iQSTEL Inc Debt Disclosure

NOTE 9 - LOANS PAYABLE

 

Loans payable at December 31, 2025 and 2024 consisted of the following:

 

		December 31,				December 31,						Interest
		2025				2024				Term		rate
Martus		$	97,401			$	103,738			Note was issued on October 23, 2018 and due on January 2, 2026			5.0	%
Darlene Covid19			60,703				80,019			Note was issued on April 1, 2020 and due on March 31, 2026			0.0	%
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			—				1,275,000			Note was issued April 1, 2024 and due on June 30, 2025			4.9	%
Promissory note payable			—				271,739			Note was issued July 16, 2024 and due on July 16, 2025			2.0	%
Promissory note payable			—				271,739			Note was issued July 31, 2024 and due on July 31, 2025			2.0	%
Promissory note payable			—				190,217			Note was issued September 23, 2024 and due on September 23, 2025			2.0	%
Promissory note payable			—				108,696			Note was issued October 4, 2024 and due on September 23, 2025			2.0	%
Promissory note payable			794,737				—			Note was issued July 16, 2025 and due on February 26, 2026			24.0	%
Promissory note payable			794,737				—			Note was issued August 8, 2025 and due on March 21, 2026			24.0	%
Promissory note payable			794,737				—			Note was issued September 11, 2025 and due on April 24, 2026			24.0	%
Promissory note payable			531,579				—			Note was issued October 14, 2025 and due on May 27, 2026			24.0	%
Promissory note payable			531,579				—			Note was issued November 10, 2025 and due on June 23, 2026			24.0	%
Promissory note payable			531,579				—			Note was issued December 22, 2025 and due on August 4, 2026			24.0	%
Financing loan			42,253				—			$1,148.94 monthly payment for 48 months through January 2029			7.87	%
Total			4,179,305				2,518,539
Less: Unamortized debt discount			(127,170	)			(62,898	)
Total loans payable			4,052,135				2,455,641
Less: Current portion of loans payable			(4,020,833	)			(2,455,641	)
Long-term loans payable		$	31,302			$	—

 

Loans payable - related parties at December 31, 2025 and 2024 consisted of the following:

 

		December 31,				December 31,						Interest
		2025				2024				Term		rate
49% of Shareholder of SwissLink		$	21,606			$	21,606			Note is due on demand			0.0	%
49% of Shareholder of SwissLink			103,803				237,841			Note is due on demand			5.0	%
Minority Shareholder of QXTEL			—				461,038			Note was due on October 1, 2025			4.9	%
Total			125,409				720,485
Less: Current portion of loans payable - related parties			125,409				720,485
Long-term loans payable - related parties		$	—			$	—

 

During the years ended December 31, 2025 and 2024, the Company borrowed from third parties totaling $7,420,322 and $5,041,532, which includes original issue discount and financing costs of $455,322 and $546,680 and repaid the principal amount of $2,305,825, including repayments of payable issued for acquisition of subsidiary of $2,275,000 and $2,571,139, respectively.

 

During the year ended December 31, 2025, the Company issued a note payable of $1,000,000 for the earn out payment related to the April 1, 2024 acquisition of a subsidiary. During the year ended December 31, 2025, the Company issued a note payable of $100,000 for consideration related to the July 1, 2025 acquisition of a subsidiary. These notes were fully repaid during the year ended December 31, 2025.

 

During the years ended December 31, 2025 and 2024, the Company recorded interest expense of $556,051 and $293,671 and recognized amortization of discount, included in interest expense, of $179,659 and $300,303, respectively.

 

During the year ended December 31, 2025, the Company settled loans as follows;

 

	•	Principal amount and accrued interest of 5 notes payable issued in June through October 2024 by issuing 264,980 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $801,255.
	•	Principal amount and accrued interest of 3 notes payable issued in June 2025 by issuing 22,131 shares of Series D Preferred Stock. As a result, the Company recorded a loss on settlement of debt of $804,599.
	•	Principal amount and accrued interest of 4 notes payable issued in January through May 2025 by issuing 14,979 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $541,290.

During the year ended December 31, 2024, the Company settled 2 loans as follows:

 

	•	Principal amount and accrued interest of a note payable issued in April 2023 by issuing 22,125 shares of common stock. As a result, the Company recorded a loss on settlement of debt of $102,660.
	•	Principal amount of future receipts loan issued in April 2024 by early settlement. As a result, the Company recorded a loss on settlement of debt of $27,537.