New York, NY, Aug. 15, 2022 (GLOBE NEWSWIRE) -- iQSTEL, Inc. (OTCQX: IQST) today announced filing its Q2 financial report. The company realized a 47% increase in revenue to $23.70 million in Q2 compared to the same period in 2021. The company is approaching breakeven, posting a substantial bottom line improvement, reducing its net loss by 75% compared to the same period last year. Stockholder’s equity increased 162% to $9.04 million compared to Q2 2021 surpassing the Nasdaq minimum listing requirement.
| Summary Financials Q2 2021 vs Q2 2022 | ||||
| Statements of Operations | Q2 2021 | Q2 2022 | Variation | Direction |
| Revenues (Million US$) | 16.13 | 23.70 | 47% | Increase |
| Gross Profit (Revenue %) | 0.28% | 3.57% | 1192% | Increase |
| Gross Profit (US$) | 44,565 | 846,274 | 1799% | Increase |
| Operating Loss (US$) | -1,164,602 | -298,178 | -74% | Reduction |
| Consolidated Net Loss (US$) | -1,122,372 | -285,457 | -75% | Reduction |
| Balance Sheets | Q2 2021 | Q2 2022 | Variation | Direction |
| Cash (US$) | 1,849,470 | 1,645,937 | -11% | Reduction |
| Assets (Million US$) | 7.94 | 12.90 | 63% | Increase |
| Liabilities (Million US$) | 4.48 | 3.86 | -14% | Reduction |
| Stockholders´ Equity (Million US$) | 3.46 | 9.04 | 162% | Increase |
The Company is demonstrating positive financial and commercial trends for FY-2022.
Revenue and gross profit as a percentage of revenue have both increased in Q2 compared to Q1. Management anticipates current growth trends to continue.
| Summary Financials Q1 2022 vs Q2 2022 | |||||
| Statements of Operations | Q1 2022 | Q2 2022 | Variation | Direction | |
| Revenues (Million US$) | 19.42 | 23.70 | 22% | Increase | |
| Gross Profit (Revenue %) | 2.49% | 3.57% | 43% | Increase | |
| Gross Profit (US$) | 484,060 | 846,274 | 75% | Increase | |
| Operating Loss (US$) | -505,438 | -298,178 | -41% | Reduction | |
| Consolidated Net Loss (US$) | -524,731 | -285,457 | -46% | Reduction | |
| Balance Sheet | Q1 2022 | Q2 2022 | Variation | Direction | |
| Cash (US$) (See Notes) | 4,227,044 | 1,645,937 | -61% | Reduction | |
| Assets (Million US$) | 9.85 | 12.90 | 31% | Increase | |
| Liabilities (Million US$) | 2.91 | 3.86 | 33% | Increase | |
| Stockholders´ Equity (Million US$) | 6.94 | 9.04 | 30% | Increase | |
| Notes: | |||
| 1) The Cash reduction includes the efects of Whisl and Smartbiz acquisitions | |||
| 2) The Cash Burn Rate in the Q2 was less than $100K per month | |||
| 3) The company has enough cash to keep operations for more than a year at the Q2 | |||
| Cash Burn Rate | |||
| 4) The company keeps the positive trend toward to reach net income positive this year | |||
A full analysis of the company’s overall improving financial performance displayed in a variety of charts and graphs is available at the following link: http://bit.ly/IQSTELFinancialEvolutionQ2_2022
The current financial results reflect the contribution from the recently announced acquisitions of Smartbiz (June) and Whisl (Half May and June) for only a limited portion of Q2. Combined the two companies are expected to add $11.6 million revenue and $1.34 million positive net income to the company’s existing revenue and income on yearly basis. The contribution of the two companies will start to show in full in Q3.
Management believes, in spite of prevailing market conditions, the Company will remain on track to reach or surpass the company’s $90 million revenue forecast, and to reach net income positive FY-2022.
iQSTEL Inc. (OTCQX: IQST) (www.iQSTEL.com) is a US-based publicly-listed company holding an Independent Board of Directors and Independent Audit Committee with presence in 15 countries, offering leading-edge services through its five business lines. The Telecom Division, which represents the majority of current operations, offers voice, sms, internet of things, and fiber-optic connectivity through its subsidiaries: Etelix, SwissLink, Smartbiz, Whisl, IoT Labs, QGlobal SMS. The fintech business line offers a complete fintech ecosystem Mastercard Debit Card, US Bank Account, Mobile App/Wallet focus on the immigrants in the US, through its subsidiary Global Money One. The BlockChain Platform offers the Mobile Number Portability Application to serve the in-country portability needs through its subsidiary itsBchain. The Electric Vehicle Business Line, brand EVOSS, offers electric motorcycles to work and to fun, for USA, Spain, Portugal, Panama, Colombia, Venezuela. EVOSS is also working in the development of an Electric Mid Speed Car to serve the niche of the 2nd car in the family, will be a 4 seats car to be used every single day, without invest tens of thousands of dollars in an Electric Car.
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and iQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale.Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
iQSTEL Inc.
IR US Phone: 646-740-0907, IR Email: investors@iqstel.com
Source: iQSTEL Inc. and its subsidiaries: www.iqstel.com
