iQSTEL Inc(IQST) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2025, were $102,867,553, a significant increase from $54,249,614 in the same period of 2024, representing an increase of 89.6%[15] - Gross profit for the nine months ended September 30, 2025, was $6,547,160, compared to $5,608,725 for the same period in 2024, reflecting a year-over-year increase of 16.7%[15] - For the nine months ended September 30, 2025, the net loss was $5,819,244, compared to a net loss of $3,317,107 for the same period in 2024, indicating a year-over-year increase in losses of approximately 75.5%[21] - The company reported a net loss of $5,610,907 for the nine months ended September 30, 2025, compared to a net loss of $3,213,146 for the same period in 2024, indicating a deterioration in financial performance[119] - Operating loss for the three months ended September 30, 2025, was $(559,083), compared to $(56,553) for the same period in 2024, indicating a deterioration in operating performance[15] Assets and Liabilities - The total current assets decreased to $29,837,729 as of September 30, 2025, down from $63,015,046 as of December 31, 2024, indicating a decline of 52.7%[13] - The total liabilities decreased to $29,032,924 as of September 30, 2025, compared to $67,107,475 as of December 31, 2024, a reduction of 56.7%[13] - Current assets as of September 30, 2025, totaled $29,837,729, while current liabilities were $28,742,676, indicating a current ratio of approximately 1.04[125] - Non-current assets as of September 30, 2025, were $17,048,471, while non-current liabilities were $290,248, indicating a strong asset base relative to long-term obligations[125] Stockholder Equity - Total stockholders' equity increased to $17,853,276 as of September 30, 2025, from $11,900,263 as of December 31, 2024, reflecting an increase of 50.0%[13] - As of March 31, 2025, total stockholders' equity was $11,555,806, reflecting a decrease from previous periods[18] Revenue Sources - The Telecom Division accounted for 94% of the company's total revenues, highlighting its dominance in the business operations[25] - The Fintech segment, through its subsidiary Global Money One, contributed 14% of revenues for the three months ended September 30, 2025, and 6% for the nine months[133] - Revenues from the USA segment for the three months ended September 30, 2025, were $63,220,535, representing a year-over-year increase from $36,604,753 in the same quarter of 2024[123] Expenses - The company reported total operating expenses of $8,366,698 for the nine months ended September 30, 2025, up from $6,144,677 for the same period in 2024, an increase of 36.0%[15] - Operating expenses increased by 58.91% to $3,299,798 for the three months ended September 30, 2025, compared to $2,076,472 in the same period of 2024[159] - The company incurred rent expenses of $24,328 for the nine months ended September 30, 2025, compared to $21,335 for the same period in 2024, representing an increase of approximately 14%[112] Cash Flow and Financing - Cash balance as of September 30, 2025, was $2,259,432, down from $2,510,357 as of December 31, 2024, a decrease of 9.9%[13] - The company raised $5,465,000 from loans payable during the nine months ended September 30, 2025, compared to $2,011,100 in the same period of 2024, reflecting a significant increase in financing activities[21] - The company plans to seek additional financing through public and private equity offerings to strengthen liquidity and capital resources[183] Acquisitions and Investments - The acquisition of Globetopper was completed on July 1, 2025, for a total purchase price of $985,175, which includes $500,000 in restricted common shares[116] - The Company plans to invest up to $1,200,000 in Globetopper over 24 months post-closing, contingent on achieving specified quarterly financial targets[116] Market Presence and Operations - The company operates in 20 countries and employs approximately 100 staff, showcasing its international reach and workforce size[24] - The company has over 603 active interconnection agreements with various telecom companies globally, indicating a strong market presence[24] - The company is focusing on market expansion and new product development to improve future performance and profitability[122] Challenges and Concerns - The company has suffered recurring losses from operations and negative working capital, raising substantial doubt about its ability to continue as a going concern[63] - The company recorded a loss on settlement of salary payable of $216,981 after issuing 6,571 shares of Series B Preferred Stock to settle a salary payable of $631,500 for the CEO and CFO[109] Technology and Innovation - The company is developing a Blockchain Platform Business Line to enhance its service offerings, indicating a strategic focus on technology innovation[26] - The implementation of advanced AI technologies in the metaverse aims to enhance user engagement through dynamic interactions with Non-Player Characters (NPCs)[137] Regulatory and Compliance - Certifications from the Chief Executive Officer and Chief Financial Officer were provided in accordance with the Sarbanes-Oxley Act of 2002[201] - The quarterly report for the period ended September 30, 2025, was formatted in XBRL[201]