IQSTEL INC. Results of Operations for the Years Ended
Net Revenue
Our net revenue for the year ended
When looking at the numbers by subsidiary, we have the following breakout for
the years ended
Revenue Revenue
Year Ended Year Ended
Subsidiary December 31, 2022 December 31, 2021
Etelix.com USA, LLC 22,301,110 15,445,161
SwissLink Carrier AG 4,705,031 4,681,978
QGlobal LLC 350,050 666,887
IoT Labs LLC 53,239,401 43,907,992
Whisl 4,318,762 -
Smartbiz 8,289,178 -
93,203,532 64,702,018
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.
If net revenues continue growing at a similar rate for the next twelve months,
we believe that the company will reach a total consolidated revenue of
approximately
Cost of Revenue
Our total cost of sales for the year ended
When looking at the numbers by subsidiary, we have the following breakout for
the years ended
Cost of revenue Cost of revenue
Year Ended Year Ended
Subsidiary December 31, 2022 December 31, 2021
Etelix.com USA, LLC 23,360,923 15,080,687
SwissLink Carrier AG 3,949,751 3,986,334
QGlobal LLC 243,493 563,528
IoT Labs LLC 52,842,202 43,537,754
Whisl 2,760,807 -
Smartbiz 8,254,840 -
91,412,016 63,168,303
Our cost of revenues 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 our vendor's networks.
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.
15 Table of Contents Gross Margin
Our gross margin, which is simply the difference between our revenues and our
cost of sales, discussed above, increased from
Operating Expenses
Operating expenses for the year ended
Years Ended December 31
2022 2021
Salaries, Wages and Benefits $ 1,662,192 $ 1,160,021
Technology 291,348 218,053
Professional Fees 901,082 441,490
Legal and Regulatory 511,598 106,001
Travel & Events 93,769 23,117
Public Cost 31,750 42,674
Allowance for Doubtful Accounts 34,376 -
Depreciation and Amortization 120,117 91,474 Advertising
617,559 977,334
Bank Services and Fees 37,950 117,886
Office, Facility and Other 324,167 392,117
Commissions Financial Expenses 239,550 -
Insurances 10,118 -
Subtotal 4,875,576 3,570,167
Stock-based compensation 107,600 947,464
Total Operating Expenses $ 4,983,176 $ 4,517,631 Operating Expenses by subsidiary are as follow:
Years Ended December 31,
2022 2021 Difference
iQSTEL $ 1,762,904 $ 2,906,114 $ (1,143,210 )
Etelix 472,291 339,354 132,937
SwissLink 767,069 784,052 (16,983 )
ItsBchain 22,693 2,396 20,297
QGlobal 202,933 106,803 96,130
Global Money One 157,382 175,324 (17,942 )
IoT Labs 264,091 203,588 60,503
Whisl 821,979 - 821,979
Smartbiz 511,834 - 511,834$ 4,983,176 $ 4,517,631 $ 465,545
The increment in the overall Operating Expenses is due to the new additions of
Whisl and Smartbiz, totaling
16 Table of Contents Other Expenses
We had other expenses of
Net Loss
We finished the year ended
Liquidity and Capital Resources
As of
Following is a table with summary data from the consolidated statement of cash
flows for the year ended
2022 2021
Net cash used in operating activities
Effect of exchange rate changes on cash (6,840 ) (5,954 )
Net change in cash and cash equivalents
Our operating activities used
Investing activities used
Financing activities provided
Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. The Company has received the qualification of an Offering Statement under Form S-1 for the sale of up to 10,000,000 common stocks. This offering is being conducted on a "best efforts" basis, which means that there is no guarantee that any minimum amount will be sold. We also plan to seek additional financing in a 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.
17 Table of Contents 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 twelve-month period ended
Critical Accounting Policies
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 Annual Report on Form 10-K for the year
ended
Off Balance Sheet Arrangements
As of
Recently Issued Accounting Pronouncements
We do not expect the adoption of these or other recently issued accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow.
© Edgar Online, source
