NOTE 4 - ACQUISTION

9 Months Ended

Sep. 30, 2019

NOTE 4 - ACQUISTION

On April 1, 2019, iQSTEL Inc. (the “Company”) entered into a Company Purchase Agreement (the “Purchase Agreement”) by and between the Company and the Ralf Kohler (the “Seller”), which agreement provides for the purchase of 51% of the equity and certain assets of SwissLink Carrier AG (“SwissLink”) (www.swisslink-carrier.com), a Swiss corporation, by the Company for a consideration of $500,000.

On August 7, 2019, having completed all conditions under the Purchase Agreement, the Company closed the transaction with Seller, and paid $50,000 and issued a total of 343,512 shares of common stock at $1.31 per share to the Seller for the 51% equity interest and certain assets in SwissLink, including 51% of the loan in SwissLink.

The following table summarizes the fair value of the consideration paid by the Company and the fair value amounts assigned to the assets acquired on the acquisition date:

		August 7,
Fair Value of Consideration:		2019
Cash	$	50,000
343,512 shares of common stock at $1.31 per share		450,000
Total Purchase Price	$	500,000

Swisslink has been included in our consolidated results of operations since their respective acquisition dates.

The following table summarizes the identifiable assets and liabilities assumed upon acquisition of SwissLink and the calculation of goodwill:


Total purchase price	$	500,000
Cash		289,516
Accounts receivable, net		1,462,786
Other current assets		101,629
Deferred tax assets		418,932
Property and equipment, net		12,070
Total identifiable assets		2,284,933
Accounts payable		(1,479,949)
Other current liabilities		(84,591)
Long term loans		(156,441)
Long term loans – related party		(2,199,907)
Employee benefits		(238,476)
Total liabilities assumed		(4,159,364)
Net assets		(1,874,431)
Non-controlling interest		918,471
Total net assets		(955,960)
Goodwill	$	1,455,960