wages and benefits 575,876 98,486 706,728 — 1,381,090 Technology 290,571 86,937 140,277 ( 157,588 ) 360,197 Professional fees 272,888 9,340 — — 282,228 Legal and regulatory 104,000 3,539 — — 107,539 Travel and events ( 4,378 ) — 34,928 ( 6,268 ) 24,282 Public cost — — — — — Advertising 606,627 — — — 606,627 Bank services and fees 30,054 ( 7,448 ) 26,593 — 49,199 Depreciation and amortization 6,683 34,923 120,312 — 161,918 Office, facility and other 14,861 5,621 61,113 — 81,595 Insurance 5,980 — — — 5,980 Stock-based compensation 239,143 — — — 239,143 General and administration 2,142,305 231,398 1,089,951 ( 163,856 ) 3,299,798 Operating income (loss) ( 704,597 ) ( 32,176 ) 171,689 6,000 ( 559,083 ) Other expense ( 1,601,625 ) ( 6,390 ) ( 4,352 ) ( 82,500 ) ( 1,694,867 ) Income tax expense — — ( 71,919 ) — ( 71,919 ) Net income (loss) $ ( 2,312,222 ) $ ( 38,566 ) $ 95,419 $ ( 76,500 ) $ ( 2,325,869 ) F- 22 Table of Contents Three months ended September 30, 2024 USA Switzerland UK Elimination Total Revenues $ 36,604,753 $ 1,048,201 $ 17,202,173 $ ( 605,513 ) $ 54,249,614 Cost of revenue 35,614,356 822,312 16,165,751 ( 372,724 ) 52,229,695 Gross profit 990,397 225,889 1,036,422 ( 232,789 ) 2,019,919 Operating expenses Salaries, wages and benefits 653,839 92,180 461,761 — 1,207,780 Technology 272,428 104,299 116,855 ( 156,540 ) 337,042 Professional fees 61,350 3,668 — ( 56,249 ) 8,769 Legal and regulatory 6,747 7,242 14,592 — 28,581 Travel and events 39,088 5,339 25,841 — 70,268 Public cost 8,268 — — — 8,268 Advertising 157,787 — — — 157,787 Bank services and fees 10,506 9,629 29,665 — 49,800 Depreciation and amortization 6,682 28,440 — — 35,122 Office, facility and other 52,876 7,084 81,419 ( 20,000 ) 121,379 Insurance 1,884 — 17,972 — 19,856 Stock-based compensation 31,820 — — — 31,820 General and administration 1,303,275 257,881 748,105 ( 232,789 ) 2,076,472 Operating income (loss) ( 312,878 ) ( 31,992 ) 288,317 — ( 56,553 ) Other income (expense) ( 633,774 ) ( 6,544 ) ( 6,528 ) — ( 646,846 ) Income tax expense — ( 162 ) ( 69,443 ) — ( 69,605 ) Net income (loss) $ ( 946,652 ) $ ( 38,698 ) $ 212,346 $ — $ ( 773,004 ) Nine months ended September 30, 2025 USA Switzerland UK Elimination Total Revenues $ 141,511,086 $ 21,281,894 $ 110,921,436 $ ( 41,030,811 ) $ 232,683,605 Cost of revenue 138,464,533 20,621,929 107,700,303 ( 40,650,320 ) 226,136,445 Gross profit 3,046,553 659,965 3,221,133 ( 380,491 ) 6,547,160 Operating expenses Salaries, wages and benefits 1,560,112 294,172 1,599,882 ( 6,038 ) 3,448,128 Technology 707,054 281,790 435,862 ( 372,000 ) 1,052,706 Professional fees 818,144 26,917 — — 845,061 Legal and regulatory 295,259 13,736 — — 308,995 Travel and events 56,687 7,999 — ( 20,799 ) 43,887 Public Cost 118,850 — — — 118,850 Advertising 1,243,894 — 162,906 — 1,243,894 Bank services and fees 54,596 ( 43,723 ) 73,591 — 84,464 Depreciation and amortization 20,046 69,158 360,938 450,142 Office, facility and other 83,542 15,935 201,523 — 301,000 Insurance 7,786 — — — 7,786 Bad debt expense 4,536 — — — 4,536 Stock-based compensation 294,343 — — — 294,343 General and administration 5,264,849 665,984 2,834,702 ( 398,837 ) 8,366,698 Operating income (loss) ( 2,218,295 ) ( 6,019 ) 386,430 18,346 ( 1,819,538 ) Other income (expense) ( 3,582,684 ) 6,942 ( 17,428 ) ( 222,346 ) ( 3,815,516 ) Income tax expense — — ( 184,190 ) — ( 184,190 ) Net income (loss) $ ( 5,800,980 ) $ 923 $ 184,812 $ ( 204,000 ) $ ( 5,819,244 ) F- 23 Table of Contents Nine months ended September 30, 2024 USA Switzerland UK Elimination Total Revenues $ 135,649,542 $ 3,157,073 $ 48,676,228 $ ( 3,136,431 ) $ 184,346,412 Cost of revenue 132,502,666 2,542,555 46,596,108 ( 2,903,642 ) 178,737,687 Gross profit 3,146,876 614,518 2,080,120 ( 232,789 ) 5,608,725 Operating expenses Salaries, wages and benefits 1,293,992 170,457 887,021 — 2,351,470 Technology 607,752 211,972 215,998 ( 156,540 ) 879,182 Professional fees 1,014,621 114,444 — ( 56,249 ) 1,072,816 Legal and regulatory 142,360 8,987 28,874 — 180,221 Travel and events 98,092 23,160 46,505 — 167,757 Public cost 93,646 — — — 93,646 Advertising 659,784 — — — 659,784 Bank services and fees 41,503 64,783 65,080 — 171,366 Depreciation and amortization 20,261 83,800 — — 104,061 Office, facility and other 175,255 23,823 132,434 ( 20,000 ) 311,512 Insurance 3,480 — 38,096 — 41,576 Bad debt expense 1,801 — — — 1,801 Stock-based compensation 109,485 — — — 109,485 General and administration 4,262,032 701,426 1,414,008 ( 232,789 ) 6,144,677 Operating income (loss) ( 1,115,156 ) ( 86,908 ) 666,112 — ( 535,952 ) Other income (expense) ( 2,666,763 ) 33,544 ( 13,056 ) — ( 2,646,275 ) Income tax expense — ( 162 ) ( 134,718 ) — ( 134,880 ) Net income (loss) $ ( 3,781,919 ) $ ( 53,526 ) $ 518,338 $ — $ ( 3,317,107 ) Asset Information The following table shows asset information by industrial segment at September 30, 2025: September 30, 2025 Telecom Fintech Corporate Elimination Total Assets Current assets $ 29,044,630 $ 695,187 $ 4,780,619 $ ( 4,682,707 ) $ 29,837,729 Non-current assets $ 8,642,371 $ 191,646 $ 21,534,191 $ ( 13,319,737 ) $ 17,048,471 Liabilities Current liabilities $ 27,225,082 $ 1,354,096 $ 4,846,205 $ ( 4,682,707 ) $ 28,742,676 Non-current liabilities $ 256,130 $ 34,118 $ — $ — $ 290,248 F- 24 Table of Contents December 31, 2024 Telecom Corporate Elimination Total Assets Current assets $ 75,098,705 $ 4,594,060 $ ( 16,677,719 ) $ 63,015,046 Non-current assets $ 9,097,736 $ 19,079,518 $ ( 12,184,562 ) $ 15,992,692 Liabilities Current liabilities $ 74,461,579 $ 6,037,337 $ ( 16,677,720 ) $ 63,821,196 Non-current liabilities $ 274,353 $ 3,011,926 $ — $ 3,286,279 The following table shows asset information by geographic segment at September 30, 2025 and December 31, 2024: September 30, 2025 USA Switzerland UK Elimination Total Assets Current assets $ 10,375,189 $ 2,286,128 $ 19,365,772 $ ( 2,189,360 ) $ 29,837,729 Non-current assets $ 21,988,756 $ 609,837 $ 7,769,615 $ ( 13,319,737 ) $ 17,048,471 Liabilities Current liabilities $ 9,515,081 $ 3,185,837 $ 18,231,118 $ ( 2,189,360 ) $ 28,742,676 Non-current liabilities $ 34,118 $ 169,599 $ 86,531 $ — $ 290,248 December 31, 2024 USA Switzerland UK Elimination Total Assets Current assets $ 19,885,086 $ 8,055,475 $ 48,182,373 $ ( 13,107,888 ) $ 63,015,046 Non-current assets $ 19,447,105 $ 633,491 $ 8,096,658 $ ( 12,184,562 ) $ 15,992,692 Liabilities Current liabilities $ 21,386,520 $ 8,415,705 $ 47,126,859 $ ( 13,107,888 $ 63,821,196 Non-current liabilities $ 3,012,066 $ 169,599 $ 104,614 $ — $ 3,286,279 NOTE 15 – SUBSEQUENT EVENTS . Subsequent to September 30, 2025 and through the date that these financials were made available, the Company had the following subsequent events: On October 10, 2025, the Company filed a Second Amended and Restated Certificate of Designation for the Series D Preferred Stock (the “Certificate of Designation”) with the Secretary of State of Nevada to amend and restate the terms of its Series D Preferred Stock, originally established on November 3, 2023, and first amended on July 7, 2025. The Second Amended and Restated Certificate of Designation maintains the number of authorized shares at 100,000 and revises the terms by introducing a True-Up Adjustment mechanism to the conversion rate, as described below. The amended terms include the following key provisions: • Dividend Rights: 12% cumulative dividend, payable as, when, and if declared by the Board of Directors, calculated on a 360-day year, accruing from the date of issuance and ceasing the day prior to conversion, with pro rata dividends for partial-year holdings. • Conversion Rights: Following three months from the issuance date, the Series D Preferred Stock is convertible into common stock at a rate of 12.5 shares of common stock per share (the “Base Shares”), subject to adjustment for stock splits, dividends, or reorganizations. Additionally, a True-Up Adjustment mechanism applies, whereby the conversion may include additional shares based on a comparison of the original conversion price (based on the 10-day VWAP with a 20% discount at the time of issuance) to the lowest daily VWAP during the five trading days preceding the conversion date with a further 20% discount applied to such lowest daily VWAP (the “Adjusted Conversion Price”), with a floor of $1.00 and a maximum True-Up Ratio of 2.5. • Redemption Provisions: Optional redemption by the Company at 105% of the price paid by the holder, upon not more than three trading days’ notice. • Liquidation Preference: Senior to common stock, Series A Preferred Stock, and Series C Preferred Stock, and on parity with Series B Preferred Stock, in any liquidation, dissolution, or winding up of the Company. • Voting Rights: No voting rights, except as required by law or for amendments to the Certificate of Designation or Articles of Incorporation that would alter the Series D Preferred Stock’s rights. • Leak-Out Restriction: After three months, conversions to common stock and sales are limited to 10% of the average daily trading volume of the Company’s common stock per holder. F- 25 Table of Contents