iQSTEL Inc Segments Disclosure
NOTE 17 - SEGMENT
The Company operates in two industry segments, telecommunication services and fintech services, and three geographic segments, USA, UK
and Switzerland, where current assets and equipment are located. The Company's chief operating decision maker ("CODM") is its
chief financial officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and
assessing financial performance. The CODM uses operating activities and net assets to assess financial performance and allocate resources.
These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company
seeks to grow, the allocation of budget between cost of sales and operating expenses and the management of assets.
The following tables show reportable operating activities information by industrial segment for the years ended December 31, 2025 and 2024. The Company has two industrial segments since the Company acquired GlobeTopper LLC in July 2025:
Year ended December 31, 2025
| NOTE 17 - SEGMENT - Industrial Segment (Details) | ||||||||||||||||||||
| Telecom | Fintech | Corporate | Elimination | Total | ||||||||||||||||
| Revenues | $ | 330,564,828 | $ | 27,955,101 | $ | 220,755 | $ | (41,841,186 | ) | $ | 316,899,498 | |||||||||
| Cost of revenue | 321,346,150 | 27,403,231 | 52,770 | (41,359,907 | ) | 307,442,244 | ||||||||||||||
| Gross profit | 9,218,678 | 551,870 | 167,985 | (481,279 | ) | 9,457,254 | ||||||||||||||
| Operating expenses | 6,859,006 | 548,008 | 6,326,625 | (24,375 | ) | 13,709,264 | ||||||||||||||
| Operating income (loss) | 2,359,672 | 3,862 | (6,158,640 | ) | (456,904 | ) | (4,252,010 | ) | ||||||||||||
| Other income (expense) | (88,873 | ) | (2,693 | ) | (3,740,139 | ) | (304,846 | ) | (4,136,551 | ) | ||||||||||
| Income tax expense | (118,143 | ) | (3,562 | ) | (121,705 | ) | ||||||||||||||
| Net income (loss) | $ | 2,152,656 | $ | 1,169 | $ | (9,902,341 | ) | $ | (761,750 | ) | $ | (8,510,266 | ) | |||||||
Year ended December 31, 2024
| Telecom | Corporate | Elimination | Total | |||||||||||||
| Revenues | $ | 306,039,424 | $ | $ | (22,818,982 | ) | $ | 283,220,442 | ||||||||
| Cost of revenue | 297,488,346 | (22,539,653 | ) | 274,948,693 | ||||||||||||
| Gross profit | 8,551,078 | (279,329 | ) | 8,271,749 | ||||||||||||
| Operating expenses | 6,224,151 | 2,800,053 | 81,609 | 9,105,813 | ||||||||||||
| Operating income (loss) | 2,326,927 | (2,800,053 | ) | (360,938 | ) | (834,064 | ) | |||||||||
| Other income (expense) | 41,003 | (3,763,535 | ) | (229,410 | ) | (3,951,942 | ) | |||||||||
| Income tax expense | (394,030 | ) | (394,030 | ) | ||||||||||||
| Net income (loss) | $ | 1,973,900 | $ | (6,563,588 | ) | $ | (590,348 | ) | $ | (5,180,036 | ) | |||||
The following tables show operating activities information by geographic segment for the years ended December 31, 2025 and 2024:
Year ended December 31, 2025
| USA | Switzerland | UK | Elimination | Total | ||||||||||||||||
| Revenues | $ | 194,721,347 | $ | 22,394,346 | $ | 141,624,991 | $ | (41,841,186 | ) | $ | 316,899,498 | |||||||||
| Cost of revenue | 190,238,336 | 21,568,250 | 136,995,565 | (41,359,907 | ) | 307,442,244 | ||||||||||||||
| Gross profit | 4,483,011 | 826,096 | 4,629,426 | (481,279 | ) | 9,457,254 | ||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Salaries, wages and benefits | 1,573,805 | 2,229,565 | 3,803,370 | |||||||||||||||||
| Technology | 1,086,739 | 407,201 | 585,947 | (462,655 | ) | 1,617,232 | ||||||||||||||
| Professional fees | 880,058 | 36,293 | 916,349 | |||||||||||||||||
| Legal and regulatory | 334,258 | 17,312 | 351,570 | |||||||||||||||||
| Travel and events | 85,959 | 12,878 | 218,149 | (30,810 | ) | 286,176 | ||||||||||||||
| Public cost | 120,945 | 120,945 | ||||||||||||||||||
| Advertising | 1,878,274 | 1,878,274 | ||||||||||||||||||
| Bank services and fees | 150,476 | (6,942 | ) | 95,191 | 238,725 | |||||||||||||||
| Depreciation and amortization | 35,140 | 103,974 | 488,553 | 627,667 | ||||||||||||||||
| Office, facility and other | 697,031 | 418,681 | 266,540 | (12,160 | ) | 1,370,092 | ||||||||||||||
| Insurance | 18,902 | 18,902 | ||||||||||||||||||
| Bad debt expense | 6,397 | 6,397 | ||||||||||||||||||
| Stock-based compensation | 305,013 | 305,013 | ||||||||||||||||||
| General and administration | 7,172,995 | 989,397 | 3,883,945 | (505,625 | ) | 11,540,712 | ||||||||||||||
| Impairment loss of goodwill | 2,168,552 | 2,168,552 | ||||||||||||||||||
| Operating income (loss) | (4,858,536 | ) | (163,301 | ) | 745,481 | 24,346 | (4,252,010 | ) | ||||||||||||
| Other income (expense) | (3,816,310 | ) | 4,209 | (19,604 | ) | (304,846 | ) | (4,136,551 | ) | |||||||||||
| Income tax benefit (expense) | 502,901 | (243,108 | ) | (381,498 | ) | (121,705 | ) | |||||||||||||
| Net income (loss) | $ | (8,171,945 | ) | $ | (402,200 | ) | $ | 344,379 | $ | (280,500 | ) | $ | (8,510,266 | ) | ||||||
Year ended December 31, 2024
| USA | Switzerland | UK | Elimination | Total | ||||||||||||||||
| Revenues | $ | 197,007,636 | $ | 13,349,998 | $ | 95,681,790 | $ | (22,818,982 | ) | $ | 283,220,442 | |||||||||
| Cost of revenue | 192,460,109 | 12,541,394 | 92,486,843 | (22,539,653 | ) | 274,948,693 | ||||||||||||||
| Gross profit | 4,547,527 | 808,604 | 3,194,947 | (279,329 | ) | 8,271,749 | ||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Salaries, Wages and Benefits | 1,699,833 | 238,334 | 1,025,547 | 2,963,714 | ||||||||||||||||
| Technology | 683,620 | 331,149 | 370,725 | (193,309 | ) | 1,192,185 | ||||||||||||||
| Professional Fees | 1,110,773 | 1,110,773 | ||||||||||||||||||
| Legal and Regulatory | 273,840 | 11,399 | 43,261 | 328,500 | ||||||||||||||||
| Travel & Events | 126,623 | 29,962 | 77,710 | 234,295 | ||||||||||||||||
| Public Cost | 102,773 | 102,773 | ||||||||||||||||||
| Bad Debt Expense | 1,991 | 1,991 | ||||||||||||||||||
| Depreciation and Amortization | 26,943 | 111,654 | 360,938 | 499,535 | ||||||||||||||||
| Advertising | 968,206 | 968,206 | ||||||||||||||||||
| Bank Services and Fees | 59,848 | 72,246 | 79,497 | 211,591 | ||||||||||||||||
| Office, Facility and Other | 309,278 | 29,550 | 211,064 | (20,000 | ) | 529,892 | ||||||||||||||
| Sales Commissions | 231,125 | 149,939 | 360,561 | (66,020 | ) | 675,605 | ||||||||||||||
| Insurance | 4,458 | 59,076 | 63,534 | |||||||||||||||||
| Stock-based compensation | 223,219 | 223,219 | ||||||||||||||||||
| General and administration | 5,822,530 | 974,233 | 2,227,441 | 81,609 | 9,105,813 | |||||||||||||||
| Operating income (loss) | (1,275,003 | ) | (165,629 | ) | 967,506 | (360,938 | ) | (834,064 | ) | |||||||||||
| Other income (expense) | (3,961,170 | ) | 28,801 | (19,573 | ) | (3,951,942 | ) | |||||||||||||
| Income tax expense | (183,808 | ) | (210,222 | ) | (394,030 | ) | ||||||||||||||
| Net income (loss) | $ | (5,236,173 | ) | $ | (320,636 | ) | $ | 737,711 | $ | (360,938 | ) | $ | (5,180,036 | ) | ||||||
Asset Information
The following table shows asset and liability information by industrial segment at December 31, 2025 and 2024:
| December 31, 2025 | Telecom | Fintech | Corporate | Elimination | Total | |||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets | $ | 34,685,859 | $ | 1,203,613 | $ | 4,913,268 | $ | (4,640,316 | ) | $ | 36,162,424 | |||||||||
| Non-current assets | $ | 8,676,244 | $ | 153,229 | $ | 19,465,775 | $ | (13,369,737 | ) | $ | 14,925,511 | |||||||||
| Liabilities | ||||||||||||||||||||
| Current liabilities | $ | 32,336,073 | $ | 1,851,514 | $ | 5,059,136 | $ | (4,640,316 | ) | $ | 34,606,407 | |||||||||
| Non-current liabilities | $ | 169,599 | $ | 31,302 | $ | $ | $ | 200,901 | ||||||||||||
| December 31, 2024 | Telecom | Corporate | Elimination | Total | ||||||||||||
| Assets | ||||||||||||||||
| Current assets | $ | 75,098,705 | $ | 4,594,060 | $ | (16,677,719 | ) | $ | 63,015,046 | |||||||
| Non-current assets | $ | 9,097,736 | $ | 19,079,518 | $ | (12,184,562 | ) | $ | 15,992,692 | |||||||
| Liabilities | ||||||||||||||||
| Current liabilities | $ | 74,461,579 | $ | 6,037,337 | $ | (16,677,720 | ) | $ | 63,821,196 | |||||||
| Non-current liabilities | $ | 274,353 | $ | 3,011,926 | $ | $ | 3,286,279 | |||||||||
The following table shows asset and liability information by geographic segment at December 31, 2025 and December 31, 2024:
| December 31, 2025 | USA | Switzerland | UK | Elimination | Total | |||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets | $ | 15,281,322 | $ | 1,538,421 | $ | 21,638,782 | $ | (2,296,101 | ) | $ | 36,162,424 | |||||||||
| Non-current assets | $ | 20,377,490 | $ | 331,914 | $ | 7,585,844 | $ | (13,369,737 | ) | $ | 14,925,511 | |||||||||
| Liabilities | ||||||||||||||||||||
| Current liabilities | $ | 13,941,863 | $ | 2,563,328 | $ | 20,397,317 | $ | (2,296,101 | ) | $ | 34,606,407 | |||||||||
| Non-current liabilities | $ | 31,302 | $ | 169,599 | $ | $ | $ | 200,901 | ||||||||||||
| Net Asset | 21,685,647 | (862,592 | ) | 8,827,309 | (13,369,737 | ) | 16,280,627 | |||||||||||||
| December 31, 2024 | USA | Switzerland | UK | Elimination | Total | |||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets | $ | 19,885,086 | $ | 8,055,475 | $ | 48,182,373 | $ | (13,107,888 | ) | $ | 63,015,046 | |||||||||
| Non-current assets | $ | 19,447,105 | $ | 633,491 | $ | 8,096,658 | $ | (12,184,562 | ) | $ | 15,992,692 | |||||||||
| Liabilities | ||||||||||||||||||||
| Current liabilities | $ | 21,386,520 | $ | 8,415,705 | $ | 47,126,859 | $ | (13,107,888 | $ | 63,821,196 | ||||||||||
| Non-current liabilities | $ | 3,012,066 | $ | 169,599 | $ | 104,614 | $ | $ | 3,286,279 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 6, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.