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iQSTEL Inc (IQST-3.28%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $54,249,614 from $39,757,203 in the same quarter the previous year. This increase is attributed to the development of the company's business strategy and strengthening of commercial activities.
Cost of revenues for the quarter was $52,229,695, compared to $38,728,682 in the same quarter of the previous year. The increase is due to higher sales volume and corresponding termination costs.
The company reported a gross profit of $2,019,919 for the quarter, compared to $1,028,521 in the previous year, with the increase attributed to improved gross profit margins.
Operating expenses increased to $2,076,472 from $957,768, primarily due to increased salaries, technology expenses, and professional fees.
Net loss for the quarter was $773,004, compared to a net income of $45,909 in the previous year. The loss is attributed to interest and financial expenses related to the acquisition of QXTEL Limited.
Cash used in operating activities was $2,526,651, while cash used in investing activities was $2,950,367, primarily for the acquisition of a subsidiary.
Financing activities provided $6,239,489, largely from proceeds from convertible notes used in the acquisition of QXTEL.
iQSTEL had a negative working capital of $4,401,248 as of September 30, 2024, compared to a positive working capital of $1,878,228 at December 31, 2023.
The filing also details various financial agreements and transactions, including convertible notes and stock issuances.
The company identified material weaknesses in its internal controls over financial reporting due to inadequate segregation of duties and insufficient written policies.
iQSTEL continues to develop its business divisions, including telecommunications, fintech, electric vehicles, and AI-enhanced metaverse offerings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the iQSTEL Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.