<SEC-DOCUMENT>0001078782-19-000251.txt : 20191211
<SEC-HEADER>0001078782-19-000251.hdr.sgml : 20191211
<ACCEPTANCE-DATETIME>20190327183521
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001078782-19-000251
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190327

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			iQSTEL Inc
		CENTRAL INDEX KEY:			0001527702
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				452808620
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		300 ARAGON AVENUE, SUITE 375
		CITY:			CORAL GABLES
		STATE:			FL
		ZIP:			33134
		BUSINESS PHONE:		(954) 951-8191

	MAIL ADDRESS:	
		STREET 1:		300 ARAGON AVENUE, SUITE 375
		CITY:			CORAL GABLES
		STATE:			FL
		ZIP:			33134

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PURESNAX INTERNATIONAL, INC.
		DATE OF NAME CHANGE:	20151124

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PURE SNAX INTERNATIONAL, INC.
		DATE OF NAME CHANGE:	20150813

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	B-MAVEN, INC.
		DATE OF NAME CHANGE:	20110810
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<TITLE>SEC Response Letter</TITLE>
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<DIV style=margin-left:36pt;width:540pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B>IQSTEL Inc.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B>300 Aragon Avenue, Suite 375</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B>Coral Gables, FL 33134</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B>_____________________________________________________________________________</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='font-size:10pt;border-bottom:1px solid #000000'><B><I>Via EDGAR &nbsp;</I></B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>March 27, 2019</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>United States Securities and Exchange Commission</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>100 F Street, N.E. Mailstop 3720</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Washington D.C., 20549-7010</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Attention: &nbsp;Paul Fisher</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt><B>Re: </B></FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt><B>IQSTEL Inc.</B></FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'><FONT style=font-size:10pt><B>Offering Statement on Form 1-A</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'><FONT style=font-size:10pt><B>Filed on February 19, 2019</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt;color:#000000'><FONT style=font-size:10pt><B>File no. 024-10950</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Dear Mr. Fisher:</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>I write on behalf of IQSTEL Inc., (the &#8220;Company&#8221;) in response to Staff&#8217;s letter of March 18, 2019, by Division of Corporation Finance Office of Telecommunications, of the United States Securities and Exchange Commission (the &#8220;Commission&#8221;) regarding the above-referenced Offering Statement on Form 1-A, filed February 19, 2019 (the Comment Letter&#8221;). </FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Paragraph numbering used for each response corresponds to the numbering used in the Comment letter.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>FORM 1-A FILED ON FEBRUARY 19, 2019</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>COVER PAGE</B></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>1.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>YOUR OFFERING CIRCULAR DISCLOSES THAT A SELLING SHAREHOLDER, WHICH IS AN AFFILIATE OF THE COMPANY, IS OFFERING 450,000 COMMON SHARES IN YOUR OFFERING. THEREFORE, PLEASE REVISE PART I, ITEM 4, OF YOUR FORM 1-A TO REFLECT THIS RESALE OF SECURITIES.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have updated Part I, Item 4. </FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>2.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE REVISE TO INDICATE WHETHER THE COMPANY WILL USE A SALES AGENT AS PART OF THE PRIMARY OFFERING. WE NOTE THE REFERENCE TO SALES AGENT COMMISSIONS IN THE CHART REFERRING TO THE PRIMARY OFFERING.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we do not have a sales agent as part of the primary offering and removed reference to the sales agent commissions. </FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>EMERGING GROWTH COMPANY STATUS, PAGE 2</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>3.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>IT APPEARS THAT YOU ARE NO LONGER AN EMERGING GROWTH COMPANY AS DEFINED IN SECTION 2(A)(19) OF THE SECURITIES ACT. IN THIS REGARD, WE NOTE THAT YOUR FIRST REGISTERED SALE OF COMMON STOCK WAS COMPLETED IN AUGUST 2012. PLEASE REVISE YOUR DISCLOSURE TO IDENTIFY WHEN YOU LOST YOUR EMERGING GROWTH COMPANY STATUS AND TO DISCUSS THE IMPLICATIONS OF</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>THE LOSS OF THIS STATUS ON THE COMPANY.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have amended the Form 1-A (pages ii, 2 and 12) making the proper changes to reflect the loss of the emerging growth company status, including a reference on when that condition was lost, as well as, all the implication of no longer having that status. </FONT></P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>1</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style=line-height:0;margin:0></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>MANAGEMENT'S DISCUSSION AND ANALYSIS</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018, PAGE 6</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>4.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE DISCUSS THE UNDERLYING REASON(S) FOR THE INCREASE IN REVENUES, COST OF REVENUES AND THE RELATED GROSS MARGIN. WE ALSO NOTE THAT THE SALARIES, WAGES AND BENEFITS FOR THE PERIOD</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>DECREASED BY OVER 40%. PLEASE DISCUSS THE REASONS FOR SUCH CHANGES.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included the following paragraph in this section of Form 1-A explaining in details the reasons of the decrease in item Salaries, Wages and Benefits.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>The significant reduction in item Salaries, Wages and Benefit is due to a reorganization of the Commercial Team which allowed a saving in fix salaries and sales commission of $20,669 during the three months ended September 30, 2018. Company also implemented a change in its&#8217; Sales Commissions methodology which has resulted in a decrease in the commissions paid in 2018.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>As requested, we have also included a list of the main actions Company implemented that have impacted the increase in our revenues.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>1)The development of new transit products for international long-distance traffic associated with traffic termination in Africa and Asia.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:72pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>2)The strengthened of the international traffic operations in destinations such as Peru and Chile. This is reflected in the traffic growth for these countries from a few minutes to more than 200,000 minutes a day.&#160;&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:72pt'><FONT style=font-size:10pt><I>&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>3)The establishment of commercial agreements with new small suppliers for the long distance markets of Colombia, Venezuela and Bolivia.&#160;&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:72pt'><FONT style=font-size:10pt><I>&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>4)The consolidation of existing commercial relationships with key players in the global telecommunications market</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>5)The execution of a network interconnection contract with Vodafone India.&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>6)Establishment of new business relationships with large ILD Wholesale players in Asian market; and the restoration of old and decreased commercial relationships with important Asian carriers.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In order to complement the explanation on the increase on the cost of revenues, we have included the following paragraph: </FONT><A name=_Hlk4494539 /><FONT style=font-size:10pt><I>An increase in the traffic carried and sold (increase in revenues) will also be accompanied by a less than proportional increase in the cost of revenues. When comparing the three months ended September 30, 2017 vs. the three months ended September 30, 2018; we see an increase in revenues of 99.71% while the increase in the cost of revenues was 92.48%.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>LIQUIDITY AND CAPITAL RESOURCES, PAGE 7</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>5.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE DISCUSS IN DETAIL YOUR NET CASH USED IN AND PROVIDED BY OPERATING AND FINANCING ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2018 AND 2017, RESPECTIVELY. YOUR DISCUSSION SHOULD FOCUS ON MATERIAL CHANGES IN RESPECTIVE SOURCES OF CASH FLOWS AND THE REASONS UNDERLYING THOSE CHANGES. IN ADDITION, PLEASE DISCUSS THE CHANGES IN YOUR OPERATING CASH FLOWS FOR THREE MONTHS ENDED SEPTEMBER 30, 2018.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included in this section of the document a deeper analysis of the figures focused on the material changes. </FONT></P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt> </FONT>&nbsp;</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style=line-height:0;margin:0></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>6.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>DISCLOSE THE TOTAL AMOUNT OF YOUR DEBT AND THE AMOUNT THAT IS IN DEFAULT. EXPLAIN WHY THE DEBT IS IN DEFAULT.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, in the table below we shows total debt as of February 28, 2019.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:57.5%><TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B><I>Convertible Loans</I></B></FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 28,</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2019</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>July 16, 2018 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>$</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>25,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>August 16, 2018 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>50,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>October 01, 2018 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>30,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>December 04, 2018 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>78,750</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>December 05, 2018 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>30,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>January 15, 2019 Note</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>105,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 22, 2019 Note 1</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>38,500</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 22, 2019 Note 2</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>38,500</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 22, 2019 Note 3</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>38,500</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 22, 2019 Note 4</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>55,000</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Total convertible notes payable</FONT></P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>$</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>489,250</FONT></P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Notes issued in July, August and October were in default due to the late filing of 10-K corresponding to year ended June 30, 2018. The filing was done in November 2018 and a forbearance agreement was signed with the holders of the notes as the default was corrected.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:90.82%><TR style=height:1pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B><I>Loans Payable</I></B></FONT></P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 28,</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Interest </FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2019</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Term</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>rate</FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Complete Business Solutions_3</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>$</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>78,682.30</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issued on April 13, 2018 </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>and due in, June 07, 2019</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>33.3%</FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Green Note Capital</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>15,589.08</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issued on October 22, </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2018 and due in, May 03, 2019</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>28.57%</FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Queen Funding</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>14,870.00</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issued on November 29, </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2018 and due in, April 04, 2019</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>31.46%</FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Green Capital</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>86,514.00</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issued on December 20, </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2018 and due in, June 19, 2019</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>31.46%</FONT></P>
</TD></TR>
<TR style=height:1pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Total</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>$</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>195,655.38</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:90.54%><TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B><I>Loans payable &#8211;&nbsp;related parties</I></B></FONT></P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>February 28,</FONT></P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Interest </FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2019</FONT></P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Term</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>rate</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Alonso Van Der Biest</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>$</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80,200 </FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issued on June 12, 2015 </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>and due in June 11, 2019</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>16.5%</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Alvaro Quintana</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,587 </FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Note was issue on September 30, </FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>2016 and due in September 29, 2019</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>0%</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Total</FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>$&#160;</FONT></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,787 </FONT></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>RISK FACTORS, PAGE 8</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>7.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE INCLUDE A RISK FACTOR THAT DISCUSSES YOUR AUDITOR'S GOING-CONCERN OPINION, AS</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>DISCLOSED ON PAGE F-2.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included the following paragraph reflecting in the Risk Factor section our auditor&#8217;s going-concern opinion.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-right:-4.5pt'><FONT style=font-size:10pt><B><I>Because our auditor has issued a going concern opinion regarding our company, there is an increased risk associated with an investment in our company.</I></B></FONT></P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt> </FONT>&nbsp;</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style=line-height:0;margin:0></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-right:-4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-right:-4.5pt'><FONT style=font-size:10pt><I>We have limited cash as of September 30, 2018 of $18,067, and we have continually operated at a loss with an accumulated deficit of $995,947 as of September 30, 2018. &nbsp;We have not attained profitable operations and are dependent upon obtaining financing or generating revenue from operations to continue operations for the next twelve months. Our future is dependent upon our ability to obtain financing or upon future profitable operations. We reserve the right to seek additional funds through private placements of our common stock and/or through debt financing. Our ability to raise additional financing is unknown. We do not have any formal commitments or arrangements for the advancement or loan of funds. For these reasons, our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern. As a result, there is an increased risk that you could lose the entire amount of your investment in our company.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>IQSTEL BLOCKCHAIN PAYMENT SOLUTION PROJECT (BLOCKCHAIN PSP), PAGE 18</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>8.</FONT></KBD><A name=_Hlk4144004 /><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>DISCUSS MANAGEMENT'S EXPERIENCE IN AND KNOWLEDGE OF BLOCKCHAIN, CREATING BLOCKCHAIN APPLICATIONS, AND SECURING, TRANSFERRING AND RECORDING DIGITAL ASSETS ON A BLOCKCHAIN VIA PUBLIC-PRIVATE KEY CRYPTOGRAPHY. DISCLOSE THE ANTICIPATED TIME FRAME AND COSTS NEEDED TO FULLY DEVELOP THIS PLANNED PAYMENT SYSTEM. DISCUSS THE CHALLENGES OF GETTING COMPANIES TO RECOGNIZE, TRUST AND ADOPT YOUR PAYMENT SYSTEM.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included the following paragraphs in Form 1-A:</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='font-size:10pt;border-bottom:1px solid #000000'><I>iQSTEL Blockchain knowledge</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>Management and current staff of the Company do not have all the necessary knowledge to develop the Blockchain PSP on their own. The identified business opportunity has been made based on the operational knowledge of the ILD business that Etelix has and based on conceptual knowledge of blockchain.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>In this sense, for the development of this iQSTEL PSP Project, the Company will require the incorporation of tools, personnel and specific knowledge on blockchain applications; security, transfer and registration of digital assets in blockchain, and smart contracts, among other technical elements.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>Initially a proof of concept will be developed in order to estimate the necessary time and total costs for the complete development of the project.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='font-size:10pt;border-bottom:1px solid #000000'><I>iQSTEL Blockchain PSP Risks</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>It is appropriate to emphasize that iQSTEL cannot assure the delivery of a Blockchain PSP project fully operational and also cannot assure that potential users of the Blockchain PSP will recognize its usefulness, will trust in it and adopt it.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='font-size:10pt;border-bottom:1px solid #000000'><I>Blockchain PSP Timing</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>&#160;</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>iQSTEL plans to begin with the design of the Blockchain PSP by 2Q of 2019.</I></FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>USE OF PROCEEDS, PAGE 20</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>9.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>YOU DISCLOSE THAT YOU INTEND TO USE NET PROCEEDS FROM THE OFFERING TO ACQUIRE 51% OF A EUROPEAN TELECOM COMPANY AND 100% OF A MID-WEST BASED TELECOM COMPANY. PLEASE DISCLOSE THE MATERIAL TERMS OF THE LETTERS OF INTENT TO ACQUIRE THESE COMPANIES AND PROVIDE UPDATES ON ANY DEVELOPMENTS IN THE NEGOTIATIONS. ALSO PROVIDE THE BASIS FOR YOUR PROJECTIONS OF REVENUES AND EBITDA FROM THESE COMPANIES.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included the following text into the Form 1-A.</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Section Use of Proceed, letter c:</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>The LOI was executed by both parties on December 03, 2018. This LOI stablished the intention of the Seller to sell 51% of the entity and the intention of Buyer (iQSTEL) to buy. An initial price for the said percentage of $300,000 was stablished. The LOI also include a provision in order Buyer could complete a due diligence on legal, financial, taxes and operational matters of the entity. Both parties have been working intensively in this process in order to elaborate a draft of the final agreement.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>Even though we cannot guarantee the performance of the company in the future, our estimations on the revenues and contribution to EBITDA this entity could bring into iQSTEL are based on the analysis made to date of the financial statements of the last three years, the evolution of the business, market analysis, and existing commercial contracts maintained by the entity with its customers and suppliers.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>This acquisition is possible, but we cannot be deemed as probable at this point, since Buyer and Seller are yet to agree on final price, payment terms and closing date. Additionally, it is still contingent on equity financing.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Section Use of Proceed, letter d</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>An LOI for the proposed transaction was signed by the parties involved on October 22, 2018. This LOI includes the price ($3,800,000 for the company and $1,750,000 for the building where company operates); the percentage being sold (100%). There was also included a series of provision related to the due diligence Buyer has to made on the company, definition of assets involved, pre closing conditions. Due to the extent of the information under analysis in the due diligence process the Parties agreed on an extension to complete this process and an amendment to the original LOI was signed on December 17, 2018. By this amendment the Parties undertake to extend the deadlines for the completion of the due diligence and the preparation of final agreement. The negotiations have followed the established course and the parties work at this time in the elaboration of the final agreement.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>Even though we cannot guarantee the performance of the company in the future, our estimations on the revenues and contribution to EBITDA this entity could bring into iQSTEL are based on the analysis made to date of the financial statements of the last three years, the evolution of the business, market analysis, and existing commercial contracts maintained by the entity with its customers and suppliers.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><I>This acquisition is possible, but we cannot be deemed as probable at this point, since Buyer and Seller are yet to agree on final price, payment terms and closing date. Additionally, it is still contingent on equity financing.</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>PLAN OF DISTRIBUTION, PAGE 23</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>10.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>AS THE COMPANY IS OFFERING SHARES ON A BEST EFFORTS BASIS, DISCLOSE WHO WILL BE OFFERING THE SHARES ON THE COMPANY'S BEHALF. </FONT>&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, shares of the company will be offered by officers of the Company. </FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>11.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE FILE THE SUBSCRIPTION AGREEMENT AS AN EXHIBIT.</FONT>&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, the Subscription agreement has been included as an Exhibit. </FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>EXECUTIVE COMPENSATION, PAGE 31</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>12.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE INCLUDE EXECUTIVE COMPENSATION INFORMATION FOR YOUR CURRENT DIRECTORS AND EXECUTIVE OFFICERS.</FONT>&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, we have included compensation information for our current Directors an Executive Officers for the fiscal years ended December 31, 2018 and 2017. </FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT, PAGE 32</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>13.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE INCLUDE METROSPACES, INC. IN THE BENEFICIAL OWNERSHIP TABLE.</FONT>&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, Metrospaces, Inc has been included in the beneficial Ownership Table </FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>EXHIBITS</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>14.</FONT></KBD><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>PLEASE HAVE COUNSEL REVISE HIS LEGAL OPINION FILED AS EXHIBIT 12.1 TO REFER TO THE OFFERING STATEMENT ON FORM 1-A RATHER THAN A REGISTRATION STATEMENT ON FORM 1-A, AS THE OFFERING IS BEING MADE PURSUANT TO AN EXEMPTION FROM REGISTRATION.</FONT>&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>In response to this comment, changes have been made to the legal opinion letter. </FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Sincerely,</FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='font-size:10pt;border-bottom:1px solid #000000'><I>/s/ Leandro Iglesias</I></FONT></P>
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<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>Leandro Iglesias</FONT></P>
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