iQSTEL Inc.

Company Overview

Business Model: IQSTEL Inc. is a technology company operating across four business divisions: telecommunications, electric vehicle (EV), fintech, and AI-enhanced metaverse industries. The company's core business, and current sole revenue generator, is its Telecommunications Division, which provides international voice, SMS, and connectivity services through over 603 high-value network interconnections globally. IQSTEL Inc.'s strategy focuses on leveraging synergies between its nine subsidiaries to drive innovation and capture emerging opportunities, aiming to make essential tools accessible in today's modern world.

Market Position: IQSTEL Inc. maintains a global presence with offices in the USA, Argentina, UK, Switzerland, Turkey, and Dubai, targeting diverse and high-growth markets. Its Telecommunications Division currently accounts for 100% of the company's revenues. The company is strategically positioned in the growing Application-to-Person (A2P) SMS market, which is projected to reach $101 billion by 2030, growing at a CAGR of 4.1%. Through acquisitions, IQSTEL Inc. has strengthened its presence in Europe, aiming to capture traffic to Asian and African countries.

Recent Strategic Developments:

• Acquisition of QXTEL Limited: In April 2024, IQSTEL Inc. acquired a 51% equity interest in QXTEL Limited, a telecommunications and technology services provider based in London (UK), for a total purchase price of $6,000,000. This acquisition significantly expanded the company's wholesale carrier voice, A2P SMS, and carrier technology services.
• Divestiture of ItsBchain, LLC: In March 2025, IQSTEL Inc. signed a non-binding Memorandum of Understanding (MOU) to sell its 75% equity interest in itsBchain, LLC to Accredited Solutions, Inc. for $1,000,000, comprising $500,000 in restricted preferred shares and $500,000 in restricted common shares of Accredited Solutions, Inc. IQSTEL Inc. will retain a 1% lifetime royalty on itsBchain, LLC's total sales.
• Proposed Acquisition of GlobeTopper, LLC: In March 2025, IQSTEL Inc. signed a non-binding MOU to acquire a 51% equity interest in GlobeTopper, LLC for $700,000, consisting of $200,000 in cash and $500,000 in IQSTEL Inc. common stock. The agreement also includes performance bonuses for 2025 and 2026 based on EBITDA growth.
• New Business Line Development: The company is actively developing its Blockchain Platform Business Line (Mobile Number Portability Application), Fintech Business Line (MasterCard Debit Card, US Bank Account, Mobile App/Wallet for remittances), Electric Vehicle Business Line (electric motorcycles and mid-speed cars), and AI-Enhanced Metaverse Division (white-label immersive content solution with AI-powered Non-Player Characters).

Geographic Footprint: IQSTEL Inc. operates globally with a presence in 20 countries, including Argentina, Armenia, Austria, Canada, Colombia, Germany, Greece, Guatemala, India, Italy, Pakistan, Romania, Serbia, Spain, Switzerland, Turkey, UAE, UK, USA, and Venezuela. The company maintains offices in the USA, Argentina, UK, Switzerland, Turkey, and Dubai.

Financial Performance

Revenue Analysis

Profitability Metrics (2024):

• Gross Margin: 2.92%
• Operating Margin: -0.29%
• Net Margin: -1.83%

Investment in Growth:

• Technology Expenditure: $1,192,185 (0.42% of revenue, included in operating expenses)
• Capital Expenditures: $151,620 (for property and equipment)
• Strategic Investments:
  • Acquisition of QXTEL Limited: $6,000,000 (cash, promissory note, contingent liability)
  • Investment commitment in itsBchain, LLC: $65,000 (to be paid in monthly installments)
  • Proposed acquisition of GlobeTopper, LLC: $700,000 (cash and common stock) plus up to $1,200,000 in structured financing over 24 months.

Business Segment Analysis

Telecommunications Division

Financial Performance:

• Revenue: $283,220,442 (+96.0% YoY)
• Gross Profit: $8,271,749 (+77.0% YoY)
• Operating Income: $2,063,148 (+40.0% YoY)
• Net Income: $1,710,241 (+33.0% YoY)
• Adjusted EBITDA: $2,645,417 (+86.0% YoY)
• Key Growth Drivers: Organic growth (38% of increase) and the acquisition of QXTEL Limited (62% of increase). Increased volume of voice minutes and SMS traffic.

Product Portfolio:

• Voice Services: International Voice Termination for carriers, US/Canada Inbound/Origination, US/Canada DIDs, US/Canada Toll Free Numbers, Global DIDs, Global Toll-Free Numbers, PBX (Private Branch Exchange) for small businesses, SIP Trunking.
• SMS Services: International and domestic SMS termination, Applications to Person (A2P), Person to Person (P2P), OmniChannel Marketing Services for Wholesale Carrier, Government, Corporate, Enterprise, Small and Medium Companies.
• Internet of Things (IoT) Solutions: Proprietary SmartGas and SmartTank devices for LP gas tank monitoring in retail households and industrial settings, respectively.

Market Dynamics:

• Competitive positioning within the segment is driven by extensive network interconnections with major industry players and Tier-1 SMS Aggregators. The global A2P SMS market is projected for significant growth.
• Key customer types include telecommunications operators, Tier-1 SMS Aggregators, and various enterprise and government clients.

Sub-segment Breakdown:

• Voice Services:
  • Revenue: $187,194,236 (66.09% of total revenue in 2024)
  • Minutes Carried: 5.2 billion in 2024 (+23.81% YoY from 4.2 billion in 2023)
  • Key Subsidiaries: Etelix.com USA, LLC, SwissLink Carrier AG, Whisl Telecom LLC, Smartbiz Telecom LLC, QXTEL Limited.
• SMS Services:
  • Revenue: 33.91% of total revenue in 2024
  • Gross Margin: 1.93% in 2024 (+211% from 0.62% in 2023)
  • SMS Carried: 13.9 billion in 2024 (+32.94% YoY from 11.3 billion in 2023)
  • Key Subsidiaries: QGlobal SMS LLC, IoT Labs LLC, QXTEL Limited.
• IoT Solutions:
  • Key Subsidiary: IoT Labs LLC.
  • Product Status: Received a patent in Mexico in 2018 for SmartGas and SmartTank. Minimum inventory available for marketing since late 2022.

Blockchain Platform Business Line (Pre-revenue)

Product Portfolio:

• Proprietary Mobile Number Portability Application (MNPA) designed to enable instant transfer of mobile phone numbers between carriers for users and carriers. Market Dynamics:
• Targets 35 countries where number portability is mandatory, representing 3.3 billion population and 4.0 billion phone lines. The number portability market is estimated at over $86 million per year for database administrators.
• Objective is to offer a more cost-effective solution, reduce operating costs, and accelerate transactions without additional CAPEX. Status: Currently undergoing testing prior to commercial release.

Fintech Business Line (Pre-revenue)

Product Portfolio:

• A complete Fintech ecosystem including a MasterCard Debit Card, US Bank Account (no SSN needed), and a Mobile App/Wallet for remittances and mobile top-ups. Market Dynamics:
• Focuses on providing reliable financial services to immigrants, facilitating money management and family connections.
• Remittances to low- and middle-income countries reached $669 billion in 2023, with Latin America and the Caribbean growing 8% in 2023. Status: First non-commercial release in June 2022, with all services (KYC, settlement, intermediaries for remittances/top-ups, customer care training) tested.

Electric Vehicle (EV) Business Line (Pre-revenue)

Product Portfolio:

• Electric motorcycles for work and recreational use.
• Development of an EV Mid Speed Car targeting the "second car in the family" niche. Market Dynamics:
• Plans to offer products in the USA, Spain, Portugal, Panama, and Colombia. Status: New electric motorcycle designs are undergoing final validation tests for European Union Standards E-Mark certification, with manufacturing to commence post-certification.

Artificial Intelligence (AI)-Enhanced Metaverse Division (Pre-revenue)

Product Portfolio:

• A white-label solution for corporations, businesses, and the telecommunications industry, offering a full suite of immersive content services accessible via web or proprietary mobile apps.
• Features include up to four simultaneous video screens, various virtual halls (main, home, auditorium, exhibition, shopping, meeting rooms), stands for app downloads, clickable gates for purchasing, and direct communication tools. Technology:
• Leverages cutting-edge AI, specifically OpenAI's latest language models, to introduce dynamic Non-Player Characters (NPCs).
• NPCs serve as sales and brand assistants, guide users, control access to gated spaces, support seven languages, and utilize advanced text-to-speech and speech-to-text technologies. Status: In an advanced phase of development with ongoing enhancements to AI functionalities and user interaction models. The app was released on Google Play Store and Apple App Store in June 2023, and on the company website in August 2023.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not disclosed.
• Dividend Payments: $627,710 in Series B Preferred Stock dividends in 2024 (vs. $816,480 in 2023).
• Dividend Yield: Not disclosed.
• Future Capital Return Commitments: The company plans to distribute common shares of Accredited Solutions, Inc. (received from the sale of itsBchain, LLC) as dividends to its shareholders in the future.

Balance Sheet Position (as of December 31, 2024):

• Cash and Equivalents: $2,510,357
• Total Debt: $8,052,484 (comprising $2,455,641 in current loans payable, $1,864,432 in current convertible notes, $3,011,926 in non-current convertible notes, and $720,485 in related party loans payable)
• Net Cash Position: $(5,542,127) (Net Debt)
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Loans payable mature between January 2025 and September 2025. Convertible notes mature between January 2025 and June 2025, with some extended to January 2026 and March 2026. Related party loans are due on demand or by October 2025.

Cash Flow Generation:

• Operating Cash Flow: $(2,930,306) in 2024 (vs. $(1,483,801) in 2023)
• Free Cash Flow: $(3,081,926) in 2024 (Operating Cash Flow less Capital Expenditures of $151,620)
• Cash Conversion Metrics: Not explicitly disclosed.

Operational Excellence

Production & Service Model: IQSTEL Inc. operates as a transit network, facilitating seamless voice and SMS communication across international borders. This is achieved through establishing peering agreements with other telecommunication entities and utilizing sophisticated algorithms to determine cost-effective and reliable paths for traffic. The company manages media protocols such as SIP (Session Initiation Protocol) and RTP (Real-time Transport Protocol) to ensure smooth communication and efficient call routing between diverse networks.

Supply Chain Architecture: Key Suppliers & Partners:

• International Carriers (Voice): China Telecom, PCCW, Hutchinson Telecom, Vodafone India, KDDI, Airtel, Reliance, Viettel, TATA Communications, Flow Jamaica (Cable and Wireless Caribbean), Cable and Wireless Panama, Millicom (TIGO), Telefonica de España (Movistar), Telecom Italia (TIM), Portugal Telecom (MEU), Optimus (NOS), Belgacom (BICS), iBasis, Orbitel, Entel, Orange Wholesale International, CJC Global Connections & Consulting LLC, U.S. South Communications, Inc., Bell Canada Inc., SWISSCOM (SCHWEIZ) AG, Telintel Ltd, Teliax, Inc Tf, Sistemas Satelitales de Colombia S.A. Esp, IDT Global Limited, BTS Business Telecommunications Service Inc., China Mobile International Limited, Deutsche Telekom AG, Digicel Jamaica Limited, Emirates Telecom Etisalat, Messagebird, T-Mobile USA, Inc., Vodafone US Inc.
• SMS Aggregators: Tier-1 SMS Aggregators, Computer-Tel Inc., Twilio Ireland Limited, Aztek Corporative Properties Inc, Bytescale C., Codek Connect LLC, Nuvoteq LLC.
• Technology Partners: GOTMY (for AI-Enhanced Metaverse development).

Facility Network:

• Offices: USA, Argentina, UK, Switzerland, Turkey, and Dubai.
• Leased Facilities: Office space for corporate and network monitoring activities, and to house telecommunications equipment.
• Manufacturing/R&D/Distribution: Not explicitly detailed beyond IoT Labs LLC's development of SmartGas and SmartTank devices and EVOSS's electric motorcycle production.

Operational Metrics:

• Voice Minutes Carried: 5.2 billion in 2024 (+23.81% YoY)
• SMS and Short Codes Carried: 13.9 billion in 2024 (+32.94% YoY)
• Network Interconnections: Over 603 high-value network interconnections.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Primarily through direct relationships with telecommunications operators and Tier-1 SMS Aggregators for wholesale services.
• Channel Partners: Engages with various telecom carriers and aggregators globally.
• Digital Platforms: Developing proprietary mobile apps for Fintech and AI-Enhanced Metaverse solutions.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Includes major telecommunication carriers and SMS aggregators globally.
• Customer Concentration: The 27 largest customers (representing 4.5% of the total customer base) collectively accounted for 89% of total consolidated revenues in fiscal year 2024. Approximately 33% of revenue is derived from customers under prepayment conditions, which mitigates credit risk.

Geographic Revenue Distribution (2024):

• USA: $197,007,636
• UK: $95,681,790
• Switzerland: $13,349,998 (Note: These figures include intercompany revenues, with an elimination of $(22,818,982) to arrive at total consolidated revenue.)

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The telecommunications industry is characterized by intense price competition and rapid technological changes. The market for traditional phone communications is adversely affected by the continued growth of Over-The-Top (OTT) calling and messaging services (e.g., WhatsApp, Skype, Viber). The global A2P SMS market, however, is expected to grow at a CAGR of 4.1% to $101 billion by 2030.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Not explicitly named in the filing, but the company operates in an environment with "significantly larger industry presence and revenue stream" competitors.

Emerging Competitive Threats:

• Over-The-Top (OTT) Services: Free IP-based voice communications (e.g., WhatsApp, Skype, Viber) are expected to continue increasing, potentially leading to substitution of traditional service offerings.
• New Entrants: Barriers to entry in several business lines are not significant, posing a risk of new competitors undercutting prices with technologically superior products.

Competitive Response Strategy: IQSTEL Inc. aims to maintain competitive advantage through a strategy of strengthening commercial and operating activities, pursuing new acquisitions, and expanding participation in high-growth traffic markets like Asia and Africa by establishing a strong presence in Europe. The company also focuses on developing proprietary, cost-effective technology solutions in its new business lines.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Profitability Uncertainty: History of losses and dependence on financing or revenue generation to continue operations.
• Regulatory Changes: Legislative or regulatory changes concerning telecommunications could impact profitability.
• Economic Conditions: Deterioration in global and regional economic conditions, including reduced business activity, high unemployment, rising interest rates, and inflation, can adversely affect business.
• Price Competition: The telecommunications industry is highly sensitive to declining prices due to intense competition, which may adversely affect revenues and margins.
• OTT Service Substitution: Continued growth of Over-The-Top calling and messaging services (e.g., WhatsApp, Skype, Viber) may increase substitution for traditional service offerings. Technology Disruption:
• Rapid Technological Changes: All product lines are subject to significant competition from rapid technological changes and pricing pressure. Customer Concentration:
• Dependency Risks: The 27 largest customers (4.5% of the total customer base) accounted for 89% of total consolidated revenues in fiscal year 2024, increasing exposure to non-payment risk.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Disruptions: Major public health issues (e.g., pandemics), extreme weather, or significant changes in the political environment could disrupt operations, supply chain, and sales/distribution channels. Capacity Constraints:
• Network Failures: Inability to operate telecommunications networks due to natural disasters, terrorist acts, acts of war, pandemics, or cyber-attacks could result in revenue loss and significant expenses. Integration Risk:
• Acquisition Integration: Potential failure to successfully integrate acquisitions or realize expected benefits, leading to material transaction costs, increased expenses, and diversion of management attention. Growth Management:
• Operational Strain: Failure to effectively manage growth could lead to significant strains on management and operations, and business disruptions.

Financial & Regulatory Risks

Market & Financial Risks:

• Demand Volatility: Volatility and disruption in global capital and credit markets may lead to slowdowns or declines in client spending.
• Foreign Exchange: Fluctuations in exchange rates can affect prices, create price disadvantages, and negatively impact financial position.
• Credit & Liquidity: Dependence on outside financing due to operating losses and negative working capital ($806,150 as of December 31, 2024), raising substantial doubt about the ability to continue as a going concern. Regulatory & Compliance Risks:
• Extensive Regulation: Telecommunications services are subject to extensive government regulation in the United States (FCC) and internationally, including licensing, universal service contributions, and other regulatory fees.
• Money Transmitter Laws: Fintech services are subject to heavily-regulated industries, including banking, money transmitter, anti-money laundering, privacy, consumer protection, unclaimed property, and card association rules.
• International Compliance: Global operations expose the company to complex international laws (e.g., Foreign Corrupt Practices Act, EU General Data Protection Regulation, U.K. Modern Anti-Slavery Act).
• Data Privacy: Changes in regulations or user concerns regarding privacy and protection of user data, or failure to comply with such laws, could adversely affect the business.

Geopolitical & External Risks

Geopolitical Exposure:

• Global Economic Conditions: Operations are significantly dependent on global and regional economic conditions, including political instability and armed conflicts. Trade Relations:
• Trade Restrictions: Exposure to trade restrictions, tariffs, and other regulatory barriers in international markets. Sanctions & Export Controls:
• Compliance Requirements: Compliance with export regulations and anti-bribery laws (e.g., U.S. Foreign Corrupt Practices Act) is critical.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Telecommunications: Voice over Internet Protocol (VoIP), Short Message Service (SMS), international fiber-optic connectivity.
• Internet of Things (IoT): Proprietary SmartGas and SmartTank devices for gas tank monitoring.
• Blockchain: Proprietary Mobile Number Portability Application (MNPA) for telecommunications.
• Fintech: Development of a complete Fintech ecosystem including MasterCard Debit Card, US Bank Account, and Mobile App/Wallet for remittances and mobile top-ups.
• Electric Vehicles (EV): Development of electric motorcycles and an EV Mid Speed Car.
• Artificial Intelligence (AI)-Enhanced Metaverse: White-label solution utilizing cutting-edge AI, including OpenAI's latest language models for dynamic Non-Player Characters (NPCs) with multi-language support, text-to-speech/speech-to-text, and "function call" features. Innovation Pipeline:
• Blockchain Platform: MNPA is currently being tested prior to commercial release, targeting a market of over $86 million annually.
• Fintech Ecosystem: First non-commercial release of the Global Money One app in June 2022, with all services tested.
• Electric Vehicles: New electric motorcycle designs are undergoing final validation tests for European Union Standards E-Mark certification, with manufacturing to begin after certification.
• AI-Enhanced Metaverse: In an advanced phase of development with ongoing enhancements to AI functionalities and user interaction models, with app releases in June and August 2023.

Intellectual Property Portfolio:

• Patent Strategy: Holds a patent in Mexico (received 2018) for the invention and development of its SmartGas and SmartTank IoT devices.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: No material IP litigation disclosed.

Technology Partnerships:

• Strategic Alliances: Partnership with GOTMY for the development of the AI-Enhanced Metaverse solution.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company emphasizes attracting and retaining qualified personnel, with compensation practices designed to incentivize and align interests with company goals. Executive employment agreements are for five-year terms, with provisions for bonuses and potential conversion of accrued salary/bonus into common or preferred stock.

Board Composition:

• Total Directors: 5 (Leandro Iglesias, Alvaro Quintana Cardona, Raul Perez, Jose Antonio Barreto, Italo Segnini).
• Independence: The Board of Directors has determined that none of its directors are "independent directors" within the meaning of applicable NASDAQ listing standards.
• Expertise Areas:
  • Leandro Iglesias: Over 20 years in telecommunications, international long-distance traffic, submarine cables, satellite communications, international roaming services.
  • Alvaro Quintana Cardona: Over 20 years in telecommunications, regulatory affairs, strategic planning, value-added services, international interconnection agreements.
  • Raul Perez: Over 40 years in finance, corporate treasury, financial analysis, regulatory surveillance (Venezuelan SEC), corporate finance, managerial accounting.
  • Jose Antonio Barreto: Over 30 years in telecommunications and technology, business development, operational leadership, M&A analysis, technology security, AI, IoT platforms.
  • Italo Segnini: Over 20 years in the telecommunications industry, high-level positions at Global Tier Ones, executive experience in Voice, A2P, SMS, Data, Roaming, Mobility Services, B2B, MNO, MVNO, IoT, Interconnection.
• Committee Structure:
  • Audit Committee: Raul Perez (Chair), Italo Segnini, Jose Antonio Barreto. Mr. Perez is designated as an "audit committee financial expert."
  • Compensation Committee: Italo Segnini (Chair), Raul Perez, Jose Antonio Barreto.
  • Nominating and Governance Committee: Jose Antonio Barreto (Chair), Raul Perez, Italo Segnini.

Human Capital Strategy

Workforce Composition:

• Total Employees: 100 employees as of December 31, 2024, including all subsidiaries.
• Geographic Distribution: Employees are distributed across the company's presence in 20 countries.
• Skill Mix: Focus on qualified personnel familiar with the company's diverse business units.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Objectives include identifying, recruiting, retaining, incentivizing, and integrating employees, advisors, and consultants.
• Employee Value Proposition: Compensation practices aim to attract and retain qualified personnel and align their interests with company goals, offering equity and cash incentive plans.

Diversity & Development:

• Diversity Metrics: The company is committed to diversity and inclusion, implementing a policy of non-discriminatory treatment and respect for human rights. Discrimination based on race, religion, creed, color, sex, sexual orientation, age, marital status, disability, national origin, or veteran’s status is prohibited.
• Development Programs: Recognizes that a trained, diverse, and engaged workforce is crucial for meeting objectives.
• Culture & Engagement: Strives to treat all employees with dignity in accordance with international standards and practices.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: The company's operating results may fluctuate due to seasonality, though specific patterns or drivers are not detailed in the filing.
• Economic Sensitivity: Operations are influenced by general economic conditions. Adverse economic conditions, such as reduced business activity, high unemployment, and rising interest rates, can negatively impact operating results and financial condition.
• Industry Cycles: The telecommunications industry is characterized by intense price competition, which can lead to declines in average per-minute price realizations and termination costs.

Planning & Forecasting: The company's demand forecasting and inventory management approaches are not explicitly detailed in the filing.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Telecommunications: Subject to extensive government regulation in the United States by the Federal Communications Commission (FCC) for interstate and international communications services. Etelix.com USA, LLC holds a Section 214 license (ITC-214-20090625-00303). SwissLink Carrier AG is a Swiss licensed operator.
• Universal Service & Regulatory Fees: Required to contribute to universal service support programs (Universal Service Fund) and other regulatory funds (Telecommunications Relay Service, FCC Regulatory Fees) based on interstate and international end-user telecommunications revenues. Exemptions from some federal Universal Service Fund contributions are utilized, but changes could materially increase costs.
• Fintech: Consumer payment services (prepaid debit cards, remittances, mobile top-ups) are heavily regulated, subject to banking laws, money transmitter and payment instrument laws, anti-money laundering laws, privacy and data security laws, consumer protection laws, unclaimed property laws, and card association/network organization rules. International Compliance:
• Global Operations: Subject to various complex international laws governing international relations, including the U.S. Foreign Corrupt Practices Act, U.S. Export Administration Act, EU General Data Protection Regulation, and U.K. Modern Anti-Slavery Act.

Trade & Export Controls:

• Export Restrictions: Compliance with export regulations, tariffs, and other regulatory barriers is required.
• Sanctions Compliance: Compliance with trade restrictions and sanctions is a key requirement for global operations.

Legal Proceedings:

• Material Litigation: IQSTEL Inc. has no current legal proceedings.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The company recorded an income tax expense of $394,030 in 2024, on a net loss before income taxes of $(4,786,006). This implies an effective tax rate of approximately 8.23% on the pre-tax loss, driven by specific tax provisions and deferred tax assets.
• Geographic Tax Planning: Not explicitly detailed.
• Tax Reform Impact: Not explicitly detailed.
• Net Operating Loss (NOL) Carryforward: As of December 31, 2024, the company has approximately $15,400,000 in net operating losses carried forward. NOLs generated in the U.S. prior to December 31, 2017, can be carried forward for 20 years, while those after December 31, 2017, can be carried forward indefinitely. NOLs generated in Switzerland can be carried forward for 7 years.
• Valuation Allowance: A full valuation allowance has been established against all deferred tax assets related to NOLs, except for those recorded at SwissLink Carrier AG, where utilization is anticipated prior to expiration.

Insurance & Risk Transfer

Risk Management Framework: IQSTEL Inc. views cybersecurity risk as a principal enterprise-wide risk and dedicates resources to programs for identification, assessment, management, mitigation, and response. The company has implemented cybersecurity risk management procedures, including policies and processes to protect IT systems (some managed by third parties) and resolve issues. Business applications are designed to minimize the impact of cybersecurity incidents, with identified back-up systems. Mitigation efforts include monitoring, detection, anti-malware applications, employee training, quality audits, and communication/reporting structures. The Head of IT department oversees cybersecurity risks and reports to the Chief Executive Officer, who reports to the Audit Committee. As of December 31, 2024, no cybersecurity incident with a material impact on the business or financial statements has been identified.