IQST iQSTEL Inc (QX)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended June 30, 2024
☐	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to__________
	Commission File Number: 000-55984

 

iQSTEL Inc.

(Exact name of registrant as specified in its charter)

Nevada	45-2808620
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
300 Aragon Avenue, Suite 375 Coral Gables, FL 33134
(Address of principal executive offices)
(954) 951-8191
(Registrant’s telephone number)
_______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

[X] Yes [ ] No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  [X] Yes [ ] No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

☐   Large accelerated filer	☐   Accelerated filer
☒   Non-accelerated Filer	☒ Smaller reporting company
	☐   Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

[  ] Yes [X] No

 

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 183,532,742 common shares as of August 14, 2024

 

 

 

 

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	10
Item 4:	Controls and Procedures	10
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	11
Item 1A:	Risk Factors	11
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	11
Item 3:	Defaults Upon Senior Securities	11
Item 4:	Mine Safety Disclosures	11
Item 5:	Other Information	11
Item 6:	Exhibits	12

 

 

PART I - FINANCIAL INFORMATION

 

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 June 30, 2024 (unaudited) and December 31, 2023;
F-2	Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited);
F-3	Consolidated Statements of Stockholder’s Equity (Deficit) for the three and six months ended June 30, 2024 and 2023 (unaudited).
F-4	Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (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 June 30, 2024 are not necessarily indicative of the results that can be expected for the full year.

 

 

Item 1. Financial Statements

iQSTEL INC

Consolidated Balance Sheets

 (Unaudited)

 

		June 30,				December 31,
		2024				2023
ASSETS
Current Assets
Cash		$	797,227			$	1,362,668
Accounts receivable, net			13,765,855				12,539,774
Inventory			26,936				27,121
Due from related parties			661,087				340,515
Prepaid and other current assets			1,969,155				1,449,094
Total Current Assets			17,220,260				15,719,172
Property and equipment, net			583,314				522,997
Intangible asset			99,592				99,592
Goodwill			10,677,045				5,172,146
Deferred tax assets			426,755				426,755
Other asset			979,694				214,991
TOTAL ASSETS		$	29,986,660			$	22,155,653
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable		$	7,507,182			$	2,966,279
Accrued and other current liabilities			5,498,006				9,993,585
Due to related parties			26,613				26,613
Loans payable - net of discount of $143,197 and $3,750, respectively			2,544,878				264,988
Loans payable - related parties			1,092,766				259,447
Convertible note - net of discount of $726,900 and $39,012, respectively			3,555,006				330,032
Contingent liability for acquisition of subsidiary			1,000,000				—
Warrant liability			976,187				—
Total Current Liabilities			22,200,638				13,840,944
Loans payable, non-current			—				99,099
Employee benefits, non-current			214,143				169,738
TOTAL LIABILITIES			22,414,781				14,109,781
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, 31,080 shares issued and outstanding			31				31
Series C Preferred stock: 200,000 designated; $0.001 par value, No shares issued and outstanding			—				—
Series D Preferred stock: 75,000 designated; $0.001 par value, No shares issued and outstanding			—				—
Common stock: 300,000,000 authorized; $0.001 par value 179,557,200 and 172,129,630 shares issued and outstanding, respectively			179,557				172,130
Additional paid in capital			35,947,882				34,360,884
Accumulated deficit			(28,902,052	)			(26,084,133	)
Accumulated other comprehensive loss			(25,340	)			(25,340	)
Equity attributed to stockholders of iQSTEL Inc.			7,200,088				8,423,582
Equity (Deficit) attributable to noncontrolling interests			371,791				(377,710	)
TOTAL STOCKHOLDERS' EQUITY			7,571,879				8,045,872
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	29,986,660			$	22,155,653

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.   

 

 

iQSTEL INC

Consolidated Statements of Operations

   (Unaudited)  

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Revenues		$	78,635,764			$	32,824,829			$	130,050,642			$	57,491,358
Cost of revenue			76,472,140				32,040,363				126,507,992				55,490,156
Gross profit			2,163,624				784,466				3,542,650				2,001,202
Operating expenses
General and administration			2,505,727				1,037,184				4,068,205				2,571,450
Total operating expenses			2,505,727				1,037,184				4,068,205				2,571,450
Operating income (loss)			(342,103	)			(252,718	)			(525,555	)			(570,248	)
Other income (expense)
Other income			55,524				4,164				127,301				519
Other expenses			(443	)			(39,255	)			(850	)			(73,209	)
Interest expense			(496,080	)			(20,103	)			(861,554	)			(20,103	)
Change in fair value of derivative liabilities			(1,115,510	)			146,268				(1,115,510	)			342,575
Gain (loss) on settlement of debt			—				—				(102,660	)			—
Total other income (expense)			(1,556,509	)			91,074				(1,953,273	)			249,782
Net loss before provision for income taxes			(1,898,612	)			(161,644	)			(2,478,828	)			(320,466	)
Income taxes			(65,275	)			—				(65,275	)			—
Net loss			(1,963,887	)			(161,644	)			(2,544,103	)			(320,466	)
Less: Net income attributable to noncontrolling interests			44,265				52,301				273,816				256,664
Net loss attributed to iQSTEL Inc.		$	(2,008,152	)		$	(213,945	)		$	(2,817,919	)		$	(577,130	)
Comprehensive income (loss)
Net loss		$	(1,963,887	)		$	(161,644	)		$	(2,544,103	)		$	(320,466	)
Foreign currency adjustment			—				2,993				—				4,570
Total comprehensive loss			(1,963,887	)		$	(158,651	)		$	(2,544,103	)		$	(315,896	)
Less: Comprehensive income attributable to noncontrolling interests			44,265				53,767				273,816				258,903
Net comprehensive loss attributed to iQSTEL Inc.		$	(2,008,152	)		$	(212,418	)		$	(2,817,919	)		$	(574,799	)
Basic and diluted loss per common share		$	(0.01	)		$	(0.00	)		$	(0.02	)		$	(0.00	)
Weighted average number of common shares outstanding - Basic and diluted			178,445,909				164,636,688				176,799,415				164,346,860

  

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.   

   

 

iQSTEL INC

Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the three and six months ended June 30, 2024 and 2023  

 (Unaudited)

		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' Deficit
Balance - December 31, 2023			10,000			$	10				31,080			$	31				172,129,630			$	172,130			$	34,360,884			$	(26,084,133	)		$	(25,340	)		$	8,423,582			$	(377,710	)		$	8,045,872
Common stock issued for compensation			—				—				—				—				150,000				150				30,915				—				—				31,065				—				31,065
Common stock issued for settlement of debt			—				—				—				—				1,770,000				1,770				277,890				—				—				279,660				—				279,660
Common stock issued in conjunction with convertible notes			—				—				—				—				3,535,354				3,535				594,242				—				—				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				177,584,984			$	177,585			$	35,263,931			$	(26,893,900	)		$	(25,340	)		$	8,522,317			$	(148,159	)		$	8,374,158
Common stock issued for compensation			—				—				—				—				150,000				150				46,450				—				—				46,600				—				46,600
Common stock issued for warrant exercises			—				—				—				—				1,822,216				1,822				398,178				—				—				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				179,557,200			$	179,557			$	35,947,882			$	(28,902,052			$	(25,340	)		$	7,200,088			$	371,791			$	7,571,879

 

 

 

 

 

		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' Deficit
Balance - December 31, 2022			10,000			$	10				21,000			$	21				161,595,511			$	161,595			$	31,136,120			$	(24,504,395	)		$	(33,557	)		$	6,759,794			$	(924,377	)		$	5,835,417
Common stock issued for warrant exercises			—				—				—				—				2,941,177				2,942				397,058				—				—				400,000				—				400,000
Common stock issued for compensation			—				—				—				—				60,000				60				11,170				—				—				11,230				—				11,230
Resolution of derivative liabilities upon exercise of warrant			—				—				—				—				—				—				240,258				—				—				240,258				—				240,258
Foreign currency translation adjustments			—				—				—				—				—				—				—				—				804				804				773				1,577
Net income (loss)			—				—				—				—				—				—				—				(363,185	)			—				(363,185	)			204,363				(158,822)
Balance - March 31, 2023			10,000			$	10				21,000			$	21				164,596,688			$	164,597			$	31,784,606			$	(24,867,580	)		$	(32,753	)		$	7,048,901			$	(719,241	)		$	6,329,660
Common stock issued for compensation			—				—				—				—				60,000				60				6,840				—				—				6,900				—				6,900
Foreign currency translation adjustments			—				—				—				—				—				—				—				—				1,527				1,527				1,466				2,993
Net income (loss)			—				—				—				—				—				—				—				(213,945	)			—				(213,945	)			52,301				(161,644)
Balance - June 30, 2023			10,000			$	10				21,000			$	21				164,656,688			$	164,657			$	31,791,446			$	(25,081,525	)		$	(31,226	)		$	6,843,383			$	(665,474	)		$	6,177,909

 

The accompanying notes are an integral part of these unaudited consolidated financial statements. 

 

 

iQSTEL INC

Consolidated Statements of Cash Flows 

  (Unaudited)  

		Six Months Ended June 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(2,544,103	)		$	(320,466	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation			77,665				18,130
Bad debt expense			1,801				—
Depreciation and amortization			68,939				68,488
Amortization of debt discount			468,797				7,226
Change in fair value of derivative liabilities			1,115,510				(342,575	)
Loss on settlement of debt			102,660				—
Changes in operating assets and liabilities:
Accounts receivable			12,944,081				(589,928	)
Inventory			185				(1,995	)
Prepaid and other assets			(500,544	)			(75,867	)
Due from related parties			—				46,631
Accounts payable			(9,519,447	)			1,144,422
Accrued and other current liabilities			(5,367,232	)			(675,466	)
Net cash used in operating activities			(3,151,688	)			(721,400	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of subsidiary, net of cash received			(2,505,121	)			—
Purchase of property and equipment			(103,474	)			(132,249	)
Purchase of intangible assets			—				(149,537	)
Advances of loan receivable - related party			(111,602	)			—
Collection of amounts due from related parties			—				2,700
Net cash used in investing activities			(2,720,197	)			(279,086	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable			699,525				150,000
Repayments of loans payable			(147,253	)			(9,006	)
Proceeds from loans payable - related parties			1,000,000				—
Repayment of loans payable - related parties			(166,681	)			—
Proceeds from exercise of warrants			400,000				400,000
Proceeds from convertible notes			3,722,500				250,000
Proceeds from stock purchase option			100,000				—
Repayment of convertible notes			(301,647	)			—
Net cash provided by financing activities			5,306,444				790,994
Effect of exchange rate changes on cash			—				6,873
Net change in cash			(565,441	)			(202,619	)
Cash, beginning of period			1,362,668				1,329,389
Cash, end of period		$	797,227			$	1,126,770
Supplemental cash flow information
Cash paid for interest		$	289,493			$	6,600
Cash paid for taxes		$	—			$	—
Non-cash transactions:
Common stock issued for settlement of debt		$	279,660			$	—
Resolution of derivative liabilities upon exercise of warrants		$	239,323			$	240,258
Common stock issued in connection with convertible notes		$	597,777			$	—
Note payable issued for acquisition of subsidiary		$	2,000,000			$	—
Contingent liability for acquisition of subsidiary		$	1,000,000			$	—

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.   

 

 

iQSTEL INC

Notes to the Consolidated Financial Statements

June 30, 2024

 

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 400 active interconnection agreements with mobile companies, fixed line companies and other wholesale carriers.

 

The Company is a technology company with presence in 20 countries and over 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 the source for all of the Company’s revenues, 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.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.

 

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 June 30, 2024 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2024 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, 2023 filed with the SEC on April 1, 2024.

 

Reclassification

 

Certain accounts from prior periods have been reclassified to conform to the current period presentation.

 

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”) and QXTEL LIMITED (“QXTEL”). All significant intercompany balances and transactions have been eliminated in consolidation.

 

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.

 

Business Combinations

 

In accordance with 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.

   

Foreign Currency Translation and Re-measurement

 

The Company translates its foreign operations to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”.

 

The functional currency and reporting currency of Etelix, QGlobal, ItsBchain, IoT Labs, Whisl, Smartbiz, Global Money One and QXTEL is the U.S. dollar, while SwissLink’s functional currency was the Swiss Franc (“CHF”). As of January 1, 2024, we changed the functional currency of SwissLink from their respective local currency to the US dollar. The change in functional currency is due to increased exposure to the US dollar as a result of a change in facts and circumstances in the primary economic environment in which this subsidiary operates. The effects of the change in functional currency were not significant to our consolidated financial statements.

 

F-6

Table of Contents

 

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 $797,227 and $1,362,668 in cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively.

 

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 six months ended June 30, 2024 and 2023, the Company recorded bad debt expense of $1,801 and $0, respectively.

 

Net Income (Loss) Per Share of Common Stock

 

The Company has adopted 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 period. 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 it was excluded from the computation of diluted net loss per share as the result was anti-dilutive for the six months ended June 30, 2024 and 2023.

 

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 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.

 

During the six months ended June 30, 2024, 15 customers represented 86% of our revenue compared to 23 customers representing 87% of our revenue for the six months ended June 30, 2023. For the six months ended June 30, 2024 and 2023, 38% and 39% of the revenue comes from customers under prepayment conditions which means there is no credit or bad debt risk on that portion of the customers portfolio.

 

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:

 

F-7

Table of Contents

 

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; deposit for acquisition, 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.

 

Revenue Recognition

 

The Company recognizes revenue from telecommunication services in accordance with ASC 606, “Revenue from Contracts with Customers.”

 

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.

 

Recent Accounting Pronouncements

 

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which allows disclosure of one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires enhanced disclosures of significant segment expenses and other segment items, as well as incremental qualitative disclosures on both an annual and interim basis. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

 

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

  

F-8

Table of Contents

 

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 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 financed its operations through private placements, Regulation A offerings, related party loans, convertible notes, and unsecured debt. 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 June 30, 2024 and December 31, 2023 consisted of the following:

		June 30,				December 31,
		2024				2023
Other receivable		$	150,726			$	312,116
Prepaid expenses			1,285,619				738,050
Advance payment			21,000				21,000
Tax receivable			25,607				428
Deposit for acquisition of asset			357,500				357,500
Security deposit			128,703				20,000
Prepaid Expenses and Other Current Assets		$	1,969,155			$	1,449,094

 

NOTE 5 – PROPERTY AND EQUIPMENT

 

Property and equipment at June 30, 2024 and December 31, 2023 consisted of the following:

		June 30,				December 31,
		2024				2023
Telecommunication equipment		$	709,417			$	386,700
Telecommunication software			645,861				836,840
Other equipment			150,940				99,892
Total property and equipment			1,506,218				1,323,432
Accumulated depreciation and amortization			(922,904	)			(800,435	)
Total property and equipment		$	583,314			$	522,997

 

Depreciation expense for the six months ended June 30, 2024 and 2023 amounted to $68,939 and $68,488, respectively.

 

F-9

Table of Contents

 

NOTE 6 –LOANS PAYABLE

 

Loans payable at June 30, 2024 and December 31, 2023 consisted of the following:

 

		June 30,				December 31,						Interest
		2024				2023				Term		rate
Martus		$	103,738			$	103,738			Note was issued on October 23, 2018 and due on January 2, 2025			5.0	%
Darlene Covid19			89,866				99,099			Note was issued on April 1, 2020 and due on March 31, 2025			0.0	%
Promissory note payable			—				165,000			Note was issued April 4, 2023 and due on April 4, 2024			24.0	%
Future receipts loan			552,080				—			Loan was issued April 23, 2023 and due in February 26, 2025			Effective rate (1) 98.9	%
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			1,725,000				—			Note was issued April 1, 2024 and due on June 30, 2025			4.89	%
Total			2,688,075				367,837
Less: Unamortized debt discount			(143,197	)			(3,750	)
Total loans payable			2,544,878				364,087
Less: Current portion of loans payable			(2,544,878	)			(264,988	)
Long-term loans payable		$	—			$	99,099

 

(1)

The purchase price is $504,575, net of financing fee of $10,425, and the amount to be paid is $690,100. The monthly payment amount is $69,010.

 

During the six months ended June 30, 2024 and 2023, the Company repaid the principal amount of $147,253 and $9,006, respectively.

 

During the six months ended June 30, 2024, the Company settled 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.

  

F-10

Table of Contents

 

Loans payable - related parties at June 30, 2024 and December 31, 2023 consisted of the following:

 

		June 30,				December 31,						Interest
		2024				2023				Term		rate
49% of Shareholder of SwissLink		$	21,606			$	21,606			Note is due on demand			0	%
49% of Shareholder of SwissLink			237,841				237,841			Note is due on demand			5	%
Minority Shareholder of QXTEL			833,319				—			Note is due on October 1, 2025			4.89	%
Total			1,092,766				259,447
Less: Current portion of loans payable - related parties			1,092,766				259,447
Long-term loans payable - related parties		$	—			$	—

 

 

During the six months ended June 30, 2024 and 2023, the Company recorded interest expense of $47,665 and $9,460 and recognized amortization of discount, included in interest expense, of $68,519 and $3,750, respectively.

  

NOTE 7 - CONVERTIBLE NOTES

 

Convertible notes at June 30, 2024 and December 31, 2023 consisted of the following:

 

		June 30,				December 31,
		2024				2023
Issued in fiscal year 2023		$	109,494			$	369,044
Issued in fiscal year 2024			4,172,412				—
Total convertible notes payable			4,281,906				369,044
Less: Unamortized debt discount			(726,900	)			(39,012	)
Total convertible notes			3,555,006				330,032
Less: current portion of convertible notes			3,555,006				330,032
Long-term convertible notes		$	—			$	—

 

Issued in fiscal year 2023

 

During the year ended December 31, 2023, the Company borrowed $284,760 and $256,760 from a third party totaling $541,520, which includes original issue discount and financing costs of $66,520. The notes are due on June 1, 2024 and October 15, 2024, and a one-time interest charge of 12% shall be applied. Accrued, unpaid interest and outstanding principal shall be paid in 10 payments each in the amount of $31,893 and $28,757 beginning on July 16, 2023 and January 15, 2024. 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.

 

F-11

Table of Contents

 

Issued in fiscal year 2024

 

On 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 $0.11 per share. Each noteholder shall receive shares of common stock (“Kicker Shares”) in an amount equal to ten percent of the principal amount of any Note issued divided by $0.11. 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 2,020,200 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 1,010,101 and 505,051 Kicker Shares, with an original issue discount of $111,111 and $55,556, respectively. Each one year note bears interest at 18% per annum.

 

During the three months ended June 30, 2024, the Company borrowed $146,900 and $177,100 from a third party totaling $324,000, which includes original issue discount and financing costs of $49,000. The notes are due on January 15, 2025, and a one-time interest charge of 12% and 14%, respectively, shall be applied. Accrued, unpaid interest and outstanding principal on the $146,900 note shall be paid in 10 payments each in the amount of $16,453 beginning on April 15, 2024; accrued, unpaid interest and outstanding principal on the $177,100 note shall be paid in 5 payments, one payment of $100,947 and four payments of $25,237, beginning in September 2024. 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.

 

During the six months ended June 30, 2024 and 2023, the Company recorded interest expense of $345,092 and $3,417 and recognized amortization of discount, included in interest expense, of $400,278 and $3,476, respectively.

 

NOTE 8 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

The Company’s authorized capital consists of 300,000,000 shares of common stock with a par value of $0.001 per share.

 

During the six months ended June 30, 2024, the Company issued 7,427,570 shares of common stock, valued at fair market value on issuance as follows:

 

•

300,000 shares for compensation to our directors valued at $77,665

•

1,770,000 shares for settlement of debt valued at $279,660

•

3,535,354 shares in connection with convertible notes valued at $597,777; and

•

1,822,216 shares for exercise of warrants for $400,000

 

As of June 30, 2024 and December 31, 2023, 179,557,200 and 172,129,630 shares of common stock were issued and outstanding, respectively.

 

Preferred Stock

 

The Company’s authorized capital consists of 1,200,000 shares of preferred stock with a par value of $0.001 per share.

 

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

 

F-12

Table of Contents

 

As of June 30, 2024 and December 31, 2023, 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 one thousand (1,000) 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.

 

As of June 30, 2024 and December 31, 2023, 31,080 shares of Series B Preferred Stock were issued and outstanding.

 

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 one thousand (1,000) 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.

 

As of June 30, 2024 and December 31, 2023, no Series C Preferred Stock was issued or outstanding.

 

Series D Preferred Stock

 

On November 3, 2023, pursuant to Article III of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series D Preferred Stock, consisting of up 75,000 shares, par value $0.001. Under the Certificate of Designation, in the event of any dissolution, liquidation or winding up of the Corporation, the Holders of Series D Preferred Stock shall be entitled to participate in any distribution out of the assets of the Corporation before the holders of the Common Stock, Series A Preferred Stock and Series C Preferred Stock, but shall be considered on parity to the liquidation rights of the Series B Preferred Stockholders. The holders of shares of Series D 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 D Preferred Stock do not have voting rights but may convert into common stock at a conversion rate of one thousand (1,000) shares of Common Stock for every one (1) share of Series D Preferred Stock.

 

The rights of the holders of Series D Preferred Stock are defined in the relevant Certificate of Designation filed with the Nevada Secretary of State on November 3, 2023.

 

As of June 30, 2024 and December 31, 2023, no Series D Preferred Stock was issued or outstanding.

 

F-13

Table of Contents

 

NOTE 9 - RELATED PARTY TRANSACTIONS

 

Due from related party

 

As of June 30, 2024 and December 31, 2023, the Company had amounts due from related parties of $661,087 and $340,515, respectively. The loans are unsecured, non-interest bearing and due on demand.

  

Due to related parties

 

As of June 30, 2024 and December 31, 2023, the Company had amounts due to related parties of $26,613. The amounts are unsecured, non-interest bearing and due on demand.

 

Employment agreements

 

During the six months ended June 30, 2024 and 2023, the Company recorded management salaries of $423,000 and $270,000, respectively, and stock-based compensation bonuses of $77,665 and $18,130, respectively.

 

As of June 30, 2024 and December 31, 2023, the Company recorded and accrued management salaries of $205,627 and $100,128, respectively.

 

NOTE 10 – 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 six months ended June 30, 2024 and 2023, the Company incurred rent expense of $14,028 and $2,137, respectively.

 

NOTE 11 – ACQUISITION

 

On January 19, 2024, we entered into a Share Purchase Agreement (“Purchase Agreement”) with Yukon River Holdings, Ltd. (“Yukon River”), a corporation formed under the laws of the British Virgin Islands (“Seller”) concerning the contemplated sale by Seller and the purchase by us of 51% of the ordinary shares Seller holds in QXTEL LIMITED (“QXTEL”), a company incorporated in England and Wales.

 

The purchase price (the “Purchase Price”) payable to the Seller for the shares is $5,000,000. Upon the execution of the Purchase Agreement, we agreed to deposit $1,500,000 of the Purchase Price into the trust account of a law firm acting as escrow agent (the “Escrow Agent”) as a nonrefundable deposit to evidence our good faith intention to purchase the shares, which was credited against the Purchase Price.

 

At closing, in addition to the $1,500,000 with the Escrow Agent that formed part of the Purchase Price, we were required to pay $1,500,000 in cash and $2,000,000 to the Seller, either (A) in the form of a promissory note (the “Promissory Note”), or (B) by the delivery of iQSTEL shares to Seller. Seller could decide the form of payment between the Promissory Note or the shares of iQSTEL, and if a Promissory Note was chosen, we agreed to allow Seller the option to exchange the Promissory Note for shares of iQSTEL. On June 27, 2024, we entered into a second amendment to the Purchase Agreement (the “Amendment”) that required us to issue an amended and restated promissory note to the Seller. We have paid down $200,000 of the note, so the amended and restated promissory note was issued in the principal amount of US $1,800,000. The amended and restated promissory note also changed the payment structure, from installment payments of $200,000 for each of the months of May through November ($1,400,000) with a balloon payment of $600,000, to monthly installments of $75,000 plus interest during 2024, and $212,500 plus interest during the first 6 months of 2025.  We also revised the Earnout Payment due to the Seller. The Earnout Payment was redefined at $721,035 net income, to be achieved in Q2, Q3 and Q4 of 2024. The $1,000,000 payment that IQSTEL has to pay upon achievement of the Earnout Payment will be paid during the first half of 2025, in monthly installments.

 

F-14

Table of Contents

 

During the six months ended June 30, 2024, the Company repaid a note payable of $275,000.

 

The acquisition was closed on April 1, 2024. QXTEL has been included in our consolidated results of operations since the acquisition date.

 

The following table summarizes the fair value of the consideration paid by the Company:

 

		April 1,
Fair Value of Consideration:		2024
Cash		$	3,000,000
Promissory note			2,000,000
Contingent liability			1,000,000
Total Purchase Price		$	6,000,000

 

The following table summarizes the preliminary identifiable assets acquired and liabilities assumed upon acquisition of QXTEL and the calculation of goodwill:

 

Total purchase price		$	6,000,000
Cash			769,879
Accounts receivable			14,946,919
Due from related party			208,550
Other asset			214,564
Equipment			30,963
Total identifiable assets			16,170,875
Accounts payable			(14,796,505	)
Other current liabilities			(403,584	)
Total liabilities assumed			(15,200,089	)
Net assets			970,786
Non-controlling interest - 49%			475,685
Total net assets			495,101
Goodwill		$	5,504,899

 

Unaudited combined proforma results of operations for the six months ended June 30, 2024 and 2023 as though the Company acquired QXTEL on January 1, 2023, are set forth below:

		Six Months Ended
		June 30,
		2024				2023
Revenues		$	157,734,103			$	97,988,300
Cost of revenues			153,669,990				94,185,602
Gross profit			4,064,113				3,802,698
Operating expenses			4,696,867				3,992,419
Operating loss			(632,754	)			(189,721	)
Other income (expense)			(1,953,273	)			249,782
Income tax			(65,275	)			(94,225	)
Net Loss		$	(2,651,302	)		$	(34,164	)

 

F-15

Table of Contents

 

NOTE 12 - SEGMENT

 

At June 30, 2024 and December 31, 2023, the Company operates in one industry segment, telecommunication services, and three geographic segments, USA, UK and Switzerland, where current assets and equipment are located.

 

Operating Activities

 

The following table shows operating activities information by geographic segment for the three and six months ended June 30, 2024 and 2023:

 

Three months ended June 30, 2024

 

NOTE 12 - SEGMENT - Operating Activities by Geographic Segment
		USA				Switzerland				UK				Elimination				Total
Revenues		$	46,933,532				1,026,797				31,474,055			$	(798,620	)		$	78,635,764
Cost of revenue			45,956,484				883,919				30,430,357				(798,620	)			76,472,140
Gross profit			977,048				142,878				1,043,698				—				2,163,624
Operating expenses
General and administration			1,602,751				237,073				665,903				—				2,505,727
Operating income (loss)			(625,703	)			(94,195	)			377,795				—				(342,103	)
Other income (expense)			(1,597,506	)			47,525				(6,528	)			—				(1,556,509	)
Income tax expense			—				—				(65,275	)			—				(65,275	)
Net income (loss)		$	(2,223,209	)		$	(46,670	)		$	305,992			$	—			$	(1,963,887	)

 

Three months ended June 30, 2023

		USA				Switzerland				Elimination				Total
Revenues		$	32,960,138				1,334,080			$	(1,469,389	)		$	32,824,829
Cost of revenue			32,359,937				1,149,815				(1,469,389	)			32,040,363
Gross profit			600,201				184,265				—				784,466
Operating expenses
General and administration			845,485				191,699				—				1,037,184
Operating loss			(245,284	)			(7,434	)			—				(252,718	)
Other income (expense)			98,224				(7,150	)			—				91,074
Net loss		$	(147,060	)		$	(14,584	)		$	—			$	(161,644	)

 

F-16

Table of Contents

 

Six months ended June 30, 2024

		USA				Switzerland				UK				Elimination				Total
Revenues		$	99,044,789				2,062,716				31,474,055			$	(2,530,918	)		$	130,050,642
Cost of revenue			96,888,310				1,720,243				30,430,357				(2,530,918	)			126,507,992
Gross profit			2,156,479				342,473				1,043,698				—				3,542,650
Operating expenses
General and administration			2,958,757				443,545				665,903				—				4,068,205
Operating income (loss)			(802,278	)			(101,072	)			377,795				—				(525,555	)
Other income (expense)			(2,032,989	)			86,244				(6,528	)			—				(1,953,273	)
Income tax expense			—				—				(65,275	)			—				(65,275	)
Net income (loss)		$	(2,835,267	)		$	(14,828	)		$	305,992			$	—			$	(2,544,103	)

 

Six months ended June 30, 2023

		USA				Switzerland				Elimination				Total
Revenues		$	57,807,809				2,681,515			$	(2,997,966	)		$	57,491,358
Cost of revenue			56,185,823				2,302,299				(2,997,966	)			55,490,156
Gross profit			1,621,986				379,216				—				2,001,202
Operating expenses
General and administration			2,196,441				375,009				—				2,571,450
Operating (loss) income			(574,455	)			4,207				—				(570,248	)
Other income (expense)			273,179				(23,397	)			—				249,782
Net loss		$	(301,276	)		$	(19,190	)		$	—			$	(320,466	)

 

Asset Information

 

The following table shows asset information by geographic segment as of June 30, 2024 and December 31, 2023:

June 30, 2024		USA				Switzerland				UK				Elimination				Total
Assets
Current assets		$	9,072,423			$	763,359			$	7,997,811			$	(613,333	)		$	17,220,260
Non-current assets		$	23,368,080			$	828,551			$	754,331			$	(12,184,562	)		$	12,766,400
Liabilities
Current liabilities		$	13,806,116			$	1,576,897			$	7,430,958			$	(613,333	)		$	22,200,638
Non-current liabilities		$	139			$	169,599			$	44,405			$	—			$	214,143

 

December 31, 2023		USA				Switzerland				Elimination				Total
Assets
Current assets		$	14,537,969			$	1,874,627			$	(693,424	)		$	15,719,172
Non-current assets		$	11,810,606			$	810,437			$	(6,184,562	)		$	6,436,481
Liabilities
Current liabilities		$	11,978,244			$	2,556,124			$	(693,424	)		$	13,840,944
Non-current liabilities		$	139			$	268,698			$	—			$	268,837

  

F-17

Table of Contents

 

NOTE 13 – WARRANTS

 

On February 12, 2024, we issued a Common Stock Purchase Option (the “Option”) to ADI Funding LLC (“ADI Funding”) for $100,000 that expires on December 31, 2024, for the right to acquire up to 10,000,000 shares of common stock. The exercise price per share of the common stock under the Option shall be (i) 70% of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is below $2.00 or (ii) seventy five percent (75%) of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is equal or above $2.00.

 

ADI Funding has the right and the obligation to exercise, on a “cash basis”, not less than (i) 2,000,000 of the shares of common stock underlying the option not later than the later of March 31, 2024 or the date on which there is an effective registration statement permitting the resale of the shares by ADI Funding. From and after the occurrence of the above-referenced exercise, each additional exercise of the Option shall be in an amount not less than 1,000,000 shares, which shall occur every thirty (30) days and shall be exercised only on a cash basis. ADI Funding’s obligation to exercise each specified portion of the Option is subject to the exercise price being not less than $0.11

 

If the Company issues securities less than the exercise price of the option, ADI Funding has a right to also use that lesser price in the exercise of its Option. The Option also contains rights to any company distributions and consideration in fundamental transactions.

 

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

 

The Company determined that the warrants had net cash settlement and categorized the warrants as a liability in the accompanying consolidated financial statements.

 

A summary of activity regarding warrants issued as follows:

							Weighted Average Remaining
			Warrants outstanding				Contractual life (in years)
Outstanding, December 31, 2023				—				—
Granted				10,000,000				0.88
Exercised				(1,822,216	)			—
Forfeited/canceled				—				—
Outstanding, June 30, 2024				8,177,784				0.50

 

The intrinsic value of the warrants as of June 30, 2024 is approximately $680,000. All of the outstanding warrants are exercisable as of June 30, 2024; however, each exercise is subject to a beneficial ownership limitation of 4.99% of the Company’s outstanding common stock, which, upon notice, may be increased to 9.99%.

 

Fair Value Assumptions Used in Accounting for Derivative Liabilities

 

ASC 815 requires we assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.

 

F-18

Table of Contents

 

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of June 30, 2024. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. 

As of June 30, 2024, the estimated fair values of the liabilities measured on a recurring basis are as follows:

 

		As of June 30, 2024
Expected term		0.50 - 0.65 years
Exercise price		$0.17 –$0.23
Expected average volatility		108% - 117%
Expected dividend yield		—
Risk-free interest rate		5.33% - 5.44%

 

The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2024:

 

Fair Value Measurements Using Significant Observable Inputs (Level 3)
Balance - December 31, 2023		$	—
Addition of new derivatives recognized as cash received			100,000
Settled on issuance of common stock			(239,323	)
Change in fair value of derivative liabilities			1,115,510
Balance - June 30, 2024		$	976,187

 

NOTE 14 – SUBSEQUENT EVENTS

 

Subsequent to June 30, 2024, and through the date that these financials were made available, the Company had the following subsequent events:

  

On May 10, 2024, the Company entered into a Purchase Company Agreement (“Purchase Company Agreement”) with Omar Luna and Lynk Holding LLC (together, the “Seller”) concerning the sale by Seller and the purchase by us of 51% of the membership interests the Seller holds in Lynk Telecom, LLC, a Virginia limited liability company (“Lynk Telecom”). The closing of the Purchase Company Agreement is expected to occur, once due diligence has been completed, during the third quarter of fiscal year 2024, although there are no assurances that the deal will close as planned.

 

Lynk Telecom provides certified business telephone, SMS, connectivity, and networking services across various sectors in the United States. Lynk Holding LLC recently acquired selected assets from a company known as Voyce Telecom, and Lynk Holding LLC has the obligation to pay the shareholders of Voyce Telecom the purchase price in that acquisition, which is outstanding.

 

The Purchase Price for 51% of the membership interests of Lynk Telecom is US $1,500,000, and this amount will be paid by the Seller to the Buyer in 12 consecutive monthly cash payments of US$ 125,000 each. The Seller agrees to use these funds for the amortization of the payments that it owes to Voyce in relation to the contract between Lynk Holding and Voyce Telecom.

 

F-19

Table of Contents

 

Once we have paid the $1,500,000 for the acquisition of Lynk Telecom, and Lynk Telecom has achieved the business goals outlined in the Purchase Company Agreement, under what we refer to as “Phase I,” we have agreed to lend up to US$1,500,000 to Lynk Telecom, in installments of up to US$100,000 per month, to be used solely for marketing campaigns, promotion and development of the retail services, according to a business plan that has to be approved by Lynk Telecom’s board of directors.

 

The disbursements of this loan will be subject to the achievements of the quarterly goals set in the business plan of Lynk Telecom. This retail business plan will have the aim of achieving the objective of generating a minimum of US$200,000 in operating income per month, with intermediate staggered quarterly goals.

 

Upon the completion of Phase I, and the business goals in the Purchase Company Agreement have been achieved, we have agreed to lend Lynk Telecom up to US$1,500,000 in at least three stages, each of up to US$500,000 per year to help accelerate the amortization of the debt Lynk Holding LLC has with the Voyce Telecom shareholders. These loans would be linked to compliance with the financial statements for fiscal years 2026, 2027, 2028, 2029 and 2030. The goals for these years will be defined posteriori by the parties and approved by Lynk Telecom’s Board of Directors. The payment of this loan will be guaranteed with the portion of dividends that correspond to Lynk Holding LLC when Lynk Telecom makes a dividend distribution.

 

If, as a result of operations, Lynk Telecom does not reach the projections in the Purchase Company Agreement, and the business plan for the years 2026, 2027, 2028, 2029 and 2030 approved by Lynk Telecom´s Board of Directors, we may retain the stipulated loan. If Lynk Telecom surpassed the projections in the Purchase Company Agreement, we have agreed to true up the purchase price, with details of the true up contained in the Purchase Company Agreement.

 

Once this Purchase Company Agreement is signed, the manager of Lynk Telecom, Omar Luna, is expected to enter into a 3-year employment agreement with Lynk Telecom, that will be executed before the closing date, renewable for a 2-year period to guarantee the operational continuity of Lynk Telecom and the implementation of a business plan that will lead Lynk Telecom into a productive company with positive net income as established in the Purchase Company Agreement.

 

Lynk Telecom shall have a Board of Directors composed of 3 members: 2 of the members shall be appointed by us and the remaining member shall be appointed by the Seller. The position of President and Secretary will be reserved for us.

 

The closing of the Purchase Agreement is subject to, among other things, Lynk Telecom having prepared all accounting information in accordance with SEC standards in such a manner that any audit of the Company, if required, may be performed.

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

 

Overview

 

iQSTEL Inc. (www.iqstel.com) is a technology company with a presence in 20 countries and over 100 employees that is offering leading-edge services through its four 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), QGlobal SMS (www.qglobalsms.com), and QXTEL Limited (www.qxtel.com).

 

Also under the Telecom Division, 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 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 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 developing Artificial Intelligence (AI)-Enhanced Metaverse Division (information and content) (www.realityborder.com) 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.

 

 

Our metaverse leverages advanced AI to introduce Non-Player Characters (NPCs) that significantly enhance user engagement and functionality within virtual environments. These NPCs are not mere static elements; rather, they are powered by OpenAI's latest language models, enabling dynamic interaction with users. This AI-driven interaction allows NPCs to serve as sales and brand assistants, guiding users through immersive experiences that can extend to purchasing products from external websites. Furthermore, these intelligent agents can control access to gated spaces within the metaverse based on user interactions, showcasing a personalized approach to user experience.

 

A key innovation in our AI implementation is the NPCs' ability to autonomously make decisions based on their understanding of user interactions. This is achieved through state-of-the-art natural language processing and understanding capabilities, which are supported in seven languages. Additionally, our NPCs utilize advanced text-to-speech and speech-to-text technologies to facilitate seamless communication with users across diverse linguistic backgrounds. The incorporation of "function call" features further enhances the NPCs' ability to perform complex tasks and interact meaningfully with the environment and the users.

 

Our reference to our technology as "cutting-edge" is grounded in our commitment to continuous improvement and innovation. We consistently integrate the latest advancements in AI, particularly in the areas of chatbots, language understanding, and user interaction technologies. This ensures that our metaverse remains at the forefront of AI application in virtual spaces, offering an unparalleled user experience that goes beyond traditional virtual environments.

 

We are currently in an advanced phase of development, with ongoing enhancements to AI functionalities and user interaction models. Our team is dedicated to exploring and implementing the latest AI technologies to ensure that our metaverse remains a leading example of innovation in virtual space technology.

 

The information contained on our websites is not incorporated by reference into this prospectus and should not be considered part of this or any other report filed with the SEC.

 

Results of Operations

 

Revenues

 

Our total revenue reported for the three months ended June 30, 2024 was $78,635,764, compared with $32,824,829 for the three months ended June 30, 2023. These numbers reflect an increase of 139.56% quarter over quarter on our consolidated revenues. Our total revenue reported for the six months ended June 30, 2024 was $130,050,642, compared with $57,491,358 for the six months ended June 30, 2023; an increase of 126.21%.

When looking at the numbers by subsidiary, we have the following breakout for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023:

		Revenue for the Three Months Ended June								Revenue for the Six Months Ended June
Subsidiary		2024				2023				2024				2023
Etelix.com USA, LLC		$	14,381,303			$	10,692,139			$	33,011,213			$	15,041,124
SwissLink Carrier AG			901,198				1,273,004				1,875,932				2,548,289
QGlobal LLC			422,982				211,258				790,242				296,309
IoT Labs LLC			24,448,290				17,215,267				48,786,489				32,476,549
Smartbiz Telecom			6,210,123				2,935,867				12,391,570				6,327,107
Whisl Telecom			800,003				497,294				1,723,331				801,980
QXTEL Limited			31,471,866				—				31,471,866				—
		$	78,635,764			$	32,824,829			$	130,050,642			$	57,491,358

 

The increase in revenue is due to an increment in the commercial efforts and the result of commercial synergies amongst all companies. The organic growth during the three-months ended June 30, 2024 was 60% of the total revenue for that period, while the newly acquired company QXTEL Limited contributed with 40% of the total revenue.

 

 

When looking at the figures for the six months ended June 30, 2024, the organic growth was 76%, while QXTEL Limited contributed 24%.

 

We consider organic growth the revenues reported by our existing subsidiaries; including Etelix, SwissLink, QGlobal, IoT Labs, Smartbiz and Whisl.

The continued growth of our revenue is the result of the development of our business strategy, which includes the strengthening of our commercial and operating activities and new acquisitions.

 

Cost of Revenue

 

Our total cost of revenue for the three months ended June 30, 2024 increased to $76,472,140, compared with $32,040,363 for the three months ended June 30, 2023. Our total cost of revenue for the six months ended June 30, 2024 increased to $126,507,992, compared with $55,490,156 for the six months ended June 30, 2023.

 

When looking at the numbers by subsidiary, we have the following breakout for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023:

 

		Cost of Revenue for the Three Months Ended June								Cost of Revenue for the Six Months Ended June
Subsidiary		2024				2023				2024				2023
Etelix.com USA, LLC		$	14,089,625			$	10,019,546			$	31,922,561			$	13,784,019
SwissLink Carrier AG			829,267				1,055,418				1,599,435				2,159,275
QGlobal LLC			299,915				142,330				542,332				193,879
IoT Labs LLC			24,230,045				17,211,748				48,026,620				32,090,649
Smartbiz Telecom			6,074,427				3,125,835				12,339,173				6,209,129
Whisl Telecom			526,551				485,486				1,655,561				1,053,205
QXTEL Limited			30,422,311				—				30,422,311				—
		$	76,472,140			$	32,040,363			$	126,507,992			$	55,490,156

 

Our cost of revenue consists of direct charges from vendors that the Company incurs to deliver services to its customers. These costs primarily consist of usage charges for calls and SMS terminated in vendor’s network.

 

The behavior in the costs shows a logical correlation with the behavior of the revenue commented above. We have reached a higher volume of sales and every additional unit sold (minutes and SMS) has its corresponding termination cost.

 

Gross Margin

 

The Consolidated Gross Margin for the three months ended June 30, 2024 was 2.75%, which compared to 2.39% for the three months ended June 30, 2023 represents an increase in our consolidated Gross Margin of 15.13%.

 

The Consolidated Gross Margin for the six months ended June 30, 2024 was 2.72%, which compared to 3.48% for the six months ended June 30, 2023.

 

The decrease in the Gross Margin is due to the decrease in the margins of voice services, which is an expected trend in the industry. To offset this trend, the Company has implemented a plan to modify the composition of the product portfolio by increasing SMS businesses that have increasing margins. As an example, we can indicate that for the six months ended on June 30, 2024, the contribution to the margin of the SMS business with respect to the total was 24% compared to only 8% for the same period in 2023. With the incorporation of QXTEL and the increase in the QGlobal SMS business, the gross margin of our SMS services portfolio increased by 297% when comparing the figures of June 2024 vs. June 2023.

 

Operating Expenses

 

Operating expenses, consisting entirely of general and administrative expenses, increased to $2,505,727 for the three months ended June 30, 2024 from $1,037,184 for the three months ended June 30, 2023. Operating expenses, consisting entirely of general and administrative expenses, increased to $4,068,205 for the six months ended June 30, 2024 from $2,571,450 for the six months ended June 30, 2023. The detail by major category for the six months ended June 30, 2024 and 2023 is reflected in the table below.

 

 

		Six Months Ended June 30,
		2024				2023
Salaries, Wages and Benefits		$	1,143,692			$	881,830
Technology			542,140				185,975
Professional Fees			1,064,047				586,726
Legal & Regulatory			151,639				110,179
Travel & Events			97,489				102,356
Public Cost			85,378				18,083
Advertising			501,997				405,537
Bank Services and Fees			121,566				25,709
Depreciation and Amortization			68,939				68,488
Office, Facility and Other			190,132				160,010
Insurances			21,720				8,427
Bad debt expense			1,801				—
Sub Total			3,990,540				2,553,320
Stock-based compensation			77,665				18,130
Total Operating Expense		$	4,068,205			$	2,571,450

                            

When looking at the numbers by subsidiary, we have the following breakout for the six months ended June 30, 2024 compared to the six months ended June 30, 2023:

 

		Six Months Ended June 30,
		2024				2023				Difference
iQSTEL		$	1,420,141			$	1,027,793			$	392,348
Etelix			182,516				207,309				-24,793
Swisslink			443,546				375,008				68,538
ItsBchain			14,384				22,019				-7,635
QGlobal			262,845				119,035				143,810
IoT Labs			134,718				115,013				19,705
Global Money One			400				60,799				-60,399
Smartbiz Telecom			461,282				316,129				145,153
Whisl Telecom			482,470				328,345				154,125
QXTEL Limited			665,903				—				665,903
		$	4,068,205			$	2,571,450			$	1,496,755

 

During the three months ended June 30, 2024 we were consolidating QXTEL from April 1 to June 30. This new subsidiary was not present before the mentioned period which explains 44% of the total $1,496,755 expense increase in the total consolidated figures for 2024 compared to the same period in 2023.

 

Operating Income

 

The Company had an operating loss for the three months ended June 30, 2024 of $342,103 compared with an operating loss of $252,718 for the three months ended June 30, 2023.

 

The Company had an operating loss for the six months ended June 30, 2024 of $525,555 compared with an operating loss of $570,248 for the six months ended June 30, 2023.

 

 

Our Telecom Division, the division presently generating revenue, has operating income when presented separately from the rest of our Company. The expenses of our pre-revenue companies are set at the minimum required to finish the development of the product/services prior to market launch. When comparing the tables below, we can see a tremendous evolution of our telecom division comparing the revenues, gross profit and operating income for the three and six months ended June 30, 2024 versus the same periods of year 2023. As we have indicated on several occasions, our strategy is to strengthen our telecommunications division so that it can serve as a lever for the development of new lines of business.

 

		Telecom Division								Pre-revenue companies								iQSTEL								Consolidated
		Three Months Ended June 30, 2024				Six Months Ended June 30, 2024				Three Months Ended June 30, 2024				Six Months Ended June 30, 2024				Three Months Ended June 30, 2024				Six Months Ended June 30, 2024				Three Months Ended June 30, 2024				Six Months Ended June 30, 2024
Revenues			78,635,764				130,050,642				—				—				—				—				78,635,764				130,050,642
Cost of revenue			76,472,140				126,507,992				—				—				—				—				76,472,140				126,507,992
Gross profit			2,163,624				3,542,650				—				—				—				—				2,163,624				3,542,650
Operating expenses
General and administration			1,738,878				2,633,280				4,118				14,784				762,731				1,420,141				2,505,727				4,068,205
Total Operating Expenses			1,738,878				2,633,280				4,118				14,784				762,731				1,420,141				2,505,727				4,068,205
Operating  income/(loss)			424,746				909,370				(4,118	)			(14,784	)			(762,731	)			(1,420,141	)			(342,103	)			(525.555	)

 

 

		Telecom Division								Pre-revenue companies								iQSTEL								Consolidated
		Three Months Ended June 30, 2023				Six Months Ended June 30, 2023				Three Months Ended June 30, 2023				Six Months Ended June 30, 2023				Three Months Ended June 30, 2023				Six Months Ended June 30, 2023				Three Months Ended June 30, 2023				Six Months Ended June 30, 2023
Revenues			32,824,829				57,491,358				—				—				—				—				32,824,829				57,491,358
Cost of revenue			32,040,363				55,490,156				—				—				—				—				32,040,363				55,490,156
Gross profit			784,466				2,001,202				—				—				—				—				784,466				2,001,202
Operating expenses
General and administration			646,362				1,460,839				27,580				82,818				363,240				1,027,793				1,037,182				2,571,450
Total Operating Expenses			646,362				1,460,839				27,580				82,818				363,240				1,027,793				1,037,182				2,571,450
Operating  income/(loss)			138,104				540,363				(27,580	)			(82,818	)			(363,240	)			(1,027,793	)			(252,716	)			(570,248	)

 

 

Other Expenses/Other Income

 

We had other expenses of $1,556,509 for the three months ended June 30, 2024, as compared with other income of $91,074 for the same period ended 2023. We had other expenses of $1,953,273 for the six months ended June 30, 2024, as compared with other income of $249,782 for the same period ended 2023. The increase in other expenses is mainly due to the change in the fair value of derivative liabilities, and the interest expenses incurred. Both concept are related to the financing structure put in place for the acquisition of QXTEL Limited, which has had a positive impact in the revenues and operating income of the Telecom Division, and also a positive impact in our balance sheet.

 

Net Loss

 

We finished the three months ended June 30, 2024 with a loss of $1,963,887, as compared to a loss of $161,644 during the three months ended June 30, 2023. We finished the six months ended June 30, 2024 with a loss of $2,544,103, as compared to a loss of $320,466 during the six months ended June 30, 2023.

 

The net results of the periods reported are highly impacted by the expenses in the holding entity (iQSTEL), which has a high component of interest and other financial expenses related to the funds borrowed for the acquisition of QXTEL Limited.

 

Liquidity and Capital Resources

 

As of June 30, 2024, we had total current assets of $17,220,260 and current liabilities of $22,200,638, resulting in a negative working capital of $4,980,378. This negative working capital is driven largely by the $3,555,006 of current convertible notes, derivative liabilities of $976,187 and contingent liability for the acquisition of QXTEL of $1,000,000.

 

Our operating activities used $3,151,688 in the six months ended June 30, 2024 as compared with $721,400 used in operating activities in the six months ended June 30, 2023. Our negative operating cash flow for both periods is a result of our net loss and changes in operating assets and liabilities.

 

Investing activities used $2,720,197 for the six months ended June 30, 2024 compared to $279,086 used during the same period of year 2023. For the six months ended June 30, 2024 the use of funds in investing activities consisted primarily of the acquisition of QXTEL Limited.

Financing activities provided $5,306,444 in the six months ended June 30, 2024 compared with $790,994 provided in the six months ended June 30, 2023. Our positive financing cash flow in 2024 is mainly the result of proceeds from loans, and proceeds from convertible notes.

 

We intend to fund operations through increased sales and debt and/or equity financing arrangements to strengthen our liquidity and capital resources. We also plan to seek additional financing in public and private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

 

Inflation

 

Although our operations are influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during the six-month period ended June 30, 2024.

  

Critical Accounting Polices

 

A “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

 

 

Our accounting policies are discussed in detail in the footnotes to our financial statements included in this Quarterly Report on Form 10-Q for the six months ended June 30, 2024; however, we consider our critical accounting policies to be those related to allowance for doubtful accounts, valuation of long-lived assets, and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. See the Consolidated Financial Statements in this Quarterly Report for a complete discussion of our significant accounting policies.

 

Off Balance Sheet Arrangements

 

As of June 30, 2024, there were no off-balance sheet arrangements.

 

Recent Accounting Pronouncements

 

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operation, financial position, or cash flow.

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

We are a smaller reporting company and are not required to provide the information under this item pursuant to Regulation S-K.

 

Item 4.  Controls and Procedures

 

Disclosure Controls and Procedures - Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this report.

 

These controls are designed to ensure that information required to be disclosed in the reports we file or submit pursuant to the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

 

Based on this evaluation, our CEO and CFO have concluded that our disclosure controls and procedures were ineffective as of June 30, 2024. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

 

We believe that our financial statements presented in this quarterly report on Form 10-Q fairly present, in all material respects, our financial position, results of operations, and cash flows for all periods presented herein.

 

Inherent Limitations - Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls and procedures will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdown can occur because of simple error or mistake. In particular, many of our current processes rely upon manual reviews and processes to ensure that neither human error nor system weakness has resulted in erroneous reporting of financial data.

 

Changes in Internal Control over Financial Reporting - There were no changes in our internal control over financial reporting during the six-month period ended June 30, 2024, which were identified in conjunction with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are not a party to any material pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

 

Item 1A: Risk Factors

 

See Risk Factors contained in our Form 10-K filed with the SEC on April 1, 2024.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

The information set forth below relates to our issuances of securities without registration under the Securities Act of 1933 in reliance on Section 4(a)(2) of the Securities Act, and/or Regulation D promulgated thereunder.

 

During the six months ended June 30, 2024, the Company issued 7,427,570 shares of common stock, valued at fair market value on issuance as follows:

 

•

300,000 shares for compensation to our directors valued at $77,665

•

1,770,000 shares for settlement of debt valued at $279,660

•

3,535,354 shares in connection with convertible notes valued at $597,777; and

•

1,822,216 shares for exercise of warrants for $400,000

 

Item 3. Defaults upon Senior Securities

 

None

 

Item 4. Mine Safety Disclosures

 

N/A

 

Item 5. Other Information

 

None

 

 

Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 formatted in Extensible Business Reporting Language (XBRL).
	**Provided herewith

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on August 14, 2024 on its behalf by the undersigned thereunto duly authorized.

 

IQSTEL INC.
/s/Leandro Iglesias
Leandro Iglesias Principal Executive Officer
/s/ Alvaro Quintana Cardona
Alvaro Quintana Cardona Principal Financial and Accounting Officer

 

 

 

 

 

CERTIFICATIONS

 

I, Leandro Iglesias, certify that;

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 of iQSTEL Inc. (the “registrant”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 14, 2024

 

/s/ Leandro Iglesias

By: Leandro Iglesias

Title: Chief Executive Officer

CERTIFICATIONS

 

I, Alvaro Quintana Cardona, certify that;

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 of iQSTEL Inc. (the “registrant”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 14, 2024

 

/s/ Alvaro Quintana Cardona

By: Alvaro Quintana Cardona

Title: Chief Financial Officer

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of iQSTEL, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 filed with the Securities and Exchange Commission (the “Report”), I, Leandro Iglesias, Chief Executive Office, and I, Alvaro Quintana Cardona, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

 

By:	/s/ Leandro Iglesias
Name:	Leandro Iglesias
Title:	Principal Executive Officer
Date:	August 14, 2024
By:	/s/ Alvaro Quintana Cardona
Name:	Alvaro Quintana Cardona
Title:	Principal Financial Officer
Date:	August 14, 2024

 

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

v3.24.2.u1

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-55984
Entity Registrant Name	iQSTEL Inc.
Entity Central Index Key	0001527702
Entity Tax Identification Number	45-2808620
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	300 Aragon Avenue
Entity Address, Address Line Two	Suite 375
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33134
City Area Code	954
Local Phone Number	951-8191
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		183,532,742

v3.24.2.u1

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash	$ 797,227	$ 1,362,668
Accounts receivable, net	13,765,855	12,539,774
Inventory	26,936	27,121
Due from related parties	661,087	340,515
Prepaid and other current assets	1,969,155	1,449,094
Total Current Assets	17,220,260	15,719,172
Property and equipment, net	583,314	522,997
Intangible asset	99,592	99,592
Goodwill	10,677,045	5,172,146
Deferred tax assets	426,755	426,755
Other asset	979,694	214,991
TOTAL ASSETS	29,986,660	22,155,653
Current Liabilities
Accounts payable	7,507,182	2,966,279
Accrued and other current liabilities	5,498,006	9,993,585
Due to related parties	26,613	26,613
Loans payable - net of discount of $143,197 and $3,750, respectively	2,544,878	264,988
Loans payable - related parties	1,092,766	259,447
Convertible note - net of discount of $726,900 and $39,012, respectively	3,555,006	330,032
Contingent liability for acquisition of subsidiary	1,000,000
Warrant liability	976,187
Total Current Liabilities	22,200,638	13,840,944
Loans payable, non-current		99,099
Employee benefits, non-current	214,143	169,738
TOTAL LIABILITIES	22,414,781	14,109,781
Stockholders' Equity
Common stock: 300,000,000 authorized; $0.001 par value 179,557,200 and 172,129,630 shares issued and outstanding, respectively	179,557	172,130
Additional paid in capital	35,947,882	34,360,884
Accumulated deficit	(28,902,052)	(26,084,133)
Accumulated other comprehensive loss	(25,340)	(25,340)
Equity attributed to stockholders of iQSTEL Inc.	7,200,088	8,423,582
Equity (Deficit) attributable to noncontrolling interests	371,791	(377,710)
TOTAL STOCKHOLDERS' EQUITY	7,571,879	8,045,872
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	29,986,660	22,155,653
Series A Preferred Stock [Member]
Stockholders' Equity
Preferred stock: 1,200,000 authorized; $0.001 par value	10	10
Series B Preferred Stock [Member]
Stockholders' Equity
Preferred stock: 1,200,000 authorized; $0.001 par value	31	31
Series C Preferred Stock [Member]
Stockholders' Equity
Preferred stock: 1,200,000 authorized; $0.001 par value
Series D Preferred Stock [Member]
Stockholders' Equity
Preferred stock: 1,200,000 authorized; $0.001 par value

v3.24.2.u1

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jan. 07, 2021	Nov. 11, 2020
Debt Instrument, Unamortized Discount	$ 143,197	$ 3,750
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ 726,900	$ 39,012
Preferred Stock, Shares Authorized	1,200,000	1,200,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	179,557,200	172,129,630
Common Stock, Shares, Outstanding	179,557,200	172,129,630
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized	10,000	10,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Series B Preferred Stock [Member]
Preferred Stock, Shares Authorized	200,000	200,000		200,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001		$ 0.001
Series C Preferred Stock [Member]
Preferred Stock, Shares Authorized	200,000	200,000	200,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.001
Series D Preferred Stock [Member]
Preferred Stock, Shares Authorized	75,000	75,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001

v3.24.2.u1

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 78,635,764	$ 32,824,829	$ 130,050,642	$ 57,491,358
Cost of revenue	76,472,140	32,040,363	126,507,992	55,490,156
Gross profit	2,163,624	784,466	3,542,650	2,001,202
Operating expenses
General and administration	2,505,727	1,037,184	4,068,205	2,571,450
Total operating expenses	2,505,727	1,037,184	4,068,205	2,571,450
Operating income (loss)	(342,103)	(252,718)	(525,555)	(570,248)
Other income (expense)
Other income	55,524	4,164	127,301	519
Other expenses	(443)	(39,255)	(850)	(73,209)
Interest expense	(496,080)	(20,103)	(861,554)	(20,103)
Change in fair value of derivative liabilities	(1,115,510)	146,268	(1,115,510)	342,575
Gain (loss) on settlement of debt			(102,660)
Total other income (expense)	(1,556,509)	91,074	(1,953,273)	249,782
Net loss before provision for income taxes	(1,898,612)	(161,644)	(2,478,828)	(320,466)
Income taxes	(65,275)		(65,275)
Net loss	(1,963,887)	(161,644)	(2,544,103)	(320,466)
Less: Net income attributable to noncontrolling interests	44,265	52,301	273,816	256,664
Net loss attributed to iQSTEL Inc.	(2,008,152)	(213,945)	(2,817,919)	(577,130)
Comprehensive income (loss)
Foreign currency adjustment		2,993		4,570
Total comprehensive loss	(1,963,887)	(158,651)	(2,544,103)	(315,896)
Less: Comprehensive income attributable to noncontrolling interests	44,265	53,767	273,816	258,903
Net comprehensive loss attributed to iQSTEL Inc.	$ (2,008,152)	$ (212,418)	$ (2,817,919)	$ (574,799)
Basic and diluted loss per common share	$ (0.01)	$ (0.00)	$ (0.02)	$ (0.00)
Weighted average number of common shares outstanding - Basic and diluted	178,445,909	164,636,688	176,799,415	164,346,860

v3.24.2.u1

Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Preferred Stock [Member] Series A Preferred Stock [Member]	Preferred Stock [Member] Series B Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Comprehensive Income [Member]	AOCI Including Portion Attributable to Noncontrolling Interest [Member]	Noncontrolling Interest [Member]	Total
Balance - March 31, 2023 at Dec. 31, 2022	$ 10	$ 21	$ 161,595	$ 31,136,120	$ (24,504,395)	$ (33,557)	$ 6,759,794	$ (924,377)	$ 5,835,417
Shares, Issued at Dec. 31, 2022	10,000	21,000	161,595,511
Common stock issued for compensation			$ 60	11,170			11,230		11,230
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			60,000
Common stock issued for warrant exercises			$ 2,942	397,058			400,000		400,000
Stock Issued During Period, Shares, Conversion of Convertible Securities			2,941,177
Net income (loss)					(363,185)		(363,185)	204,363	(158,822)
Resolution of derivative liabilities upon exercise of warrant				240,258			240,258		240,258
[custom:ResolutionOfDerivativeLiabilitiesShares]
Foreign currency translation adjustments						804	804	773	1,577
Balance - June 30, 2023 at Mar. 31, 2023	$ 10	$ 21	$ 164,597	31,784,606	(24,867,580)	(32,753)	7,048,901	(719,241)	6,329,660
Shares, Issued at Mar. 31, 2023	10,000	21,000	164,596,688
Balance - March 31, 2023 at Dec. 31, 2022	$ 10	$ 21	$ 161,595	31,136,120	(24,504,395)	(33,557)	6,759,794	(924,377)	5,835,417
Shares, Issued at Dec. 31, 2022	10,000	21,000	161,595,511
Common stock issued for settlement of debt
Common stock issued for warrant exercises
Net income (loss)									(320,466)
Resolution of derivative liabilities upon exercise of warrant									240,258
Balance - June 30, 2023 at Jun. 30, 2023	$ 10	$ 21	$ 164,657	31,791,446	(25,081,525)	(31,226)	6,843,383	(665,474)	6,177,909
Shares, Issued at Jun. 30, 2023	10,000	21,000	164,656,688
Balance - March 31, 2023 at Mar. 31, 2023	$ 10	$ 21	$ 164,597	31,784,606	(24,867,580)	(32,753)	7,048,901	(719,241)	6,329,660
Shares, Issued at Mar. 31, 2023	10,000	21,000	164,596,688
Common stock issued for compensation			$ 60	6,840			6,900		6,900
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			60,000
Net income (loss)					(213,945)		(213,945)	52,301	(161,644)
Foreign currency translation adjustments						1,527	1,527	1,466	2,993
Balance - June 30, 2023 at Jun. 30, 2023	$ 10	$ 21	$ 164,657	31,791,446	(25,081,525)	(31,226)	6,843,383	(665,474)	6,177,909
Shares, Issued at Jun. 30, 2023	10,000	21,000	164,656,688
Balance - March 31, 2023 at Dec. 31, 2023	$ 10	$ 31	$ 172,130	34,360,884	(26,084,133)	(25,340)	8,423,582	(377,710)	8,045,872
Shares, Issued at Dec. 31, 2023	10,000	31,080	172,129,630
Common stock issued for compensation			$ 150	30,915			31,065		31,065
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			150,000
Common stock issued for settlement of debt			$ 1,770	277,890			279,660		279,660
Stock Issued During Period, Shares, Other			1,770,000
Common stock issued for warrant exercises			$ 3,535	594,242			597,777		597,777
Stock Issued During Period, Shares, Conversion of Convertible Securities			3,535,354
Net income (loss)					(809,767)		(809,767)	229,551	(580,216)
Balance - June 30, 2023 at Mar. 31, 2024	$ 10	$ 31	$ 177,585	35,263,931	(26,893,900)	(25,340)	8,522,317	(148,159)	8,374,158
Shares, Issued at Mar. 31, 2024	10,000	31,080	177,584,984
Balance - March 31, 2023 at Dec. 31, 2023	$ 10	$ 31	$ 172,130	34,360,884	(26,084,133)	(25,340)	8,423,582	(377,710)	8,045,872
Shares, Issued at Dec. 31, 2023	10,000	31,080	172,129,630
Common stock issued for settlement of debt									279,660
Common stock issued for warrant exercises									597,777
Net income (loss)									(2,544,103)
Resolution of derivative liabilities upon exercise of warrant									239,323
Balance - June 30, 2023 at Jun. 30, 2024	$ 10	$ 31	$ 179,557	35,947,882	(28,902,052)	(25,340)	7,200,088	371,791	7,571,879
Shares, Issued at Jun. 30, 2024	10,000	31,080	179,557,200
Balance - March 31, 2023 at Mar. 31, 2024	$ 10	$ 31	$ 177,585	35,263,931	(26,893,900)	(25,340)	8,522,317	(148,159)	8,374,158
Shares, Issued at Mar. 31, 2024	10,000	31,080	177,584,984
Common stock issued for compensation			$ 150	46,450			46,600		46,600
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			150,000
Net income (loss)					(2,008,152)		(2,008,152)	44,265	(1,963,887)
Common stock issued for warrant exercises			$ 1,822	398,178			400,000		400,000
Stock Issued During Period, Shares, Conversion of Units			1,822,216
Resolution of derivative liabilities upon exercise of warrant				239,323			239,323		239,323
[custom:ResolutionOfDerivativeLiabilitiesShares]
Acquisition of subsidiary								475,685	475,685
Stock Issued During Period, Shares, Acquisitions
Balance - June 30, 2023 at Jun. 30, 2024	$ 10	$ 31	$ 179,557	$ 35,947,882	$ (28,902,052)	$ (25,340)	$ 7,200,088	$ 371,791	$ 7,571,879
Shares, Issued at Jun. 30, 2024	10,000	31,080	179,557,200

v3.24.2.u1

Consoolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,544,103)	$ (320,466)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	77,665	18,130
Bad debt expense	1,801
Depreciation and amortization	68,939	68,488
Amortization of debt discount	468,797	7,226
Change in fair value of derivative liabilities	1,115,510	(342,575)
Loss on settlement of debt	102,660
Changes in operating assets and liabilities:
Accounts receivable	12,944,081	(589,928)
Inventory	185	(1,995)
Prepaid and other assets	(500,544)	(75,867)
Due from related parties		46,631
Accounts payable	(9,519,447)	1,144,422
Accrued and other current liabilities	(5,367,232)	(675,466)
Net cash used in operating activities	(3,151,688)	(721,400)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of subsidiary, net of cash received	(2,505,121)
Purchase of property and equipment	(103,474)	(132,249)
Purchase of intangible assets		(149,537)
Advances of loan receivable - related party	(111,602)
Collection of amounts due from related parties		2,700
Net cash used in investing activities	(2,720,197)	(279,086)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable	699,525	150,000
Repayments of loans payable	(147,253)	(9,006)
Proceeds from loans payable - related parties	1,000,000
Repayment of loans payable - related parties	(166,681)
Proceeds from exercise of warrants	400,000	400,000
Proceeds from convertible notes	3,722,500	250,000
Repayment of convertible notes	(301,647)
Net cash provided by financing activities	5,306,444	790,994
Effect of exchange rate changes on cash		6,873
Net change in cash	(565,441)	(202,619)
Cash, beginning of period	1,362,668	1,329,389
Cash, end of period	797,227	1,126,770
Supplemental cash flow information
Cash paid for interest	289,493	6,600
Cash paid for taxes
Non-cash transactions:
Common stock issued for settlement of debt	279,660
Resolution of derivative liabilities upon exercise of warrants	239,323	240,258
Common stock issued in connection with convertible notes	597,777
Note payable issued for acquisition of subsidiary	2,000,000
Contingent liability for acquisition of subsidiary	$ 1,000,000

v3.24.2.u1

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS	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 400 active interconnection agreements with mobile companies, fixed line companies and other wholesale carriers.   The Company is a technology company with presence in 20 countries and over 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 the source for all of the Company’s revenues, 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.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.   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.

v3.24.2.u1

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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.     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 June 30, 2024 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2024 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, 2023 filed with the SEC on April 1, 2024.   Reclassification   Certain accounts from prior periods have been reclassified to conform to the current period presentation.   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”) and QXTEL LIMITED (“QXTEL”). All significant intercompany balances and transactions have been eliminated in consolidation.   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.   Business Combinations   In accordance with 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.     Foreign Currency Translation and Re-measurement   The Company translates its foreign operations to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”.   The functional currency and reporting currency of Etelix, QGlobal, ItsBchain, IoT Labs, Whisl, Smartbiz, Global Money One and QXTEL is the U.S. dollar, while SwissLink’s functional currency was the Swiss Franc (“CHF”). As of January 1, 2024, we changed the functional currency of SwissLink from their respective local currency to the US dollar. The change in functional currency is due to increased exposure to the US dollar as a result of a change in facts and circumstances in the primary economic environment in which this subsidiary operates. The effects of the change in functional currency were not significant to our consolidated financial statements.     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 $797,227 and $1,362,668 in cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively.   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 six months ended June 30, 2024 and 2023, the Company recorded bad debt expense of $1,801 and $0, respectively.   Net Income (Loss) Per Share of Common Stock   The Company has adopted 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 period. 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 it was excluded from the computation of diluted net loss per share as the result was anti-dilutive for the six months ended June 30, 2024 and 2023.   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 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.   During the six months ended June 30, 2024, 15 customers represented 86% of our revenue compared to 23 customers representing 87% of our revenue for the six months ended June 30, 2023. For the six months ended June 30, 2024 and 2023, 38% and 39% of the revenue comes from customers under prepayment conditions which means there is no credit or bad debt risk on that portion of the customers portfolio.   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; deposit for acquisition, 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.   Revenue Recognition   The Company recognizes revenue from telecommunication services in accordance with ASC 606, “Revenue from Contracts with Customers.”   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.   Recent Accounting Pronouncements   In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which allows disclosure of one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires enhanced disclosures of significant segment expenses and other segment items, as well as incremental qualitative disclosures on both an annual and interim basis. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.   In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

v3.24.2.u1

NOTE 3 - GOING CONCERN	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NOTE 3 - GOING CONCERN	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 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 financed its operations through private placements, Regulation A offerings, related party loans, convertible notes, and unsecured debt. 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.

v3.24.2.u1

NOTE 4 – PREPAID AND OTHER CURRENT ASSETS	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
NOTE 4 – PREPAID AND OTHER CURRENT ASSETS	NOTE 4 – PREPAID AND OTHER CURRENT ASSETS   Prepaid and other current assets at June 30, 2024 and December 31, 2023 consisted of the following:                       June 30,   December 31,     2024   2023 Other receivable   $ 150,726     $ 312,116   Prepaid expenses     1,285,619       738,050   Advance payment     21,000       21,000   Tax receivable     25,607       428   Deposit for acquisition of asset     357,500       357,500   Security deposit     128,703       20,000    Prepaid Expenses and Other Current Assets   $ 1,969,155     $ 1,449,094

v3.24.2.u1

NOTE 5 – PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
NOTE 5 – PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT   Property and equipment at June 30, 2024 and December 31, 2023 consisted of the following:                       June 30,   December 31,     2024   2023 Telecommunication equipment   $ 709,417     $ 386,700   Telecommunication software     645,861       836,840   Other equipment     150,940       99,892   Total property and equipment     1,506,218       1,323,432   Accumulated depreciation and amortization     (922,904 )     (800,435 ) Total property and equipment   $ 583,314     $ 522,997     Depreciation expense for the six months ended June 30, 2024 and 2023 amounted to $68,939 and $68,488, respectively.

v3.24.2.u1

NOTE 6 –LOANS PAYABLE	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
NOTE 6 –LOANS PAYABLE	NOTE 6 –LOANS PAYABLE   Loans payable at June 30, 2024 and December 31, 2023 consisted of the following:       June 30,   December 31,       Interest     2024   2023   Term   rate Martus   $ 103,738     $ 103,738     Note was issued on October 23, 2018 and due on January 2, 2025     5.0 % Darlene Covid19     89,866       99,099     Note was issued on April 1, 2020 and due on March 31, 2025     0.0 % Promissory note payable     —         165,000     Note was issued April 4, 2023 and due on April 4, 2024     24.0 % Future receipts loan     552,080       —       Loan was issued April 23, 2023 and due in February 26, 2025     Effective rate (1) 98.9 %  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     1,725,000       —       Note was issued April 1, 2024 and due on June 30, 2025     4.89 % Total     2,688,075       367,837               Less: Unamortized debt discount     (143,197 )     (3,750 )             Total loans payable     2,544,878       364,087               Less: Current portion of loans payable     (2,544,878 )     (264,988 )             Long-term loans payable   $ —       $ 99,099                   (1) The purchase price is $504,575, net of financing fee of $10,425, and the amount to be paid is $690,100. The monthly payment amount is $69,010.   During the six months ended June 30, 2024 and 2023, the Company repaid the principal amount of $147,253 and $9,006, respectively.   During the six months ended June 30, 2024, the Company settled 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.      Loans payable - related parties at June 30, 2024 and December 31, 2023 consisted of the following:       June 30,   December 31,       Interest     2024   2023   Term   rate 49% of Shareholder of SwissLink   $ 21,606     $ 21,606     Note is due on demand     0 % 49% of Shareholder of SwissLink     237,841       237,841     Note is due on demand     5 % Minority Shareholder of QXTEL     833,319       —       Note is due on October 1, 2025     4.89 % Total     1,092,766       259,447               Less: Current portion of loans payable - related parties     1,092,766       259,447               Long-term loans payable - related parties   $ —       $ —                     During the six months ended June 30, 2024 and 2023, the Company recorded interest expense of $47,665 and $9,460 and recognized amortization of discount, included in interest expense, of $68,519 and $3,750, respectively.

v3.24.2.u1

NOTE 7 - CONVERTIBLE NOTES	6 Months Ended
	Jun. 30, 2024
Note 7 - Convertible Notes
NOTE 7 - CONVERTIBLE NOTES	NOTE 7 - CONVERTIBLE NOTES   Convertible notes at June 30, 2024 and December 31, 2023 consisted of the following:       June 30,   December 31,     2024   2023 Issued in fiscal year 2023   $ 109,494     $ 369,044   Issued in fiscal year 2024     4,172,412       —     Total convertible notes payable     4,281,906       369,044   Less: Unamortized debt discount     (726,900 )     (39,012 ) Total convertible notes     3,555,006       330,032                     Less: current portion of convertible notes     3,555,006       330,032   Long-term convertible notes   $ —       $ —       Issued in fiscal year 2023   During the year ended December 31, 2023, the Company borrowed $284,760 and $256,760 from a third party totaling $541,520, which includes original issue discount and financing costs of $66,520. The notes are due on June 1, 2024 and October 15, 2024, and a one-time interest charge of 12% shall be applied. Accrued, unpaid interest and outstanding principal shall be paid in 10 payments each in the amount of $31,893 and $28,757 beginning on July 16, 2023 and January 15, 2024. 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.     Issued in fiscal year 2024   On 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 $0.11 per share. Each noteholder shall receive shares of common stock (“Kicker Shares”) in an amount equal to ten percent of the principal amount of any Note issued divided by $0.11. 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 2,020,200 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 1,010,101 and 505,051 Kicker Shares, with an original issue discount of $111,111 and $55,556, respectively. Each one year note bears interest at 18% per annum.   During the three months ended June 30, 2024, the Company borrowed $146,900 and $177,100 from a third party totaling $324,000, which includes original issue discount and financing costs of $49,000. The notes are due on January 15, 2025, and a one-time interest charge of 12% and 14%, respectively, shall be applied. Accrued, unpaid interest and outstanding principal on the $146,900 note shall be paid in 10 payments each in the amount of $16,453 beginning on April 15, 2024; accrued, unpaid interest and outstanding principal on the $177,100 note shall be paid in 5 payments, one payment of $100,947 and four payments of $25,237, beginning in September 2024. 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.   During the six months ended June 30, 2024 and 2023, the Company recorded interest expense of $345,092 and $3,417 and recognized amortization of discount, included in interest expense, of $400,278 and $3,476, respectively.

v3.24.2.u1

NOTE 8 – STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
NOTE 8 – STOCKHOLDERS’ EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY   Common Stock   The Company’s authorized capital consists of 300,000,000 shares of common stock with a par value of $0.001 per share.   During the six months ended June 30, 2024, the Company issued 7,427,570 shares of common stock, valued at fair market value on issuance as follows:   • 300,000 shares for compensation to our directors valued at $77,665 • 1,770,000 shares for settlement of debt valued at $279,660  • 3,535,354 shares in connection with convertible notes valued at $597,777; and • 1,822,216 shares for exercise of warrants for $400,000    As of June 30, 2024 and December 31, 2023, 179,557,200 and 172,129,630 shares of common stock were issued and outstanding, respectively.   Preferred Stock   The Company’s authorized capital consists of 1,200,000 shares of preferred stock with a par value of $0.001 per share.   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     As of June 30, 2024 and December 31, 2023, 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 one thousand (1,000) 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.   As of June 30, 2024 and December 31, 2023, 31,080 shares of Series B Preferred Stock were issued and outstanding.   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 one thousand (1,000) 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.   As of June 30, 2024 and December 31, 2023, no Series C Preferred Stock was issued or outstanding.   Series D Preferred Stock   On November 3, 2023, pursuant to Article III of our Articles of Incorporation, our Board of Directors voted to designate a class of preferred stock entitled Series D Preferred Stock, consisting of up 75,000 shares, par value $0.001. Under the Certificate of Designation, in the event of any dissolution, liquidation or winding up of the Corporation, the Holders of Series D Preferred Stock shall be entitled to participate in any distribution out of the assets of the Corporation before the holders of the Common Stock, Series A Preferred Stock and Series C Preferred Stock, but shall be considered on parity to the liquidation rights of the Series B Preferred Stockholders. The holders of shares of Series D 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 D Preferred Stock do not have voting rights but may convert into common stock at a conversion rate of one thousand (1,000) shares of Common Stock for every one (1) share of Series D Preferred Stock.   The rights of the holders of Series D Preferred Stock are defined in the relevant Certificate of Designation filed with the Nevada Secretary of State on November 3, 2023.   As of June 30, 2024 and December 31, 2023, no Series D Preferred Stock was issued or outstanding.

v3.24.2.u1

NOTE 9 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
NOTE 9 - RELATED PARTY TRANSACTIONS	NOTE 9 - RELATED PARTY TRANSACTIONS   Due from related party   As of June 30, 2024 and December 31, 2023, the Company had amounts due from related parties of $661,087 and $340,515, respectively. The loans are unsecured, non-interest bearing and due on demand.    Due to related parties   As of June 30, 2024 and December 31, 2023, the Company had amounts due to related parties of $26,613. The amounts are unsecured, non-interest bearing and due on demand.   Employment agreements   During the six months ended June 30, 2024 and 2023, the Company recorded management salaries of $423,000 and $270,000, respectively, and stock-based compensation bonuses of $77,665 and $18,130, respectively.   As of June 30, 2024 and December 31, 2023, the Company recorded and accrued management salaries of $205,627 and $100,128, respectively.

v3.24.2.u1

NOTE 10 – COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
NOTE 10 – COMMITMENTS AND CONTINGENCIES	NOTE 10 – 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 six months ended June 30, 2024 and 2023, the Company incurred rent expense of $14,028 and $2,137, respectively.

v3.24.2.u1

NOTE 11 – ACQUISITION	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
NOTE 11 – ACQUISITION	NOTE 11 – ACQUISITION   On January 19, 2024, we entered into a Share Purchase Agreement (“Purchase Agreement”) with Yukon River Holdings, Ltd. (“Yukon River”), a corporation formed under the laws of the British Virgin Islands (“Seller”) concerning the contemplated sale by Seller and the purchase by us of 51% of the ordinary shares Seller holds in QXTEL LIMITED (“QXTEL”), a company incorporated in England and Wales.   The purchase price (the “Purchase Price”) payable to the Seller for the shares is $5,000,000. Upon the execution of the Purchase Agreement, we agreed to deposit $1,500,000 of the Purchase Price into the trust account of a law firm acting as escrow agent (the “Escrow Agent”) as a nonrefundable deposit to evidence our good faith intention to purchase the shares, which was credited against the Purchase Price.   At closing, in addition to the $1,500,000 with the Escrow Agent that formed part of the Purchase Price, we were required to pay $1,500,000 in cash and $2,000,000 to the Seller, either (A) in the form of a promissory note (the “Promissory Note”), or (B) by the delivery of iQSTEL shares to Seller. Seller could decide the form of payment between the Promissory Note or the shares of iQSTEL, and if a Promissory Note was chosen, we agreed to allow Seller the option to exchange the Promissory Note for shares of iQSTEL. On June 27, 2024, we entered into a second amendment to the Purchase Agreement (the “Amendment”) that required us to issue an amended and restated promissory note to the Seller. We have paid down $200,000 of the note, so the amended and restated promissory note was issued in the principal amount of US $1,800,000. The amended and restated promissory note also changed the payment structure, from installment payments of $200,000 for each of the months of May through November ($1,400,000) with a balloon payment of $600,000, to monthly installments of $75,000 plus interest during 2024, and $212,500 plus interest during the first 6 months of 2025.  We also revised the Earnout Payment due to the Seller. The Earnout Payment was redefined at $721,035 net income, to be achieved in Q2, Q3 and Q4 of 2024. The $1,000,000 payment that IQSTEL has to pay upon achievement of the Earnout Payment will be paid during the first half of 2025, in monthly installments.     During the six months ended June 30, 2024, the Company repaid a note payable of $275,000.   The acquisition was closed on April 1, 2024. QXTEL has been included in our consolidated results of operations since the acquisition date.   The following table summarizes the fair value of the consideration paid by the Company:       April 1, Fair Value of Consideration:   2024 Cash   $ 3,000,000   Promissory note     2,000,000   Contingent liability     1,000,000   Total Purchase Price   $ 6,000,000     The following table summarizes the preliminary identifiable assets acquired and liabilities assumed upon acquisition of QXTEL and the calculation of goodwill:   Total purchase price   $ 6,000,000             Cash     769,879   Accounts receivable     14,946,919   Due from related party     208,550   Other asset     214,564   Equipment     30,963   Total identifiable assets     16,170,875             Accounts payable     (14,796,505 ) Other current liabilities     (403,584 ) Total liabilities assumed     (15,200,089 ) Net assets     970,786             Non-controlling interest - 49%     475,685   Total net assets     495,101   Goodwill   $ 5,504,899     Unaudited combined proforma results of operations for the six months ended June 30, 2024 and 2023 as though the Company acquired QXTEL on January 1, 2023, are set forth below:                       Six Months Ended     June 30,     2024   2023 Revenues   $ 157,734,103     $ 97,988,300   Cost of revenues     153,669,990       94,185,602   Gross profit     4,064,113       3,802,698                     Operating expenses     4,696,867       3,992,419   Operating loss     (632,754 )     (189,721 )                   Other income (expense)     (1,953,273 )     249,782   Income tax     (65,275 )     (94,225 ) Net Loss   $ (2,651,302 )   $ (34,164 )

v3.24.2.u1

NOTE 12 - SEGMENT	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
NOTE 12 - SEGMENT	NOTE 12 - SEGMENT   At June 30, 2024 and December 31, 2023, the Company operates in one industry segment, telecommunication services, and three geographic segments, USA, UK and Switzerland, where current assets and equipment are located.   Operating Activities   The following table shows operating activities information by geographic segment for the three and six months ended June 30, 2024 and 2023:   Three months ended June 30, 2024   NOTE 12 - SEGMENT - Operating Activities by Geographic Segment                                             USA   Switzerland   UK   Elimination   Total Revenues   $ 46,933,532       1,026,797       31,474,055     $ (798,620 )   $ 78,635,764   Cost of revenue     45,956,484       883,919       30,430,357       (798,620 )     76,472,140   Gross profit     977,048       142,878       1,043,698       —         2,163,624                                             Operating expenses                                         General and administration     1,602,751       237,073       665,903       —         2,505,727                                             Operating income (loss)     (625,703 )     (94,195 )     377,795       —         (342,103 )                                           Other income (expense)     (1,597,506 )     47,525       (6,528 )     —         (1,556,509 )                                           Income tax expense     —         —         (65,275 )     —         (65,275 )                                           Net income (loss)   $ (2,223,209 )   $ (46,670 )   $ 305,992     $ —       $ (1,963,887 )   Three months ended June 30, 2023                                       USA   Switzerland   Elimination   Total Revenues   $ 32,960,138       1,334,080     $ (1,469,389 )   $ 32,824,829   Cost of revenue     32,359,937       1,149,815       (1,469,389 )     32,040,363   Gross profit     600,201       184,265       —         784,466                                     Operating expenses                                 General and administration     845,485       191,699       —         1,037,184                                     Operating loss     (245,284 )     (7,434 )     —         (252,718 )                                   Other income (expense)     98,224       (7,150 )     —         91,074                                     Net loss   $ (147,060 )   $ (14,584 )   $ —       $ (161,644 )     Six months ended June 30, 2024                                               USA   Switzerland   UK   Elimination   Total Revenues   $ 99,044,789       2,062,716       31,474,055     $ (2,530,918 )   $ 130,050,642   Cost of revenue     96,888,310       1,720,243       30,430,357       (2,530,918 )     126,507,992   Gross profit     2,156,479       342,473       1,043,698       —         3,542,650                                             Operating expenses                                         General and administration     2,958,757       443,545       665,903       —         4,068,205                                             Operating income (loss)     (802,278 )     (101,072 )     377,795       —         (525,555 )                                           Other income (expense)     (2,032,989 )     86,244       (6,528 )     —         (1,953,273 )                                           Income tax expense     —         —         (65,275 )     —         (65,275 )                                           Net income (loss)   $ (2,835,267 )   $ (14,828 )   $ 305,992     $ —       $ (2,544,103 )   Six months ended June 30, 2023                                       USA   Switzerland   Elimination   Total Revenues   $ 57,807,809       2,681,515     $ (2,997,966 )   $ 57,491,358   Cost of revenue     56,185,823       2,302,299       (2,997,966 )     55,490,156   Gross profit     1,621,986       379,216       —         2,001,202                                     Operating expenses                                 General and administration     2,196,441       375,009       —         2,571,450                                     Operating (loss) income     (574,455 )     4,207       —         (570,248 )                                   Other income (expense)     273,179       (23,397 )     —         249,782                                     Net loss   $ (301,276 )   $ (19,190 )   $ —       $ (320,466 )   Asset Information   The following table shows asset information by geographic segment as of June 30, 2024 and December 31, 2023:                                           June 30, 2024   USA   Switzerland   UK   Elimination   Total Assets                                         Current assets   $ 9,072,423     $ 763,359     $ 7,997,811     $ (613,333 )   $ 17,220,260   Non-current assets   $ 23,368,080     $ 828,551     $ 754,331     $ (12,184,562 )   $ 12,766,400   Liabilities                                         Current liabilities   $ 13,806,116     $ 1,576,897     $ 7,430,958     $ (613,333 )   $ 22,200,638   Non-current liabilities   $ 139     $ 169,599     $ 44,405     $ —       $ 214,143                                       December 31, 2023   USA   Switzerland   Elimination   Total Assets                                 Current assets   $ 14,537,969     $ 1,874,627     $ (693,424 )   $ 15,719,172   Non-current assets   $ 11,810,606     $ 810,437     $ (6,184,562 )   $ 6,436,481   Liabilities                                 Current liabilities   $ 11,978,244     $ 2,556,124     $ (693,424 )   $ 13,840,944   Non-current liabilities   $ 139     $ 268,698     $ —       $ 268,837

v3.24.2.u1

NOTE 13 – WARRANTS	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
NOTE 13 – WARRANTS	NOTE 13 – WARRANTS   On February 12, 2024, we issued a Common Stock Purchase Option (the “Option”) to ADI Funding LLC (“ADI Funding”) for $100,000 that expires on December 31, 2024, for the right to acquire up to 10,000,000 shares of common stock. The exercise price per share of the common stock under the Option shall be (i) 70% of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is below $2.00 or (ii) seventy five percent (75%) of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is equal or above $2.00.   ADI Funding has the right and the obligation to exercise, on a “cash basis”, not less than (i) 2,000,000 of the shares of common stock underlying the option not later than the later of March 31, 2024 or the date on which there is an effective registration statement permitting the resale of the shares by ADI Funding. From and after the occurrence of the above-referenced exercise, each additional exercise of the Option shall be in an amount not less than 1,000,000 shares, which shall occur every thirty (30) days and shall be exercised only on a cash basis. ADI Funding’s obligation to exercise each specified portion of the Option is subject to the exercise price being not less than $0.11   If the Company issues securities less than the exercise price of the option, ADI Funding has a right to also use that lesser price in the exercise of its Option. The Option also contains rights to any company distributions and consideration in fundamental transactions.   The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.   The Company determined that the warrants had net cash settlement and categorized the warrants as a liability in the accompanying consolidated financial statements.   A summary of activity regarding warrants issued as follows:                           Weighted Average Remaining     Warrants outstanding   Contractual life (in years)           Outstanding, December 31, 2023       —         —     Granted       10,000,000       0.88   Exercised       (1,822,216 )     —     Forfeited/canceled       —         —     Outstanding, June 30, 2024       8,177,784       0.50     The intrinsic value of the warrants as of June 30, 2024 is approximately $680,000. All of the outstanding warrants are exercisable as of June 30, 2024; however, each exercise is subject to a beneficial ownership limitation of 4.99% of the Company’s outstanding common stock, which, upon notice, may be increased to 9.99%.   Fair Value Assumptions Used in Accounting for Derivative Liabilities   ASC 815 requires we assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.     The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of June 30, 2024. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement.  As of June 30, 2024, the estimated fair values of the liabilities measured on a recurring basis are as follows:        As of June 30, 2024 Expected term    0.50 - 0.65 years   Exercise price   $0.17 –$0.23   Expected average volatility    108% - 117%   Expected dividend yield   —     Risk-free interest rate    5.33% - 5.44%     The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2024:   Fair Value Measurements Using Significant Observable Inputs (Level 3)       Balance - December 31, 2023   $ —               Addition of new derivatives recognized as cash received     100,000   Settled on issuance of common stock     (239,323 ) Change in fair value of derivative liabilities     1,115,510   Balance - June 30, 2024   $ 976,187

v3.24.2.u1

NOTE 14 – SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
NOTE 14 – SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS   Subsequent to June 30, 2024, and through the date that these financials were made available, the Company had the following subsequent events:    On May 10, 2024, the Company entered into a Purchase Company Agreement (“Purchase Company Agreement”) with Omar Luna and Lynk Holding LLC (together, the “Seller”) concerning the sale by Seller and the purchase by us of 51% of the membership interests the Seller holds in Lynk Telecom, LLC, a Virginia limited liability company (“Lynk Telecom”). The closing of the Purchase Company Agreement is expected to occur, once due diligence has been completed, during the third quarter of fiscal year 2024, although there are no assurances that the deal will close as planned.   Lynk Telecom provides certified business telephone, SMS, connectivity, and networking services across various sectors in the United States. Lynk Holding LLC recently acquired selected assets from a company known as Voyce Telecom, and Lynk Holding LLC has the obligation to pay the shareholders of Voyce Telecom the purchase price in that acquisition, which is outstanding.   The Purchase Price for 51% of the membership interests of Lynk Telecom is US $1,500,000, and this amount will be paid by the Seller to the Buyer in 12 consecutive monthly cash payments of US$ 125,000 each. The Seller agrees to use these funds for the amortization of the payments that it owes to Voyce in relation to the contract between Lynk Holding and Voyce Telecom.     Once we have paid the $1,500,000 for the acquisition of Lynk Telecom, and Lynk Telecom has achieved the business goals outlined in the Purchase Company Agreement, under what we refer to as “Phase I,” we have agreed to lend up to US$1,500,000 to Lynk Telecom, in installments of up to US$100,000 per month, to be used solely for marketing campaigns, promotion and development of the retail services, according to a business plan that has to be approved by Lynk Telecom’s board of directors.   The disbursements of this loan will be subject to the achievements of the quarterly goals set in the business plan of Lynk Telecom. This retail business plan will have the aim of achieving the objective of generating a minimum of US$200,000 in operating income per month, with intermediate staggered quarterly goals.   Upon the completion of Phase I, and the business goals in the Purchase Company Agreement have been achieved, we have agreed to lend Lynk Telecom up to US$1,500,000 in at least three stages, each of up to US$500,000 per year to help accelerate the amortization of the debt Lynk Holding LLC has with the Voyce Telecom shareholders. These loans would be linked to compliance with the financial statements for fiscal years 2026, 2027, 2028, 2029 and 2030. The goals for these years will be defined posteriori by the parties and approved by Lynk Telecom’s Board of Directors. The payment of this loan will be guaranteed with the portion of dividends that correspond to Lynk Holding LLC when Lynk Telecom makes a dividend distribution.   If, as a result of operations, Lynk Telecom does not reach the projections in the Purchase Company Agreement, and the business plan for the years 2026, 2027, 2028, 2029 and 2030 approved by Lynk Telecom´s Board of Directors, we may retain the stipulated loan. If Lynk Telecom surpassed the projections in the Purchase Company Agreement, we have agreed to true up the purchase price, with details of the true up contained in the Purchase Company Agreement.   Once this Purchase Company Agreement is signed, the manager of Lynk Telecom, Omar Luna, is expected to enter into a 3-year employment agreement with Lynk Telecom, that will be executed before the closing date, renewable for a 2-year period to guarantee the operational continuity of Lynk Telecom and the implementation of a business plan that will lead Lynk Telecom into a productive company with positive net income as established in the Purchase Company Agreement.   Lynk Telecom shall have a Board of Directors composed of 3 members: 2 of the members shall be appointed by us and the remaining member shall be appointed by the Seller. The position of President and Secretary will be reserved for us.   The closing of the Purchase Agreement is subject to, among other things, Lynk Telecom having prepared all accounting information in accordance with SEC standards in such a manner that any audit of the Company, if required, may be performed.

v3.24.2.u1

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Organization and Operations	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 400 active interconnection agreements with mobile companies, fixed line companies and other wholesale carriers.   The Company is a technology company with presence in 20 countries and over 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 the source for all of the Company’s revenues, 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.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.   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.

v3.24.2.u1

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	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.     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 June 30, 2024 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2024 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, 2023 filed with the SEC on April 1, 2024.
Reclassification	Reclassification   Certain accounts from prior periods have been reclassified to conform to the current period presentation.
Consolidation Policy	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”) and QXTEL LIMITED (“QXTEL”). All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	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.
Business Combinations	Business Combinations   In accordance with 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.
Foreign Currency Translation and Re-measurement	Foreign Currency Translation and Re-measurement   The Company translates its foreign operations to U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”.   The functional currency and reporting currency of Etelix, QGlobal, ItsBchain, IoT Labs, Whisl, Smartbiz, Global Money One and QXTEL is the U.S. dollar, while SwissLink’s functional currency was the Swiss Franc (“CHF”). As of January 1, 2024, we changed the functional currency of SwissLink from their respective local currency to the US dollar. The change in functional currency is due to increased exposure to the US dollar as a result of a change in facts and circumstances in the primary economic environment in which this subsidiary operates. The effects of the change in functional currency were not significant to our consolidated financial statements.
Cash and Cash Equivalents	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 $797,227 and $1,362,668 in cash and cash equivalents at June 30, 2024 and December 31, 2023, respectively.
Accounts Receivable and Allowance for Uncollectible Accounts	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 six months ended June 30, 2024 and 2023, the Company recorded bad debt expense of $1,801 and $0, respectively.
Net Income (Loss) Per Share of Common Stock	Net Income (Loss) Per Share of Common Stock   The Company has adopted 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 period. 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 it was excluded from the computation of diluted net loss per share as the result was anti-dilutive for the six months ended June 30, 2024 and 2023.
Concentrations of Credit Risk	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 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.   During the six months ended June 30, 2024, 15 customers represented 86% of our revenue compared to 23 customers representing 87% of our revenue for the six months ended June 30, 2023. For the six months ended June 30, 2024 and 2023, 38% and 39% of the revenue comes from customers under prepayment conditions which means there is no credit or bad debt risk on that portion of the customers portfolio.
Financial Instruments	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; deposit for acquisition, 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.
Revenue Recognition	Revenue Recognition   The Company recognizes revenue from telecommunication services in accordance with ASC 606, “Revenue from Contracts with Customers.”   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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements   In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which allows disclosure of one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires enhanced disclosures of significant segment expenses and other segment items, as well as incremental qualitative disclosures on both an annual and interim basis. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.   In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis; however, retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures included within Notes to Consolidated Financial Statements.

v3.24.2.u1

NOTE 4 – PREPAID AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
NOTE 4 - PREPAID AND OTHER CURRENT ASSETS - Schedule of Prepaid and Other Current Assets	June 30,   December 31,     2024   2023 Other receivable   $ 150,726     $ 312,116   Prepaid expenses     1,285,619       738,050   Advance payment     21,000       21,000   Tax receivable     25,607       428   Deposit for acquisition of asset     357,500       357,500   Security deposit     128,703       20,000    Prepaid Expenses and Other Current Assets   $ 1,969,155     $ 1,449,094

v3.24.2.u1

NOTE 5 – PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
NOTE 5 - PROPERTY AND EQUIPMENT - Schedule of Propery Plant and Equipment	June 30,   December 31,     2024   2023 Telecommunication equipment   $ 709,417     $ 386,700   Telecommunication software     645,861       836,840   Other equipment     150,940       99,892   Total property and equipment     1,506,218       1,323,432   Accumulated depreciation and amortization     (922,904 )     (800,435 ) Total property and equipment   $ 583,314     $ 522,997

v3.24.2.u1

NOTE 6 –LOANS PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
NOTE 6 - LOANS PAYABLE - Schedule of Loans Payable	June 30,   December 31,       Interest     2024   2023   Term   rate Martus   $ 103,738     $ 103,738     Note was issued on October 23, 2018 and due on January 2, 2025     5.0 % Darlene Covid19     89,866       99,099     Note was issued on April 1, 2020 and due on March 31, 2025     0.0 % Promissory note payable     —         165,000     Note was issued April 4, 2023 and due on April 4, 2024     24.0 % Future receipts loan     552,080       —       Loan was issued April 23, 2023 and due in February 26, 2025     Effective rate (1) 98.9 %  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     1,725,000       —       Note was issued April 1, 2024 and due on June 30, 2025     4.89 % Total     2,688,075       367,837               Less: Unamortized debt discount     (143,197 )     (3,750 )             Total loans payable     2,544,878       364,087               Less: Current portion of loans payable     (2,544,878 )     (264,988 )             Long-term loans payable   $ —       $ 99,099

v3.24.2.u1

NOTE 7 - CONVERTIBLE NOTES (Tables)	6 Months Ended
	Jun. 30, 2024
Note 7 - Convertible Notes
NOTE 7 - CONV ERTIBLE NOTES - Schedule of Convertible Notes	June 30,   December 31,     2024   2023 Issued in fiscal year 2023   $ 109,494     $ 369,044   Issued in fiscal year 2024     4,172,412       —     Total convertible notes payable     4,281,906       369,044   Less: Unamortized debt discount     (726,900 )     (39,012 ) Total convertible notes     3,555,006       330,032                     Less: current portion of convertible notes     3,555,006       330,032   Long-term convertible notes   $ —       $ —

v3.24.2.u1

NOTE 11 – ACQUISITION (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
NOTE 11 - ACQUISITIONS - QXTEL Consideration	April 1, Fair Value of Consideration:   2024 Cash   $ 3,000,000   Promissory note     2,000,000   Contingent liability     1,000,000   Total Purchase Price   $ 6,000,000
NOTE 11 - ACQUISITIONS - QXTEL Assets and Liabilities Acquired	Total purchase price   $ 6,000,000             Cash     769,879   Accounts receivable     14,946,919   Due from related party     208,550   Other asset     214,564   Equipment     30,963   Total identifiable assets     16,170,875             Accounts payable     (14,796,505 ) Other current liabilities     (403,584 ) Total liabilities assumed     (15,200,089 ) Net assets     970,786             Non-controlling interest - 49%     475,685   Total net assets     495,101   Goodwill   $ 5,504,899
NOTE 11 - ACQUISITIONS - Unaudited Pro Forma Results of Operations QXTEL	Six Months Ended     June 30,     2024   2023 Revenues   $ 157,734,103     $ 97,988,300   Cost of revenues     153,669,990       94,185,602   Gross profit     4,064,113       3,802,698                     Operating expenses     4,696,867       3,992,419   Operating loss     (632,754 )     (189,721 )                   Other income (expense)     (1,953,273 )     249,782   Income tax     (65,275 )     (94,225 ) Net Loss   $ (2,651,302 )   $ (34,164 )

v3.24.2.u1

NOTE 12 - SEGMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
NOTE 12 - SEGMENT - Operating Activities by Geographic Segment	NOTE 12 - SEGMENT - Operating Activities by Geographic Segment                                             USA   Switzerland   UK   Elimination   Total Revenues   $ 46,933,532       1,026,797       31,474,055     $ (798,620 )   $ 78,635,764   Cost of revenue     45,956,484       883,919       30,430,357       (798,620 )     76,472,140   Gross profit     977,048       142,878       1,043,698       —         2,163,624                                             Operating expenses                                         General and administration     1,602,751       237,073       665,903       —         2,505,727                                             Operating income (loss)     (625,703 )     (94,195 )     377,795       —         (342,103 )                                           Other income (expense)     (1,597,506 )     47,525       (6,528 )     —         (1,556,509 )                                           Income tax expense     —         —         (65,275 )     —         (65,275 )                                           Net income (loss)   $ (2,223,209 )   $ (46,670 )   $ 305,992     $ —       $ (1,963,887 )   Three months ended June 30, 2023                                       USA   Switzerland   Elimination   Total Revenues   $ 32,960,138       1,334,080     $ (1,469,389 )   $ 32,824,829   Cost of revenue     32,359,937       1,149,815       (1,469,389 )     32,040,363   Gross profit     600,201       184,265       —         784,466                                     Operating expenses                                 General and administration     845,485       191,699       —         1,037,184                                     Operating loss     (245,284 )     (7,434 )     —         (252,718 )                                   Other income (expense)     98,224       (7,150 )     —         91,074                                     Net loss   $ (147,060 )   $ (14,584 )   $ —       $ (161,644 )     Six months ended June 30, 2024                                               USA   Switzerland   UK   Elimination   Total Revenues   $ 99,044,789       2,062,716       31,474,055     $ (2,530,918 )   $ 130,050,642   Cost of revenue     96,888,310       1,720,243       30,430,357       (2,530,918 )     126,507,992   Gross profit     2,156,479       342,473       1,043,698       —         3,542,650                                             Operating expenses                                         General and administration     2,958,757       443,545       665,903       —         4,068,205                                             Operating income (loss)     (802,278 )     (101,072 )     377,795       —         (525,555 )                                           Other income (expense)     (2,032,989 )     86,244       (6,528 )     —         (1,953,273 )                                           Income tax expense     —         —         (65,275 )     —         (65,275 )                                           Net income (loss)   $ (2,835,267 )   $ (14,828 )   $ 305,992     $ —       $ (2,544,103 )   Six months ended June 30, 2023                                       USA   Switzerland   Elimination   Total Revenues   $ 57,807,809       2,681,515     $ (2,997,966 )   $ 57,491,358   Cost of revenue     56,185,823       2,302,299       (2,997,966 )     55,490,156   Gross profit     1,621,986       379,216       —         2,001,202                                     Operating expenses                                 General and administration     2,196,441       375,009       —         2,571,450                                     Operating (loss) income     (574,455 )     4,207       —         (570,248 )                                   Other income (expense)     273,179       (23,397 )     —         249,782                                     Net loss   $ (301,276 )   $ (19,190 )   $ —       $ (320,466 )   Asset Information   The following table shows asset information by geographic segment as of June 30, 2024 and December 31, 2023:                                           June 30, 2024   USA   Switzerland   UK   Elimination   Total Assets                                         Current assets   $ 9,072,423     $ 763,359     $ 7,997,811     $ (613,333 )   $ 17,220,260   Non-current assets   $ 23,368,080     $ 828,551     $ 754,331     $ (12,184,562 )   $ 12,766,400   Liabilities                                         Current liabilities   $ 13,806,116     $ 1,576,897     $ 7,430,958     $ (613,333 )   $ 22,200,638   Non-current liabilities   $ 139     $ 169,599     $ 44,405     $ —       $ 214,143                                       December 31, 2023   USA   Switzerland   Elimination   Total Assets                                 Current assets   $ 14,537,969     $ 1,874,627     $ (693,424 )   $ 15,719,172   Non-current assets   $ 11,810,606     $ 810,437     $ (6,184,562 )   $ 6,436,481   Liabilities                                 Current liabilities   $ 11,978,244     $ 2,556,124     $ (693,424 )   $ 13,840,944   Non-current liabilities   $ 139     $ 268,698     $ —       $ 268,837

v3.24.2.u1

NOTE 13 – WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
NOTE 13 - WARRANTS - Schedule of Warrant Summary	Weighted Average Remaining     Warrants outstanding   Contractual life (in years)           Outstanding, December 31, 2023       —         —     Granted       10,000,000       0.88   Exercised       (1,822,216 )     —     Forfeited/canceled       —         —     Outstanding, June 30, 2024       8,177,784       0.50
NOTE 13 - WARRANTS - Schedule of Fair Value Measurement of Liabilities	As of June 30, 2024 Expected term    0.50 - 0.65 years   Exercise price   $0.17 –$0.23   Expected average volatility    108% - 117%   Expected dividend yield   —     Risk-free interest rate    5.33% - 5.44%
NOTE 13 - WARRANTS - Fair Value Measurements Using Significant Observable Inputs	Fair Value Measurements Using Significant Observable Inputs (Level 3)       Balance - December 31, 2023   $ —               Addition of new derivatives recognized as cash received     100,000   Settled on issuance of common stock     (239,323 ) Change in fair value of derivative liabilities     1,115,510   Balance - June 30, 2024   $ 976,187

v3.24.2.u1

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Entity Incorporation, State or Country Code	NV
Entity Incorporation, Date of Incorporation	Jun. 24, 2011

v3.24.2.u1

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Cash Equivalents, at Carrying Value	$ 797,227		$ 1,362,668
Allowance for Loan and Lease Loss, Recovery of Bad Debts	$ 1,801	$ 0
Fifteen Customers [Member]
Concentration Risk, Percentage	86.00%
Twenty Three Customers [Member]
Concentration Risk, Percentage		87.00%
No Bad Debt Risk Customers [Member]
Concentration Risk, Percentage	38.00%	39.00%

v3.24.2.u1

NOTE 4 - PREPAID AND OTHER CURRENT ASSETS - Schedule of Prepaid and Other Current Assets (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Other receivable	$ 150,726	$ 312,116
Prepaid expenses	1,285,619	738,050
Advance payment	21,000	21,000
Tax receivable	25,607	428
Deposit for acquisition of asset	357,500	357,500
Security deposit	128,703	20,000
Prepaid Expenses and Other Current Assets	$ 1,969,155	$ 1,449,094

v3.24.2.u1

NOTE 5 - PROPERTY AND EQUIPMENT - Schedule of Propery Plant and Equipment (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,506,218	$ 1,323,432
Accumulated depreciation and amortization	(922,904)	(800,435)
Total property and equipment	583,314	522,997
Technology Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	709,417	386,700
Software Development [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	645,861	836,840
Other Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 150,940	$ 99,892

v3.24.2.u1

NOTE 5 – PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization, Nonproduction	$ 68,939	$ 68,488

v3.24.2.u1

NOTE 6 - LOANS PAYABLE - Schedule of Loans Payable (Details) - USD ($)		6 Months Ended
	Apr. 23, 2023	Jun. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 2,688,075	$ 367,837
Debt Instrument, Unamortized Discount		143,197	3,750
Long-Term Debt		2,544,878	364,087
Long-Term Debt, Current Maturities		2,544,878	264,988
Long-Term Debt, Excluding Current Maturities			99,099
Loans Payable		1,092,766	259,447
Other Loans Payable, Current		1,092,766	259,447
Loans Payable, Noncurrent
Martus
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 103,738	103,738
Debt Instrument, Issuance Date		Oct. 23, 2018
Debt Instrument, Maturity Date		Jan. 02, 2025
Debt Instrument, Interest Rate, Stated Percentage		500.00%
Darlene Covi 19 [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 89,866	99,099
Debt Instrument, Issuance Date		Apr. 01, 2020
Debt Instrument, Maturity Date		Mar. 31, 2025
Debt Instrument, Interest Rate, Stated Percentage		0.00%
Promissory Note One [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross			165,000
Debt Instrument, Issuance Date		Apr. 04, 2023
Debt Instrument, Maturity Date		Apr. 04, 2024
Debt Instrument, Interest Rate, Stated Percentage		2400.00%
Future Receipts Loan [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 552,080
Debt Instrument, Issuance Date		Apr. 23, 2023
Debt Instrument, Maturity Date		Feb. 26, 2025
Debt Instrument, Interest Rate, Stated Percentage		9890.00%
Debt Instrument, Repurchase Amount	$ 504,575
Debt Instrument, Unused Borrowing Capacity, Fee	10,425
Debt Instrument, Face Amount	690,100
Debt Instrument, Periodic Payment	$ 69,010
Promissory Note Two [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 217,391
Debt Instrument, Issuance Date		Jun. 11, 2024
Debt Instrument, Maturity Date		Jun. 11, 2025
Debt Instrument, Interest Rate, Stated Percentage		200.00%
Promissory Note Q X T E L [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 1,725,000
Debt Instrument, Issuance Date		Apr. 01, 2024
Debt Instrument, Maturity Date		Jun. 30, 2025
Debt Instrument, Interest Rate, Stated Percentage		489.00%
49% of Shareholder of SwissLink 1
Short-Term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		0.00%
Loans Payable		$ 21,606	21,606
Debt Instrument, Maturity Date, Description		Note is due on demand
49% of Shareholder of SwissLink 2
Short-Term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		500.00%
Loans Payable		$ 237,841	237,841
Debt Instrument, Maturity Date, Description		Note is due on demand
Minority Shareholder Of Q X T E L [Member]
Short-Term Debt [Line Items]
Debt Instrument, Maturity Date		Oct. 01, 2025
Debt Instrument, Interest Rate, Stated Percentage		489.00%
Loans Payable		$ 833,319

v3.24.2.u1

NOTE 6 –LOANS PAYABLE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Short-Term Debt [Line Items]
Repayments of Other Debt			$ 147,253	$ 9,006
Debtor Reorganization Items, Gain (Loss) on Settlement of Other Claims, Net			102,660
Loans Payable [Member]
Short-Term Debt [Line Items]
Interest Expense, Operating and Nonoperating			47,665	9,460
Amortization of Debt Discount (Premium)			$ 68,519	$ 3,750
Settlement Of Note Payable [Member]
Short-Term Debt [Line Items]
Stock Issued During Period, Shares, Other			1,770,000

v3.24.2.u1

NOTE 7 - CONV ERTIBLE NOTES - Schedule of Convertible Notes (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Less: current portion of convertible notes	$ 3,555,006	$ 330,032
Total convertible notes payable	4,281,906	369,044
Less: Unamortized debt discount	143,197	3,750
Long-term convertible notes
Convertible Notes Payable 2023 [Member]
Short-Term Debt [Line Items]
Less: current portion of convertible notes	109,494	369,044
Convertible Notes Payable 2024 [Member]
Short-Term Debt [Line Items]
Less: current portion of convertible notes	4,172,412
Convertible Notes [Member]
Short-Term Debt [Line Items]
Less: Unamortized debt discount	$ (726,900)	$ (39,012)

v3.24.2.u1

NOTE 7 - CONVERTIBLE NOTES (Details Narrative) - USD ($)			6 Months Ended		12 Months Ended
	Mar. 01, 2024	Jan. 24, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Short-Term Debt [Line Items]
Long-Term Debt, Gross			$ 2,688,075		$ 367,837
Stock Issued During Period, Shares, New Issues			7,427,570
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net			$ 726,900		39,012
Convertible Note One [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross					$ 284,760
Debt Instrument, Maturity Date					Jun. 01, 2024
Debt Instrument, Periodic Payment			31,893
Convertible Note Two [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross					$ 256,760
Debt Instrument, Maturity Date					Oct. 15, 2024
Debt Instrument, Periodic Payment			$ 28,757
Convertible Note Third Party Total [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross					$ 541,520
Interest on Convertible Debt, Net of Tax					$ 66,520
Debt Instrument, Convertible, Terms of Conversion Feature			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.
M 2 B S P A [Member]
Short-Term Debt [Line Items]
Long-Term Debt, Gross		$ 3,888,889
Debt Instrument, Convertible, Terms of Conversion Feature		Each noteholder shall receive shares of common stock (“Kicker Shares”) in an amount equal to ten percent of the principal amount of any Note issued divided by $0.11. The Notes are secured by all of our assets under a Security Agreement signed with the SPA
Debt Instrument, Face Amount		$ 3,500,000
Debt Instrument, Convertible, Conversion Price		$ 0.11
Debt Instrument, Term		1 year
Debt Instrument, Interest Rate, Effective Percentage		18.00%
M 2 B S P A Tranche 1 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Face Amount		$ 2,222,222
Stock Issued During Period, Shares, New Issues		2,020,200
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net		$ 222,222
M 2 B S P A Tranche 2 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Face Amount	$ 1,111,111
Stock Issued During Period, Shares, New Issues	1,010,101
[custom:DebtInstrumentOriginalIssueDiscount]		111,111
M 2 B S P A Tranche 3 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Face Amount	$ 555,556
Stock Issued During Period, Shares, New Issues	505,051
[custom:DebtInstrumentOriginalIssueDiscount]		$ 55,556
Third Party Loan Note 1 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Periodic Payment			$ 16,453
Debt Instrument, Face Amount			$ 146,900
Debt Instrument, Interest Rate, Effective Percentage			12.00%
Third Party Loan Note 2 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Face Amount			$ 177,100
Debt Instrument, Interest Rate, Effective Percentage			14.00%
Third Party Loans Total [Member]
Short-Term Debt [Line Items]
Debt Instrument, Maturity Date			Jan. 15, 2025
Debt Instrument, Convertible, Terms of Conversion Feature			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
Debt Instrument, Face Amount			$ 324,000
[custom:DebtInstrumentOriginalIssueDiscount]			49,000
Interest Expense, Operating and Nonoperating			345,092	$ 3,417
Amortization of Debt Discount (Premium)			400,278	$ 3,476
Third Party Loan Note 2 Payment 1 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Periodic Payment			100,947
Third Party Loan Note 2 Payment 2 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Periodic Payment			$ 25,237

v3.24.2.u1

NOTE 8 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)					3 Months Ended				6 Months Ended
	Nov. 03, 2023	Jan. 07, 2021	Nov. 11, 2020	Nov. 03, 2020	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common Stock, Shares Authorized					300,000,000				300,000,000		300,000,000
Common Stock, Par or Stated Value Per Share					$ 0.001				$ 0.001		$ 0.001
Stock Issued During Period, Shares, New Issues									7,427,570
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture					$ 46,600	$ 31,065	$ 6,900	$ 11,230
Stock Issued During Period, Value, Other						279,660			$ 279,660
Stock Issued During Period, Value, Conversion of Convertible Securities						$ 597,777		$ 400,000	$ 597,777
Stock Issued During Period, Value, Conversion of Units					$ 400,000
Common Stock, Shares, Issued					179,557,200				179,557,200		172,129,630
Common Stock, Shares, Outstanding					179,557,200				179,557,200		172,129,630
Preferred Stock, Shares Authorized					1,200,000				1,200,000		1,200,000
Preferred Stock, Par or Stated Value Per Share					$ 0.001				$ 0.001		$ 0.001
Preferred Class A [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized				10,000
Preferred Stock, Par or Stated Value Per Share				$ 0.001
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					10,000				10,000		10,000
Preferred Stock, Par or Stated Value Per Share					$ 0.001				$ 0.001		$ 0.001
Preferred Stock, Participation Rights				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
Preferred Stock, Voting Rights				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
Preferred Stock, Shares Issued					10,000				10,000		10,000
Preferred Stock, Shares Outstanding					10,000				10,000		10,000
Series B Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized			200,000		200,000				200,000		200,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001				$ 0.001		$ 0.001
Preferred Stock, Participation Rights			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
Preferred Stock, Voting Rights			Holders of Series B Preferred Stock do not have voting rights
Preferred Stock, Shares Issued					31,080				31,080		31,080
Preferred Stock, Shares Outstanding					31,080				31,080		31,080
Preferred Stock, Redemption Terms		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
Debt Instrument, Convertible, Terms of Conversion Feature			may convert into common stock after twelve months from the issuance date, at a conversion rate of one thousand (1,000) 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
Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized		200,000			200,000				200,000		200,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001			$ 0.001				$ 0.001		$ 0.001
Preferred Stock, Redemption Terms		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
Series D Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized					75,000				75,000		75,000
Preferred Stock, Par or Stated Value Per Share					$ 0.001				$ 0.001		$ 0.001
Preferred Stock, Shares Issued					0				0		0
Preferred Stock, Shares Outstanding					0				0		0
Preferred Stock, Redemption Terms		Under the Certificate of Designation, in the event of any dissolution, liquidation or winding up of the Corporation, the Holders of Series D Preferred Stock shall be entitled to participate in any distribution out of the assets of the Corporation before the holders of the Common Stock, Series A Preferred Stock and Series C Preferred Stock, but shall be considered on parity to the liquidation rights of the Series B Preferred Stockholders
Preferred Class D [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Shares Authorized	75,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Directors Issuance [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture									300,000
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture									$ 77,665
Debt Settlement Issuance [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, Other									1,770,000
Stock Issued During Period, Value, Other									$ 279,660
Convertible Notes Issuance [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities									3,535,354
Stock Issued During Period, Value, Conversion of Convertible Securities									$ 597,777
Stock Issued During Period, Shares, Conversion of Units									1,822,216
Stock Issued During Period, Value, Conversion of Units									$ 400,000
Preferred Stock [Member] | Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture
Stock Issued During Period, Shares, Other
Stock Issued During Period, Value, Other
Stock Issued During Period, Shares, Conversion of Convertible Securities
Stock Issued During Period, Value, Conversion of Convertible Securities
Stock Issued During Period, Shares, Conversion of Units
Stock Issued During Period, Value, Conversion of Units
Preferred Stock [Member] | Series B Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture
Stock Issued During Period, Shares, Other
Stock Issued During Period, Value, Other
Stock Issued During Period, Shares, Conversion of Convertible Securities
Stock Issued During Period, Value, Conversion of Convertible Securities
Stock Issued During Period, Shares, Conversion of Units
Stock Issued During Period, Value, Conversion of Units
Preferred Stock [Member] | Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Participation Rights		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
Preferred Stock, Voting Rights		Holders of Series C Preferred Stock do not have voting rights
Debt Instrument, Convertible, Terms of Conversion Feature		may convert into common stock after twenty four months from the issuance date, at a conversion rate of one thousand (1,000) 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
Preferred Stock [Member] | Series D Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred Stock, Participation Rights	The holders of shares of Series D Preferred Stock have no dividend rights except as may be declared by the Board in its sole and absolute discretion
Preferred Stock, Voting Rights	Holders of Series D Preferred Stock do not have voting rights
Debt Instrument, Convertible, Terms of Conversion Feature	may convert into common stock at a conversion rate of one thousand (1,000) shares of Common Stock for every one (1) share of Series D Preferred Stock

v3.24.2.u1

NOTE 9 - RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transactions [Abstract]
Loans and Leases Receivable, Related Parties	$ 661,087		$ 340,515
Notes and Loans Payable, Current	26,613		26,613
Management Fee Expense	423,000	$ 270,000
Increase (Decrease) in Employee Related Liabilities	77,665	$ 18,130
Financial Guarantee Insurance Contracts, Risk Management Activities, Mitigating Claim Liabilities, Accrued Liabilities	$ 205,627		$ 100,128

v3.24.2.u1

NOTE 10 – COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Lessee, Operating Lease, Term of Contract	12 months
Operating Lease, Expense	$ 14,028	$ 2,137

v3.24.2.u1

NOTE 11 - ACQUISITIONS - QXTEL Consideration (Details) - USD ($)	Jun. 30, 2024	Apr. 01, 2024	Jan. 19, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Asset Acquisition, Contingent Consideration, Liability	$ 1,000,000
Q X T E L [Member]
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs		$ 3,000,000
Asset Acquisition, Contingent Consideration, Liability		1,000,000
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization, Acquisition Cost		$ 6,000,000
Yukon River Holdings [Member]
Business Acquisition [Line Items]
Notes Payable			$ 2,000,000

v3.24.2.u1

NOTE 11 - ACQUISITIONS - QXTEL Assets and Liabilities Acquired (Details) - USD ($)	Jun. 30, 2024	Apr. 01, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$ 357,500		$ 357,500
Q X T E L [Member]
Business Acquisition [Line Items]
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization, Acquisition Cost		$ 6,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		769,879
Business Combination, Acquired Receivable, Fair Value		14,946,919
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		208,550
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		214,564
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		30,963
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets		16,170,875
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		14,796,505
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities		403,584
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities		15,200,089
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net		970,786
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		475,685
Business Combination, Assets and Liabilities Arising from Contingencies, Amount Recognized, Net		495,101
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest		$ 5,504,899

v3.24.2.u1

NOTE 11 - ACQUISITIONS - Unaudited Pro Forma Results of Operations QXTEL (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Revenues	$ 78,635,764		$ 32,824,829		$ 130,050,642	$ 57,491,358
Cost of revenues	76,472,140		32,040,363		126,507,992	55,490,156
Gross profit	2,163,624		784,466		3,542,650	2,001,202
Operating expenses	2,505,727		1,037,184		4,068,205	2,571,450
Operating loss	(342,103)		(252,718)		(525,555)	(570,248)
Other income (expense)	(1,556,509)		91,074		(1,953,273)	249,782
Net Loss	$ (1,963,887)	$ (580,216)	$ (161,644)	$ (158,822)	(2,544,103)	(320,466)
Pro Forma Acquisitions [Member]
Business Acquisition [Line Items]
Revenues					157,734,103	97,988,300
Cost of revenues					153,669,990	94,185,602
Gross profit					4,064,113	3,802,698
Operating expenses					4,696,867	3,992,419
Operating loss					(632,754)	(189,721)
Other income (expense)					(1,953,273)	249,782
Income tax					(65,275)	(94,225)
Net Loss					$ (2,651,302)	$ (34,164)

v3.24.2.u1

NOTE 11 – ACQUISITION (Details Narrative) - USD ($)			6 Months Ended
	Jun. 27, 2024	Jan. 19, 2024	Jun. 30, 2024	Jun. 28, 2024
Yukon River Holdings [Member]
Business Acquisition [Line Items]
Business Acquisition, Date of Acquisition Agreement		Jan. 19, 2024
Asset Acquisition, Price of Acquisition, Expected		$ 5,000,000
Other Payments to Acquire Businesses		1,500,000
Noncash or Part Noncash Acquisition, Description			At closing, in addition to the $1,500,000 with the Escrow Agent that formed part of the Purchase Price, we were required to pay $1,500,000 in cash and $2,000,000 to the Seller, either (A) in the form of a promissory note (the “Promissory Note”), or (B) by the delivery of iQSTEL shares to Seller. Seller could decide the form of payment between the Promissory Note or the shares of iQSTEL, and if a Promissory Note was chosen, we agreed to allow Seller the option to exchange the Promissory Note for shares of iQSTEL
Oil and Gas, Full Cost Method, Capitalized Cost Excluded from Amortization, Acquisition Cost, Period Cost		1,500,000
Notes Payable		2,000,000
Repayments of Notes Payable		200,000
Debt Instrument, Periodic Payment		200,000
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid		$ 600,000
Yukon River Holdings Second Amendment [Member]
Business Acquisition [Line Items]
Notes Payable	$ 1,800,000
Debt Instrument, Payment Terms	The amended and restated promissory note also changed the payment structure, from installment payments of $200,000 for each of the months of May through November ($1,400,000) with a balloon payment of $600,000, to monthly installments of $75,000 plus interest during 2024, and $212,500 plus interest during the first 6 months of 2025
Debt Instrument, Periodic Payment	$ 75,000
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid	212,500
[custom:EarnestMoneyRedefinedAsNetIncome-0]	$ 721,035
Yukon River Holdings Balloon Achievement [Member]
Business Acquisition [Line Items]
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid				$ 1,000,000
Note Payable Repaid Q 2 [Member]
Business Acquisition [Line Items]
Repayments of Notes Payable			$ 275,000

v3.24.2.u1

NOTE 12 - SEGMENT - Operating Activities by Geographic Segment (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 78,635,764		$ 32,824,829		$ 130,050,642	$ 57,491,358
Cost of revenue	76,472,140		32,040,363		126,507,992	55,490,156
Gross profit	2,163,624		784,466		3,542,650	2,001,202
Operating expenses
General and administration	2,505,727		1,037,184		4,068,205	2,571,450
Operating (loss) income	(342,103)		(252,718)		(525,555)	(570,248)
Other income (expense)	(1,556,509)		91,074		(1,953,273)	249,782
Income tax expense	(65,275)				(65,275)
Net loss	(1,963,887)	$ (580,216)	(161,644)	$ (158,822)	(2,544,103)	(320,466)
Assets
Current assets	17,220,260				17,220,260		$ 15,719,172
Non-current assets	12,766,400				12,766,400		6,436,481
Liabilities
Current liabilities	22,200,638				22,200,638		13,840,944
Non-current liabilities	214,143				214,143		268,837
U S A [Member]
Segment Reporting Information [Line Items]
Revenues	46,933,532		32,960,138		99,044,789	57,807,809
Cost of revenue	45,956,484		32,359,937		96,888,310	56,185,823
Gross profit	977,048		600,201		2,156,479	1,621,986
Operating expenses
General and administration	1,602,751		845,485		2,958,757	2,196,441
Operating (loss) income	(625,703)		(245,284)		(802,278)	(574,455)
Other income (expense)	(1,597,506)		98,224		(2,032,989)	273,179
Income tax expense
Net loss	(2,223,209)		(147,060)		(2,835,267)	(301,276)
Assets
Current assets	9,072,423				9,072,423		14,537,969
Non-current assets	23,368,080				23,368,080		11,810,606
Liabilities
Current liabilities	13,806,116				13,806,116		11,978,244
Non-current liabilities	139				139		139
Switzerland [Member]
Segment Reporting Information [Line Items]
Revenues	1,026,797		1,334,080		2,062,716	2,681,515
Cost of revenue	883,919		1,149,815		1,720,243	2,302,299
Gross profit	142,878		184,265		342,473	379,216
Operating expenses
General and administration	237,073		191,699		443,545	375,009
Operating (loss) income	(94,195)		(7,434)		(101,072)	4,207
Other income (expense)	47,525		(7,150)		86,244	(23,397)
Income tax expense
Net loss	(46,670)		(14,584)		(14,828)	(19,190)
Assets
Current assets	763,359				763,359		1,874,627
Non-current assets	828,551				828,551		810,437
Liabilities
Current liabilities	1,576,897				1,576,897		2,556,124
Non-current liabilities	169,599				169,599		268,698
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenues	31,474,055				31,474,055
Cost of revenue	30,430,357				30,430,357
Gross profit	1,043,698				1,043,698
Operating expenses
General and administration	665,903				665,903
Operating (loss) income	377,795				377,795
Other income (expense)	(6,528)				(6,528)
Income tax expense	(65,275)				(65,275)
Net loss	305,992				305,992
Assets
Current assets	7,997,811				7,997,811
Non-current assets	754,331				754,331
Liabilities
Current liabilities	7,430,958				7,430,958
Non-current liabilities	44,405				44,405
Elimination [Member]
Segment Reporting Information [Line Items]
Revenues	(798,620)		(1,469,389)		(2,530,918)	(2,997,966)
Cost of revenue	(798,620)		(1,469,389)		(2,530,918)	(2,997,966)
Gross profit
Operating expenses
General and administration
Operating (loss) income
Other income (expense)
Income tax expense
Net loss
Assets
Current assets	(613,333)				(613,333)		(693,424)
Non-current assets	(12,184,562)				(12,184,562)		(6,184,562)
Liabilities
Current liabilities	(613,333)				(613,333)		(693,424)
Non-current liabilities

v3.24.2.u1

NOTE 13 - WARRANTS - Schedule of Warrant Summary (Details) - shares	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number	8,177,784
Warrants and Rights Outstanding, Term	6 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	10,000,000
[custom:WeightedAverageRemainingLifeOfWarrantsGrantedInPeriod]	10 months 17 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised	1,822,216
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Forfeitures
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTermsOfForfeited]

v3.24.2.u1

NOTE 13 - WARRANTS - Schedule of Fair Value Measurement of Liabilities (Details)	Jun. 30, 2024 USD ($) $ / shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Payments | $
Minimum [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	6 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price	$ 0.17
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum	108.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum	5.33%
Maximum [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	7 months 24 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Exercise Price	$ 0.23
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum	117.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum	5.44%

v3.24.2.u1

NOTE 13 - WARRANTS - Fair Value Measurements Using Significant Observable Inputs (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Accounting Policies [Abstract]
Derivative, Fair Value, Net	$ 976,187		$ 976,187
Debtor Reorganization Items, Debt Issuance Cost and Debt Discount, Writeoff			100,000
[custom:ResolutionOfDerivativeLiabilitiesValue]	$ 239,323	$ 240,258	239,323	$ 240,258
Debt Securities, Held-to-Maturity, Transfer, Derivative Hedge, Gain (Loss)			$ 1,115,510

v3.24.2.u1

NOTE 13 – WARRANTS (Details Narrative) - USD ($)		6 Months Ended
	Feb. 12, 2024	Jun. 30, 2024
Short-Term Debt [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted		10,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding		$ 680,000
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage		4.99%
A D I Funding L L C [Member]
Short-Term Debt [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value	$ 100,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	10,000,000
Debt Instrument, Call Feature	The exercise price per share of the common stock under the Option shall be (i) 70% of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is below $2.00 or (ii) seventy five percent (75%) of the VWAP of the common stock during the then 10 Trading Days immediately preceding, but not including the date of exercise if the VWAP is equal or above $2.00.
Option Indexed to Issuer's Equity, Settlement Alternatives	ADI Funding has the right and the obligation to exercise, on a “cash basis”, not less than (i) 2,000,000 of the shares of common stock underlying the option not later than the later of March 31, 2024 or the date on which there is an effective registration statement permitting the resale of the shares by ADI Funding. From and after the occurrence of the above-referenced exercise, each additional exercise of the Option shall be in an amount not less than 1,000,000 shares, which shall occur every thirty (30) days and shall be exercised only on a cash basis. ADI Funding’s obligation to exercise each specified portion of the Option is subject to the exercise price being not less than $0.11
Beneficial Ownership Limitation Upon Notice [Member]
Short-Term Debt [Line Items]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage		9.99%

---