IQST 8-K
iQSTEL Inc (IQST)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code:
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________________________________________________ (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425) | ||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: None.
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. [ ]
SECTION 7 – Regulation FD Disclosure
| Item 7.01 | Regulation FD Disclosure |
iQSTEL, Inc. (the “Company”) is furnishing presentation materials (the “Corporate Presentation”) that management intends to use, possibly with modifications, in one or more meetings from time to time with current and potential investors. The Corporate Presentation includes an update on the Company’s current operations and major projects, as well as information relating to the Company’s strategic plans, goals, growth initiatives and outlook, and forecasts for future performance and industry development.
The foregoing description of the Corporate Presentation does not purport to be complete and is qualified in its entirety by reference to the complete text of the Corporate Presentation attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in the Corporate Presentation is summary information that should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements the Company may make by press release or otherwise from time to time. The Corporate Presentation speaks as of the date of this Current Report. While the Company may elect to update the Corporate Presentation in the future to reflect events and circumstances occurring or existing after the date of this Current Report, the Company specifically disclaims any obligation to do so.
By furnishing this Current Report on Form 8-K and furnishing the Corporate Presentation, the Company makes no admission as to the materiality of any information in this Current Report, including without limitation the Corporate Presentation. The Corporate Presentation contains forward-looking statements and the risks and uncertainties related thereto.
The information set forth in this Item 7.01 of this Report, including without limitation the Corporate Presentation, is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such a filing.
SECTION 9 – Financial Statements and Exhibits
| Item 9.01 | Financial Statements and Exhibits. |
| Exhibit No. | Description | |
| 99.1 | Corporate Presentation |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
iQSTEL Inc.
/s/ Leandro Iglesias
Leandro Iglesias
Chief Executive Officer
Date August 29, 2024
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COMPANY TEASER
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Ticker: IQST
Latest Share Price: $0.19
Market Cap: $34.87 Million
Shares Outstanding: 183,535,742
Avg Volume: 319,029
CEO: Leandro Iglesias |
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Business:
iQSTEL Inc. (OTC: IQST) is a fast-growing technology company offering a range of services in the telecommunications, electric vehicle (EV), fintech, and AI-enhanced metaverse industries. With headquarters in Miami, Florida, iQSTEL operates through its various subsidiaries, targeting diverse and high-growth markets. The company’s strategy focuses on leveraging synergies between its 11 subsidiaries to drive innovation and capture emerging opportunities. Since 2018, IQST has overseen extensive expansion of its business, where it has grown revenues 1,500% over a five-year period to $144.5 million in FY-2023, and completed 11 acquisitions with 1 acquisition pending.
IQST with 100 employees serves clients in more than 20 countries, including clients in the US, Mexico, Central America, South America, Europe, Middle East, Africa, India and China. Its core business offerings VOIP, SMS, IoT (internet of things), Blockchain platforms, and international fiber-optic connectivity between Florida and Costa Rica, at the same time, Integrates mobile payments and MasterCard Fintech solutions, electric motorcycles, mid speed electric car, AI-Enhanced Metaverse solutions.
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Financials:
| Balance Sheet (as of 12/31/2023 | Historical Earnings (for Years Ended) | ||||||||||
| Assets | 2023 | 2022 | |||||||||
| Cash | $ | 1,362,668 | Revenues | $ | 144,502,351 | $ | 93,203,532 | ||||
| A/R | $ | 12,539,774 | Cost of Revenues | $ | 139,830,388 | $ | 91,412,016 | ||||
| Total Current Assets | $ | 15,719,172 | Gross Profit | $ | 4,672,013 | $ | 1,791,516 | ||||
| Total Assets | $ | 22,155,653 | |||||||||
| Operating Expenses | |||||||||||
| Liabilities | General & Admin | $ | 4,987,516 | $ | 4,983,176 | ||||||
| A/P | $ | 2,966,279 | Total OpEx | $ | 4,987,516 | $ | 4,983,176 | ||||
| Other Current Liabilities | $ | 9,993,585 | |||||||||
| Total Liabilities | $ | 14,109,781 | EBITDA | $ | (315,503) | $ | (3,191,660) | ||||
Investment Highlights:
| · | Revenue Growth: iQSTEL has demonstrated robust revenue growth, with an impressive 33% CAGR over the past five years. The company reported revenue of $13.8 million in FY-2018, just reported $144.5 million in FY-2023, and forecasted $290 million for FY-2024. |
| · | Diverse Revenue Streams: The company’s multi-industry approach minimizes risk and increases resilience. iQSTEL’s ability to cross-leverage technology across segments creates additional revenue opportunities. |
| · | Strategic Acquisitions: iQSTEL has executed 11 strategic acquisitions with another pending to bolster its market presence, particularly in the telecom and fintech sectors. These acquisitions have expanded its customer base and service offerings. |
| · | Innovative Product Pipeline: iQSTEL is at the forefront of innovation with its development of next-generation telecom services, EV motorcycles and mid speed car, and blockchain-based financial products. The company’s R&D investments are expected to yield significant returns as these markets grow. |
Largest Customers:
| • | Telefonica Spain | • | Etisalat | |||||
| • | Telecom Italy | • | Deutsche Telekom | • | PCCW | |||
| • | Vodafone | • | British Telecom | • | Millicom |
Competitors
IQST is currently trading at a significant discount compared to other companies, which are selling at a 0.75x revenue multiple, presenting immense potential upsides to investors.
| Revenues | Share Price | Market Cap | Revenue Multiple | |
| IQST | $290 million** | $0.18 | $33 million | 0.11x |
| NUVR | $65 million | $7.90 | $41 million | 0.62x |
| SURG | $131 million | $1.88 | $37 million | 0.28x |
| KTEL | $18 million | $0.38 | $15 million | 0.83x |
| OBLG | $3.8 million | $3.45 | 2.76 million | 0.72x |
**FY 2024 Run Rate
Future Plans:
| · | IQST is in the process to hire a US leading marketing agency, to rebrand its divisions, improve its online marketing presence and increase overall shareholder value. | ||
| · | IQST will consolidate and complete ownership of different divisions and subsidiaries in order to streamline operations and increase margins. | ||
| · | IQST will leverage its large base of telecom infrastructure to develop a platform to attract new business, increase revenues and improve margin. |
The Company is planning to grow revenues to $1 billion in annual sales by 2027, driven by two key drivers:
| · | Organic Growth: IQST estimates at least $0.5 Billion of the projected growth over the next three years will come from organic sales growth. | ||
| · | Strategic Acquisitions: The Company expects to generate at least $250 million in additional revenue through strategic acquisitions of competitors and complimentary firms in the telecommunications industry. An additional $250 million is expected from organic sales growth and synergies. |
IQST is currently in the process of completing an uplisting to NASDAQ, with a target listing date of January 1, 2025.
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Current Plan FY-2024:
| · | Rebranding and marketing plan for IQST |
| · | Consolidation of all subsidiaries with a target |
| · | $10.5 million raise in conjunction with NASDAQ listing |
Management:
| · | Leandro Iglesias – President & CEO, Chairman of the Board |
| · | Alvaro Quintana – CFO, Director |
| · | Raul Perez – Director |
| · | Jose Barreto – Director |
| · | Italo Segnini – Director |
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