<SEC-DOCUMENT>0001078782-19-000732.txt : 20190925
<SEC-HEADER>0001078782-19-000732.hdr.sgml : 20190925
<ACCEPTANCE-DATETIME>20190924214623
ACCESSION NUMBER:		0001078782-19-000732
CONFORMED SUBMISSION TYPE:	1-A/A
PUBLIC DOCUMENT COUNT:		8
FILED AS OF DATE:		20190925
DATE AS OF CHANGE:		20190924

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:		1-A/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	024-10950
		FILM NUMBER:		191111926

	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
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<TYPE>1-A/A
<SEQUENCE>1
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<DOCUMENT>
<TYPE>PART II AND III
<SEQUENCE>2
<FILENAME>f1aoffering_1a.htm
<DESCRIPTION>PART II AND III
<TEXT>
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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'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>UNITED STATES</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Washington, D.C. 20549</B></P>
<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>FORM 1-A/A</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Amendment No. 5</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>TIER 2 OFFERING</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>OFFERING STATEMENT UNDER THE SECURITIES ACT OF 1933 CURRENT REPORT</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><IMG src=f1aoffering1a1.jpg width=216 height=84 alt='Picture 1' title='Picture 1'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:14pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>IQSTEL INC.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(Exact name of registrant as specified in its charter)</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Date: September 23, 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:459pt><TR style=height:7.2pt><TD valign=middle style='width:137pt;white-space:nowrap;border-top:1pt solid #FFFFFF;border-left:1pt solid #FFFFFF;border-bottom:0.5pt solid #000000;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Nevada</B></P>
</TD><TD valign=middle style='width:22pt;white-space:nowrap;border-top:1pt solid #FFFFFF;border-bottom:1pt solid #FFFFFF;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&#160;</B></P>
</TD><TD valign=middle style='width:177.5pt;white-space:nowrap;border-top:1pt solid #FFFFFF;border-bottom:0.5pt solid #000000;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>4813</B></P>
</TD><TD valign=middle style='width:22pt;white-space:nowrap;border-top:1pt solid #FFFFFF;border-bottom:1pt solid #FFFFFF;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&#160;</B></P>
</TD><TD valign=middle style='width:100.5pt;white-space:nowrap;border-top:1pt solid #FFFFFF;border-bottom:0.5pt solid #000000;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>45-2808620</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:137pt;white-space:nowrap;border-top:0.5pt solid #000000;border-left:1pt solid #FFFFFF;border-right:1pt solid #FFFFFF' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(State or Other Jurisdiction</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>of Incorporation)</P>
</TD><TD valign=middle style='width:22pt;white-space:nowrap;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
</TD><TD valign=top style='width:177.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-right:1pt solid #FFFFFF' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(Primary Standard Classification Code)</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:22pt;white-space:nowrap;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
</TD><TD valign=top style='width:100.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-right:1pt solid #FFFFFF' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(IRS Employer</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Identification No.)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:22pt;white-space:nowrap;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
</TD><TD valign=middle style='width:22pt;white-space:nowrap;border-right:1pt solid #FFFFFF'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
</TD></TR>
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<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>300 Aragon Avenue, Suite 375</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Coral Gables, FL 33134</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>Phone: (954) 951-8191</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(Address, including zip code, and telephone number,</P>
<P align=center style='font:10pt Times New Roman;margin:0'>including area code, of registrant&#8217;s principal executive offices)</P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Please send copies of all correspondence to:</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>The Corporate Place, Inc.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>601 E. Charleston Blvd. Ste. 100</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Las Vegas, NV 89104</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>Phone: (877) 786-8500</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(Name, address, including zip code, and telephone number,</P>
<P align=center style='font:10pt Times New Roman;margin:0'>including area code, of agent for service)</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>THIS OFFERING STATEMENT SHALL ONLY BE QUALIFIED UPON ORDER OF THE COMMISSION, UNLESS A SUBSEQUENT AMENDMENT IS FILED INDICATING THE INTENTION TO BECOME QUALIFIED BY OPERATION OF THE TERMS OF REGULATION A.</P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>PART I - NOTIFICATION</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Part I should be read in conjunction with the attached XML Document for Items 1-6</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>PART I &#8211; END</B></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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>PRELIMINARY OFFERING CIRCULAR DATED September 23, 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>An offering statement pursuant to Regulation A relating to these securities has been filed with the U.S. Securities and Exchange Commission, which we refer to as the Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B> </B>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>IQSTEL INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>4,900,000 SHARES OF COMMON STOCK</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>$0.001 PAR VALUE PER SHARE</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In this public offering we, &#8220;IQSTEL Inc.&#8221; are offering 4,000,000 shares of our common stock and our selling shareholder is offering 900,000 shares of our common stock. We will not receive any of the proceeds from the sale of shares by the selling shareholders. This offering is being conducted on a &#8220;best efforts&#8221; basis, which means that there is no guarantee that any minimum amount will be sold. </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'>Resale shares may be sold to or through underwriters or dealers, directly to purchasers or through agents designated from time to time by the selling shareholders. For additional information regarding the methods of sale, you should refer to the section entitled &#8220;Plan of Distribution&#8221; in this offering. There is no minimum number of shares required to be purchased by each investor. </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'>All of the shares being registered for sale by the Company or the selling shareholder will be sold at a fixed price, which will be within a range of $3 to $1 per share, established at qualification for the duration of the offering pursuant to Rule 253(b). Assuming all of the 4,000,000 shares being offered by the Company are sold, the Company will receive $12,000,000 in gross proceeds. Assuming 3,000,000 shares (75%) being offered by the Company are sold, the Company will receive $9,000,000 in gross proceeds. Assuming 2,000,000 shares (50%) being offered by the Company are sold, the Company will receive $6,000,000 in gross proceeds. Assuming 1,000,000 shares (25%) being offered by the Company are sold, the Company will receive $3,000,000 in gross proceeds. There is no minimum amount we are required to raise from the shares being offered by the Company. There are no arrangements to place the funds received in an escrow, trust, or similar arrangement and the funds will be available to us following deposit into the Company&#8217;s bank account. There is no guarantee that we will sell any of the securities being offered in this offering. Additionally, there is no guarantee that this offering will successfully raise enough funds to institute our company&#8217;s business plan. </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This primary offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular, unless extended by our directors for an additional 90 days. We may however, at any time and for any reason terminate the offering.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:85.78%><TR style=height:7.2pt><TD valign=bottom style=width:144pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>SHARES OFFERED</B></P>
</TD><TD valign=bottom style=width:7.35pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:82.35pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>PRICE TO</B></P>
</TD><TD valign=top style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:107.95pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>SELLING AGENT</B></P>
</TD><TD valign=bottom style=width:9.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:103.3pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>PROCEEDS TO</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:144pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>BY COMPANY</B></P>
</TD><TD valign=bottom style=width:7.35pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:82.35pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>PUBLIC (1)</B></P>
</TD><TD valign=top style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:107.95pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>COMMISSIONS</B></P>
</TD><TD valign=bottom style=width:9.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:103.3pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>THE COMPANY (2)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:144pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Per Share </P>
</TD><TD valign=bottom style=width:7.35pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:77.35pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD><TD valign=top style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:9.25pt;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:98.7pt;padding:0.75pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Not Applicable</P>
</TD><TD valign=bottom style=width:9.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:95.3pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:144pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Minimum Purchase</P>
</TD><TD valign=bottom style=width:7.35pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:82.35pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>None</P>
</TD><TD valign=top style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:98.7pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD><TD valign=bottom style=width:9.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:103.3pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:144pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total (4,000,000 shares)</P>
</TD><TD valign=bottom style=width:7.35pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:77.35pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>12,000,000 </P>
</TD><TD valign=top style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:9.25pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:98.7pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Not Applicable</P>
</TD><TD valign=bottom style=width:9.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:95.3pt;padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>12,000,000</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>(1) Price range of offering being estimated pursuant to Rule 253(b). Estimate includes a maximum offering price of $3 and a maximum number of shares offered in this offering of 4,000,000 shares for an estimated maximum aggregate offering of $12,000,000.</P>
<P style='font:10pt Times New Roman;margin:0'>(2) Does not include expenses of the offering, estimated to be $50,000 including legal, accounting and other costs of registration. See &#8220;Use of Proceeds&#8221; and &#8220;Plan of Distribution.&#8221; </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:92.48%><TR style=height:7.2pt><TD valign=bottom style='padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>SHARES OFFERED SELLING SHAREHOLDERS</B></P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>PRICE TO PUBLIC (1)</B></P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>SELLING AGENT COMMISSIONS</B></P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>PROCEEDS TO THE SELLING SHAREHOLDERS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Per Share</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Minimum Purchase</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>None</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total (900,000 shares)</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,700,000 </P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Not applicable</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:0.75pt;padding-bottom:0.75pt;padding-right:3pt><P align=right style='font:10pt Times New Roman;margin:0'>2,700,000</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>(1) Price range of offering being estimated pursuant to Rule 253(b). Estimate includes a maximum offering price of $3 and a maximum number of shares offered in this offering of 900,000 shares for an estimated maximum aggregate offering of $2,700,000.</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'>2</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>If all the shares are not sold in the company&#8217;s offering, there is the possibility that the amount raised may be minimal and might not even cover the costs of the offering, which the Company estimates at $50,000. The proceeds from the sale of the securities will be placed directly into the Company&#8217;s account; any investor who purchases shares will have no assurance that any monies, beside their own, will be subscribed to the offering circular. All proceeds from the sale of the securities are non-refundable, except as may be required by applicable laws. All expenses incurred in this offering are being paid for by the Company. </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'>Our Common Stock trades in the OTCMarket Pink Open Market under the symbol IQST. There is currently no active trading market for our securities. There is no assurance that a regular trading market will develop, or if developed, that it will be sustained. Therefore, a shareholder may be unable to resell his securities in our company.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF A SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED. </B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>THESE SECURITIES ARE SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE SHARES ONLY IF YOU CAN AFFORD THE COMPLETE LOSS OF YOUR INVESTMENT. PLEASE REFER TO &#8216;RISK FACTORS&#8217; BEGINNING ON PAGE 12.</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>THE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION. </B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>You should rely only on the information contained in this offering circular and the information we have referred you to. We have not authorized any person to provide you with any information about this Offering, the Company, or the shares of our Common Stock offered hereby that is different from the information included in this offering circular. If anyone provides you with different information, you should not rely on it.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The date of this offering circular is September 23, 2019</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>3</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'>The following table of contents has been designed to help you find important information contained in this offering circular. We encourage you to read the entire offering circular.</P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=table /><A name=summary /><B>TABLE OF CONTENTS</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:88.8%><TR style=height:7.2pt><TD valign=middle style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>PART - II OFFERING CIRCULAR</B></P>
</TD><TD valign=middle style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>PAGE</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style='padding:0.75pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>OFFERING CIRCULAR SUMMARY </P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>8</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>RISK FACTORS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>12</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>FORWARD-LOOKING STATEMENTS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>17</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>DESCRIPTION OF BUSINESS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>17</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>USE OF PROCEEDS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>26</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>DILUTION</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>28</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>SELLING SHAREHOLDERS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>28</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>PLAN OF DISTRIBUTION</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>29</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>DESCRIPTION OF SECURITIES</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>31</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>INTERESTS OF NAMED EXPERTS AND COUNSEL</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>32</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>DESCRIPTION OF FACILITIES</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>32</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>LEGAL PROCEEDINGS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>33</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>DIRECTORS AND EXECUTIVE OFFICERS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>33</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>EXECUTIVE COMPENSATION</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>36</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>37</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>38</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>ADDITIONAL INFORMATION</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>38</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>FINANCIAL STATEMENTS</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>40</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>PART - III </B></P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>EXHIBITS TO OFFERING STATEMENT</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>41</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>SIGNATURES</P>
</TD><TD valign=middle style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>42</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>You should rely only on the information contained in this offering circular or contained in any free writing offering circular filed with the Securities and Exchange Commission. We have not authorized anyone to provide you with additional information or information different from that contained in this offering circular filed with the Securities and Exchange Commission. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, our common stock only in jurisdictions where offers and sales are permitted. The information contained in this offering circular is accurate only as of the date of this offering circular, regardless of the time of delivery of this offering circular or any sale of shares of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date.</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=pro /><B>PART - II </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>OFFERING CIRCULAR SUMMARY</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>This summary highlights information contained elsewhere in this Offering Circular and does not contain all of the information that you should consider in making your investment decision. Before investing in our common stock, you should carefully read this entire Offering Circular, including our consolidated financial statements and the related notes and the information set forth under the headings &#8220;Risk Factors&#8221; and &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations,&#8221; in each case included elsewhere in this Offering Circular. Unless otherwise stated, all references to &#8220;us,&#8221; &#8220;our,&#8221; &#8220;we,&#8221; the &#8220;Company&#8221; and similar designations refer to IQSTEL Inc.</I></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This offering circular, and any supplement to this offering circular include &#8220;forward-looking statements&#8221;. To the extent that the information presented in this offering circular discusses financial projections, information or expectations about our business plans, results of operations, products or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as &#8220;intends&#8221;, &#8220;anticipates&#8221;, &#8220;believes&#8221;, &#8220;estimates&#8221;, &#8220;projects&#8221;, &#8220;forecasts&#8221;, &#8220;expects&#8221;, &#8220;plans&#8221; and &#8220;proposes&#8221;. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These include, among others, the cautionary statements in the &#8220;Risk Factors&#8221; section and the &#8220;Management&#8217;s Discussion and Analysis of Financial Position and Results of Operations&#8221; section in this offering circular.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This summary only highlights selected information contained in greater detail elsewhere in this offering circular. This summary may not contain all of the information that you should consider before investing in our common stock. You should carefully read the entire offering circular, including &#8220;Risk Factors&#8221; beginning on Page 12, and the financial statements, before making an investment decision.</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'>Generally, no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.</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'>Sale of these shares will commence within two calendar days of the qualification date and it will be a continuous offering pursuant to Rule 251(d)(3)(i)(F). </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>The Company</B></P>
<P style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We are a technology company offering a wide array of services to the telecommunications and internet industry. We currently offer, through our wholly owned subsidiary, Etelix.com USA LLC, international long-distance voice services for telecommunications operators (ILD Wholesale), and submarine fiber optic network capacity for Internet (4G and 5G).</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'>Etelix.com USA LLC is based in the city of Miami, Florida; founded in 2008 and holder of an International Telecommunications Carrier 214-license issued by the Federal Telecommunications Commission (FCC).</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'>In addition to pursuing the growth and development of the business of our subsidiary, Etelix.com USA LLC, we plan to expand our services to the retail market offering international long-distance voice communications to corporate, small business and individuals (ILD retail), supported in part on our current infrastructure.</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'>We are also exploring opportunities in new business areas and markets, such as satellite communications; mobile services under the figure of a Mobile Virtual Network Operator (MVNO); Internet of Things (IoT) solutions and Data Centers. We expect that these new ventures will be developed either through mergers or acquisitions, or through strategic partnerships.</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'>In addition, we are allocating resources to develop a Blockchain Payment Solution to facilitate the settlement of exchanged traffic among international carriers based on smart contracts. </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'>Our principal place of business is located at 300 Aragon Avenue, Suite 375 Coral Gables, FL 33134. General information about us can be found at www.iqstel.com. The information contained on or connected to our website is not incorporated by reference into this Offering Circular on Form 1-A and should not be considered part of this or any other report filed with the SEC.</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'>5</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Risks Affecting Us </B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our business will be subject to numerous risks and uncertainties, including those described in &#8220;Risk Factors&#8221; immediately following this offering circular summary and elsewhere in this offering circular. These risks represent challenges to the successful implementation of our strategy and to the growth and future profitability of our business. These risks include, but are not limited to, the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>we are an early-stage company with a limited operating history which makes it difficult to evaluate our current business and future prospects and may increase the risk of your investment; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our inability to attract customers and increase sales to new and existing customers; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>failure of manufacturers and services providers to deliver products or provide services in a cost effective and timely manner; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our failure to develop, find or market new products; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our failure to promote and maintain a strong brand; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>failure to achieve or sustain profitability; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>risks associated with the telecommunications industry; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our failure to successfully or cost-effectively manage our marketing efforts and channels; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>significant competition; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the business risks of international operations; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>changing consumer preferences; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>adequate protection of confidential information; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>potential litigation from competitors and health related claims from customers; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>a limited market for our common stock; &nbsp;</P>
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<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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>The Offering </B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Securities being offered by the Company</B></P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>4,000,000 shares of common stock, at a fixed price of $3.00 offered by us on a &#8220;best efforts&#8221; basis, which means that there is no guarantee that any minimum amount will be sold, through our officers and directors. Our offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular unless extended by our Board of Directors for an additional 90 days. We may however, at any time and for any reason terminate the offering.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Securities being offered by the Selling Stockholders</B></P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>900,000 shares of common stock, at a fixed price of $3.00 offered by selling stockholders in a resale offering. This fixed price applies at all times for the duration of the offering. The offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular, unless extended by our Board of Directors for an additional 90 days. We may however, at any time and for any reason terminate the offering.</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Offering price per share</B></P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>We and the selling shareholders will sell the shares at a fixed<STRIKE> </STRIKE>price per share of $3.00 for the duration of this Offering. </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633701 /><B>Number of shares of common stock outstanding before the offering of common stock</B></P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk9959912 />16,103,713 common shares are currently issued and outstanding</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633729 /><B>Number of shares of common stock outstanding after the offering of common stock</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>20,103,713 common shares will be issued and outstanding if we sell all of the shares we are offering herein.</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>The minimum number of shares to be sold in this offering</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>None.</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Use of Proceeds</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>We intend to use the gross proceeds to us for working capital, for acquisitions, to retire debt and for other corporate purposes. </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Termination of the Offering</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>This offering will terminate upon the earlier to occur of (i) 365 days after this Offering Statement becomes qualified with the Securities and Exchange Commission, or (ii) the date on which all 4,900,000 shares registered hereunder have been sold. We may, at our discretion, extend the offering for an additional 90 days. At any time and for any reason we may also terminate the offering.</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Subscriptions:</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>All subscriptions once accepted by us are irrevocable.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Registration Costs</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>We estimate our total offering registration costs to be approximately $50,000.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Risk Factors:</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>See &#8220;Risk Factors&#8221; and the other information in this offering circular for a discussion of the factors you should consider before deciding to invest in shares of our common stock.</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>You should rely only upon the information contained in this offering circular. We have not authorized anyone to provide you with information different from that which is contained in this offering circular. We are offering to sell common stock and seeking offers to common stock only in jurisdictions where offers and sales are permitted.</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'>7</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'><A name=SUM />&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=RISK /><I>You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and related notes appearing at the end of this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled &#8220;Risk Factors&#8221; and elsewhere in this Offering Circular.</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633770 /><A name=_Hlk529803568 /><B>Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Revenues</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our total revenue reported for the three months ended June 30, 2019 was $4,253,359, compared with $3,700,670 for the three months ended June 30, 2018. Our total revenue reported for the six months ended June 30, 2019 was $8,416,562, compared with $5,880,835 for the six months ended June 30, 2018. </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'>These numbers reflect an increase of 142% month over month primarily from the continuity of our commercial strategy put in place since the beginning of year 2018. </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'>If net revenues continue growing at a similar rates for the next six months, we believe that the company will reach a total revenue of approximately $17 million by December 31, 2019.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Cost of Revenues</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our total cost of revenues for the three months ended June 30, 2019 increased to $4,345,087, compared with $3,223,540 for the three months ended June 30, 2018. Our total cost of revenues for the six months ended June 30, 2019 increased to $8,072,713, compared with $5,190,699 for the six months ended June 30, 2018.</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'>Our cost of revenues consists of direct charges from vendors that the Company incurs to deliver services to its customers. These costs primarily consist of usage charges for calls terminated in vendor&#8217;s network. </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'>The increase results from a higher volume of minutes of African destinations, which rates are on average 9 times higher compared to the average rates of the rest of the World. This behavior in the costs shows a logical correlation with the behavior of the revenue commented above.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Operating Expenses</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Operating expenses increased to $341,553 for the three months ended June 30, 2019 from $334,749 for the three months ended June 30, 2018. Operating expenses increased to $532,060 for the six months ended June 30, 2019 from $458,725 for the six months ended June 30, 2018. The detail by major category for the six month ended June 30, 2019 and 2018 is reflected in the table below.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:342pt><TR style=height:7.2pt><TD valign=top style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=top style='width:145pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended June 30</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=top style='width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Salaries, Wages and Benefits</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>$</P>
</TD><TD valign=bottom style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>162,242</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>$</P>
</TD><TD valign=bottom style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>116,182</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Technology</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>94,847</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>81,220</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Professional Fees</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>162,662</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>211,945</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Legal &amp; Regulatory</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>25</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Trade Insurance</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>9,665</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Travel &amp; Events</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>3,375</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>12,015</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Public Cost</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>19,432</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Advertising</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>50,000</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Depreciation and Amortization</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>19,281</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>3,274</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Office, Facility and Other</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>20,221</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>24,399</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'><B> Sub Total</B></P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>532,060</B></P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>458,725</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Stock-based compensation</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Lawsuit settlement</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:181.2pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'><B>Total Operating Expense</B></P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>$</B></P>
</TD><TD valign=bottom style='width:62.5pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>532,060</B></P>
</TD><TD valign=bottom style=width:15.8pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>$</B></P>
</TD><TD valign=bottom style='width:66.7pt;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-left:-2.25pt;margin-right:-2.25pt'><B>458,725</B></P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>8</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The main reasons for the overall increase in operating expenses in 2019 were: (1) the Salaries, Wages and Benefits of $46,060; (2) Public cost of $19,432; and (3) Advertising and Promotion of $50,000.</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'>On the other hand there was a significant reduction in the item Professional Fees of $49,283.</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'>All other items were stable from one year to the other, which allows us to affirm that the cost structure of the company is under control and supervision.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Operating Income</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company showed negative Operating Income for the three months ended June 30, 2019 of $433,281 compared with a positive result of $142,381 for the three months ended June 30, 2018. The Company showed negative Operating Income for the six months ended June 30, 2019 of $188,211 compared with a positive result of $231,411 for the six months ended June 30, 2018. </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'>The increase of the numbers for the six month period above is primarily due to the costs associated to the operation of the public entity (iQSTEL, Inc.) estimated in the amount of $365,868. When we look at the results of our operating entity Etelix.com USA, LLC the Operating Income for the six months ended June 30, 2019 is $146,910.</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'>It is important to remark that iQSTEL is in its first year of operations since the acquisition of Etelix.com USA, LLC; and during this period the company has incurred in high costs related to its reorganization, the preparation of the offering statement and due diligence activities related to the execution of the merge and acquisitions strategy.</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'>Even though the Operating Expenses increases in absolute value when comparing the six months ended June 30, 2019 to the same period of 2018, those Operating Expenses experimented a reduction in terms of a percentage of Revenue from 7.80% as of June 30, 2018 to 6.32% for the same period of 2019.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Other Expenses/Other Income</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We had other expenses of $50,960 for the three months ended June 30, 2019, as compared with other expenses of $90,547 for the same period ended 2018. We had other expenses of $1,321,608 for the six months ended June 30, 2019, as compared with other expenses of $160,536 for the same period ended 2018. The increase in other expenses is a result of the change in fair value of derivative liabilities of $547,671, and the increase of interest expenses to $776,162 for the six months ended June 30, 2019 compared to $157,569 for the same period ended 2018. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Net Loss</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We finished the three months ended June 30, 2019 with a loss of $484,241, as compared to a net income of $51,834 during the three months ended June 30, 2018. We finished the six months ended June 30, 2019 with a loss of $1,509,819, as compared to a net income of $70,875 during the six months ended June 30, 2018.</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'>The reasons for specific components are discussed above. Overall, these are the main concepts impacting the net result: (1) a loss in the change in fair value of derivative liabilities of $<A name=_Hlk16187951 />547,671; (2) an increment in interest expenses of $618,593 year over year and (3) the Operating Expenses of the public entity of $365,868.</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'><B>Results of Operations for the Years Ended December 31, 2018 and 2017</B></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'><B><I>Net Revenue</I></B></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'>Our net revenue for the year ended December 31, 2018 was $13,775,361 as compared with $7,514,855 for the year ended December 31, 2017. These numbers reflect an increase of 83.31% year over year primarily from the growth in traffic carried to higher revenue per minute destinations in Africa as a result of the straightening of our commercial position in the African market, which comes from the excellent commercial activities deployed by our office in Spain. One of our main strategic lines of actions for 2018 has been to strengthen the business relationship with our customers in Europe and leverage from there our growth in the African market, with half of the traffic terminated in Africa originating from Europe. The African market has contributed 68% of the revenue for the year ended December 31, 2018 compared with only 7% for the year ended December 31, 2017.</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'>9</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'>This new revenue stream form the African routes has been generated by an increase from 1% in year 2017 to 10% in year 2018 of the total traffic managed in our switches, confirming all our previous analysis regarding the potential contribution to the revenues the African market represents. There is still room to grow and we have enough capacity in our telecommunication infrastructure to accommodate more than twice the traffic we handle at the present time.</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'>If net revenues continue growing at a similar rates for the next twelve months, we believe that the company will reach a total revenue of approximately $17 million by December 31, 2019.</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'><B><I>Cost of Sales</I></B></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'>Our total cost of sales for the year ended December 31, 2018 was $12,582,955 as compared with $6,896,806 for the year ended December 31, 2017. The increase results from a higher volume of minutes of African destinations, which rates are on average 9 times higher compared to the average rates of the rest of the World. This behavior in the costs shows a logical correlation with the behavior of the revenue commented above.</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'><B><I>Gross Margin</I></B></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'>Our gross margin, which is simply the difference between our revenues and our cost of sales, discussed above, increased from $618,049 in 2017 to $1,192,406 in 2018. The Gross Margin over Revenues increased from 8.22% to 8.66% from 2017 to 2018. This means that every minute sold has a better contribution to margin. This behavior is aligned by the expected positive contributions to the margin by the new traffic terminated in Africa.</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'>To develop a new market and to be able to obtain from it the expected margins, it is necessary to advance along several stages. First, it is important to add some routes to the portfolio and capture a significant volume of traffic from the customers to those routes. Once a critical mass of traffic has been reached, the company is in a better position to negotiate with vendors the price conditions and payment terms. These are the two aspects that mainly determine the gross margins. During year 2018 we have increased the volume of traffic in the African destinations from 2.9 million in the previous year to 16.8 million. This fact is putting us in a better position to negotiate with our vendors to get from them the terms and conditions that will impact in a positive way the gross margins in every carried minute.</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'>With this in mind, we expect an increase in the gross margin for the next twelve months as a result of having better termination costs. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Operating Expenses</I></B></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'>Operating expenses for the year ended December 31, 2018 were $1,220,301, as compared with $692,053 for the year ended December 31, 2017. The detail by major category is reflected in the table below.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:360.05pt><TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style=width:186.6pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Years Ended December 31</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Salaries, Wages and Benefits</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>255,457</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>332,210</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Technology</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>184,152</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>145,081</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Professional Fees</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>379,995</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>27,231</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Legal &amp; Regulatory</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,744</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Trade Insurance</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,129</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>20,762</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Travel &amp; Events</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>14,937</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,027</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Allowance for doubtful accounts</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>313,414</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Depreciation and Amortization</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>20,350</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>52,302</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Office, Facility and Other</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>21,123</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>84,440</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> Subtotal</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>692,053</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Stock-based compensation</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:76.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Lawsuit settlement</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Operating Expense</P>
</TD><TD valign=bottom style=width:16.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:92.1pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=bottom style=width:17.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:76.75pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>692,053</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>10</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'>The main reasons for the overall increase in operating expenses in 2018 were: (1) the Professional Fees composed by legal, accounting and other consulting services of $238,806 related to the merger of Etelix into iQSTEL, which is not a recurrent cost; (2) the allowance for doubtful accounts of $313,414, corresponding to accounts that have had little or no activity in the last 24 months. We estimate the amount will be significantly lower in future years due to additional controls already implemented within the commercial area and collection team; and (3) Technology expenses in the amount of $37,999 to increase bandwidth capacity in the international connections to be able allocate the increment in the traffic carried in our network.</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'><A name=_Hlk4140303 />The significant reduction in item Salaries, Wages and Benefit is due to a change in the Sales Commissions methodology which has resulted in a decrease in the commissions paid in 2018. </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'>Office, Facility and Other experienced an important reduction from year 2017 to 2018, due to a significant reduction in the bank service charges related to all international transfer fees to less than half of the amount the Company was paying for this concept.</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'>All other items were stable from one year to the other, which allows us to affirm that the cost structure of the company is under control and supervision.</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'><B><I>Other Expenses</I></B></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'>We had other expenses of $2,076,266 for the year ended December 31, 2018, as compared with other expenses of $281,702 for the year ended December 31, 2017. Our other expenses in 2018 were mainly related to changes in the fair value of derivative liabilities and interest expense, while our other expenses in 2017 were mainly related to interest expense. Fair value of derivative liabilities is connected to the convertible promissory notes issued by the company. It is the intention of the company to redeem these convertible promissory notes before theirs due date, so expenses on this regard will be limited to interests and redemption premium for an estimate amount of $325,000 total. </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'><B><I>Net Loss</I></B></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'>We finished the year ended December 31, 2018 with a loss of $2,104,161 as compared to a loss of $355,706 during the year ended December 31, 2017. The reasons for specific components are discussed above. Overall, these are the main concepts impacting the net result: (1) a loss in the change in fair value of derivative liabilities of $1,588,567; (2) the allowance for doubtful accounts of $313,414; (3) an increment in interest expenses of $219,407 year over year; and (4) legal, accounting and other consulting services of $238,806 related to the merger of Etelix into iQSTEL.</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'><B>Liquidity and Capital Resources</B></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'>As of June 30, 2019, we had total current assets of $2,058,611 and current liabilities of $4,739,508, resulting in a working capital deficit of $2,680,897. This compares with the working capital deficit of $1,882,754 at December 31, 2018. This increase in working capital deficit, as discussed in more detail below, is primarily the result of the increment in the derivative liabilities.</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'>Our operating activities used $667,737 in the six months ended June 30, 2019 as compared with $138,407 used in operating activities in the six months ended June 30, 2018. </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'>Financing activities provided $743,653 in the six months ended June 30, 2019 compared with $140,496 provided in the six months ended June 30, 2018. Our positive financing cash flow in 2018 was largely the result of the proceeds from loans, capital contributions and proceeds from convertible notes. </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'>As of December 31, 2018, we had total current assets of $2,105,947, compared with current liabilities of $3,897,914, resulting in a negative working capital of $1,791,967 and a current ratio of approximately 0.54 to 1. This compares with the working capital balance of $16,294 and the current ratio of 1.01 to 1 at December 31, 2017. This decrease in working capital is primarily the result of accounting derivative liabilities for the amount of $1,790,067.</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'>Total liabilities are fully detailed in Notes 6 to 9 in the Notes to the Consolidated Financial Statements</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'>11</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'>Following is a table with summary data from the consolidated statement of cash flows for the year ended December 31, 2018 and 2017, as presented.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:80.65pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:79.7pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>Net cash used in operating activities</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=top style='width:80.65pt;padding-left:5.4pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(356,551)</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=top style='width:79.7pt;padding-left:5.4pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(267,827)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>Net cash used in investing activities</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:80.65pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'> (426)</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:79.7pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>Net cash provided in financing activities</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:80.65pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>338,281</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:79.7pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>273,208</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:80.65pt;padding-left:5.4pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:79.7pt;padding-left:5.4pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:189pt;padding-left:5.4pt;padding-right:5.4pt><P align=justify style='font:10pt Times New Roman;margin:0'>Net decrease in cash and cash equivalents</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=top style='width:80.65pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(18,696)</P>
</TD><TD valign=top style=width:15.8pt;padding-left:5.4pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=top style='width:79.7pt;padding-left:5.4pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>5,381</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'>Our operating activities used $356,551 in the year ended December 31, 2018, as compared with $267,827 used in operating activities in the year ended December 31, 2017. Our cash flow from operations varies depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable. The main use in cash from operating activities is reflected in variation of the Accounts Receivable of $1,039,735 between the compared years; while the main source of cash in operating activities result from the Accounts Payable for $585,417. </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'>Financing activities provided $338,281 for the year ended December 31, 2018, as compared with $273,208 provided for the year ended December 31, 2017. </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'>Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.</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'><B>Off Balance Sheet Arrangements </B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of June 30, 2019, there were no off-balance sheet arrangements. </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'><B>Critical Accounting Policies</B></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'>A &#8220;critical accounting policy&#8221; is one which is both important to the portrayal of a company&#8217;s financial condition and results, and requires management&#8217;s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.</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'>Our accounting policies are discussed in detail in the footnotes to our financial statements included in this Annual Report on Form 10-K for the year ended December 31, 2018; however, we consider our critical accounting policies to be those related to allowance for doubtful accounts, valuation of assets and income taxes. Management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. See the Consolidated Financial Statements in this Annual Report for a complete discussion of our significant accounting policies.</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'><B>Recently Issued Accounting Pronouncements</B></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'>We do not expect the adoption of these or other recently issued accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>RISK FACTORS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Please consider the following risk factors and other information in this offering circular relating to our business before deciding to invest in our common stock.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This offering and any investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and all of the information contained in this offering circular before deciding whether to purchase our common stock. If any of the following risks actually occur, our business, financial condition and results of operations could be harmed. The trading price of our common stock could decline due to any of these risks, and you may lose all or part of your investment.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We consider the following to be the material risks for an investor regarding this offering. Our company should be viewed as a high-risk investment and speculative in nature. An investment in our common stock may result in a complete loss of the invested amount.</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'>12</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;text-indent:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>An investment in our common stock is highly speculative, and should only be made by persons who can afford to lose their entire investment in us. You should carefully consider the following risk factors and other information in this report before deciding to become a holder of our common stock. If any of the following risks actually occur, our business and financial results could be negatively affected to a significant extent.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633878 /><B>Risk Factors Related to the Business of the Company</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk4140693 /><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></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have limited cash as of June 30, 2019 of $80,486 and December 31, 2018 of $4,570, and we have continually operated at a loss with an accumulated deficit of $4,177,207as of June 30, 2019. 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.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> <A name=i1a /><B><I>Our telecommunications line of business is highly sensitive to declining prices, which may adversely affect our revenues and margins.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The telecommunications industry is characterized by intense price competition, which has resulted in declines in both our average per-minute price realizations and our average per-minute termination costs.</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'>A reduction of our prices to compete with any other offers in the market will not always guarantee and increase in the traffic, which may result in a reduction of revenue. If these trends in pricing continue or accelerate, it could have a material adverse effect on the revenues generated by our telecommunications businesses and/or our gross margins.</P>
<P style='font:10pt Times New Roman;margin:0'>The continued growth of Over-The-Top calling and messaging services, such as WhatsApp, Skype and Viber has adversely affected the use of traditional phone communications. We expect this IP-based services which offer voice communications for free to continue to increase, which may result in increased substitution on our service offerings.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>The termination of our carrier agreements or our inability to enter into new carrier agreements in the future could materially and adversely affect our ability to compete, which could reduce our revenues and profits.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We rely upon our carrier agreements in order to provide our telecommunications services to our customers. These carrier agreements are in most cases for finite terms and, therefore, there can be no guarantee that these agreements will be renewed at all or on favorable terms to us. Our ability to compete would be adversely affected if our carrier agreements were terminated or we were unable to enter into carrier agreements in the future to provide our telecommunications services to our customers, which could result in a reduction of our revenues and profits.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633910 /><B><I>Our customers, could experience financial difficulties, which could adversely affect our revenues and profitability if we experience difficulties in collecting our receivables.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As a provider of international long-distance services, we depend upon sales of transmission and termination of traffic to other long distance providers and the collection of receivables from these customers. The wholesale telecommunications market continues to feature many smaller, less financially stable companies. If weakness in the telecommunications industry or the global economy reduces our ability to collect our accounts receivable from our major customers our profitability may be substantially reduced. While our most significant customers, from a revenue perspective, vary from quarter to quarter, our seven largest customers (4.75% of our total customer base) collectively accounted for 71% of total consolidated revenues in fiscal year 2017. This concentration of revenues increases our exposure to non-payment by our larger customers, and we may experience significant write-offs if any of our large customers fail to pay their outstanding balances, which could adversely affect our revenues and profitability.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
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<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'><B><I>Natural disasters, terrorist acts, acts of war, cyber-attacks or other breaches of network or information technology security may cause equipment failures or disrupt our operations.</I></B></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'>Our inability to operate our telecommunications networks because of such events, even for a limited period of time, may result in loss of revenue, significant expenses, which could have a material adverse effect on our results of operations and financial condition.</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'>We could be harmed by network disruptions, security breaches, or other significant disruptions or failures of our IT infrastructure and related systems. To be successful, we need to continue to have available a high capacity, reliable and secure network for our and our customers&#8217; use. As any other company, we face the risk of a security breach, whether through cyber-attacks, malware, computer viruses, sabotage, or other significant disruption of our IT infrastructure and related systems. There is a risk of a security breach or disruption of the systems we operate, including possible unauthorized access to our proprietary or classified information. We are also subject to breaches of our network resulting in unauthorized utilization of our services, which subject us to the costs of providing those services, which are likely not recoverable. The secure maintenance and transmission of our information is a critical element of our operations. Our information technology and other systems that maintain and transmit customer information may be compromised by a malicious third-party penetration of our network security, or impacted by advertent or inadvertent actions or inactions by our employees, or those of a third party service provider or business partner. As a result, our or our customers&#8217; information may be lost, disclosed, accessed or taken without the customers&#8217; consent, or our services may be used without payment.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Although we make significant efforts to maintain the security and integrity of these types of information and systems, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging, especially in light of the growing sophistication of cyber-attacks and intrusions. We may be unable to anticipate all potential types of attacks or intrusions or to implement adequate security barriers or other preventative measures. Certain of our business units have been the subject of attempted and successful cyber-attacks in the past. We have researched the situations and do not believe any material internal or customer information has been compromised.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>We operate a global business that exposes us to currency, economic and regulatory.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Our revenue comes primarily from sales outside the U.S. and our growth strategy is largely focused on emerging markets. Our success delivering solutions and competing in international markets is subject to our ability to manage various risks and difficulties, including, but not limited to:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our ability to effectively staff, provide technical support and manage operations in multiple countries; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>fluctuations in currency exchange rates; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>timely collecting of accounts receivable from customers located outside of the U.S.; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>trade restrictions, political instability, disruptions in financial markets, and deterioration of economic conditions; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>compliance with the U.S. Foreign Corrupt Practices Act, and other anti-bribery laws and regulations; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>variations and changes in laws applicable to our operations in different jurisdictions, including enforceability of intellectual property and contract rights; and &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>compliance with export regulations, tariffs and other regulatory barriers. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Tax Risks</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We are subject to tax and regulatory audits which could result in the imposition of liabilities that may or may not have been reserved. We are subject to audits by taxing and regulatory authorities with respect to certain of our income and operations. These audits can cover periods for several years prior to the date the audit is undertaken and could result in the imposition of liabilities, interest and penalties if our positions are not accepted by the auditing entity.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>We may be unable to achieve some, all or any of the benefits that we expect to achieve from our plan to expand our operations.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In the future we may require additional financing for capital requirements and growth initiatives. Accordingly, we will depend on our ability to generate cash flows from operations and to borrow funds and issue securities in the capital markets to maintain and expand our business. We may need to incur debt on terms and at interest rates that may not be as favorable. If additional financing is not available when required or is not available on acceptable terms, we may be unable to operate our business as planned or at all, fund our expansion, successfully promote our business, develop or enhance our products and services, take advantage of business opportunities or respond to competitive pressures, any of which could have a material adverse effect on our business, financial condition and results of operations</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633953 /><B>Risks Related to the Offering and the Market for our Stock</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>Because there is no minimum offering amount, funds raised may not be sufficient to complete the plans of the Company as set forth in &#8220;Use of Proceeds&#8221; in this Offering Circular.</I></B></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'>There is no minimum offering amount. If we do not raise the maximum proceeds, funds raised may not be sufficient to complete all plans of the Company as set forth in &#8220;Use of Proceeds&#8221; in this Offering Circular, which could inhibit our ability to commence to generate revenue.</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'><B><I>We have the right to issue additional common stock and preferred stock without consent of stockholders. This would have the effect of diluting investors&#8217; ownership and could decrease the value of their investment.</I></B></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'>We have additional authorized, but unissued shares of our common stock that may be issued by us for any purpose without the consent or vote of our stockholders that would dilute stockholders&#8217; percentage ownership of our company.</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'>In addition, our certificate of incorporation authorizes the issuance of shares of preferred stock and/or the conversion of existing outstanding preferred stock into common stock, the rights, preferences, designations and limitations of which may be set by the Board of Directors. Our certificate of incorporation has authorized issuance of up to 8,500,000 shares of preferred stock in the discretion of our Board. The shares of authorized but unissued preferred stock may be issued upon Board of Directors approval; no further stockholder action is required. If issued, the rights, preferences, designations and limitations of such preferred stock would be set by our Board and could operate to the disadvantage of the outstanding common stock. Such terms could include, among others, preferences as to dividends and distributions on liquidation.</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'><B><I>Nevada law and certain anti-takeover provisions of our corporate documents could entrench our management or delay or prevent a third party from</I> <I>acquiring us or a change in control even if it would benefit our shareholders.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Certain provisions of Nevada law may have an anti-takeover effect and may delay or prevent a tender offer or other acquisition transaction that a shareholder might consider to be in his or her best interest. The summary of the provisions of Nevada law set forth below does not purport to be complete and is qualified in its entirety by reference to Nevada law.</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'>The issuance of shares of preferred stock, the issuance of rights to purchase such shares, and the imposition of certain other adverse effects on any party contemplating a takeover could be used to discourage an unsolicited acquisition proposal. For instance, the issuance of a series of preferred stock might impede a business combination by including class voting rights that would enable a holder to block such a transaction. In addition, under certain circumstances, the issuance of preferred stock could adversely affect the voting power of holders of our common stock. </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'>Under Nevada law, a director, in determining what he reasonably believes to be in or not opposed to the best interests of the corporation, does not need to consider only the interests of the corporation&#8217;s shareholders in any takeover matter but may also, in his discretion, may consider any of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>(i) The interests of the corporation&#8217;s employees, suppliers, creditors and customers; </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>(ii) The economy of the state and nation; </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>(iii) The impact of any action upon the communities in or near which the corporation&#8217;s facilities or operations are located; </P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>(iv) The long-term interests of the corporation and its shareholders, including the possibility that those interests may be best served by the continued independence of the corporation; and </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>(v) Any other factors relevant to promoting or preserving public or community interests. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Because our board of directors is not required to make any determination on matters affecting potential takeovers solely based on its judgment as to the best interests of our shareholders, our board could act in a manner that would discourage an acquisition attempt or other transaction that some, or a majority, of our shareholders might believe to be in their best interests or in which such shareholders might receive a premium for their stock over the then market price of such stock. Our board presently does not intend to seek shareholder approval prior to the issuance of currently authorized stock, unless otherwise required by law or applicable stock exchange rules. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5633974 /><B><I>Investors in this offering will experience immediate and substantial dilution</I>.</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>If all of the shares offered hereby are sold, investors in this offering will own 20.54% of the then outstanding shares of common stock, but will have paid 100% of the total consideration for our outstanding shares, resulting in a dilution of $2.510 per share. See &#8220;Dilution.&#8221;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>If a market for our common stock does not develop, shareholders may be unable to sell their shares.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our common stock is quoted under the symbol &#8220;IQST&#8221; on the OTCPink operated by OTC Markets Group, Inc., an electronic inter-dealer quotation medium for equity securities. We do not currently have an active trading market. There can be no assurance that an active and liquid trading market will develop or, if developed, that it will be sustained.</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'>Our securities are very thinly traded. Accordingly, it may be difficult to sell shares of our common stock without significantly depressing the value of the stock. Unless we are successful in developing continued investor interest in our stock, sales of our stock could continue to result in major fluctuations in the price of the stock.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>The market price of our common stock is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Our stock price is subject to a number of factors, including:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Technological innovations or new products and services by us or our competitors; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Government regulation of our products and services; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The establishment of partnerships with other telecom companies; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Intellectual property disputes; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Additions or departures of key personnel; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Sales of our common stock; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Our ability to integrate operations, technology, products and services; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Our ability to execute our business plan; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Operating results below or exceeding expectations; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Whether we achieve profits or not; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Loss or addition of any strategic relationship; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Industry developments; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Economic and other external factors; and &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Period-to-period fluctuations in our financial results. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our stock price may fluctuate widely as a result of any of the above. In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Because we are subject to the &#8220;Penny Stock&#8221; rules, the level of trading activity in our stock may be reduced.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Securities and Exchange Commission has adopted regulations which generally define &#8220;penny stock&#8221; to be any listed, trading equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer&#8217;s account. In addition, the penny stock rules generally require that prior to a transaction in a penny stock, the broker-dealer make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser&#8217;s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules which may increase the difficulty Purchasers may experience in attempting to liquidate such securities.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>We do not expect to pay dividends in the foreseeable future. Any return on investment may be limited to the value of our common stock.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We do not anticipate paying cash dividends on our common stock in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors may consider relevant. If we do not pay dividends, our common stock may be less valuable because a return on your investment will occur only if our stock price appreciates.</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B><I>Because we lack certain internal controls over financial reporting in that we do not have an audit committee and our Board of Directors has no technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company&#8217;s financial personnel to advise the Board on such matters, we are subject to increased risk related to financial statement disclosures.</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We lack certain internal controls over financial reporting in that we do not yet have an audit committee and our Board of Directors has little technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company&#8217;s financial personnel and Accounting firm to advise the Board on such matters. Accordingly, we are subject to increased risk related to financial statement disclosures.</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'><B><I>We are no longer an &#8220;emerging growth company&#8221; and therefore no longer eligible for reduced reporting requirements applicable to emerging growth companies.</I></B></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'>It has been five years since our first registered sale of common stock in 2012, so we are no longer eligible for the reduced disclosure requirements applicable to &#8220;emerging growth companies.&#8221; </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'>Emerging growth companies may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.</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'>We are also a smaller reporting company, and we will remain a smaller reporting company until the fiscal year following the determination that our voting and non-voting common shares held by non-affiliates is more than $250 million measured on the last business day of our second fiscal quarter, or our annual revenues are more than $100 million during the most recently completed fiscal year and our voting and non-voting common shares held by non-affiliates is more than $700 million measured on the last business day of our second fiscal quarter. Similar to emerging growth companies, smaller reporting companies are able to provide simplified executive compensation disclosure, are exempt from the auditor attestation requirements of Section 404, and have certain other reduced disclosure obligations, including, among other things, being required to provide only two years of audited financial statements and not being required to provide selected financial data, supplemental financial information or risk factors.</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'>Since we are no longer eligible for emerging growth company status, we will be subject to the reporting obligations of a smaller reporting company and, if we continue grow, we may be subject to increased reporting requirements applicable to accelerated filers, which are more onerous than those applicable to smaller reporting companies. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=INDU /><A name=FORW /><B>FORWARD LOOKING STATEMENTS</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This offering circular contains forward-looking statements that involve risk and uncertainties. We use words such as &#8220;anticipate&#8221;, &#8220;believe&#8221;, &#8220;plan&#8221;, &#8220;expect&#8221;, &#8220;future&#8221;, &#8220;intend&#8221;, and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us as described in the &#8220;Risk Factors&#8221; section and elsewhere in this offering circular.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=DESC /><B>DESCRIPTION OF BUSINESS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=i1 /><B>Company Description</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Inc. (the &#8220;Company&#8221;) (OTC Pink: IQST) is a technology company offering a wide array of services to the telecom and Internet industry. iQSTEL, through its wholly-owned subsidiary, Etelix.com USA, LLC (Etelix), offers international long-distance voice services for Tier-1 worldwide telco carriers (ILD Wholesale) and submarine fiber optic network capacity for data carriers and internet service providers both land-based and mobile (4G and 5G). </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'>Etelix.com USA LLC is a wholly owned subsidiary of iQSTEL, based in the city of Miami, Florida; funded in 2008 and holder of an International Telecommunications Carrier 214-license issued by the Federal Telecommunications Commission (FCC).</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'>The company operates two websites, www.iQSTEL,com and www.etelix.com. The information contained on our websites is not incorporated by reference into this annual report, and such information should not be considered to be part of this annual report.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>History </B></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'>iQSTEL, formerly known as PureSnax International, Inc., was incorporated under the laws of the State of Nevada on June 24, 2011. PureSnax was previously a wellness brand focused on bringing healthy snacks and foods to consumers. On March 8, 2017, PureSnax exited a previous License Agreement with a Canadian snack food Licensor. From March of 2017 until its recent acquisition of Etelix.com USA, LLC, PureSnax was working to develop its own brand and its own products for manufacture, distribution, sales and marketing of various products within the health foods and snacks industry and to pursue related business opportunities. PureSnax acquired Etelix.com USA, LLC on June 25, 2018, as disclosed in the 8-K the company filed on June 28, 2018 with the Securities and Exchange Commission. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In August 30, 2018, PureSnax changed its name to &#8220;iQSTEL Inc.&#8221; and received a new CUSIP number: 46265G107, as well as a new trading symbol &#8220;IQST&#8221; in order to better resemble its new name. iQSTEL also changed the Standard Industrial Classification (SIC Code) to 4813, Telephone Communications, Except Radiotelephone.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>PureSnax </B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>PureSnax International Inc. was a wellness brand focused on bringing healthy snacks and foods to consumers. PureSnax planned to offer a wide assortment of sugar free, vegan, peanut free, Kosher, low fat, low sodium and Non-GMO certified products. With new nutritional standards being rolled out through schools in the United States, PureSnax believed to have been poised to capitalize on this new regulation by offering good-for-you, functional foods and snacks that met these new regulatory standards. Product categories include marshmallow squares (Vegan-made and Gelatin free), protein bars, mints, gums and various condiments as well as offering Xylitol, a natural, diabetic-friendly, sweetener. </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'>PureSnax intended to distribute delicious tasting, healthy snack foods meeting the highest of standards and compliance for the US consumers with plans to evolve into an international audience. With a socially responsible mandate supported by education and driven by integrity and sincerity, PureSnax planned to provide people with healthier snack and food choices by utilizing wholesome, natural, high quality ingredients that promote a healthier lifestyles. PureSnax chose to specialize in the development, sourcing, branding and distribution of high quality, healthy food and snack products. It was management&#8217;s vision to brand PureSnax International as one of the trusted names in the health food and snack industry. </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'>With major illnesses, such as diabetes, obesity, cancer, and heart disease on the rise, people are looking for ways to minimize the risks of developing these diseases. People are starting to read and understand labels, looking for healthier choices. PureSnax believed that the demand for healthier products is driving a fundamental change in the food and snack markets. PureSnax believed the demand would provide enormous opportunities for PureSnax International to position itself in the healthy food and snack industry. </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'>After exiting a previous License Agreement with a Canadian snack food Licensor, and until its recent acquisition of Etelix.com USA, LLC, PureSnax was working to develop its own brand and its own products for manufacture, distribution, sales and marketing of various products within the health foods and snacks industry and to pursue related business opportunities. PureSnax was working to become pioneers in a dynamic and growing segment of the industry where management believed future demand would be. PureSnax believed that the snack products developed must not only meet healthy product guidelines but also taste good. Its Marshmallow Squares are sugar-free, Gluten-free, vegan, low-salt. kosher, nut free and taste great. PureSnax reported that it was developing and was constantly continuing to work on other recipes for healthier products that meet the highest standards of quality. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During this new product developing stage, the opportunity to acquire Etelix.com USA, LLC, was presented to management and the board of directors of PureSnax International. After certain phone meetings with representatives of management and business plan presentations, management believed that, even though this acquisition represented a departure from the PureSnax&#8217;s business plan and core expertise, it was a better opportunity to create shareholder value, not just in the immediate but in the mid and long term than its current business. It was this thought process that PureSnax decided to enter the telecom industry and thus become a Telecommunications Service company. PureSnax acquired Etelix.com USA, LLC on June 25, 2018, and thus in that moment the company left the healthy snacks and foods business to focus on Telecommunications Business.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Transaction with Etelix.com USA LLC</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On June 25, 2018, PureSnax entered into a Membership Interest Purchase Agreement with Etelix.com USA, LLC, a privately held limited liability company incorporated under the laws of Florida (&#8220;Etelix&#8221;), and the members of Etelix. As a result of the transaction, Etelix became a wholly-owned subsidiary of the company. In accordance with the terms of the Purchase Agreement, at the closing an aggregate of 13,751,875 shares of the PureSnax&#8217;s common stock were issued to the holders of Etelix in exchange for their membership interests of Etelix. </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'>Further and as a result of the Purchase Agreement, as set forth in more detail below, the previous officers and directors of PureSnax resigned and certain principals of Etelix have been appointed as officers and directors of the PureSnax. </P>
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<P align=justify style='font:10pt Times New Roman;margin:0'>PureSnax entered into certain ancillary agreements noted in the Purchase Agreement, consisting of three Conversion Agreements PureSnax executed with Carmen Cabell, Patrick Gosselin and Mark Engler. These Conversion Agreements converted a portion of the Series A Preferred Stock held by these shareholders into shares of the PureSnax&#8217;s common stock, and canceled the balance of the Series A Preferred Stock held by these shareholders. Following the execution of the Conversion Agreements, Mr. Gosselin owned 250,032 shares of common stock and no shares of preferred stock in PureSnax; Mr. Cabell owned 250,080 shares of common stock and no shares of preferred stock in PureSnax; and Mr. Engler owned 250,032 shares of common stock and no shares of preferred stock in PureSnax.</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'>In addition, PureSnax entered into Employment Agreements with the following persons: (i) Leandro Iglesias as President, CEO and Chairperson of the PureSnax&#8217;s Board of Directors with an annual salary of $54,000; (ii) Juan Carlos Lopez Silva as Chief Commercial Officer with an annual salary of $54,000; and Alvaro Quintana Cardona as Chief Operating Officer and Chief Financial Officer with an annual salary of $30,000. The Employment Agreements have a term of 36 months, are renewable automatically for 24 month periods, unless PureSnax gives written notice at least 90 days prior to termination of the initial 36 month term. PureSnax shall have the right to terminate any of the employment agreements at any time without prior notice, but in that event, PureSnax shall pay these persons salaries and other benefits they are entitled to receive under their respective agreements for three years. </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'>As a result of their new Employment Agreements with PureSnax, Messrs. Iglesias, Silva and Quintana waived all rights to their existing employment agreements in Etelix.</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'>Reference is made to a certain Transaction Agreement dated April 10, 2017, between Metrospaces, Inc., a Delaware corporation, and Leandro Jose Iglesias in representation of the shareholders of Etelix.com USA LLC. Certain provisions from the Transaction Agreement, which all parties agree has been terminated, were made part of the Purchase Agreement, as follows:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Under the Transaction Agreement, Metrospaces, Inc. agreed to pay Mr. Iglesias $2,040,000 USD in a combination of cash and stock for its 51% ownership interest in Etelix.com USA LLC. Of that amount, Metrospaces, Inc. has paid Mr. Iglesias $180,000 USD to date. The remaining amount of $1,860,000 USD will be payable by Metrospaces, Inc. to Mr. Iglesias in the form of a stock purchase agreement for $150,000 USD worth of stock in Metrospaces, Inc. and the balance in the form of a convertible promissory note in favor of Mr. Iglesias in the amount of $1,710,000 USD secured by a pledge of shares of common stock in the Company that Metrospaces, Inc. shall receive in connection with the Purchase Agreement; and &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Mr. Iglesias agrees to reinvest into PureSnax a total of $520,000 USD within a reasonable period of time, but no later than 30 days, upon receipt from Metrospaces, Inc. the payment of $1,710,000 USD under the convertible promissory note described above. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>iQSTEL Business Plan</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL, in addition to collaborating with the growth and development of the business of its subsidiary Etelix.com LLC., is planning to expand its services to the retail market offering International Long-Distance voice communications to Corporate, Small Business and Individuals (ILD retail), supported in part on its current infrastructure.</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'>iQSTEL is also exploring plans to enter in new business areas and markets, such as Satellite Communications; Mobile Services under the figure of a Mobile Virtual Network Operator (MVNO); Internet of Things (IoT) solutions and Data Centers. These new ventures are expected to be developed either through mergers or acquisitions, or through strategic partnerships.</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'>iQSTEL is already allocating resources to develop a Blockchain Payment Solution to facilitate the settlement of exchanged traffic among international carriers based on smart contracts. </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'>As a result of the purchase of Etelix, iQSTEL intends to carry on the business of Etelix as its primary line of business. iQSTEL has relocated its principal executive offices to Coral Gables, FL.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Etelix.com USA, LLC</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Etelix.com USA, LLC is a Miami, Florida-based international telecom carrier founded in 2008 that provides telecom and technology solutions worldwide, with commercial presence in North America, Latin America and Europe.</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'>Enabled by its 214-license granted by the Federal Communications Commission (FCC), Etelix provides International Long-Distance voice services for Telecommunications Operators (ILD Wholesale), and Submarine Fiber Optic Network capacity for internet (4G and 5G).</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Description of Etelix&#8217;s Facilities </FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Etelix operates from four facilities in connection with its business. Our principal executive offices are located at 300 Aragon Avenue, Suite 375 Coral Gables, FL 31334 of shared use with our resident agent for a monthly fee of $274.</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'>Etelix has rented a facility comprised of approximately 700 square feet office space located at 18650 NE 28th Ct. in Aventura, Florida. This office serves as Etelix&#8217;s commercial office. The rent per month is $1,200.</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'>Additionally, Etelix has rented another facility comprised of approximately 875 square feet office space located at Avenida de Buenos Aires, 5-6 piso 1, 1-B, in La Coruna, Spain. This office serves as Etelix&#8217;s main sales office. The rent per month is $700.</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'>Lastly, Etelix has rented a third facility comprised of approximately 2500 square feet office space located at 199 E. Flagler Street, Suite 655 in Miami, Florida. This facility adapts to current needs and it is the location where all of Etelix&#8217;s telecommunications equipment is located. The facility stores the equipment, provides broadband and constant electricity and other utilities needed to properly run the equipment. This facility also offers onsite personnel support for necessary downtime or the rebooting of systems. The rent per month is $5,500.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>These facilities are suitable for Etelix&#8217;s business as International Long-Distance Telecommunications (ILD Wholesale) Operator.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Description of Etelix&#8217;s Equipment </FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The below is a description of the equipment Etelix uses in its business</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style='width:157.5pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>Description </B></P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:122.4pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Date in Service</B></P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='width:122.4pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Acquisition Cost in US$</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:157.5pt;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Telecommunication Equipment </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='width:122.4pt;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>2/31/13</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:122.4pt;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>157,184</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Computer Equipment </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>12/31/13</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>5,728</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Equipment (Telecom) </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>1/01/14</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>32,735</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Equipment/Software </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>2/01/15</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>33,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Telecommunication Equipment </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>1/01/16</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>6,113</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Software Telecommunication </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>6/01/15</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>5,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Equipment (Servers)</P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>12/31/17</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>5,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Telecommunication Software </P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>12/31/13</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>387,603</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Telecommunication Software</P>
</TD><TD valign=top style=width:13.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:49.5pt'>02/01/14</P>
</TD><TD valign=top style=width:12.6pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:122.4pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:45pt'>13,300</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Etelix as International Long-Distance voice services (ILD Wholesale) Operator</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Etelix provides International Long-Distance voice termination in the ILD Wholesale market through over 200 interconnections with telecommunication carriers, PSTNs, PTTs, Mobile Operators, Mobile Virtual Network Operators (MVNOs), Long Distance Operators and Long Distance Wholesale Carriers; supplying international connectivity and international call transit among all countries of the world. </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'>Etelix is interconnected to the most important players in the industry, among which it is worth mentioning the following: Verizon, KDDI, PCCW, Hutchinson, Flow Jamaica (Cable and Wireless Caribbean), Cable and Wireless Panama, Millicom (TIGO), Telefonica de Espa&#241;a (Movistar), Telecom Italia (TIM), Portugal Telecom (MEU), Optimus (NOS), Belgacom (BICS), Deutsche Telekom, Vodafone India, Airtel, Reliance, Viettel, TATA Communications, iBasis, Orbitel, Entel, China Telecom, among many others.</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'>The company provides 24x7 network monitoring through two Network Operation Centers (NOCs), one located in America and another one in Europe, with bilingual staff (English- Spanish). All network platforms (switches, billing platform, router engines, session border controllers, Data Base servers, ERP platform) are located in Miami Downtown, FL, and are accessed remotely from all employees around the world using a secure data connection.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>The Industry ILD Wholesale</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The International Long-Distance traffic market size is estimated at $13 Billion in annual revenue, with 552 Billion Minutes exchanged yearly (Note 1) (Note 2). It is estimated that Wholesale Carriers have a 68% total market share, carrying over 375 Billion Minutes per year (Note 1). The number of minutes carried by wholesale carriers has been increasing during the last few years mostly due to retail service providers, such as mobile operators, calling-card providers, and new VoIP-based market entrants, relying heavily on wholesale carriers to transport and terminate their customers&#8217; international calls.</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Since the year 2013 the market of traditional international long distance calls has been reducing its size in about 2-3% per year (Note 1) (Note 3). This recent decline comes to the hands of over-the-top (OTT) communication and app services. Consumers can choose from a broad range of smartphone based communications apps, including WhatsApp, Facebook Messenger, WeChat, Viber, and Apple&#8217;s Facetime, among others.</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'>However, the market is not experiencing a total migration of users to the new communication solutions; since the numbers reveal that the existence of these new services has increased the total number of international calls. In fact, it is estimated that today OTT applications account for a volume slightly higher than 550 million minutes per year on cross-border communications (Note 1). Which means that the market has doubled its total numbers to the existing ones before the appearance of these new solutions.</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'>While average prices have been declining globally, rates to a few destinations particularly mobile in some emerging market countries remain high, strengthening wholesale revenues. A route-by-route comparison of international traffic with international wholesale revenues reveals destinations for which wholesale revenues are disproportionately high. For example, the France to Tunisia route accounts for 1.5% of revenues, but only 0.25% of volume. Similarly, The United States to Cuba route accounts for close to 2.6% of revenues while making up around 0.15% of volume. Africa accounted for approximately 10% of wholesale traffic, but 33% of wholesale revenues (Note 1).</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'><B>Note 1</B>: source Telegeography a Telecommunications market research and consulting firm (www.telegeography.com), year 2017</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'><B>Note 2</B>: source International Telecommunications Union (www.itu.int). Key 2005-2017 ICT Data</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'><B>Note 3</B>: source Hot Telecom a Telecom Research and Consulting firm (www.hottelecom.com), The Future of International carrier report 2017.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>ILD Wholesale Competitors</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The wholesale industry is full of companies of all sizes and with many different business strategies and focus. We can classify the market in three segments:</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'><I>Operators:</I> in this segment are allocated the telecom companies with global presence like Verizon, Telefonica of Spain (Movistar), Telecom Italia Mobile (TIM), Vodafone, Orange, British Telecom, Telia, Deutsche Telekom, among few others. These companies are the most important traffic generators. These are the companies that account for most end users (individuals, small and home business, as well as, big corporations). Their main business is not international voice traffic, therefore their wholesale divisions are small business units in their structure. They hold the strongest position in the market, since they own the traffic and the most extended networks, but they do not really complete in the wholesale business, on the contrary, they are the potential customers that all wholesale carries want to be interconnected with.</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'><I>Big Carriers:</I> here are companies like TATA, iBasis, IDT, BTS, BICS (Belgacom). These are companies with global operations. Their only focus in on the wholesale industry and have no retail business at all or the offer on the retail segment is very limited. These companies have been expanding their commercial offerings including solutions for international roaming, international peering, SMS hubbing. They continue competing in the carrier business, but year after year, the contribution of the carrier business to their revenues is being lower; prioritizing the new business areas.</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'><I>Medium and Small Carriers:</I> this is the segment where Etelix is. This is the segment where we find the most amount of companies. The majority of these companies have a limited offer in terms of routes and capacity. Most of them work in two or three geographical markets (America and Asia; or Africa and Asia; Europe and America), but not all of them offer global coverage. In this segment we can find companies, like us, with a business strategy focused on becoming carriers with a real global offering, with termination capacity in all countries and commercial presence in every geographical market (America, Europe, Asia, Middle East and Africa).</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'>Etelix is very well positioned to compete in the <I>Medium and Small Carriers</I> market segment. The Company is fully interconnected with dozens of Operators that have commercial presence in more than one geographical markets, thus allowing Etelix to offer a truly international and global voice service. Etelix business strategy is benchmarked against the Top 10 Big Carries in order to allow Etelix to grow into this top 10 carriers in next few years.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Etelix ILD Wholesale Business Plan</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Etelix&#8217;s current market share is less than 0.1%; consequently, Etelix has space to grow to several times its current size. With a methodical execution of its business plan and an adequate level of capitalization, the company believes that Etelix can maintain a steady growth rate (&gt;45% year over year) well beyond 2018.</P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Etelix has outlined a business plan based on the following lines of actions:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>Strengthen the commercial position in Latin America where the company has developed deep commercial and personal relationships since its inception.</I> Latin America, including the Caribbean region, concentrates 28% (*) of the termination traffic in the industry. For that reason, the company plans to continue working on keeping a strong presence in the region. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>Deepen market presence in Asia and Africa:</I> These are new markets for the company. Africa is currently the market with the highest contribution to operating margins and Asia concentrates one third of the termination traffic in the industry. In 2016 the Company established a new office in Europe (La Coru&#241;a, Spain) making this the first move in our strategy to penetrate these two new markets. Estimations show that 56% (Note 4) of the traffic terminating in Africa is originated from customers in Europe, so establishing a commercial point of presence in Europe is designed to put the company closer to the customer traffic. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:6.75pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>The new office in Spain is also believed to strengthen the development of the Asian market</I>, since 37% (Note 4) of the traffic that terminates in that region is originated in Europe while 62% (Note 4) is originated from America where company already has a strong presence. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>Continue working on establishing global recognition to facilitate new markets presence. </I>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:2.25pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>Develop new products associated with the wholesale business. </I>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:4.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><I>Strengthen commercial relations with the main international traffic generators. </I>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Note 4 </B>source International Telecommunications Union (www.itu.int) Key 2005-2017 ICT Data</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Etelix as Submarine Fiber Optic Network capacity provider for 4G and 5G</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>An important milestone in the evolution of Etelix was in 2013, when the company was part of a consortium of major carriers for the upgrade of the Maya-1 submarine cable systems that runs from Hollywood, Florida to the city of Tolu in Colombia. This consortium was led by Orange Telecom and Orbitel, where Etelix participated with 10 Gbps of capacity. The bulk of this contract was sold to Millicom (Tigo Costa Rica). This capacity considerably enhanced Tigo&#8217;s ability to deploy world-class 4G services to its customers in Costa Rica. </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'>The growing demand for internet connections in 4G and 5G in Latin America opened the need to increase the connectivity between Latin America and the USA, which is where most of the internet content that users are looking for in Latin America is. This is the reason that Etelix will focus on finding business opportunities to acquire capacity in submarine cables in the region, participating as an Internet provider for 4G and 5G networks deployments in Latin America.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk5634012 /><A name=_Hlk4493519 /><FONT style='border-bottom:1px solid #000000'>Etelix Operational and Commercial Highlights from January 2018 to December 2018</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'>With the entrance to new technologies as over-the-top (OTT) communication and app services. Consumers can choose from a broad range of smartphone based communications apps, including WhatsApp, Facebook Messenger, WeChat, Viber, and Apple&#8217;s Facetime, among others, the variety and quality of services of telecommunications companies have increased and profit margins have decreased, therefore, telecommunications companies have been forced in all areas to innovate in their products and how to do business and adapt their organizations creating better and more efficient tools to maintain organizational flexibility and serve to their customers.</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;background-color:#FFFFFF'>In the particular case of Etelix we have not been oblivious to the reality of the market and that has forced us to reorganize operationally and commercially to respond more efficiently to the needs of our customers, optimizing our costs, striving for the implementation of modern management tools and obviously innovating in the development of new products; search for new clients and ways of doing business. On that regards we want to highlight the following:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>i.</KBD><FONT style='border-bottom:1px solid #000000'>Evolution in Management Tools:</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>a)</KBD>Implementation of the most up-to-date version of the traffic quality monitoring system Arptel, which has allowed us to be more efficient in the quality monitoring of our clients' services.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>b)</KBD>Definition of internal needs, evaluation of existing tools in the market and selection of a telecommunication voice exchange platform for the management of company's business, which is expected to be implemented in the first half of 2019. The implementation of this new state-of-the-art platform will allow us to integrate most of our technical, commercial, accounting and financial activities, responding in a more efficient and effective way to our clients and reducing in approx. 9% of the company's operating costs.&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>ii. </KBD><FONT style='border-bottom:1px solid #000000'>Operational and Commercial Reorganization:</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>a) Restructuring of the operations team and network management in the sense of optimizing its size, guaranteeing first and foremost the provision of the service 24/7 365 days and providing the necessary backups to operate in case of any contingency.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>b) Restructuring of the commercial management team in order to ensure faster customer service, adequate support in the pre-sales and after-sales processes, and reducing the communication problems due to time zone location to our customers located in America, and those located into the time zone in Europe, Africa or Asia.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>c)</KBD>Review of the variable compensation systems for the commercial team in such a way that the growth of the businesses is stimulated within the sales force.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>iii.</KBD><FONT style='border-bottom:1px solid #000000'>New products and customers and innovation in the way of doing business:</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>a)</KBD>Review of the schemes to do business with our clients with a clear orientation to the minimization of the portfolio risk, reduction of the rotation times of accounts receivable and stabilization of the rotation times of accounts payable.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>b)</KBD>Development of new destinations for international long distance traffic in Africa and Asia such as Yemen, Eritrea, UAE, Ghana, Saudi Arabia among others.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>c)</KBD>Establishment of commercial relationships with important players in the telecommunications market, among which we highlight Vodafone India and Shenglitel,&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>d)</KBD>Reactivation of business relationships with leading global telecommunications operators, among which we highlight the cases of Airtel, Reliance, China Telecom, Hutchinson, with whom business relationships were quite diminished.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>e)</KBD>Establishment of long distance voice products adjusted to operators that exclusively provide services to call centers.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>As a result of the tasks mentioned above and the management developed by the entire Etelix team in 2018, we would like to highlight the following facts:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>i.</KBD>Growth of destinations and volumes of international voice traffic for companies specialized in providing call center services which allowed the growth of our services in countries such as Peru, USA, UK, Canada, China, Hong Kong, Singapore.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>ii.</KBD>Consolidation of Etelix as a leading player in the international voice transit markets in African destinations such as Eritrea and Madagascar, which were instrumental in growing the company's revenues in 2018.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>iii.</KBD>Reduction of almost 50% in the indicator related to billing losses and / or non-recovered portfolio. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>iQSTEL Blockchain Payment Solution Project (Blockchain PSP)</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL plans to take advantage of the experience Etelix has in the Telecommunications business specifically in ILD Wholesale market to develop a payment platform for the International Long-Distance Telecommunications (ILD Wholesale) Operators through the use of &#8220;iQSTEL Token&#8221; for payments among Operators reducing the time and costs of payments, settlement and reconciliation for ILD Wholesale voice exchange services, thanks to the use of the Blockchain protocol on-line/real-time, using the iQSTEL Blockchain PSP.</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'>In order to be part of the iQSTEL Blockchain PSP ecosystem the Operators need to have the iQSTEL Blockchain PSP installed in connection with its voice exchange switching system and iQSTEL Token wallet with positive balance. Only iQSTEL will process the exchange for the iQSTEL Tokens into US$ and/or Euros.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Estimated Benefits of iQSTEL Blockchain PSP</FONT>:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Reduction of credit risk, since all sales can be considered as &#8220;cash sales&#8221;. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Reduction of losses due to bad debts, since the collection is in real time. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Elimination of bank transfer fees, since they disappear with the use of iQSTEL Token. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Elimination of all costs related to the use of trade insurance policies since they are no longer necessary. All sales are &#8220;cash sales&#8221; on-line/real-time. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Reduction of losses due to disputes, since all sale will be cashed in real time. Potential disputes are detected very early in the settlement process. &nbsp;</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'>23</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Blockchain PSP Business Opportunity</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The total revenue in the ILD Wholesale industry is approximately $13 Billion per year. Our own estimations indicate the industry is spending about 0.7% of revenue ($91 Million per year) on costs associated to bad debt collections, disputes, bank transfer fees, trade insurance policies, among other concepts. The company believes that iQSTEL strategy will be offering the Blockchain PSP providing huge savings, faster process, and secure exchange to the ILD Wholesale industry to get a participation of the $91 Million per year that the ILD Wholesale industry spends. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk4406279 /><FONT style='border-bottom:1px solid #000000'>iQSTEL Blockchain knowledge</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>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.</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'>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.</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'>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.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>iQSTEL Blockchain PSP Risks</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>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.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Blockchain PSP Timing</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>iQSTEL plans to begin with the design of the Blockchain PSP by 4Q of 2019.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk19877035 /><B>Recently completion of Acquisition of SwissLink Carrier AG</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As disclosed, on April 1, 2019, iQSTEL Inc. (the &#8220;Company&#8221;) entered into a Company Purchase Agreement (the &#8220;Purchase Agreement&#8221;) by and between the Company and the Ralf Kohler (the &#8220;Seller&#8221;), which agreement provides for the purchase of 51% of the equity and certain assets of SwissLink Carrier AG (&#8220;SwissLink&#8221;) (www.swisslink-carrier.com), a Swiss corporation, by the Company. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The consideration for the acquisition consists of $500,000 USD, payable as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>$50,000 USD shall be paid in cash upon execution of the Purchase Agreement; and &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The balance of $450,000 USD shall be paid at Closing in the form of 187,500 shares of common stock in the Company based upon an agreed upon price of $2.40 per share. Additional shares may be payable at Closing, if the Company&#8217;s stock is valued at less than $2.40 per share, to account for the full $450,000 USD. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Under the Purchase Agreement, the acquisition includes both the 51% equity interest in SwissLink and what are referred to as Additional Assets, which include telecommunications equipment, telecommunications platform software for international long distance voice exchange (VAMP) designed by Swisslink, intellectual rights of the VAMP, receivables, cash in banks, interconnection and service agreements, company information in file and telecommunication license rights for Switzerland.</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'>SwissLink is indebted to the Seller in the principal amount of CHF 200,000 (approximately $200,514.19 USD) as evidenced by a loan agreement dated December 22th, 2019. Under the Purchase Agreement, SwissLink is to repay the full amount of principal plus interest in two years from execution of the Purchase Agreement. </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'>At the execution of this Purchase Agreement, SwissLink has a debt with the Seller of CHF 1,937,077 (approximately $1,941,893.41 USD) by December 31th 2018. With the acquisition of the 51% of the equity of SwissLink, the Company is acquiring 51% of the loan for the payment of CHF 0.51 (approximately $ 0.51 USD) to the Seller, meaning that after the execution of this Purchase Agreement, SwissLink owes to the Seller CHF 949,167.73 (approximately $ 951,432.22 USD) that represent the 49% of the debt, and at the same time, Swisslink owes to the Company CHF 987,909.27 (approximately $ 990,236.62 USD) that represent 51% of this debt.</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'>Further under the Purchase Agreement, the Company has secured an option to, exercisable at 365 days from Closing, to acquire the remaining 49% interest in SwissLink. The Purchase Agreement outlines the purchase price, which is estimated at minimum of $750,000 USD. </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'>24</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 align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The parties to the Purchase Agreement further agreed to extend employment agreements of SwissLink to two individuals at SwissLink for a period of three years, and to Mr. Ralf Kohler (The Seller) for a period of five years as CEO/COO. The Company believes these positions will allow for a continuity of operations of SwissLink. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>There shall be three directors of SwissLink, two of whom will be Messrs. Leandro Iglesias and Alvaro Quintana Cardona, officers of our Company. Mr. Ralf Kohler will also be a member of the board of directors of SwissLink.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Closing of the Purchase Agreement was scheduled for 90 days from execution, and was subject to conditions, which include the following:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The Company&#8217;s board of directors approving the transaction;&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Satisfactory due diligence of SwissLink by the Company;&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>SwissLink has prepared financial statements that are auditable by a PCAOB auditor.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On August 7, 2019, having completed all conditions under the Purchase Agreement, the Company closed the transaction with Seller filed a 8-K report, and issued 187,500 shares to Seller for the 51% equity interest and certain assets in Swisslink; another 510 shares to Seller for 51% of the loan in Swisslink; and another 155,502 shares to account for the full $450,000 USD considering that at Closing the Company&#8217;s stock price was $1.31. </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'>The Purchase Agreement contains customary representations and warranties of the parties, including, among others, with respect to corporate organization, capitalization, corporate authority, financial statements and compliance with applicable laws. The representations and warranties of each party set forth in the Purchase Agreement were made solely for the benefit of the other parties to the Purchase Agreement, and investors are not third-party beneficiaries of the Purchase Agreement. In addition, such representations and warranties (a) are subject to materiality and other qualifications contained in the Purchase Agreement, which may differ from what may be viewed as material by investors, (b) were made only as of the date of the Purchase Agreement or such other date as is specified in the Purchase Agreement and (c) may have been included in the Purchase Agreement for the purpose of allocating risk between the parties rather than establishing matters as facts. Accordingly, the Purchase Agreement is included with this filing only to provide investors with information regarding the terms of the Purchase Agreement, and not to provide investors with any other factual information regarding any of the parties or their respective businesses.</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'>The acquisition of Swisslink will strengthen our presence in Europe putting us, not only, in a very competitive position to capture traffic to Asian and African countries (estimations show that 56% of the traffic terminating in Africa is originated from customers in Europe; while the corresponding percentage of traffic terminated in Asia is 37%); but it will also give us the opportunity to compete in the European traffic, where we currently have a very low participation.</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'>This acquisition will enrich the portfolio of interconnected companies with the inclusion of Teliasonera, Bell Canada, Telecom New Zealand, Orange, and Telenor. These five players manage more than 40 billion minutes per year, about 7% of the total market. This combined with Etelix&#8217;s portfolio: Vodafone (10.87%); TATA (9.96%); Belgacom (4.71%); iBasis (4.53%); IDT (4.35%); Telecom Italia (3.62%); Deutsche Telecom (3.44%) and Verizon (3.08%), represents access to 54.26% of total ILD traffic in the wholesale segment.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Regulations</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Telecommunications services are subject to extensive government regulation in the United States. Any violations of the regulations may subject us to enforcement actions, including interest and penalties. The FCC has jurisdiction over all telecommunications common carriers to the extent they provide interstate or international communications services, including the use of local networks to originate or terminate such services</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Regulation of Telecom by the Federal Communications Commission</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Telecommunication license</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Anyone seeking to conduct telecommunications business where the telecommunication services will transpire between the United States and an international destination must obtain a license from the Federal Communications Commission (FCC). This particular license is named a Section 214 license, after the section in the Communications Act of 1934.</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'>Etelix.com USA, LLC was authorized by the Federal Communications Commission to provide facility-based services in accordance with section 63.18(e)(1) of the Commission&#8217;s rules; and also to provide resale services in accordance with section 63.18(e)(2) under license number ITC-214-20090625-00303.</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'>Since Etelix has no other network infrastructure outside the United States, no other licenses are required to us to operate as an international carrier service provider.</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'>25</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 align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Universal Service and Other Regulatory Fees and Charges</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In 1997, the FCC issued an order, referred to as the Universal Service Order, which requires all telecommunications carriers providing interstate telecommunications services to contribute to universal service support programs administered by the FCC (known as the Universal Service Fund). These periodic contributions are currently assessed based on a percentage of each contributor&#8217;s interstate and international end user telecommunications revenues reported to the FCC. Etelix also contribute to several other regulatory funds and programs, most notably Telecommunications Relay Service and FCC Regulatory Fees (collectively, the Other Funds). Due to the manner in which these contributions are calculated, we cannot be assured that we fully recover from our customers all of our contributions. </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'>In addition, based on the nature of our current business, we receive certain exemptions from federal Universal Service Fund contributions. Changes in our business could eliminate our ability to qualify for some or all of these exemptions. Changes in regulation may also have an impact on the availability of some or all of these exemptions. If even some of these exemptions become unavailable, they could materially increase our federal Universal Service Fund or Other Funds&#8217; contributions and have a material adverse effect on the cost of our operations and, therefore, on our ability to continue to operate profitably, and to develop and grow our business. We cannot be certain of the stability of the contribution factors for the Other Funds. Significant increases in the contribution factor for the Other Funds in general and the Telecommunications Relay Service Fund in particular can impact our profitability. Whether these contribution factors will be stable in the future is unknown, but it is possible that we will be subject to significant increases.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=USEO /><B>USE OF PROCEEDS</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=DETE /><A name=DILU />We estimate that, at a per share price of $3.00, the net proceeds from the sale of the 4,000,000 shares in this offering will be approximately $11,950,000, after deducting the estimated offering expenses of approximately $50,000. </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'>We intend to use the Net Proceeds of this Offering to in the development of iQSTEL business plan, and growing in the core business of the Company. iQSTEL plans to invests the funds of the offering to:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>a.</KBD>retire iQSTEL corporate debts and expenses. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>b.</KBD>infuse capital into its full owned subsidiary Etelix.com USA LLC, to support Etelix&#8217;s sales forecast for 2019. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>c.</KBD>$6,300,000 will be reserved for acquisitions of companies aligned to the areas and markets where the Company want to expand operations. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>With the funds of this offering we plan to support the growth of Etelix our current main operative subsidiary. With funds, we estimate our operative subsidiary could reach 17 Million US$ in revenues per year (around 500,000 US$ EBITDA). </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'>Further, product testing to support and confirm various product claims will be conducted. Accordingly, we expect to use the proceeds of the Maximum Offering as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:411.1pt><TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:120.45pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Maximum</B></P>
</TD><TD valign=bottom style=width:70.9pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Offering</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:120.45pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD><TD valign=bottom style='width:70.9pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percentage</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Corporate</B></FONT></P>
</TD><TD valign=middle style=width:120.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD><TD valign=middle style=width:70.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Expenses of the Offering (1)</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 50,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>0.42%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Budget Expenses 2019</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 500,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>4.17%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertibles notes 2019</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 1,050,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>8.75%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertible notes 2020</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 1,450,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>12.08%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Marketing Program Reg A</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 1,800,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>15.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>OTCQB or OTCQX 2019 Up-listing</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 50,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>0.42%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Subsidiary &#8211; Etelix &amp; SwissLink</B></FONT></P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:70.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Etelix Capital Injection</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 2,000,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>16.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>SwissLink Capital Injection</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 200,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>1.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Funds for Acquisitions</B></FONT></P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>&nbsp;</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Funds for Acquisition (s)</P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>$ 4,900,000</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>40.83%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>TOTAL FOR iQSTEL</B></P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'><B>$ 12,000,000</B></P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'><B>100.00%</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>Discount and Commission</B></P>
</TD><TD valign=bottom style=width:120.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'>&nbsp;</P>
</TD><TD valign=middle style=width:70.9pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:219.75pt;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>TOTAL OF THE OFFERING</B></P>
</TD><TD valign=bottom style='width:120.45pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:33pt'><B>$ 12,000,000</B></P>
</TD><TD valign=middle style='width:70.9pt;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:14.25pt'><B>100.00%</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>(1) Expenses of the offering, estimated to be $50,000.00 include legal and accounting costs of registration.</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'>26</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We expect to use the proceeds if we raise only 50% of the Maximum Offering, or $6,000,000 as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:411.1pt><TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Reduced</B></P>
</TD><TD valign=bottom style=width:77.95pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>$6,000,000</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:113.4pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD><TD valign=bottom style='width:77.95pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percentage</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Corporate</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD><TD valign=bottom style=width:77.95pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Expenses of the Offering (1)</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 50,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>0.83%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Budget Expenses 2019</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 500,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>8.33%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertibles notes 2019</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 1,050,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>17.50%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertible notes 2020</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 450,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>7.50%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Marketing Program Reg A</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 1,100,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>18.33%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>OTCQB or OTCQX 2019 Up-listing</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 50,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>0.83%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Subsidiary &#8211; Etelix &amp; SwissLink</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:77.95pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Etelix Capital Injection</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 1,250,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>20.83%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>SwissLink Capital Injection</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 50,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>0.83%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Funds for Acquisitions</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Funds for Acquisition (s)</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 1,500,000</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>25.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>TOTAL FOR iQSTEL</B></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'><B>$ 6,000,000</B></P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'><B>100.00%</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>Discount and Commission</B></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=middle style=width:77.95pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:219.75pt;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>TOTAL OF THE 50% OFFERING</B></P>
</TD><TD valign=bottom style='width:113.4pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'><B>$ 6,000,000</B></P>
</TD><TD valign=middle style='width:77.95pt;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:18.75pt'><B>100.00%</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>(1) Expenses of the offering, estimated to be $50,000.00 include legal and accounting costs of registration.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We expect to use the proceeds if we raise only 25% of the Maximum Offering, or $3,000,000 as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:404pt><TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Reduced</B></P>
</TD><TD valign=bottom style=width:70.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>$3,000,000</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:113.4pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD><TD valign=bottom style='width:70.85pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percentage</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Corporate</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD><TD valign=bottom style=width:70.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Each</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Expenses of the Offering (1)</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 50,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>1.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Budget Expenses 2019</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 500,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>16.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertibles notes 2019</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 1,050,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>35.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Cleaning up convertible notes 2020</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ -</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>0.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Marketing Program Reg A</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 550,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>18.33%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>OTCQB or OTCQX 2019 Up-listing</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 50,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>1.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Subsidiary &#8211; Etelix &amp; SwissLink</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:70.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>Etelix Capital Injection</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ 800,000</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>26.67%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P align=justify style='font:10pt Times New Roman;margin:0'>SwissLink Capital Injection</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ -</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>0.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>iQSTEL Funds for Acquisitions</B></FONT></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Funds for Acquisition (s)</P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>$ -</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>0.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>TOTAL FOR iQSTEL</B></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'><B>$ 3,000,000</B></P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'><B>100.00%</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:219.75pt><P style='font:10pt Times New Roman;margin:0'><B>Discount and Commission</B></P>
</TD><TD valign=bottom style=width:113.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'>&nbsp;</P>
</TD><TD valign=middle style=width:70.85pt><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:219.75pt;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>TOTAL OF THE 25% OFFERING</B></P>
</TD><TD valign=bottom style='width:113.4pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:30.75pt'><B>$ 3,000,000</B></P>
</TD><TD valign=middle style='width:70.85pt;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;margin-right:15.75pt'><B>100.00%</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>(1) Expenses of the offering, estimated to be $50,000.00 include legal and accounting costs of registration.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including negotiations with the other parties in the merge and acquisitions process of the target companies, the amount of cash available from other sources and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.</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'>27</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=_Hlk5634170 /><A name=SELL /><B>DILUTION</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>If you invest in our shares, your interest will be diluted to the extent of the difference between the public offering price per share of our common stock and the as adjusted net tangible book value per share of our capital stock after this Offering. Our net tangible book value (deficit) as of June 30, 2019 was ($2,416,440) or ($0.156) per share of outstanding common stock. Without giving effect to any changes in the net tangible book value after June 30, 2019 other than the sale of 4,000,000 shares in this offering at the initial public offering price of $3.00 per share less direct costs of the offering ($50,000), our pro forma net tangible book value as of June 30, 2019 was $9,533,560 or $0.490 per share of outstanding common stock. Dilution in net tangible book value per common share, represents the difference between the amount per share paid by the purchasers of our common shares in this offering and the net tangible book value per share of our common stock immediately afterwards. This represents an immediate increase of $0.646 per share of common stock to existing shareholders and an immediate dilution of $2.51 per share of common stock to the new investors, or approximately 83.7% of the assumed initial public offering price of $3.00 per share. The following table illustrates this per share dilution: </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:84.72%><TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><A name=RANGE!B2 />&nbsp;</P>
</TD><TD valign=middle style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:12.56%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:20.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Maximum</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:16.1%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Per Share</B></P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:20.76%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Offering</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Initial price to public</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.56%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>12,000,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net tangible deficiency as of June 30, 2019</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.56%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(0.156)</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,416,440)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Increase in net tangible book value attributable to new investors</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.56%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>0.646</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,950,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>As adjusted net tangible book value after this offering</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:12.56%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>0.490</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>9,533,560</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:60%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Dilution in net tangible book value per share to new investors</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:12.56%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2.510</P>
</TD><TD valign=middle style=width:3.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following table summarizes the differences between the existing shareholders and the new investors with respect to the number of shares of common stock purchased, the total consideration paid, and the average price per share paid, on a maximum offering basis:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Maximum Offering: </B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:66.42%><TR style=height:7.2pt><TD colspan=3 valign=middle style=width:35.12%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=bottom style=width:39.68%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:17.46%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Average</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=3 valign=middle style='width:35.12%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares Purchased</B></P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=top style='width:39.68%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Total Consideration</B></P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:17.46%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Price Per</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:17.54%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Number</B></P>
</TD><TD valign=bottom style=width:3.1%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:14.48%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percent</B></P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:21.58%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD><TD valign=top style=width:3.38%><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:14.72%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percent</B></P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:17.46%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Share</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:17.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,475,916</P>
</TD><TD valign=middle style='width:3.1%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:14.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>79.46%</P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:4.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:16.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,400</P>
</TD><TD valign=top style=width:3.38%><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:14.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>0.13%</P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>0.001</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:17.54%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>4,000,000</P>
</TD><TD valign=middle style=width:3.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:14.48%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>20.54%</P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:4.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:16.72%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>12,000,000</P>
</TD><TD valign=top style=width:3.38%><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:14.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>99.87%</P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>3.00</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:17.54%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>19,475,916</P>
</TD><TD valign=middle style=width:3.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:14.48%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>100.00%</P>
</TD><TD valign=middle style=width:4.22%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:4.86%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:16.72%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>12,015,400</P>
</TD><TD valign=top style=width:3.38%><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:14.72%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>100%</P>
</TD><TD valign=middle style=width:3.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.02%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:12.44%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>0.617</P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>SELLING SHAREHOLDERS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The shares being offered for resale by the selling stockholders consist of 900,000 shares of our common stock held by 1 (one) shareholder.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following table sets forth the name of the selling stockholder, the number of shares of common stock beneficially owned by each of the selling stockholder as of September 19, 2019 and the number of shares of common stock being offered by the selling stockholder. The shares being offered hereby are being registered to permit public secondary trading, and the selling stockholders may offer all or part of the shares for resale from time to time. However, the selling stockholder is under no obligation to sell all or any portion of such shares nor is the selling stockholder obligated to sell any shares immediately upon effectiveness of this offering circular. All information with respect to share ownership has been furnished by the selling stockholder.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:94.84%><TR style=height:7.2pt><TD valign=bottom style='padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>Name of selling stockholder</B></P>
</TD><TD valign=bottom style='padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Common stock</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>owned prior to</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>offering</B></P>
</TD><TD valign=bottom style='padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Common stock</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>to be sold</B></P>
</TD><TD valign=bottom style='padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares of Common</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>stock owned after</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>offering (if all</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>shares are sold)</B></P>
</TD><TD valign=bottom style='padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percent of common</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>stock owned after</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>offering (if all</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>shares are sold)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Metrospaces Inc.(1)</P>
</TD><TD valign=middle style='white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>6,136,848</P>
</TD><TD valign=middle style='white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>900,000</P>
</TD><TD valign=middle style='white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>5,236,848&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;</P>
</TD><TD valign=middle style='white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>26.05%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt><P style='font:10pt Times New Roman;margin:0'><B>Total</B></P>
</TD><TD valign=middle style=white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt><P align=center style='font:10pt Times New Roman;margin:0'><B>6,136,848</B></P>
</TD><TD valign=middle style=white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt><P align=center style='font:10pt Times New Roman;margin:0'><B>900,000</B></P>
</TD><TD valign=middle style=white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt><P align=center style='font:10pt Times New Roman;margin:0'><B>5,236,848&#8236;</B>&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;&#8236;</P>
</TD><TD valign=middle style=white-space:nowrap;padding-top:0.75pt;padding-left:4.95pt;padding-bottom:0.75pt;padding-right:4.95pt><P align=center style='font:10pt Times New Roman;margin:0'><B>26.05%</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>(1)</KBD><KBD style=margin-left:36pt></KBD>Oscar Brito, our director, has voting and dispositive control over 50% of the shares of common stock held by Metrospaces Inc. Carlos Daniel Silva has voting and dispositive control over the remaining 50% of the shares. &nbsp;</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'>28</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 style='font:10pt Times New Roman;margin:0;text-indent:-1.5pt'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=PLAN /><B>PLAN OF DISTRIBUTION</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>This Offering Statement is part the Form 1-A that we filed with the SEC, using a continuous offering process. Periodically, as we have material developments, we will provide an Offering Statement supplement that may add, update or change information contained in this Offering Statement. Any statement that we make in this Offering Statement will be modified or superseded by any inconsistent statement made by us in a subsequent Offering Statement supplement. </P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>We intend to sell the shares in the primary offering through the efforts of our officers, Leandro Iglesias and Alvaro Quintana Cardona. Messrs. Iglesias and Cardona will not receive any compensation for offering or selling the shares in our primary offering. We believe that Messrs. Iglesias and Cardona are exempt from registration as a broker-dealer under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In particular, Messrs. Iglesias and Cardona:</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>are not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Securities Act; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>are not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>indirectly on transactions in securities; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>are not an associated person of a broker or dealer; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>meet the conditions of the following:&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>primarily perform, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>were not brokers or dealers, or an associated persons of a broker or dealer, within the preceding 12 months; and&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act.&nbsp;</P>
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<P align=justify style='font:10pt Times New Roman;margin:0'>The Selling Shareholders may pledge all or a portion of their respective Selling Shareholder Shares owned as collateral for margin accounts or in loan transactions, and the Selling Shareholder Shares may be resold pursuant to the terms of such pledges, margin accounts or loan transactions. Upon default by any such Selling Shareholder, the pledge in such loan transaction would have the same rights of sale as the Selling Shareholders under this Offering Circular. The Selling Shareholders may also enter into exchange traded listed option transactions, which require the delivery of the Selling Shareholder Shares listed under this Offering Circular. The Selling Shareholders may also transfer the Selling Shareholder Shares owned in other ways not involving market makers or established trading markets, including directly by gift, distribution or other transfer without consideration, and upon any such transfer the transferee would have the same rights of sale as Selling Shareholders under this Offering Circular.</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'>The Selling Shareholders will be affected by the applicable provisions of the Securities Exchange Act of 1934, including, without limitation, Regulation M, which may limit the timing of purchases and sales of any of the securities by the Selling Shareholders or any such other person. We have instructed the Selling Shareholders that they may not purchase any of our securities while they are selling their respective Selling Shareholder Shares under this Offering Circular.</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'>We will not pay for any expenses relating to the sale of Selling Shareholder Shares by the Selling Shareholders, except the expenses related to filing this Offering Circular<B>.</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Quotation</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Our Common Stock is traded on the OTCMarkets.com Pink Sheet Open Market under the symbol &#8220;IQST.&#8221;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Pricing of the Offering</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Prior to the offering, there has been a limited public market for our common shares. The initial public offering price was determined by the Company. The principal factors considered in determining the initial public offering price include:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the information set forth in this Offering Statement and otherwise available; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our history and prospects and the history of and prospects for the industry in which we compete; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our past and present financial performance; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>our prospects for future earnings and the present state of our development; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the general condition of the securities markets at the time of this offering; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>other factors deemed relevant by us. &nbsp;</P>
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<P style='font:10pt Times New Roman;margin:0'><B>Investment Limitations</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Generally, no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth (please see below on how to calculate your net worth). Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.</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'>Because this is a Tier 2, Regulation A Offering, most investors must comply with the 10% limitation on investment in the Offering. The only investor in this offering exempt from this limitation is an &#8220;accredited investor&#8221; as defined under Rule 501 of Regulation D under the Securities Act (an &#8220;Accredited Investor&#8221;). If you meet one of the following tests you should qualify as an Accredited Investor:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are a natural person and your individual net worth, or joint net worth with your spouse, exceeds $1,000,000 at the time you purchase Offered Shares (please see below on how to calculate your net worth); &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are an executive officer or general partner of the issuer or a manager or executive officer of the general partner of the issuer; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the Code, a corporation, a Massachusetts or similar business trust or a partnership, not formed for the specific purpose of acquiring the Offered Shares, with total assets in excess of $5,000,000; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Exchange Act, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940 (the &#8220;Investment Company Act&#8221;), or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958 or a private business development company as defined in the Investment Advisers Act of 1940; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are a trust with total assets in excess of $5,000,000, your purchase of Offered Shares is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the Offered Shares; or &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Offering Period and Expiration Date</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our offering will terminate upon the earliest of (i) such time as all of the common stock has been sold pursuant to the Offering Statement or (ii) 365 days from the qualified date of this offering circular unless extended by our Board of Directors for an additional 90 days. We may however, at any time and for any reason terminate the offering.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk9959711 /><B>Procedures for Subscribing</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>When you decide to subscribe for shares in this Offering, you should:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Go to www.iqstel.com home page, click on the &#8220;Invest Now&#8221; button and follow the procedures as described.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>1.</KBD>Electronically receive, review, execute and deliver to us a subscription agreement; and &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>2.</KBD>Deliver funds directly by wire or electronic funds transfer via ACH to the specified account maintained by us. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk9959745 />As part of this investment, each investor will be required to agree to the terms of the subscription agreement included as Exhibit 1A-4 to the Offering Statement of which this Offering Circular is part. </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'>Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such subscription agreement upon request after a potential investor has had ample opportunity to review this Offering Statement.</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'>The subscription agreement requires investors to indemnify the company and its officers and directors for any claim of brokerage commissions, finders&#8217; fees or similar compensation, if the signatory to the subscription agreement does not have the legal authority to bind the investor and for the other representations and warranties made in Article II of the Subscription Agreement. </P>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Right to Reject Subscriptions</I>. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to our bank account, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.</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'><I>Acceptance of Subscriptions</I>. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the shares subscribed at closing. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.</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'>Under Rule 251 of Regulation A, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser&#8217;s revenue or net assets (as of the purchaser&#8217;s most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed 10% of the greater of the purchaser&#8217;s annual income or net worth (please see below on how to calculate your net worth). </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'>NOTE: For the purposes of calculating your net worth, it is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of the Offered Shares.</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'>In order to purchase offered Shares and prior to the acceptance of any funds from an investor, an investor will be required to represent, to the Company&#8217;s satisfaction, that he is either an accredited investor or is in compliance with the 10% of net worth or annual income limitation on investment in this offering. </P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>No Escrow</B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The proceeds of this offering will not be placed into an escrow account. We will offer our shares of common stock on a best efforts basis primarily through an online platform. As there is no minimum offering, upon the approval of any subscription to this Offering Statement, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=DESCRIPTION /><B>DESCRIPTION OF SECURITIES</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>The following is a summary of the rights of our capital stock as provided in our articles of incorporation and bylaws. For more detailed information, please see our articles of incorporation and bylaws, which have been filed as exhibits to the offering statement of which this Offering Circular is a part.</I></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'>Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.001 per share. We do not have any authorized preferred stock. As of September 19, 2019, there were 16,103,713 shares of our common stock issued and outstanding. Our shares are held by forty five (45) stockholders of record. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Common Stock</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our common stock is entitled to one vote per share on all matters submitted to a vote of the stockholders, including the election of directors. The holders of our common stock possess all voting power. Generally, all matters to be voted on by stockholders must be approved by a majority (or, in the case of election of directors, by a plurality) of the votes entitled to be cast by all shares of our common stock that are present in person or represented by proxy, subject to any voting rights granted to holders of any preferred stock. Holders of our common stock representing a majority of our capital stock issued, outstanding and entitled to vote, represented in person or by proxy, are necessary to constitute a quorum at any meeting of our stockholders. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to our Articles of Incorporation. Our Articles of Incorporation do not provide for cumulative voting in the election of directors.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Dividend Policy</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Share Purchase Warrants</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We have no warrants to purchase shares of our common stock. </P>
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<P style='font:10pt Times New Roman;margin:0'><B>Options</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We have no options to purchase shares of our common stock. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=_Hlk5634239 /><B>Convertible Securities</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have convertible notes that allow for conversion of principal and interest into 29,989,692 shares of our Common Stock at a weighted average conversion price of $0.0673 as of September 19, 2019.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Nevada Anti-Takeover Laws</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Nevada Revised Statutes sections 78.378 to 78.379 provide state regulation over the acquisition of a controlling interest in certain Nevada corporations unless the articles of incorporation or bylaws of the corporation provide that the provisions of these sections do not apply. Our articles of incorporation and bylaws do not state that these provisions do not apply. The statute creates a number of restrictions on the ability of a person or entity to acquire control of a Nevada company by setting down certain rules of conduct and voting restrictions in any acquisition attempt, among other things. The statute is limited to corporations that are organized in the state of Nevada and that have 200 or more stockholders, at least 100 of whom are stockholders of record and residents of the State of Nevada; and does business in the State of Nevada directly or through an affiliated corporation. Because of these conditions, the statute currently does not apply to our company.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Listing of Common Stock </B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:24.5pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Our Common Stock is currently quoted on the OTC Pink under the trading symbol &#8220;IQST.&#8221;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Transfer Agent and Registrar </B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:24.5pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The transfer agent and registrar of our Common Stock is Pacific Stock Transfer, located at 173 Keith Street, Suite 3, Warrenton, Virginia 20186 telephone: (571) 485-9998.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Penny Stock Regulation</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The SEC has adopted regulations which generally define &#8220;penny stock&#8221; to be any equity security that has a market price (as defined) of less than $5.00 per share or an exercise price of less than $5.00 per share. Such securities are subject to rules that impose additional sales practice requirements on broker-dealers who sell them. For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchaser of such securities and have received the purchaser&#8217;s written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule prepared by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealer&#8217;s presumed control over the market. Finally, among other requirements, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. As the Shares immediately following this Offering will likely be subject to such penny stock rules, purchasers in this Offering will in all likelihood find it more difficult to sell their Shares in the secondary market.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=INTE /><B>INTERESTS OF NAMED EXPERTS AND COUNSEL</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>No expert or counsel named in this prospectus as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.</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'>The Doney Law Firm, our independent legal counsel, has provided an opinion on the validity of our common stock.</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'>Boyle CPA, LLC has audited our financial statements included in this prospectus and registration statement to the extent and for the periods set forth in their audit report. Boyle CPA, LLC has presented their report with respect to our audited financial statements. The report of Boyle CPA, LLC is included in reliance upon their authority as experts in accounting and auditing. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=DESCRIPTIONOF /><B>DESCRIPTION OF FACILITIES</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The disclosures concerning our properties are contained in the section titled &#8220;Description of Business&#8221; above and incorporated herein by reference.</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'>32</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=shellstatus /><A name=LEGA /><B>LEGAL PROCEEDINGS</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.<A name=DIRE /></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'><B>DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=i10 />The following information sets forth the names, ages, and positions of our current directors and executive officers.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:82.82%><TR style=height:7.2pt><TD valign=bottom style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Name</B></P>
</TD><TD valign=top style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Age</B></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>Positions and Offices Held</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias</P>
</TD><TD valign=top style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>54</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>President, Chairman, Chief Executive Officer and Director</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Oscar Brito</P>
</TD><TD valign=top style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>47</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Director</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana Cardona</P>
</TD><TD valign=top style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>48</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Chief Operating Officer, Chief Financial Officer and Director</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Juan Carlos Lopez Silva</P>
</TD><TD valign=top style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>51</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:0.75pt><P style='font:10pt Times New Roman;margin:0'>Chief Commercial Officer</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Set forth below is a brief description of the background and business experience of each of our current executive officers and directors.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Leandro Iglesias</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Before founding Etelix in year 2008, where he has acted as President and CEO; Mr. Iglesias was the International Business Manager at CANTV/Movilnet (the Venezuelan biggest telecommunications services provider). He held this position between January 2003 and July 2008, while the company was under the control of Verizon. Previous to his position in Cantv/Movilnet Mr. Iglesias was Executive Vice President and responsible of the Latin America marketing division of American Internet Communications (August 1998 &#8211; December 2002). Leandro Iglesias has developed a carrier for more than 20 years in the telecommunications industry with a particular emphasis in the international long-distance traffic business, submarine cables, satellite communications and international roaming services. He is Electronic Engineer graduate from Universidad Simon Bolivar and graduated from the Management Program at IESA Business School. He also holds an MBA from Universidad Nororiental Gran Mariscal de Ayacucho.</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'>Aside from that provided above, Mr. Iglesias does not hold and has not held over the past five years any other directorships in any company with a class of securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940. </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'>Mr. Iglesias is qualified to serve on our Board of Directors because of his wealth of experience in the telecom industry.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Oscar Brito</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Since 1997 Oscar Brito has been advising companies and investors on strategic investments and acquisitions. Since co-founding GBS Capital in 1997, he has been directly involved in over $500MM in capital raising and M&amp;A in middle market tech and real estate deals. For the last 21 years, he has specialized in early and mid-stage Investment and M&amp;A activity and real estate development activities. Currently he is acting as President, CFO and director of Metrospaces Inc. a NYC-based real estate developer focused in the US-luxury condo and apartment market. Previously he was Managing Director at GBS Capital Partner (1997-2015) and Advisor to the Board at Grooveshark (2010-2012). Mr. Brito holds a Law Degree from Universidad Catolica Andres Bello and an MBA Duke University &#8211; The Fuqua School of Business.</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'>Aside from that provided above, Mr. Brito does not hold and has not held over the past five years any other directorships in any company with a class of securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940. </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'>Mr. Brito is qualified to serve on our Board of Directors because of his business experience and fundraising experience.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Alvaro Quintana Cardona</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Alvaro Quintana has developed a carrier of more than twenty years of experience in the telecommunication industry with particular focus on regulatory affairs, strategic planning, value added services and international interconnection agreements. Before joying Etelix in year 2013 as Chief Operation Officer and Chief Financial Officer, Mr. Quintana acted between June 2004 and May 2013 as Interconnection and Value-Added Services Manager at Digitel (a mobile service provider in Venezuela, formerly a Telecom Italia Mobile subsidiary). He holds a Bachelor Degree in Business Administration and a Specialist Degree in Economics, both from the Universidad Catolica Andres Bello. He also holds a Master in Telecommunications from the EOI Business School in Spain.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>33</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'>Aside from that provided above, Mr. Cardona does not hold and has not held over the past five years any other directorships in any company with a class of securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Mr. Quintana is qualified to serve on our Board of Directors because of his wealth of experience in the telecom industry.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Juan Carlos Lopez Silva</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Juan Carlos Lopez Silva is an Engineer graduated from Universidad de Los Andes, with a Master degree in Project Management from the Pontificia Universidad Javeriana; and MBA from EADA Business School; with more than 20 years of experience in project management, negotiation, business development and management on international companies. Previous to joining Etelix in August 2011 as Chief Commercial Officer, Juan Carlos was International Carrier Relations Manager at Colombia Telecomunicaciones S.A. Esp. a subsidiary of Telefonica of Spain, between September 2003 and June 2011. </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'>Aside from that provided above, Mr. Silva does not hold and has not held over the past five years any other directorships in any company with a class of securities registered pursuant to Section 12 of the Exchange Act or subject to the requirements of Section 15(d) of the Exchange Act or any company registered as an investment company under the Investment Company Act of 1940. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Term of Office</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our Directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board, subject to their respective employment agreements.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Third Party Providers</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Securities Legal Counsel: </P>
<P style='font:10pt Times New Roman;margin:0'>The Doney Law Firm</P>
<P style='font:10pt Times New Roman;margin:0'>4955 S. Durango Dr. Ste. 165 | Las Vegas, NV 89113</P>
<P style='font:10pt Times New Roman;margin:0'>Office: (702) 982-5686</P>
<P style='font:10pt Times New Roman;margin:0'>Scott@DoneyLawFirm.com</P>
<P style='font:10pt Times New Roman;margin:0'>www.doneylawfirm.com </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Accounting Firm: </P>
<P style='font:10pt Times New Roman;margin:0'>PubCo Reporting Solutions, Inc. </P>
<P style='font:10pt Times New Roman;margin:0'>O : 305-396-1415 (USA)</P>
<P style='font:10pt Times New Roman;margin:0'>O : 778-819-6838 (CDN)</P>
<P style='font:10pt Times New Roman;margin:0'>O : 844-396-1415 (Toll Free)</P>
<P style='font:10pt Times New Roman;margin:0'>F : 305-503-9293</P>
<P style='font:10pt Times New Roman;margin:0'>E : jason@pubcoreporting.com</P>
<P style='font:10pt Times New Roman;margin:0'>www.pubcoreporting.com</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Audit Firm:</P>
<P style='font:10pt Times New Roman;margin:0'>Boyle CPA, LLC</P>
<P style='font:10pt Times New Roman;margin:0'>361 Hopedale Drive SE</P>
<P style='font:10pt Times New Roman;margin:0'>Bayville, NJ 08721</P>
<P style='font:10pt Times New Roman;margin:0'>(732) 822-4427</P>
<P style='font:10pt Times New Roman;margin:0'>rboyle@cpaboyle.com</P>
<P style='font:10pt Times New Roman;margin:0'>www.cpaboyle.com</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Transfer Agent: </P>
<P style='font:10pt Times New Roman;margin:0'>Pacific Stock Transfer Company</P>
<P style='font:10pt Times New Roman;margin:0'>6725 Via Austi Pkwy, Suite 300</P>
<P style='font:10pt Times New Roman;margin:0'>Las Vegas, Nevada 89119</P>
<P style='font:10pt Times New Roman;margin:0'>Phone - 702.361.3033 ext 102</P>
<P style='font:10pt Times New Roman;margin:0'>Fax - 702.433.1979</P>
<P style='font:10pt Times New Roman;margin:0'>Toll Free - 800.785.PSTC (7782)</P>
<P style='font:10pt Times New Roman;margin:0'>Joslyn@pacificstocktransfer.com</P>
<P style='font:10pt Times New Roman;margin:0'>www.pacificstocktransfer.com</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>34</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Employees</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>iQSTEL, including Etelix.com LLC, has 18 employees.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Significant Employees</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We have no significant employees other than our officers and directors.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Family Relationships</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers.</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Involvement in Certain Legal Proceedings</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the past 10 years, none of our current directors, nominees for directors or current executive officers has been involved in any legal proceeding identified in Item 401(f) of Regulation S-K, including:</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-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>1.</KBD>Any petition under the Federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing; &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;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>2.</KBD>Any conviction in a criminal proceeding or being named a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); &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;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>3.</KBD>Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from, or otherwise limiting, the following activities: &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;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>i.</KBD>Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>ii.</KBD>Engaging in any type of business practice; or &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>iii.</KBD>Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-9pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>4.</KBD>Being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any type of business regulated by the Commodity Futures Trading Commission, securities, investment, insurance or banking activities, or to be associated with persons engaged in any such activity; &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;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>5.</KBD>Being found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; &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;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>6.</KBD>Being found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated; &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;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>7.</KBD>Being subject to, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: &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;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>i.</KBD>Any Federal or State securities or commodities law or regulation; or &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>ii.</KBD>Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or &nbsp;</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'>35</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;text-indent:-36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:40.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>iii.</KBD>Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>8.</KBD>Being subject to, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.&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'><B>Director Independence</B></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'>The Board of Directors reviews the independence of our directors on the basis of standards adopted by the NASDAQ Stock Market (&#8220;NASDAQ&#8221;). As a part of this review, the Board of Directors considers transactions and relationships between our company, on the one hand, and each director, members of the director&#8217;s immediate family, and other entities with which the director is affiliated, on the other hand. The purpose of such a review is to determine which, if any, of such transactions or relationships were inconsistent with a determination that the director is independent under NASDAQ rules. As a result of this review, the Board of Directors has determined that none of our directors is an &#8220;independent director&#8221; within the meaning of applicable NASDAQ listing standards.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Committees of the Board</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our full board serves the functions that would normally be served by a separately-designated Audit Committee, Nominating Committee, and Compensation Committee. Further, we do not have an audit committee financial expert on the Board. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Section 16(a) Beneficial Ownership Reporting Compliance</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Section 16(a) of the Exchange Act requires our directors and executive officers and persons who beneficially own more than ten percent of a registered class of the Company&#8217;s equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company. Officers, directors and greater than ten percent beneficial shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. To the best of our knowledge based solely on a review of Forms 3, 4, and 5 (and any amendments thereof) received by us, no persons have failed to file, on a timely basis, the identified reports required by Section 16(a) of the Exchange Act during fiscal year ended June 30, 2018. Following the year end, all of the Form 3s were filed late for incoming management of Etelix.com USA LLC.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Code of Ethics</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We do not have a code of ethics but we plan to adopt one this fiscal year. </P>
<P style='font:10pt Times New Roman;margin:0'><A name=EXEC /> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>EXECUTIVE COMPENSATION</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The table below summarizes all compensation awarded to, earned by, or paid to our former or current executive officers for the fiscal years ended December 31, 2018 and 2017.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style='border-collapse:collapse;width:99.74%;border:0.5pt solid #000000'><TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Name and principal</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Position</B></P>
</TD><TD valign=bottom style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Year</B></P>
</TD><TD valign=bottom style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Salary<SUP> </SUP>($)</B></P>
</TD><TD valign=bottom style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Bonus</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>($)</B></P>
</TD><TD valign=bottom style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Stock</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Awards</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>($)</B></P>
</TD><TD valign=bottom style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Option</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Awards</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>($)</B></P>
</TD><TD valign=bottom style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>All Other</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Compensation</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>($) (1)(2)</B></P>
</TD><TD valign=bottom style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Total</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>($)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Patrick Gosselin </P>
<P style='font:10pt Times New Roman;margin:0'><I>Former President, CEO, Secretary and Director</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Mark Engler</P>
<P style='font:10pt Times New Roman;margin:0'><I>CFO and Director</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias</P>
<P style='font:10pt Times New Roman;margin:0'><I>President, CEO and Director</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>27,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>27,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana</P>
<P style='font:10pt Times New Roman;margin:0'><I>Treasury, Secretary and Director</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>15,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>15,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Oscar Brito</P>
<P style='font:10pt Times New Roman;margin:0'><I>Director</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:134.9pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Juan Carlos L&#243;pez</P>
<P style='font:10pt Times New Roman;margin:0'><I>Chief Commercial Officer</I></P>
</TD><TD valign=top style='width:41.5pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2018</P>
<P align=center style='font:10pt Times New Roman;margin:0'>2017</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>27,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:51.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:62.25pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:57.05pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:77.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=top style='width:60.85pt;padding-top:0.75pt;padding-left:1.4pt;padding-bottom:0.75pt;padding-right:1.4pt;border:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>27,000</P>
<P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>36</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 style='font:10pt Times New Roman;margin:0'><B>Employment Agreements for New Management</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company entered into Employment Agreements with the following persons: (i) Leandro Iglesias as President, CEO and Chairperson of the Company&#8217;s Board of Directors with an annual salary of $168,000 plus the &#8220;additional compensation&#8221;; (ii) Juan Carlos Lopez Silva as Chief Commercial Officer with an annual salary of $120,000 plus the &#8220;additional compensation&#8221;; and Alvaro Quintana Cardona as Chief Operating Officer and Chief Financial Officer with an annual salary of $144,000 plus the &#8220;additional compensation&#8221;. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Employees shall receive a bonus of 3% of the Company&#180;s Net Income for services rendered under these employment agreements, and shall be paid under the 15 days after the 10-k file is completed.</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'>The Employment Agreements have a term of 36 months, are renewable automatically for 24 month periods, unless the Company gives written notice at least 90 days prior to termination of the initial 36 month term or any of the subsequent 24 months term renewals. The Company shall have the right to terminate any of the employment agreements at any time without prior notice, but in that event, the Company shall pay these persons salaries and other benefits they are entitled to receive under their respective agreements for three years or two years in the case of renewals.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Option Grants </B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have not granted any options or stock appreciation rights to our named executive officers or directors since inception. We do not have any stock option plans.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Compensation of Directors</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>None.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Pension, Retirement or Similar Benefit Plans</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>There are no arrangements or plans in which we provide pension, retirement or similar benefits to our directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Compensation Committee</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We do not currently have a compensation committee of the board of directors or a committee performing similar functions. The board of directors as a whole participates in the consideration of executive officer and director compensation.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Board Committees and Director Independence</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our securities are not quoted on an exchange that has requirements that a majority of our Board members be independent and we are not currently otherwise subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include &#8220;independent&#8221; directors, nor are we required to establish or maintain an Audit Committee or other committee of our Board of Directors.</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'>The Board does not have standing audit, compensation or nominating committees. The Board does not believe these committees are necessary based on the size of our company and the current levels of compensation to corporate officers. We will consider establishing audit, compensation and nominating committees at the appropriate time</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Indebtedness of Directors, Senior Officers, Executive Officers and Other Management</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>None of our directors or executive officers or any associate or affiliate of our company during the last two fiscal years is or has been indebted to our company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding. </P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=SECU /><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following table sets forth, as of May 27, 2019, certain information as to shares of our voting stock owned by (i) each person known by us to beneficially own more than 5% of our outstanding voting stock, (ii) each of our directors, and (iii) all of our executive officers and directors as a group.</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'>Unless otherwise indicated below, to our knowledge, all persons listed below have sole voting and investment power with respect to their shares of voting stock, except to the extent authority is shared by spouses under applicable law. Unless otherwise indicated below, each entity or person listed below maintains an address of 300 Aragon Avenue, Suite 375, Coral Gables, FL 33134.</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'>37</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The number of shares beneficially owned by each stockholder is determined under rules promulgated by the SEC. The information is not necessarily indicative of beneficial ownership for any other purpose. Under these rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting or investment power and any shares as to which the individual or entity has the right to acquire beneficial ownership within 60 days through the exercise of any stock option, warrant or other right. The inclusion in the following table of those shares, however, does not constitute an admission that the named stockholder is a direct or indirect beneficial owner.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:438pt><TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:15.05pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=top style='width:161.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Common Stock</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:261pt;border-bottom:0.5pt solid #000000' rowspan='3'><P style='font:10pt Times New Roman;margin:0'><B>Name and Address of Beneficial Owner</B></P>
</TD><TD valign=top style=width:15.05pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:78pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Number of</B></P>
</TD><TD valign=top style='width:11.95pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:72pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Percent </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:15.05pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares Owned</B></P>
</TD><TD valign=top style=width:11.95pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=center style='font:10pt Times New Roman;margin:0'><B>of Class </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:15.05pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:78pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>(1)</B></P>
</TD><TD valign=top style=width:11.95pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:72pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>(2)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:261pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias </P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:78pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,111,708</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:72pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>19.32%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Oscar Brito (3)</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>3,068,424</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>19.05%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Juan Carlos Lopez Silva</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>962,535</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>5.98%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana Cardona</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>962,535</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>5.98%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>All Directors and Executive Officers as a Group (4 persons)</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>8,105,202</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>50.33%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'><B>5% Holders</B></P>
</TD><TD valign=top style=width:15.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Carlos Daniel Silva (4)</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>3,068,424</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>19.05%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Eduardo Cabrera</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>962,535</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>5.98%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>240 East 39 Street, Apt 10G</P>
</TD><TD valign=top style=width:15.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>New York, NY 10016</P>
</TD><TD valign=top style=width:15.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>888 Brickell Key Dr., Unit 1102</P>
</TD><TD valign=top style=width:15.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:261pt><P style='font:10pt Times New Roman;margin:0'>Miami, FL 33131</P>
</TD><TD valign=top style=width:15.05pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78pt><P align=right style='font:10pt Times New Roman;margin:0'>6,136,848</P>
</TD><TD valign=top style=width:11.95pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72pt><P align=right style='font:10pt Times New Roman;margin:0'>38.11%</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>(1)</KBD>Unless otherwise indicated, each person or entity named in the table has sole voting power and investment power (or shares that power with that person&#8217;s spouse) with respect to all shares of voting stock listed as owned by that person or entity. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>(2)</KBD>Pursuant to Rules 13d-3 and 13d-5 of the Exchange Act, beneficial ownership includes any shares as to which a shareholder has sole or shared voting power or investment power, and also any shares which the shareholder has the right to acquire within 60 days, including upon exercise of common shares purchase options or warrants. The percent of class is based on 16,103,713 voting shares as of September 19, 2019. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>(3)</KBD>Mr. Brito has beneficial ownership of 50% of Metrospaces Inc., which holds 6,136,848 shares of our common stock. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>(4)</KBD>Mr. Silva has beneficial ownership of 50% of Metrospaces Inc., which holds 6,136,848 shares of our common stock. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=cert /><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Other than described below or the transactions described under the heading &#8220;Executive Compensation&#8221; (or with respect to which such information is omitted in accordance with SEC regulations), there have not been, and there is not currently proposed, any transaction or series of similar transactions to which we were or will be a participant in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which any director, executive officer, holder of 5% or more of any class of our capital stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>ADDITIONAL INFORMATION</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This Offering Circular does not purport to restate all of the relevant provisions of the documents referred to or pertinent to the matters discussed herein, all of which must be read for a complete description of the terms relating to an investment in us. Such documents are available for inspection during regular business hours at our office by appointment, and upon written request, copies of documents not annexed to this Offering Circular will be provided to prospective investors. Each prospective investor is invited to ask questions of, and receive answers from, our representatives. Each prospective investor is invited to obtain such information concerning us and this offering, to the extent we possess the same or can acquire it without unreasonable effort or expense, as such prospective investor deems necessary to verify the accuracy of the information referred to into their Offering Circular. Arrangements to ask such questions or obtain such information should be made by contacting Leandro Iglesias - CEO at our executive offices. The telephone number is (954) 951-8191. We reserve the right, however, in our sole discretion, to condition access to information that management deems proprietary in nature, on the execution by each prospective investor of appropriate confidentiality agreements prior to having access to such information.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>38</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'>The offering of the common stock is made solely by this Offering Circular and the exhibits hereto. The prospective investors have a right to inquire about and request and receive any additional information they may deem appropriate or necessary to further evaluate this offering and to make an investment decision. Our representatives may prepare written responses to such inquiries or requests if the information requested is available. The use of any documents other than those prepared and expressly authorized by us in connection with this offering is not permitted, and should not be relied upon by any prospective investor.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>ONLY INFORMATION OR REPRESENTATIONS CONTAINED HEREIN MAY BE RELIED UPON AS HAVING BEEN AUTHORIZED BY US. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS OFFERING CIRCULAR IN CONNECTION WITH THE OFFER BEING MADE HEREBY, AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY US. INVESTORS ARE CAUTIONED NOT TO RELY UPON ANY INFORMATION NOT EXPRESSLY SET FORTH IN THIS OFFERING CIRCULAR. THE INFORMATION PRESENTED IS AS OF THE DATE ON THE COVER HEREOF UNLESS ANOTHER DATE IS SPECIFIED, AND NEITHER THE DELIVERY OF THIS OFFERING CIRCULAR NOR ANY SALE HEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE INFORMATION PRESENTED SUBSEQUENT TO SUCH DATES(S).</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'>39</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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>FINANCIAL STATEMENTS AND EXHIBITS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:-27.05pt'><B>IQSTEL INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:-27.05pt'><B>INDEX TO AUDITED FINANCIAL STATEMENTS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:-27.05pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:56.62%><TR style=height:7.2pt><TD valign=top style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Page</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Report of Independent Registered Public Accounting Firm</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-1</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Balance Sheets</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-2</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Operations</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-3</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Changes in Stockholders&#8217; Deficit</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-4</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Cash Flows </P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.4%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Notes to Financial Statements</P>
</TD><TD valign=top style=width:4.42%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.18%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-6</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;text-indent:-27.05pt'><B>IQSTEL INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>INDEX TO UNAUDITED FINANCIAL STATEMENTS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:57.46%><TR style=height:7.2pt><TD valign=top style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Page</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Balance Sheets</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-17</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Operations</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-18</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Changes in Stockholders&#8217; Deficit</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-19</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Statement of Cash Flows </P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-20</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:82.66%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Notes to Financial Statements</P>
</TD><TD valign=top style=width:4.36%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:12.98%;padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=center style='font:10pt Times New Roman;margin:0'>F-21</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>40</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P style='font:20pt Cooper Black;margin:0;color:#009900'>Boyle CPA, LLC</P>
<P style='font:14pt Times New Roman;margin:0'><FONT style=font-size:14pt;color:#0070C0>Certified Public Accountant &amp; Consultant</FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>To the Shareholders and </P>
<P style='font:10pt Times New Roman;margin:0'>Board of Directors of iQSTEL Inc. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Opinion on the Financial Statements</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have audited the accompanying consolidated balance sheets of iQSTEL Inc.(the &#8220;Company&#8221;) as of December 31, 2018 and 2017, the related consolidated statements of operations, stockholder&#8217;s equity (deficit), and cash flows for each of the years in the two-year period ended December 31, 2018, and the related notes (collectively referred to as the &#8220;financial statements&#8221;). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America. </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Basis of 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'>These financial statements are the responsibility of the Company&#8217;s management. Our responsibility is to express an opinion on the Company&#8217;s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&#8220;PCAOB&#8221;) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. </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'>We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to fraud or error. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company&#8217;s internal control over financial reporting. Accordingly, we express no such opinion.</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'>Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='background-color:#FFFFFF;border-bottom:1px solid #000000'>Substantial Doubt About the Company&#8217;s Ability to Continue as a Going Concern</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As discussed in Note 3 to the consolidated financial statements, the Company&#8217;s lack of cash and lack of an established source of revenues raises substantial doubt about its ability to continue as a going concern for one year from the issuance of these financial statements. Management&#8217;s plans are also described in Note 3. The financial statements do not include adjustments that might result from the outcome of this uncertainty.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>/s/ Boyle CPA, LLC</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>We have served as the Company&#8217;s auditor since 2017</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Bayville, NJ</P>
<P style='font:10pt Times New Roman;margin:0'>April 08, 2019 </P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#0070C0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>361 Hopedale Drive SE</FONT></KBD><KBD style='position:absolute;text-align:right;font:10pt Times New Roman;width:468pt'><FONT style=font-size:10pt>P (732) 822-4427</FONT></KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt;color:#0070C0>Bayville, NJ 08721</FONT></KBD><KBD style='position:absolute;text-align:right;font:10pt Times New Roman;width:468pt'><FONT style=font-size:10pt;color:#0070C0>F (732) 510-0665</FONT></KBD>&nbsp;</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'>F-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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Balance Sheets</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>ASSETS</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Current Assets</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Cash</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,570</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>23,266</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accounts receivable, net</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,825,854</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,099,533</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Due from related parties</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>258,020</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Prepaid and other current assets</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>17,503</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>132,576</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Current Assets</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,105,947</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,255,375</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Property and equipment, net</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>285,107</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>305,031</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>TOTAL ASSETS</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,391,054</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,560,406</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>LIABILITIES AND STOCKHOLDERS' EQUITY (DIFICIT)</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Current Liabilities</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Bank overdraft</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>82</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accounts payable</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,390,048</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>748,542</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Due to related parties</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>23,193</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Loans payable - current portion</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>194,557</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>227,958</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Convertible notes - net of discount of $158,696</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other current liabilities</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>436,762</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>262,581</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Derivative liabilities</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,790,067</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Current Liabilities</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,897,914</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,239,081</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Long-term loans payable - related parties</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>136,037</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>TOTAL LIABILITIES</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,988,701</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,375,118</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Stockholders' Equity (Deficit)</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:63.12%><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Preferred stock: 8,500,000 authorized; $0.0001 par value at December 31, 2018 and 2017 - no shares issued and outstanding</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:63.12% rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Common stock: 2,000,000,000 authorized; $0.001 par value at December 31, 2018 and 2017 15,022,650 and 11,085,965 shares issued and outstanding, respectively</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>15,023</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,086</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Additional paid in capital</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,054,718</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>737,429</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accumulated deficit</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,667,388)</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.52%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(563,227)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:63.12%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Stockholder's Equity (Deficit)</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,597,647)</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>185,288</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.62%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DIFICIT)</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,391,054</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:15.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,560,406</B></P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these consolidated financial statements.</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'>F-2</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Operations</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:86.7%><TR style=height:7.2pt><TD valign=bottom style=width:2.96%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style=width:41.26%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Year Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:41.26%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Revenues</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>13,775,361</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>7,514,855</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Cost of goods sold</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>12,582,955</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>6,896,806</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Gross profit</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,192,406</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>618,049</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Operating Expenses</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>General and administration</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>692,053</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> Total operating expenses</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>692,053</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Operating loss</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(27,895)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(74,004)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other income (expense)</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other income</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,642</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Interest expense</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(460,185)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(240,778)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other expenses</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(41,498)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(40,924)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Change in fair value of derivative liabilities</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,588,567)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Gain on settlement of debt</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,342</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> Total other expense</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,076,266)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(281,702)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net loss before provision for income taxes</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(355,706)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Income taxes</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net loss</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(355,706)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2.96%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.88%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Basic and dilutive loss per common share</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.15)</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.03)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:54.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Weighted average number of common shares outstanding</P>
</TD><TD valign=bottom style=width:3.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.88%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>13,721,304</P>
</TD><TD valign=bottom style=width:3.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:18.9%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>11,085,965</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these consolidated financial statements.</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'>F-3</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Changes in Stockholders&#8217; Equity (Deficit)</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>For the years ended December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:101.4%><TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Additional</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:19.76%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Common Stock</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Paid in</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Subscription</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Accumulated</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:9.1%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:7.9%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:10.58%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Capital</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:10.6%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Receivable</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:10.94%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Deficit</B></P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:9.36%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:25.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Balance - December 31, 2016</B></P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,085,965</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,086</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>737,429</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.6%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(207,521)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>540,994</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net loss</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(355,706)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(355,706)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:25.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Balance - December 31, 2017</B></P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:9.1%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>11,085,965</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:7.9%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>11,086</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.58%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>737,429</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.6%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.94%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(563,227)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:9.36%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>185,288</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Common stock issued</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,665,910</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,666</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>132,134</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>134,800</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Debt forgiveness</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Recapitalization</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,175,724</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,176</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(77,450)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(8,750)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(85,024)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Subscription received</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,750</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,750</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Common stock issued for services</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>95,051</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>95</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>187,405</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>187,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Capital contribution</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:2%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net loss</P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.9%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.58%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.36%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:25.68%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Balance - December 31, 2018</B></P>
</TD><TD valign=bottom style=width:2.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:9.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,022,650</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:7.9%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,023</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.58%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,054,718</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.6%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:10.94%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,667,388)</P>
</TD><TD valign=bottom style=width:2.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:9.36%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,597,647)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these consolidated financial statements.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-4</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Cash Flows</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=middle style=width:38.12%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Year Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=middle style='width:38.12%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:17.1%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:17.1%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM OPERATING ACTIVITIES: </B></P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:3.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Net loss</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(355,706)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%><P style='font:10pt Times New Roman;margin:0;text-indent:-6pt;margin-left:6pt'>Adjustments to reconcile net loss to net cash provided by (used in) operating activities:</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Stock based compensation</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>187,500</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Allowance for doubtful accounts</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>313,414</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Depreciation and amortization</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>20,350</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>52,301</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Amortization of debt discount</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>55,054</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Change in fair value of derivative liabilities</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,588,567</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Gain on settlement of debt</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,342)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Default penalty</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,151</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts receivable</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,039,735)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,810,238</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Other current assets</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>115,073</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(54,211)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Due from related party</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(258,020)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts payable</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>585,417</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,888,219)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Other current liabilities</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>174,181</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>167,770</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net cash used in operating activities</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(356,551)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(267,827)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM INVESTING ACTIVITIES: </B></P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Purchase of fixed assets</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(426)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Disposal of subsidiaries</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net cash used in investing activities</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(426)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM FINANCING ACTIVITIES: </B></P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Bank overdraft</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>82</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from loans payable</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>796,864</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>686,568</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Repayments of loans payable</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(830,265)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(458,610)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from loans payable - related parties</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>800</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>45,250</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Repayment of loans payable - related parties</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(850)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Contribution </P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Due to related parties</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(3,400)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Common stock issued</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>134,800</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Subscription receivable</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,750</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from convertible notes</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>201,500</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net cash provided by financing activities</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>338,281</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>273,208</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Net change in cash and cash equivalents</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(18,696)</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>5,381</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Cash and cash equivalents, beginning of period</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>23,266</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>17,885</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Cash and cash equivalents, end of period</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>4,570</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>23,266</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Supplemental cash flow information</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Cash paid for interest</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>392,074</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>218,268</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Cash paid for taxes</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:57.96%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Non-cash transactions:</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:17.1%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Derivative liabilities recognized as debt discount</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>201,500</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:2.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:55.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Related party debt forgiveness</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD><TD valign=bottom style=width:3.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:17.1%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these consolidated financial statements.</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'>F-5</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Organization and Operations</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Inc. (&#8220;iQSTEL&#8221;, &#8220;we&#8221;, &#8220;us&#8221;, or the &#8220;Company&#8221;) was incorporated under the laws of the State of Nevada on June 24, 2011 under the name of B-Maven Inc. Change its name to PureSnax International, Inc. on September 18, 2015; and more recently change its name to iQSTEL Inc. on August 7, 2018.</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'>The Company has been engaged in the business of telecommunication services as a wholesale carrier of voice and data for other telecom companies around the World with more than 200 active interconnection agreements with mobile companies, fix line companies and other wholesale carriers.</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'><B><I>Stock split.</I></B> <FONT style=background-color:#FFFFFF>Effective May 9, 2018, we effected a 1 for 19,152 reverse stock split of our issued and outstanding common stock (the &#8220;Reverse Stock Split&#8221;). All references to shares of our common stock in this report on Form 10-K refers to the number of shares of common stock after giving effect to the Reverse Stock Split (unless otherwise indicated).</FONT></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B><I>Membership Interest Purchase Agreements and Reorganization</I></B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>On June 25, 2018 (the &#8220;Effective Date&#8221;), iQSTEL entered into a membership purchase agreement with Etelix.com USA, LLC (&#8220;Etelix&#8221;) and became a 100% subsidiary of iQSTEL.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>Pursuant to the terms of the membership interest purchase agreement, iQSTEL issued 13,751,875 shares of its unregistered common stock to the members of Etelix in exchange for their memberships interests in Etelix and as a result of the Purchase Agreements, Etelix became a wholly owned subsidiary of iQSTEL.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The Company entered into certain ancillary agreements (the &#8220;Ancillary Agreements&#8221;) noted in the Purchase Agreement, consisting of three Conversion Agreements the Company executed with Carmen Cabell, Patrick Gosselin and Mark Engler. The Conversion Agreements converted a portion of the Series A Preferred Stock held by these shareholders into shares of the Company&#8217;s common stock, and canceled the balance of the Series A Preferred Stock held by these shareholders. Following the execution of the Conversion Agreements, Mr. Gosselin owned 250,032 shares of common stock and no shares of preferred stock in the Company; Mr. Cabell owned 250,080 shares of common stock and no shares of preferred stock in the Company; and Mr. Engler owned 250,032 shares of common stock and no shares of preferred stock in the Company.</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B><I>Recapitalization</I></B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>For financial accounting purposes, this transaction was treated as a reverse acquisition by Etelix, and resulted in a recapitalization with Etelix being the accounting acquirer and iQSTEL as the acquired company. The consummation of this reverse acquisition resulted in a change of control. Accordingly, the historical financial statements prior to the acquisition are those of the accounting acquirer, Etelix and have been prepared to give retroactive effect to the reverse acquisition completed on June 25, 2018, and represent the operations of Etelix. The consolidated financial statements after the acquisition date, June 25, 2018 include the balance sheets of both companies at historical cost, the historical results of Etelix and the results of the Company from the acquisition date. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Change in Fiscal Year</B></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'>On December 3, 2018, our Board of Directors approved a change in our Fiscal Year End from June 30 to December 31. The Company now operates on a fiscal year ending on December 31.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-6</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></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'><B><I>Basis of Presentation</I></B></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'>The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (&#8220;SEC&#8221;). The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (&#8220;GAAP&#8221;) of the United States. The Company&#8217;s fiscal year end is December 31.</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;background-color:#FFFFFF'><B><I>Consolidation Policy</I></B></P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>For December 31, 2018, the consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Etelix.com USA, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Prior to June 25, 2018, the financial statements presented are those of Etelix.</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'><B><I>Use of Estimates</I></B></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'>The preparation of financial statements in conformity with GAAP in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.</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'><B><I>Cash and Cash Equivalents</I></B></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'>Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.</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'><B><I>Accounts Receivable and Allowance for Uncollectible Accounts</I></B></P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Substantially all of the Company&#8217;s accounts receivable balance is related to trade receivables. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company&#8217;s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews its allowance for doubtful accounts daily, past due balances over 60 days and a specified amount are reviewed individually for collectability. Account balances are charged off after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2018 and 2017, the Company had $313,414 and $0, respectively, in valuation allowance for doubtful accounts for the Company&#8217;s accounts receivable.</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'><B><I>Long-Lived Assets</I></B></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'>Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value.</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'><B><I>Fixed Assets</I></B></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'>Fixed assets, consisting of telecommuting equipment and software, is recorded at cost reduced by accumulated depreciation and amortization. Depreciation and amortization expense is recognized over the assets&#8217; estimated useful lives of 3 years for computers and laptops, 5 years for telecommunications equipment and switches; and 5 years for software using the straight-line method. Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets, are expensed as incurred. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.</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'>F-7</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></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'><B><I>Net Income (Loss) Per Share of Common Stock</I></B></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'>The Company has adopted ASC 260, <I>&#8221;Earnings per Share&#8221;</I> which requires presentation of basic earnings per share on the face of the statements of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic earnings per share computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants unless the result would be antidilutive. There were no potentially dilutive shares of common stock outstanding for the years ended December 31, 2018 and 2017.</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'><B><I>Concentrations of Credit Risk</I></B></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'>The Company&#8217;s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits.</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'>During the year ended December 31, 2018 and 2017, 7 customers represented 71% of our revenues and 16 customers represented 61% of our revenues, respectively.</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'><B><I>Financial Instruments</I></B></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'>The Company follows ASC 820, &#8220;<I>Fair Value Measurements and Disclosures,</I>&#8221; which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity&#8217;s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:</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'>Level 1</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'>Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</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'>Level 2</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'>Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</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'>Level 3</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'>Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</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'>The carrying values of our financial instruments, including, cash and cash equivalents; accounts receivable; prepaid expenses; accounts payable and other payable and due to related parties approximate their fair values due to the short-term maturities of these financial instruments.</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'>F-8</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></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'><B><I>Financial Instruments (continued)</I></B></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'>Transactions involving related parties cannot be presumed to be carried out on an arm&#8217;s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm&#8217;s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due to related party&#8217;s due to their related party nature.</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'><B><I>Derivative Financial Instruments</I></B></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'>The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.</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'><B><I>Income Taxes</I></B></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'>The Company uses the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets, liabilities, the carry forward of operating losses and tax credits, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.</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'><B><I>Related Parties</I></B></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'>The Company follows ASC 850,<I> &#8220;Related Party Disclosures,&#8221; </I>for the identification of related parties and disclosure of related party transactions (see Note 12).</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'><B><I>Revenue Recognition</I></B></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'>The Company recognizes revenue from the sale of products in accordance with ASC 606, &#8220;<I>Revenue from Contracts with Customers.&#8221; </I>The Company recognizes revenue only when all of the following criteria have been met:</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-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Identify the contract(s) with a customer &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Identify the performance obligations in the contract &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Determine the transaction price. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Allocate the transaction price to the performance obligations in the contract. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Recognize revenue when (or as) the entity satisfies a performance obligation. &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'>The Company recognizes revenue related to monthly usage charges and other recurring charges during the period in which the telecommunication services are rendered. Provided that persuasive evidence of a sales arrangement existed, and collection was reasonably assured. Persuasive evidence of a sales arrangement existed upon execution of a written interconnection agreement. The Company&#8217;s payment terms vary by clients.</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'><B><I>Cost of revenue</I></B></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'>Costs of revenue represent direct charges from vendors that the Company incurs to deliver services to its customers. These costs primarily consist of usage charges for calls terminated in vendor&#8217;s network.</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'>F-9</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></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'><B><I>Recent Accounting Pronouncements</I></B></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'>Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company&#8217;s management believes that these recent pronouncements will not have a material effect on the Company&#8217;s financial statements.</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'><B>NOTE 3 - GOING CONCERN</B></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'>The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company does not have significant cash, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. In addition, as of December 31, 2018, the Company had a net loss of $2,104,161. These factors, among others, raise substantial doubt about the Company&#8217;s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</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'>The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its business plan and eventually attain profitable operations.</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'>During the next year, the Company's foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and marketing expenses. The Company may experience a cash shortfall and be required to raise additional capital.</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'>Historically, the Company has relied upon funds from its stockholders. Management may raise additional capital through future public or private offerings of the Company's stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company's failure to do so could have a material and adverse effect upon its operations and its stockholders.</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'><B>NOTE 4 &#8211; OTHER CURRENT ASSETS</B></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'>Other current assets at December 31, 2018 and 2017 consist of the following:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:63.34%><TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:20.24%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:22.24%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:20.24%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:22.24%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:46.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Advance payment to suppliers</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:13.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,310</P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.74%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:16.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other receivable</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>500</P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.74%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>124,484</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Prepaid expenses</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>5,093</P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.74%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,092</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Tax receivable</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.14%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>600</P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.74%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:16.5%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:46.08%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:7.1%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:13.14%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>17,503</P>
</TD><TD valign=middle style=width:5.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.74%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:16.5%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>132,576</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'><B>NOTE 5 &#8211; FIXED ASSETS, NET</B></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'>Fixed assets, net at December 31, 2018 and 2017 consist of the following:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:69.48%><TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:19.02%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:18.46%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:19.02%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:18.46%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Telecommunication equipment</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:13.32%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>245,686</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:12.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>245,260</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Telecommunication software</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.7%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.32%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>400,903</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.54%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:12.92%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>400,903</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total fixed assets</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.32%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>646,589</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>646,163</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accumulated depreciation and amortization</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.7%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.32%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(361,482)</P>
</TD><TD valign=middle style=width:5.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(341,132)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:51.46%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Total Fixed assets</P>
</TD><TD valign=bottom style=width:5.54%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.7%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:13.32%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>285,107</P>
</TD><TD valign=bottom style=width:5.54%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.54%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:12.92%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>305,031</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'>Depreciation expense for the year ended December 31, 2018 and 2017 amounted to $20,350 and $52,301, respectively.</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'>F-10</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 6 &#8211;LOANS PAYABLE</B></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'>Loans payable at December 31, 2018 and 2017 consist of the following:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:558pt><TR style=height:7.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:72pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:69.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:158.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Interest </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>rate</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:72pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:69.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:158.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Term</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>APP Group Inter</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 1,390 </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on June 28, 2017 and due on December 17, 2017</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>32.0%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Complete Business Solutions_2</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 34,438 </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on November 14, 2017 and due in May 3, 2018</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>28.6%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Advantage Platform Services_3</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 192,130 </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on December 19, 2017 and due on October 18, 2018</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Complete Business Solutions_3</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 80,994 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on April 13, 2018 and due on March 9, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>33.3%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Green Capital Funding_2</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 89 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on October 1, 2018 and due on February 27, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Unique Funding Solutions_2</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 9,000 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on October 12, 2018 and due on January 17, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>28.6%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Green Note Capital Partner</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 18,278 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on October 22, 2018 and due on February 22, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>28.6%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Queen Funding LLC</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 17,083 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on November 29, 2018 and due on March 13, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Green Capital Funding_3</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 69,113 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:158.5pt><P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Note was issued on December 20, 2018 and due on May 15, 2019</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:56.2pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> 194,557 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:53.4pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> 227,958 </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:158.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Less: Current portion of loans payable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 194,557 </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 227,958 </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:158.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Long-term loans payable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:56.2pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:53.4pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:17pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:158.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;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>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the year ended December 31, 2018 and 2017, the Company borrowed $796,864 and $686,568, respectively, and repaid the principal amount of $830,265 and $458,610 and interest expense of $392,075 and $218,268, respectively.</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'><B>NOTE 7 &#8211; OTHER CURRENT LIABILITIES</B></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'>Other current liabilities at December 31, 2018 and 2017 consist of the following:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:56.48%><TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:39.86%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:38.7%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:39.86%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:38.7%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><A name=RANGE!B39 />Accrued liabilities</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>361,779</P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>118,152</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accrued expenses - related party</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Credit card</P>
</TD><TD valign=bottom style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>14,647</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Accrued interest</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,905</P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Salary payable - management</P>
</TD><TD valign=middle style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>55,431</P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Salary payable </P>
</TD><TD valign=bottom style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>137,348</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:7.38%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Other payable</P>
</TD><TD valign=bottom style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.86%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.68%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>7,081</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:7.38%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:7.04%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:7.02%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:32.86%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>436,762</P>
</TD><TD valign=middle style=width:7.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:7.02%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:31.68%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>262,581</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-11</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=FIS_CASH_FLOW /><B>NOTE 8 - CONVERTIBLE LOANS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>At December 31, 2018 and 2017, convertible loans consisted of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:76.22%><TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:23.56%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:23.46%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:23.56%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:23.46%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>July 16, 2018 Note</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>25,000</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>August 16, 2018 Note</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>55,130</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>October 1, 2018 Note</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>33,021</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>December 4, 2018 Note</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>78,750</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>December 5, 2018 Note</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>30,000</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total convertible notes payable</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.72%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>221,901</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.6%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Less: Unamortized debt discount</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.72%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(158,696)</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.6%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total convertible notes</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.72%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.6%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Less: current portion of convertible notes</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.72%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.6%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:47.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Long-term convertible notes</P>
</TD><TD valign=bottom style=width:2.98%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:19.72%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD><TD valign=bottom style=width:2.98%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.86%;white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:19.6%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the year ended December 31, 2018 and 2017, the Company recorded interest expense of $4,906 and recognized amortization of discount, included in interest expense, of $55,054 and $0, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><I>Notes in Default</I></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'>Certain convertible notes held by the company were in default. During the period ended December 31, 2018, the Company did not maintain the covenant requiring the Company to be current with all financial filings. As a result of the breach, the company recorded a penalty of $8,151 as principal amount.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Promissory Notes - Issued in fiscal year 2018</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the year ended December 31, 2018, the Company issued a total of $213,750 notes with the following terms:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Terms ranging from 9 months to 12 months. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Annual interest rates ranging from of 10% to 12%. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Convertible at the option of the holders at issuance. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Conversion prices are typically based on the discounted (50% discount) lowest trading prices of the Company&#8217;s shares during various periods prior to conversion. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Certain notes allow the Company to redeem the notes at rates ranging from 130% to 150% depending on the redemption date provided that no redemption is allowed after the 180th day. Likewise, the notes include financing costs totaling to $12,250 and the Company received cash of $201,500. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Derivative liabilities</I></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company determined that the conversion option in the note met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity&#8217;s Own Stock. The Company will bifurcate the embedded conversion option in the note once the note becomes convertible and account for it as a derivative liability.</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'>The Company valued the conversion features using the Black Scholes valuation model. The fair value of the derivative liability for all the note and warrants that became convertible for the year ended December 31, 2018 amounted to $896,593. $201,500 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $695,093 was recognized as a &#8220;day 1&#8221; derivative loss.</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'>F-12</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 9 &#8211; DERIVATIVE LIABILITY</B></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'>The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.</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'>Fair Value Assumptions Used in Accounting for Derivative Liabilities.</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'>ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.</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'>The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of December 31, 2018. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model.</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'>For the year ended December 31, 2018, the estimated fair values of the liabilities measured on a recurring basis are as follows:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:42.8%><TR style=height:7.2pt><TD valign=bottom style=width:54.48%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:39.64%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Year ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:54.48%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:39.64%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:54.48%><P style='font:10pt Times New Roman;margin:0'>Expected term</P>
</TD><TD valign=bottom style=width:5.86%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:39.64%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>0.37 - 1.00 years</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:54.48%><P style='font:10pt Times New Roman;margin:0'>Expected average volatility</P>
</TD><TD valign=bottom style=width:5.86%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:39.64%><P align=center style='font:10pt Times New Roman;margin:0'>405% - 528%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:54.48%><P style='font:10pt Times New Roman;margin:0'>Expected dividend yield</P>
</TD><TD valign=bottom style=width:5.86%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:39.64%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:54.48%><P style='font:10pt Times New Roman;margin:0'>Risk-free interest rate</P>
</TD><TD valign=bottom style=width:5.86%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:39.64%><P align=center style='font:10pt Times New Roman;margin:0'>2.24 - 2.71%</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'>The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2018:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:70.02%><TR style=height:7.2pt><TD colspan=4 valign=bottom style='width:100%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Fair Value Measurements Using Significant Observable Inputs (Level 3)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.46%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P style='font:10pt Times New Roman;margin:0'>Balance &#8211; December 31, 2017</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:19.46%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:4.1%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.46%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as debt discounts</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.46%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>201,500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as loss on derivatives</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:5.02%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.46%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>695,093</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P style='font:10pt Times New Roman;margin:0'>Gain on change in fair value of the derivative</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.02%;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.46%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>893,474</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:71.42%><P style='font:10pt Times New Roman;margin:0'>Balance - December 31, 2018</P>
</TD><TD valign=bottom style=width:4.1%><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:5.02%;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:19.46%;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,790,067</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'>The following table summarizes the loss on derivative liability included in the income statement for the year ended December 31, 2018 and 2017, respectively.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:76.3%><TR style=height:7.2pt><TD valign=bottom style=width:64.44%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=5 valign=bottom style=width:32.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Year ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:64.44%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=5 valign=bottom style=width:32.76%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:64.44%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:17.46%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:2.7%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:12.6%;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:64.44%><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as loss on derivatives</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:13.62%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>695,093</P>
</TD><TD valign=bottom style=width:2.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:8.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:64.44%><P style='font:10pt Times New Roman;margin:0'>Gain on change in fair value of the derivative</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.62%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>893,474</P>
</TD><TD valign=bottom style=width:2.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:3.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:8.74%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:64.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.8%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.84%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:13.62%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,588,567</P>
</TD><TD valign=bottom style=width:2.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:3.84%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:8.74%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>F-13</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 10 &#8211; SHAREHOLDERS&#8217; EQUITY</B></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'>The Company&#8217;s authorized capital consists of 2,000,000,000 shares of common stock with a par value of $0.001 per share and 8,500,000 shares of preferred stock with a par value of $0.001 per share as of December 31, 2018.</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'>On August 7, 2018, our board of directors and a majority of our shareholders approved an amendment to our Articles of Incorporation for the purpose of decreasing our authorized common stock to 100,000,000 shares, par value $0.001 per share, and cancelling our authorized preferred stock.</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'><I>Common Stock</I></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'>On June 25, 2018, pursuant to the Membership Interest Purchase Agreement (see Note 1), the Company issued 13,751,875 shares of common stock to the members of Etelix.com USA LLC in exchange for the Etelix.com USA LLC membership interest. As a result of the reverse acquisition accounting, these shares issued to the former members of Etelix.com USA LLC are treated as being outstanding from the date of issuance of the Etelix.com USA LLC membership.</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'>The 13,751,875 shares of common stock consisted of the following;</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-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>11,085,965 shares of common stock were outstanding as of December 31, 2016 (Etelix.com USA LLC) &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>During the period ended June 25, 2018 and the year ended December 31, 2017, the Company issued 2,665,910 and 0 shares of common stock for $134,800 and $0, respectively. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>During the year ended December 31, 2018, the Company issued as follows,&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt'>&#61623;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>75,000 shares valued at $150,000 for the legal services related to the acquisition of Etelix USA LLC.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><A name=eolPage9 /><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>20,051 shares valued at $37,500 for the consulting services.&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'>As of December 31, 2018 and 2017, 15,022,650 and 11,085,965 shares of common stock were issued and outstanding, respectively.</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'><B>NOTE 11 &#8211; PROVISION FOR INCOME TAXES</B></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'>The Company provides for income taxes under ASC 740, &#8220;<I>Income Taxes.&#8221;</I> Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.</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'>The components of the Company&#8217;s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of December 31, 2018 and 2017, are as follows:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:65.3%><TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:4.48%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19.94%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:8.82%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19.7%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:4.48%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:19.94%;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:8.82%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:19.7%;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Net Operating loss carryforward</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:19.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,078,821</P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:19.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>563,227</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Effective tax rate</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.94%;white-space:nowrap;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>21%</P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:19.7%;white-space:nowrap;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>35%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Deferred tax asset</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 226,552 </P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> 197,129 </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Effect of change in the statutory rate</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>0</P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> (78,852)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Less: valuation allowance</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.94%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> (226,552)</P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:19.7%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'> (118,277)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:47.08%;white-space:nowrap><P align=justify style='font:10pt Times New Roman;margin:0'>Net deferred tax asset</P>
</TD><TD valign=bottom style=width:4.48%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:19.94%;white-space:nowrap;border-top:1pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD><TD valign=bottom style=width:8.82%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:19.7%;white-space:nowrap;border-top:1pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'> - </P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-14</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 11 &#8211;&nbsp;PROVISION FOR INCOME TAXES (continued)</B></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'>As of December 31, 2018, utilization of the NOL carry forwards, which will begin to expire between 2031 and 2038, of approximately $342,000 for federal income tax reporting purposes, may be subject to an annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;). These ownership changes may limit the amount of the NOL carry forwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an &#8220;ownership change&#8221; as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders.</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'>Tax returns for the years ended 2012 through 2018 are subject to review by the tax authorities.</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'><B>NOTE 12 - RELATED PARTY TRANSACTIONS</B></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'><B><I>Loans payable &#8211; related parties</I></B></P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:99.88%><TR style=height:7.2pt><TD valign=middle style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:12.96%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=middle style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:13.68%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:34.66%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'><B>Interest </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:20.84%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:12.96%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=middle style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:13.68%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2017</B></P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:34.66%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Term</B></P>
</TD><TD valign=bottom style='width:9.54%;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>rate</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Alonso Van Der Biest</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>$</P>
</TD><TD valign=bottom style=width:10.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>80,200</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>$</P>
</TD><TD valign=bottom style=width:10.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>80,200</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:34.66%><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Note was issued on June 12, 2015 and due in June 11, 2019</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>16.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>10,587</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>10,837</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:34.66%><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Note was issue on September 30, 2016 and due in September 29, 2019</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>0%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>45,000</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:34.66%><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Due on demand</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>0%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:2.52%;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style='width:10.44%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:2.92%;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'> &nbsp;</P>
</TD><TD valign=bottom style='width:10.76%;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>136,037</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:34.66%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Less: Current portion of loans payable</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.52%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.44%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=width:10.76%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:34.66%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:20.84%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Long-term loans payable</P>
</TD><TD valign=bottom style=width:2.54%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:2.52%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>$</P>
</TD><TD valign=bottom style='width:10.44%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:2.92%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-5.25pt'>$</P>
</TD><TD valign=bottom style='width:10.76%;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>136,037</P>
</TD><TD valign=bottom style=width:2.92%;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:34.66%;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:9.54%;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>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the year ended December 31, 2018, the Company recorded debt forgiveness of $45,200 as additional paid in capital. </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'><I>Due from related party</I></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'>As of December 31, 2018 and 2017, the Company had due from related parties of $258,020 and $0, respectively. The loans are unsecured, non-interest bearing and due on demand.</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'><I>Due to related parties</I></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'>As of December 31, 2018 and 2017, the Company had due to related parties of $23,193 and $0, respectively. The loans are unsecured, non-interest bearing and due on demand.</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'><B><I>Employment agreements</I></B></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'>On June 25, 2018, the Company entered into Employment Agreements with the following persons: (i) Leandro Iglesias as President, CEO and Chairperson of the Company&#8217;s Board of Directors with an annual salary of $54,000; (ii) Juan Carlos Lopez Silva as Chief Commercial Officer with an annual salary of $54,000; and Alvaro Quintana Cardona as Chief Operating Officer and Chief Financial Officer with an annual salary of $30,000. The Employment Agreements have a term of 36 months, are renewable automatically for 24 month periods, unless the Company gives written notice at least 90 days prior to termination of the initial 36 month term. The Company shall have the right to terminate any of the employment agreements at any time without prior notice, but in that event, the Company shall pay these persons salaries and other benefits they are entitled to receive under their respective agreements for three years.</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'>As at December 31, 2018 and 2017, the Company recorded and accrued management salaries of $69,000 and $0, respectively.</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'>F-15</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018 and 2017</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>NOTE 13 - SUBSEQUENT EVENTS</B></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'>Subsequent to December 31, 2018 and through the date that these financials were made available, the Company had the following subsequent events:</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'>On January 15, 2019, we issued a convertible note in the principal amount of $105,000. The convertible note has a term of twelve months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous twenty days period ending on the latest complete trading day prior to the conversion date.</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'>On February 22, 2019, we issued three convertible notes in the principal amount of $38,500. The convertible notes have a term of nine months, accrues interest at 8% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal the lesser of (i) 50% multiplied by the lowest trading price during the previous twenty days before the issue date of this Note and (ii) 50% multiplied by the lowest trading price for the common stock during the twenty days period ending on the latest complete trading day prior to the conversion date.</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'>On February 22, 2019, we issued a convertible note in the principal amount of $55,000. The convertible note has a term of nine months, accrues interest at 8% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal the lesser of (i) 50% multiplied by the lowest trading price during the previous twenty days before the issue date of this Note and (ii) 50% multiplied by the lowest trading price for the common stock during the twenty days period ending on the latest complete trading day prior to the conversion date.</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'>On March 01, 2019, we issued a convertible note in the principal amount of $53,000. The convertible note has a term of twelve months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 61% multiplied by the lowest trading price during the previous twenty days period ending on the latest complete trading day prior to the conversion date.</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'>On March 12, 2019, we issued a convertible note in the principal amount of $120,000. The convertible note has a term of twelve months, accrues interest at 10% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous twenty five days period ending on the latest complete trading day prior to the conversion date.</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'>On March 20, 2019, we issued a convertible note in the principal amount of $1,120,000 with a first tranche of $282,000. Each tranche of the convertible note has a term of six months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal the lesser of (i) 50% multiplied by the lowest trading price during the previous thirty days before the issue date of this Note and (ii) 50% multiplied by the lowest trading price for the common stock during the thirty days period ending on the latest complete trading day prior to the conversion date.</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'>On March 27, 2019 company redeemed three convertible promissory notes, corresponding to the ones issued on July 16, 2018; August 16, 2018 and October 1<SUP>st</SUP>, 2018. The amounts paid were $34,747.92; $90,093.20 and $48,510.00 respectively.</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'>F-16</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Balance Sheets</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>(Unaudited)</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:453.65pt><TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>ASSETS</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Current Assets</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Cash</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>80,486</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,570</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Accounts receivable, net</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,596,925</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,825,854</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Due from related parties</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>272,121</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>258,020</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Prepaid and other current assets</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>109,079</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>17,503</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total Current Assets</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,058,611</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,105,947</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Property and equipment, net</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>265,826</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>285,107</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>TOTAL ASSETS</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,324,437</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,391,054</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Current Liabilities</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Bank overdraft</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>82</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Accounts payable</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,038,781</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,390,048</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Due to related parties</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>40,631</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>23,193</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Loans payable</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>106,191</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>194,557</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Loans payable - related parties</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Current portion of convertible notes - net of discount of $597,124 and $158,696</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>508,876</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Other current liabilities</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>394,030</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>436,762</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Derivative liabilities</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,560,212</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,790,067</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total Current Liabilities</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>4,739,508</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,988,701</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Convertible notes - net of discount of $58,631 and $0</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,369</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>TOTAL LIABILITIES</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>4,740,877</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,988,701</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Stockholders&#8217; Deficit</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=top style=width:288pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Preferred stock: 8,500,000 authorized; $0.0001 par value at June 30, 2019 and December 31, 2018 - no shares issued and outstanding</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock: 2,000,000,000 authorized; $0.001 par value at June 30, 2019 and December 31, 2018 - 15,475,916 and 15,022,650 shares issued and outstanding, respectively</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>15,476</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>15,023</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Additional paid in capital</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,745,291</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,054,718</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Accumulated deficit</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:65.6pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(4,177,207)</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(2,667,388)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:288pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total Stockholder&#8217;s Deficit</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,416,440)</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,597,647)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:274.9pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>TOTAL LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:65.6pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,324,437</B></P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:69.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,391,054</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=Item_1._Financial_Statements /> The accompanying notes are an integral part of these unaudited consolidated financial statements.<A name=so /> </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'>F-17</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Operations</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(<B>Unaudited</B>)</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:531pt><TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style=width:128.95pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Three Months Ended</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style=width:133.45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:128.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:133.45pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Revenues</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,253,359</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>3,700,670</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>8,416,562</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>5,880,835</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Cost of goods sold</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,345,087</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>3,223,540</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>8,072,713</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>5,190,699</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Gross profit</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(91,728)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>477,130</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>343,849</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>690,136</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Operating Expenses</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>General and administration</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>341,553</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>334,749</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>532,060</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>458,725</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> Total operating expenses</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>341,553</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>334,749</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>532,060</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>458,725</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Operating income</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(433,281)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>142,381</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(188,211)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>231,411</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Other income (expense)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Other income</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>9,968</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,600</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>9,968</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Other expenses</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(233)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(375)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(12,935)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Interest expense</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(511,125)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(100,515)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(776,162)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(157,569)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Change in fair value of derivative liabilities</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>460,398</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(547,671)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> Total other expense</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(50,960)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(90,547)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,321,608)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(160,536)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net loss before provision for income taxes</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(484,241)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>51,834</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,509,819)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>70,875</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Income taxes</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net income (loss)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(484,241)</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>51,834</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(1,509,819)</B></P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>70,875</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:12.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:225.6pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Basic and dilutive loss per common share</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.03)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>0.00</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.10)</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>0.01</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:238.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Weighted average number of common shares outstanding</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,357,689</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>13,717,518</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:61.45pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,199,517</P>
</TD><TD valign=bottom style=width:15.05pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:56.95pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>12,409,011</P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited consolidated financial statements.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> <A name=seq />&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-18</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Changes in Stockholders&#8217; Equity (Deficit)</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(<B>Unaudited</B>)</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:120.85pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Common Stock</B></P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Additional</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Paid in</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Capital</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Accumulated</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Deficit</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:49pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:189pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - December 31, 2018</B></P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>15,022,650</B></P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>15,023</B></P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,054,718</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(2,667,388)</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(1,597,647)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued in conjunction with convertible notes</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>254,074</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>254</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>249,746</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>250,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Capital contribution</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,000</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Net loss</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,025,578)</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,025,578)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:189pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - March 31, 2019</B></P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,276,724</B></P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:49pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,277</B></P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,314,464</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(3,692,966)</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(2,363,225)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued for conversion of debt</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>76,335</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>76</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,924</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Resolution of derivative liabilities</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>181,326</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>181,326</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued in conjunction with convertible notes</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>122,857</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>123</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>244,577</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>244,700</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued for services</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Capital contribution</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:175.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Net loss</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:49pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(484,241)</P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(484,241)</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:189pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - June 30, 2019</B></P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,475,916</B></P>
</TD><TD valign=bottom style=width:17.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:49pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,476</B></P>
</TD><TD valign=bottom style=width:13.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:53.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,745,291</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(4,177,207)</B></P>
</TD><TD valign=bottom style=width:23.1pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(2,416,440)</B></P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:99.92%><TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt rowspan='2'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:112.5pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Common Stock</B></P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Additional</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Paid in</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Capital</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Subscription</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Receivable</B></P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Accumulated</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Deficit</B></P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:45.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Amount</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:130.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - December 31, 2017</B></P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>11,085,965</B></P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>11,086</B></P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>737,429</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>-</B></P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.9pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(563,227)</B></P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:48.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>185,288</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Common stock issued</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,184,849</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,185</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>58,615</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>59,800</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Debt forgiveness</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net income</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>19,041</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>19,041</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:130.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - March 31, 2018</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>12,270,814</B></P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:45.15pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>12,271</B></P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>841,244</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>-</B></P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.9pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(544,186)</B></P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:48.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>309,329</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,481,061</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,481</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>73,519</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>75,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Recapitalization</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,175,724</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,176</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(77,450)</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(8,750)</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(85,024)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Common stock issued for services</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>75,000</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>75</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>149,925</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>150,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:13.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:117.25pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-4.5pt;margin-left:4.5pt'>Net income</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>51,834</P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48.95pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>51,834</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=bottom style=width:130.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>Balance - June 30, 2018</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,002,599</B></P>
</TD><TD valign=bottom style=width:13.35pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:45.15pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>15,003</B></P>
</TD><TD valign=bottom style=width:22.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>987,238</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(8,750)</B></P>
</TD><TD valign=bottom style=width:13.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.9pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>(492,352)</B></P>
</TD><TD valign=bottom style=width:18.2pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:48.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>501,139</B></P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited consolidated financial statements. </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'>F-19</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Consolidated Statements of Cash Flows</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>(<B>Unaudited</B>)</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:96.66%><TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=middle style=width:162pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=3 valign=middle style='width:162pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=middle style=width:21pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM OPERATING ACTIVITIES: </B></P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:72pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:21pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:69pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Net income (loss)</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,509,819)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>70,875</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Adjustments to reconcile net loss to net cash used in operating activities:</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Stock based compensation</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>150,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Depreciation and amortization</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>19,281</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>3,275</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Amortization of debt discount</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>541,894</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Change in fair value of derivative liabilities</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>547,671</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts receivable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>228,929</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(835,834)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts receivable - related party</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(10,701)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Other current assets</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(91,576)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(48,961)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts payable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(351,267)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>527,742</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Other current liabilities</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(42,149)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(5,504)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net cash used in operating activities</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(667,737)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(138,407)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM INVESTING ACTIVITIES: </B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Payment of loan receivable - related party</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(10,000)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Collection from loan receivable - related party</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,000</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net cash used in investing activities</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B>CASH FLOWS FROM FINANCING ACTIVITIES: </B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Bank overdraft</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(82)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from loans payable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>64,400</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>332,182</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Repayments of loans payable</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(171,302)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(326,436)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from loans payable - related parties</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>46,438</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>800</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Repayment of loans payable - related parties</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(32,400)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(850)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Contribution </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,000</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>134,800</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Proceeds from convertible notes</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,048,500</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Repayment of convertible notes</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0;text-indent:10pt'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(221,901)</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net cash provided by financing activities</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>743,653</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>140,496</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Net change in cash and cash equivalents </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>75,916</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,089</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Cash and cash equivalents, beginning of period </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,570</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>23,266</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Cash and cash equivalents, end of period </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>80,486</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>25,355</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Supplemental cash flow information </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Cash paid for interest</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>208,557</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>148,406</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Cash paid for taxes</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD colspan=2 valign=middle style=width:346.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Non-cash transactions: </P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:72pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:69pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Derivative liabilities recognized as debt discount</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>403,800</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Related party debt forgiveness</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>45,200</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Common stock issued in conjunction with convertible notes</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>494,700</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:22.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:324pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Common stock issued for conversion of debt</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:72pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>5,000</P>
</TD><TD valign=bottom style=width:21pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:69pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying notes are an integral part of these unaudited consolidated financial statements.</P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-20</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Organization and Operations</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>iQSTEL Inc. (&#8220;iQSTEL&#8221;, &#8220;we&#8221;, &#8220;us&#8221;, or the &#8220;Company&#8221;) was incorporated under the laws of the State of Nevada on June 24, 2011 under the name of PureSnax International, Inc. and changed its name to iQSTEL Inc. on August 7, 2018.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company has been engaged in the business of telecommunication services as a wholesale carrier of voice and data for other telecom companies around the World with more than 150 active interconnection agreements with mobile companies, fix line companies and other wholesale carriers.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Regulation S-X of the United States Securities and Exchange Commission (&#8220;SEC&#8221;). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.</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'>In the opinion of the company&#8217;s management, the accompanying unaudited interim financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the company as of June 30, 2019 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited financial statements should be read in conjunction with the financial statements and related notes thereto included in the company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on April 10, 2019.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B><I>Consolidation Policy</I></B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>For June 30, 2019, the consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Etelix.com USA, LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Prior to June 25, 2018, the financial statements presented are those of Etelix.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Use of Estimates</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The preparation of financial statements in conformity with GAAP in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Accounts Receivable and Allowance for Uncollectible Accounts</I></B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Substantially all of the Company&#8217;s accounts receivable balance is related to trade receivables. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company&#8217;s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews its allowance for doubtful accounts daily, past due balances over 60 days and a specified amount are reviewed individually for collectability. Account balances are charged off after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2019 the Company had no valuation allowance for doubtful accounts for the Company&#8217;s accounts receivable and recorded no bad debt expense.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-21</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Concentrations of Credit Risk</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company&#8217;s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high creditworthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019 and 2018, eight customers represented 81% of our revenues and fourteen customers represented 81% of our revenues, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Revenue Recognition</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company recognizes revenue from the sale of products in accordance with ASC 606, &#8220;<I>Revenue from Contracts with Customers&#8221;. </I>The Company recognizes revenue only when all of the following criteria have been met:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Identify the contract(s) with a customer &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Identify the performance obligations in the contract &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Determine the transaction price. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Allocate the transaction price to the performance obligations in the contract. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Recognize revenue when (or as) the entity satisfies a performance obligation. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company recognizes revenue related to monthly usage charges and other recurring charges during the period in which the telecommunication services are rendered. Provided that persuasive evidence of a sales arrangement existed, and collection was reasonably assured. Persuasive evidence of a sales arrangement existed upon execution of a written interconnection agreement. The Company&#8217;s payment terms vary by clients.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Lease</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The office lease meets the definition of a short-term lease because the lease term is 12 months or less. Consequently, consistent with Company&#8217;s accounting policy election, the Company does not recognize the right-of-use asset and the lease liability arising from this lease.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Reclassifications</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Certain prior year amounts have been reclassified to conform with the current year presentation.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Recent Accounting Pronouncements</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company&#8217;s management believes that these recent pronouncements will not have a material effect on the Company&#8217;s financial statements.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 3 - GOING CONCERN</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company&#8217;s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company does not have significant cash, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. In addition, as of June 30, 2019, the Company had a net loss of $1,509,819. These factors, among others, raise substantial doubt about the Company&#8217;s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its business plan and eventually attain profitable operations.</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'>F-22</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 3 - GOING CONCERN (continued)</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the next year, the Company&#8217;s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and marketing expenses. The Company may experience a cash shortfall and be required to raise additional capital.</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'>Historically, the Company has relied upon funds from its stockholders. Management may raise additional capital through future public or private offerings of the Company&#8217;s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company&#8217;s failure to do so could have a material and adverse effect upon its operations and its stockholders.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 4 &#8211; PREPAID AND OTHER CURRENT ASSETS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Prepaid and other current assets at June 30, 2019 and December 31, 2018 consist of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:60.82%><TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:81.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=middle style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:80.3pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:81.05pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=middle style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:80.3pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Advance payment to suppliers</P>
</TD><TD valign=bottom style=width:13.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:67.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>6,600</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD colspan=2 valign=bottom style=width:67.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>11,310</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Other receivable</P>
</TD><TD valign=bottom style=width:13.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>34,039</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:67.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>500</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Prepaid expenses</P>
</TD><TD valign=bottom style=width:13.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>17,840</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:67.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>5,093</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Tax receivable</P>
</TD><TD valign=bottom style=width:13.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>600</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:67.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>600</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Prepayment for acquisition</P>
</TD><TD valign=bottom style=width:13.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>50,000</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:67.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:67.25pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>109,079</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.45pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD colspan=2 valign=bottom style='width:67.15pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>17,503</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 5 &#8211; FIXED ASSETS, NET</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Fixed assets, net at June 30, 2019 and December 31, 2018 consist of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:68.34%><TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:81.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=middle style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:80.25pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:81.05pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=middle style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:80.25pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Telecommunication equipment</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>245,686</P>
</TD><TD valign=bottom style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>245,686</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Telecommunication software</P>
</TD><TD valign=bottom style='width:14.3pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>400,903</P>
</TD><TD valign=bottom style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.5pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>400,903</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total fixed assets</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>646,589</P>
</TD><TD valign=bottom style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>646,589</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Accumulated depreciation and amortization</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(380,763)</P>
</TD><TD valign=bottom style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(361,482)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:193.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total Fixed assets</P>
</TD><TD valign=bottom style='width:14.3pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>265,826</P>
</TD><TD valign=bottom style=width:14.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.5pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>285,107</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Depreciation expense for the six months ended June 30, 2019 and 2018 amounted to $19,281 and $3,275, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-23</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 6 &#8211;LOANS PAYABLE</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Loans payable at June 30, 2019 and December 31, 2018 consist of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:553.5pt><TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:69.2pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:64.7pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Interest </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:69.2pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:64.7pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:154.7pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Term</B></P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>rate</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Complete Business Solutions_3</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>80,994</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on April 13, 2018 and due on March 9, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>33.3%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Green Capital Funding_2</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>89</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>89</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on October 1, 2018 and due on February 27, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unique Funding Solutions_2</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,000</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>9,000</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on October 12, 2018 and due on January 17, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>28.6%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Green Note Capital Partner</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>11,135</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>18,278</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on October 22, 2018 and due on February 22, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>28.6%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Queen Funding LLC</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>17,083</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on November 29, 2018 and due on March 13, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Green Capital Funding_3</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,614</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>69,113</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on December 20, 2018 and due on May 15, 2019</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>31.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Leonite Capital LLC</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>82,353</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-9.75pt;margin-left:9.75pt'>Note was issued on May 22, 2019 and due on Demand. Note is guaranteed by the Company&#8217; CEO.</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>Higher of 14% and WSJ Prime rate plus 10%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:53.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>106,191</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:48.9pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>194,557</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Less: Current portion of loans payable</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:53.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>106,191</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:48.9pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>194,557</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Long-term loans payable</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:53.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:48.9pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=width:4.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019 and 2018, the Company borrowed $82,353, and $332,182, which includes original issue discount and financing cost of $17,953 and $0, respectively, and repaid the principal amount of $171,302 and $326,436 and interest expense of $88,551 and $148,406, respectively. </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'>During the six months ended June 30, 2019 and 2018, the Company recognized amortization of discount, included in interest expense, of $17,953 and $0, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 7 &#8211; OTHER CURRENT LIABILITIES</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Other current liabilities at June 30, 2019 and December 31, 2018 consist of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:70.86%><TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:81.05pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=middle style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style=width:82.7pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:81.05pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=middle style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:82.7pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A name=RANGE!B54 />Accrued liabilities</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>237,427</P>
</TD><TD valign=bottom style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.95pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>361,779</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:207pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Credit card</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>14,937</P>
</TD><TD valign=bottom style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.95pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>14,647</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Accrued interest</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>30,435</P>
</TD><TD valign=bottom style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.95pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>4,905</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Salary payable &#8211; management (see Note 11)</P>
</TD><TD valign=bottom style=width:14.3pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>111,231</P>
</TD><TD valign=bottom style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.95pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:66.75pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>55,431</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:207pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:14.3pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>394,030</P>
</TD><TD valign=bottom style=width:11.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.95pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:66.75pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>436,762</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-24</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 8 - CONVERTIBLE LOANS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>At June 30, 2019 and December 31, 2018, convertible loans consisted of the following:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:498.45pt><TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:69.7pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:67.65pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:69.7pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Promissory notes &#8211; Issued in fiscal year 2018, with variable conversion features</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:52.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.55pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:54.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>221,901</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Promissory notes &#8211; Issued in fiscal year 2019, with variable conversion features</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,166,000</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.55pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total convertible notes payable</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.5pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:52.15pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,166,000</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.55pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.15pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>221,901</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Less: Unamortized debt discount</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.5pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:52.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(655,755)</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.55pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(158,696)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total convertible notes</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>510,245</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.55pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.55pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.15pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Less: current portion of convertible notes</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.5pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:52.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>508,876</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.55pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>63,205</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:337.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Long-term convertible notes</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.5pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:52.15pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,369</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.55pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:54.15pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>During the six months ended June 30, 2019 and 2018, the Company recognized amortization of discount, included in interest expense, of $523,941 and $0, respectively.</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'>During the six months ended June 30, 2019 and 2018, the Company repaid notes of $221,901 and $0 and accrued interest including the prepayment penalty of $120,006 and $0, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Conversion</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company converted notes with principal amounts of $5,000 into 76,335 shares of common stock. The corresponding derivative liability at the date of conversion of $181,326 was settled through additional paid in capital.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Promissory Notes - Issued in fiscal year 2018</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the year ended December 31, 2018, the Company issued a total of $213,750 in notes with the following terms:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Terms ranging from 9 months to 12 months. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Annual interest rates ranging from of 10% to 12%. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Convertible at the option of the holders at issuance. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Conversion prices are typically based on the discounted (50% discount) lowest trading prices of the Company&#8217;s shares during various periods prior to conversion. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Certain notes allow the Company to redeem the notes at rates ranging from 130% to 150% depending on the redemption date provided that no redemption is allowed after the 180th day. Likewise, the notes include financing costs totaling $12,250 and the Company received cash of $201,500.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Promissory Notes - Issued in fiscal year 2019</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company issued a total of $1,171,000 in notes with the following terms:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Terms ranging from 6 months to 3 years. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Annual interest rates ranging from of 8% to 12%. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Convertible at the option of the holders at issuance or 180 days from issuance. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Conversion prices are typically based on the discounted (39% or 50% discount) lowest trading prices of the Company&#8217;s shares during various periods prior to conversion. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The convertible notes were also provided with a total of 376,931 common shares and warrant to purchase up to 92,000 shares of common stock at exercise price of $2.5 per share for 3 years.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-25</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 8 - CONVERTIBLE LOANS (continued)</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Certain notes allow the Company to redeem the notes at rates ranging from 117% to 150% depending on the redemption date provided that no redemption is allowed after the 180th day. Likewise, the notes include financing costs totaling $122,500 and the Company received cash of $1,048,500.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Derivative liabilities</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company determined that the conversion option in the note and the exercise feature of the warrants met the definition of a liability in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity&#8217;s Own Stock. The Company will bifurcate the embedded conversion option in the note once the note becomes convertible and account for it as a derivative liability.</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'>The Company valued the conversion features using the Black Scholes valuation model. The fair value of the derivative liability for all the note that became convertible for the year ended December 31, 2018 amounted to $896,593. $201,500 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $695,093 was recognized as a &#8220;day 1&#8221; derivative loss.</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'>The Company valued the conversion features of convertible notes and warrant using the Black Scholes valuation model. The fair value of the derivative liability for all the note and warrant that became convertible for the six months ended June 30, 2019 amounted to $2,583,990. $403,800 of the value assigned to the derivative liability was recognized as a debt discount to the notes while the balance of $2,180,190 was recognized as a &#8220;day 1&#8221; derivative loss.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Warrants</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>A summary of activity during the six months ended June 30, 2019 follows:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:52.48%><TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=4 valign=bottom style='width:143.9pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Warrants Outstanding</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:72.25pt;padding:0.75pt;border-top:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Weighted</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Average</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:59.85pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:11.8pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:72.25pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Exercise Price</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:59.85pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:11.8pt;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=middle style='width:72.25pt;padding:0.75pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Outstanding, December 31, 2018</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:18pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:54.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Granted</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>92,000</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:18pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2.50</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Exercised</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:18pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.25pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Forfeited/canceled</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;padding:0.75pt;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:18pt;white-space:nowrap;padding:0.75pt;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.25pt;white-space:nowrap;padding:0.75pt;border-bottom:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:139.5pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Outstanding, June 30, 2019</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>92,000</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:18pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:54.25pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2.50</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The following table summarizes information relating to outstanding and exercisable warrants as of June 30, 2019:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:69.5%><TR style=height:7.2pt><TD colspan=6 valign=middle style='width:234pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Warrants Outstanding</B></P>
</TD><TD valign=middle style=width:13.45pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=4 valign=middle style='width:126.05pt;padding:0.75pt;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Warrants Exercisable</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:58.35pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Number of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:94.65pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Weighted Average </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Remaining</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Contractual life </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>(in years)</B></P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:54.2pt;padding:0.75pt;border-top:1pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Weighted </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Average</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Exercise </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Price</B></P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Number </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Shares</B></P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:63.15pt;padding:0.75pt;border-top:1pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Weighted</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Average</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Exercise </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Price</B></P>
</TD><TD valign=middle style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style='width:58.35pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>92,000</P>
</TD><TD valign=middle style=width:13.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:94.65pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>3.40</P>
</TD><TD valign=middle style=width:13.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.5pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:40.7pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> 2.50 </P>
</TD><TD valign=middle style=width:13.45pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>92,000</P>
</TD><TD valign=middle style=width:13.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.5pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:49.65pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'> 2.50 </P>
</TD><TD valign=middle style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>F-26</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 9 - DERIVATIVE LIABILITIES</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.</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'>Fair Value Assumptions Used in Accounting for Derivative Liabilities.</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'>ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.</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'>The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of June 30, 2019. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model.</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'>For the six months ended June 30, 2019, the estimated fair values of the liabilities measured on a recurring basis are as follows:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:73.5%><TR style=height:7.2pt><TD valign=bottom style=width:34.02%;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Six months ended</B></P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Year Ended </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:34.02%;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:34.02%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Expected term</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>0.22 - 5.00 years</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>0.37 - 1.00 years</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:34.02%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Expected average volatility</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>4% - 491%</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>405% - 528%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:34.02%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Expected dividend yield</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:34.02%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Risk-free interest rate</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>1.71% - 2.57%</P>
</TD><TD valign=bottom style=white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>2.24 - 2.71%</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2019:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:78.34%><TR style=height:7.2pt><TD colspan=4 valign=bottom style='width:423.05pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Fair Value Measurements Using Significant Observable Inputs (Level 3)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Balance - December 31, 2018</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>1,790,067</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as debt discounts</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>403,800</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as loss on derivatives</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,180,190</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Settled on issuance of common stock</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:67.65pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(181,326)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Gain on change in fair value of the derivative</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.4pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:67.65pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,632,519)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:328.55pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Balance - June 30, 2019</P>
</TD><TD valign=bottom style=width:13.45pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.4pt;padding:0.75pt;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:67.65pt;white-space:nowrap;padding:0.75pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,560,212</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The aggregate loss on derivatives during the six months ended June 30, 2019 and 2018 was as follows;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:81.5%><TR style=height:7.2pt><TD valign=bottom style=width:279pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=5 valign=bottom style=width:161.15pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Six Months Ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:279pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=5 valign=bottom style='width:161.15pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:279pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:75.65pt;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style='width:12.7pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:72.8pt;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:279pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Addition of new derivatives recognized as loss on derivatives</P>
</TD><TD valign=bottom style=width:12.65pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:63pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>2,180,190</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:59.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:279pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Gain on change in fair value of the derivative</P>
</TD><TD valign=bottom style=width:12.65pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:63pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,632,519)</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:13.4pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:59.4pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:279pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:12.65pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:63pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>547,671</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:13.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:59.4pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-27</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 10 &#8211; SHAREHOLDERS&#8217; EQUITY</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company&#8217;s authorized capital consists of 2,000,000,000 shares of common stock with a par value of $0.001 per share.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company issued 453,266 shares of common stock as follows;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>376,931 shares in conjunction with convertible notes. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>76,335 shares for conversion of debt of $5,000 (see Note8) &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of June 30, 2019 and December 31, 2018, 15,475,916 and 15,022,650 shares of common stock were issued and outstanding, respectively.</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'>During the six months ended June 30, 2019, $10,000 was contributed to the Company and the Company recorded it as additional paid in capital.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 11 - RELATED PARTY TRANSACTIONS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Loans payable &#8211; related parties</I></B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:508.1pt><TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:54.1pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>June 30,</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:61.4pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>December 31,</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'><B>Interest</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:54.1pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2019</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:61.4pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:154.7pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Term</B></P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>rate</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Alonso Van Der Biest</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:38.3pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>80,200</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.85pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:45.55pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>80,200</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-6pt;margin-left:6pt'>Note was issued on June 12, 2015 and due on June 11, 2019</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>16.5%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:38.3pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,587</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.85pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:45.55pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>10,587</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style=width:154.7pt;padding:0.75pt><P style='font:10pt Times New Roman;margin:0;text-indent:-6pt;margin-left:6pt'>Note was issue on September 30, 2016 and due on September 29, 2019</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>0%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Total</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:38.3pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.85pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:45.55pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Less: Current portion of loans payable</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:38.3pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:15.85pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:45.55pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>90,787</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Long-term loans payable</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.8pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:38.3pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:15.85pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:45.55pt;white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:11.8pt;white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:154.7pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company repaid interest expense of $7,414.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Due from related parties</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company loaned $10,000 to a related party and collected $10,000. As of June 30, 2019, the Company recorded accounts receivable from a related party of $10,701, included in due from related parties. As of June 30, 2019 and December 31, 2018, the Company had due from related parties of $288,908 and $278,207, respectively. The loans are unsecured, non-interest bearing and due on demand.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Due to related parties</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>During the six months ended June 30, 2019, the Company borrowed $46,438 from CEO of the Company and repaid $32,400. As of June 30, 2019 and December 31, 2018, the Company had due to related parties of $40,631 and $23,193, respectively. The loans are unsecured, non-interest bearing and due on demand.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-28</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 11 - RELATED PARTY TRANSACTIONS (continued)</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B><I>Employment agreements</I></B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>On June 25, 2018, the Company entered into Employment Agreements with the following persons: (i) Leandro Iglesias as President, CEO and Chairperson of the Company&#8217;s Board of Directors with an annual salary of $54,000; (ii) Juan Carlos Lopez Silva as Chief Commercial Officer with an annual salary of $54,000; and Alvaro Quintana Cardona as Chief Operating Officer and Chief Financial Officer with an annual salary of $30,000. The Employment Agreements have a term of 36 months, are renewable automatically for 24-month periods, unless the Company gives written notice at least 90 days prior to termination of the initial 36-month term. The Company shall have the right to terminate any of the employment agreements at any time without prior notice, but in that event, the Company shall pay these persons salaries and other benefits they are entitled to receive under their respective agreements for three years.</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'>On May 2, 2019, the Company entered into Employment Agreements with the following persons: (i) Leandro Iglesias as President, CEO and Chairperson of the Company&#8217;s Board of Directors with an annual salary of $168,000 with an annual bonus of 3% of our net income; (ii) Juan Carlos Lopez Silva as Chief Commercial Officer with an annual salary of $120,000 with an annual bonus of 3% of our net income; and Alvaro Quintana Cardona as Chief Operating Officer and Chief Financial Officer with an annual salary of $144,000 with an annual bonus of 3% of our net income. The Employment Agreements have a term of 36 months, are renewable automatically for 24-month periods, unless the Company gives written notice at least 90 days prior to termination of the initial 36-month term. The Company shall have the right to terminate any of the employment agreements at any time without prior notice, but in that event, the Company shall pay these persons salaries and other benefits they are entitled to receive under their respective agreements for three years. The above executive officers agreed to two year non-compete and non-solicit restrictive covenants with the Company. If any of the executive officers are terminated for cause they shall forfeit any rights to severance.</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'>During the six months ended June 30, 2019 and 2018, the Company recorded management fees of $118,000 and $0 and paid $62,200 and $0, respectively. As at June 30, 2019 and December 31, 2018, the Company accrued management salaries of $111,231 and $55,431, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 12 &#8211; COMMITMENTS AND CONTINGENCIES</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Leases and Long-term Contracts</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company has not entered into any long-term leases, contracts or commitments.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><I>Rent</I></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company leases office space at $1,200 per month with one-year term, starting July 1, 2018 and ending June 30, 2019. For the six months ended June 30, 2019 and 2018, the Company incurred $7,200 and $6,158, respectively.</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'>The Company leases facilities which the term is 12 months. For the six months ended June 30, 2019 and 2018, the Company incurred $13,000 and $0, respectively.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 13 - SUBSEQUENT EVENTS</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Subsequent to June 30, 2019 and through the date that these financials were made available, the Company had the following subsequent events:</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'>On April 1, 2019, the Company entered into a Company Purchase Agreement (the &#8220;Purchase Agreement&#8221;) with Ralf Kohler (the &#8220;Seller&#8221;), which agreement provides for the Company&#8217;s purchase of 51% of the equity and certain assets of SwissLink Carrier AG (&#8220;SwissLink&#8221;), a Swiss corporation. </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'>On August 7, 2019, having completed all conditions under the Purchase Agreement, the Company closed the transaction with Seller, and issued 187,500 shares to Seller for the 51% equity interest and certain assets in Swisslink and another 510 shares to Seller for 51% of the loan in Swisslink. </P>
<P align=justify style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>F-29</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL INC</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Notes to the Unaudited Consolidated Financial Statements</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>June 30, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>NOTE 13 - SUBSEQUENT EVENTS (continued)</B></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'>On July 11, 2019, the Company issued a convertible note in the principal amount of $282,000. The convertible note has a term of six months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous thirty days ending on the latest complete trading day prior to the conversion date.</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'>On July 19, 2019, the Company issued a convertible note in the principal amount of $36,000. The convertible note has a term of twelve months, accrues interest at 10% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous twenty five days ending on the latest complete trading day prior to the conversion date.</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'>On July 22, 2019, the Company issued a convertible note in the principal amount of $112,750. The convertible note has a term of nine months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous twenty five days ending on the latest complete trading day prior to the conversion date.</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'>On July 23, 2019, the Company issued a convertible note in the principal amount of $125,000. The convertible note has a term of twelve months, accrues interest at 12% annually and the balance outstanding thereunder is convertible into the Company&#8217;s common stock at a price equal to 50% multiplied by the lowest trading price during the previous twenty five days ending on the latest complete trading day prior to the conversion date.</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'>F-30</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'><B>PART III</B></P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><A name=item14 /><A name=item16 /><B>EXHIBITS TO OFFERING STATEMENT</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:95.38%><TR style=height:7.2pt><TD valign=bottom style='white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>Exhibit No. </B></P>
</TD><TD valign=bottom style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><B> </B>&nbsp;</P>
</TD><TD valign=bottom style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><B>Description</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex2z1.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 2.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Membership Interest Purchase Agreement(1)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878211002345/bmavens1ex31.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 3.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Articles of Incorporation of the Registrant (2)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878211002345/bmavens1ex32.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 3.2</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Bylaws of the Registrant (2)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000942/f8k083018_ex3z1.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 3.3</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Certificate of Amendment(3)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878212000972/s1a4_ex10z3.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Termination Agreement(4)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878212000972/s1a4_ex10z4.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.2</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>International Distribution Agreement(4)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878213001959/f10k063013_ex2.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.3</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Stock Purchase Agreement(5)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878215001279/f8k081215_ex10z1.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.4</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Trademark License Agreement(6)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z1.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.5</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>EMA Convertible Note(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z2.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.6</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Typenex Convertible Note(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z3.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.7</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Pinz Convertible Note(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z4.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.8</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Mastoris Subscription Agreement(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z5.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.9</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Principe Subscription Agreement(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878216003291/f8k072916_ex10z6.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.10</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Kamen Subscription Agreement(7)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z1.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.11</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Conversion Agreement with Carmen Cabell(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z2.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.12</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Conversion Agreement with Patrick Gosselin(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z3.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.13</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Conversion Agreement with Mark Engler(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z4.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.14</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Employment Agreement with Leandro Iglesias(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z5.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.15</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Employment Agreement with Alvaro Quintana Cardona(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878218000661/f8k062818_ex10z5.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 10.16</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Employment Agreement with Juan Carlos Lopez Silva(8)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href=f1aoffering_111.htm style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 11.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Consent of Boyle CPA, LLC</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878219000155/f1aoffering_121.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 12.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Opinion of The Doney Law Firm with consent to use</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href='http://www.sec.gov/Archives/edgar/data/1527702/000107878219000488/f1aoffering_131.htm' style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 13.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Form of Subscription Agreement</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href=f1audited_151.htm style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 15.1</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Audited Financials for SwissLink Carrier AG for the Year Ended December 31, 2018</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href=f1unaudited_152.htm style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 15.2</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unaudited Financials for SwissLink Carrier AG for the Three Months Ended March 31, 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'><A href=f1proforma_153.htm style=text-decoration:none><FONT style='color:#0000FF;border-bottom:1px solid #0000FF'>Exhibit 15.3</FONT></A></P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unaudited Pro Forma Combined Financial Statements</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>1.</KBD>Incorporated by reference to the Company&#8217;s Form 8-K filed with the US Securities and Exchange Commission on June 28, 2018. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>2.</KBD>Incorporated by reference to the Company&#8217;s Registration Statement on Form S-1 filed with the US Securities and Exchange Commission on August 18, 2011. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>3.</KBD>Incorporated by reference to the Company&#8217;s Form 8-K filed with the US Securities and Exchange Commission on August 31, 2018. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>4.</KBD>Incorporated by reference to the Company&#8217;s Registration Statement on Form S-1/A filed with the US Securities and Exchange Commission on April 6, 2012. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>5.</KBD>Incorporated by reference to the Company&#8217;s Form 10-K filed with the US Securities and Exchange Commission on October 3, 2013. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>6.</KBD>Incorporated by reference to the Company&#8217;s Form 8-K filed with the US Securities and Exchange Commission on August 13, 2015. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>7.</KBD>Incorporated by reference to the Company&#8217;s Form 8-K filed with the US Securities and Exchange Commission on August 17, 2016. &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-13.5pt;margin-left:13.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:13.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-13.5pt'>8.</KBD>Incorporated by reference to the Company&#8217;s Form 8-K filed with the US Securities and Exchange Commission on June 28, 2018. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>41</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>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P style='font:10pt Times New Roman;margin:0'><A name=SIGNA /><A name=sign />&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>SIGNATURES</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:36pt'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Coral Gables, State of Florida, on September 24, 2019.</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>iQSTEL Inc. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'><A name=i15 /> &nbsp;</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>By:</P>
</TD><TD valign=top style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Leandro Iglesias</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Chief Executive Officer, Principal Executive Officer</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>By:</P>
</TD><TD valign=middle style='white-space:nowrap;padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Alvaro Quintana Cardona </I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;padding:0.75pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana Cardona </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap;padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>Title:</P>
</TD><TD valign=middle style=white-space:nowrap;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Chief Operating Officer, Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>This Offering Circular has been signed below by the following persons in the capacities and on the date indicated. </P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>By:</P>
</TD><TD valign=top style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Leandro Iglesias</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>Leandro Iglesias</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>Title:</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>Chief Executive Officer, Principal Executive Officer</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P align=right style='font:10pt Times New Roman;margin:0'>Date:</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>September 24, 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding-top:0.75pt;padding-left:5.4pt;padding-bottom:0.75pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>By:</P>
</TD><TD valign=top style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Alvaro Quintana Cardona </I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Alvaro Quintana Cardona </P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>Title:</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Chief Operating Officer, Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>Date:</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>September 24, 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>By:</P>
</TD><TD valign=top style='padding:0.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'><I>/s/ Oscar Brito</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Oscar Brito</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>Title:</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Director</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=padding:0.75pt><P align=right style='font:10pt Times New Roman;margin:0'>Date:</P>
</TD><TD valign=top style=padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>September 24, 2019</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>42</P>
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<DOCUMENT>
<TYPE>EX1A-11 CONSENT
<SEQUENCE>3
<FILENAME>f1aoffering_111.htm
<DESCRIPTION>AUDITOR'S CONSENT
<TEXT>
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<BODY>
<DIV style=margin-left:36pt;width:540pt><P style='font:18pt Cooper Black;margin:0;color:#009900'>Boyle CPA, LLC</P>
<P style='font:11pt Times New Roman;margin:0'><FONT style=color:#0070C0>Certified Public Accountants &amp; Consultants</FONT></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt><B>Exhibit 11.1</B></FONT></P>
<P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>We consent to the inclusion in this Offering Statement of iQSTEL, Inc. (the &#8220;Company&#8221;) on Form 1-A/A of our report dated April 8, 2019, which includes an explanatory paragraph as to the Company&#8217;s ability to continue as a going concern, relating to our audit of the consolidated balance sheets as of December 31, 2018 and 2017, and the consolidated statements of operations, stockholders' equity (deficit) and cash flows for each of the years in the two-year period ended December 31, 2018, and the related notes.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>We also consent to the reference to us under the caption &#8220;Experts&#8221; in the Offering Statement.</P>
<P align=justify style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'><I>/s/ Boyle CPA, LLC</I></P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>Bayville, NJ</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>September 24, 2019</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#0070C0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>361 Hopedale Drive SE</KBD><KBD style='position:absolute;text-align:right;font:10pt Times New Roman;width:468pt'>P (732) 822-4427</KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=color:#0070C0>Bayville, NJ 08721</FONT></KBD><KBD style='position:absolute;text-align:right;font:10pt Times New Roman;width:468pt'><FONT style=color:#0070C0>F (732) 510-0665</FONT></KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
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<DOCUMENT>
<TYPE>EX1A-15 ADD EXHB
<SEQUENCE>4
<FILENAME>f1audited_151.htm
<DESCRIPTION>AUDITED FINANCIALS
<TEXT>
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<TITLE>Exhibit 15.1 Audited Financials</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:523.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><IMG src=f1audited1511.jpg width=665 height=860 alt='Report of the Auditor - SwissLink AG 31.12.18 (IFRS) Exhibit 99.2.jpg' title='Report of the Auditor - SwissLink AG 31.12.18 (IFRS) Exhibit 99.2.jpg'>&nbsp;</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'><A name=SwissLink_Carrier_AG_Report_of_the_audit />&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0'><B>Grant Thornton AG</B></P>
<P align=right style='font:10pt Times New Roman;margin:0'>Claridenstrasse 35</P>
<P align=right style='font:10pt Times New Roman;margin:0'>P.O. Box</P>
<P align=right style='font:10pt Times New Roman;margin:0'>CH-8027 Z&#252;rich</P>
<P align=right style='font:10pt Times New Roman;margin:0'>T +41 43 960 71 71</P>
<P align=right style='font:10pt Times New Roman;margin:0'>F +41 43 960 71 00</P>
<P align=right style='font:10pt Times New Roman;margin:0'>www.grantthornton.ch</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>INDEPENDENT AUDITOR&#8217;S REPORT</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>to the Shareholders of SwissLink Carrier AG, Zug</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Report on the Audit of the Financial Statements</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Opinion</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We have audited the financial statements of SwissLink Carrier AG (the Company), set out on pages 3 to 40 which comprise the income statement and statement of comprehensive income for the year ended December 31, 2018, the statement of financial position as at December 31, 2018, the statement of cash flows and the statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at December 31, 2018, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Basis for Opinion</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the <I>Auditor&#8217;s Responsibilities for the Audit of the Financial Statements </I>section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Switzerland, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Material Uncertainty Related to Going Concern</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>We draw attention to Note 4 of the financial statements, which indicate that the Company incurred a net loss of CHF 273&#8217;054 during the year ended December 31, 2018 and, as of that date, the Company&#8217;s total liabilities exceeded its total assets by CHF 1&#8217;901&#8217;955. As stated in Note 4, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Company&#8217;s ability to continue as a going concern and the measures taken to improve the financial situation. Our opinion is not modified in respect of this matter.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Responsibilities of Management and Those Charged with Governance for the Financial Statements</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In preparing the financial statements, management is responsible for assessing the Company&#8217;s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Those charged with governance are responsible for overseeing the Company&#8217;s financial reporting process.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><B>Auditor&#8217;s Responsibilities for the Audit of the Financial Statements</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor&#8217;s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.</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'>2</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:106.65pt><P style='font:10pt Times New Roman;margin:0'>Zurich, August 14, 2019</P>
<P style='font:10pt Times New Roman;margin:0'><B>Grant Thornton AG</B></P>
</TD><TD valign=top style=width:117.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:106.65pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><I>/s/ Erich Bucher</I></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>Erich Bucher</P>
</TD><TD valign=top style=width:117.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><I>/s/ Henning Goeck</I></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>Henning Goeck</P>
</TD></TR>
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<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Enclosures:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&#8211; Financial statements (income statement and statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity, and notes)</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'>3</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'><A name=Pg._2-47_SwissLink_IFRS_Financial_Statem />&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:534pt><TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>STATEMENT OF FINANCIAL POSITIONS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>6</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>STATEMENT OF CASH FLOWS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>STATEMENT OF CHANGES IN EQUITY</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>NOTES TO THE FINANCIAL STATEMENTS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>10</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>GENERAL INFORMATION</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>10</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>BASIS OF ACCOUNTING</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>10</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>SIGNIFICANT ACCOUNTING POLICIES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>11</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>18</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>REVENUE AND MATERIAL COSTS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>19</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>PERSONNEL EXPENSES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>19</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>FINANCIAL EXPENSE (NET)</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>20</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>INCOME TAXES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>20</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>CASH AND CASH EQUIVALENTS, ACCOUNTS RECEIVABLES TRADE</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>22</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>OTHER CURRENT RECEIVABLES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>ACCOUNTS PAYABLES, TRADE</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>OTHER CURRENT LIABILITIES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>ACCRUALS AND DEFERRED INCOME</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EMPLOYEE BENEFITS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>23</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EMPLOYEE BENEFITS &#8211;&nbsp;PENSION PLAN ASSET / LIABILITIES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>24</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>PROPERTY, PLANT AND EQUIPMENT &amp; INTANGIBLE ASSETS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>26</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>LOANS AND BORROWINGS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>28</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>29</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>RECOGNIZED FAIR VALUE MEASUREMENTS FOR FINANCIAL AND NON-FINANCIAL INSTRUMENTS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>31</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>CONTINGENT LIABILITIES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>31</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>LEASE COMMITMENTS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>31</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>CURRENCY RATES APPLIED</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>32</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>RELATED PARTY DISCLOSURES</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>32</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TRANSITION TO IFRS</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>33</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:486pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EVENTS OCCURRING AFTER THE REPORTING PERIOD</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>40</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>4</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Statement of comprehensive income for the year ended December 31, 2018</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:527.85pt><TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Income statement and statement of comprehensive income</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:59.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year ended 2018</B></P>
</TD><TD valign=middle style=width:31.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:60pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year ended 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Note</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Continuing operations</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Revenue</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,930,672</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>8,692,412</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Material costs</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,225,167)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,799,454)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Gross profit</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>705,505</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>892,958</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Personnel expenses</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>6</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(760,088)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,091,321)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Travelling expenses</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,813)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(22,941)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Repair and maintenance costs</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(112,110)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(176,243)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Insurance costs</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,046)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(44,783)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Administration expenses</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(31,487)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(28,939)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Consulting, legal and audit fees</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,666)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(35,506)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other Operating expenses</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(53,390)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(134,752)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Operating result before interest and taxes (EBITDA)</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(327,095)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(641,527)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Depreciation property, plant and equipment</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,826)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,826)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Amortization of intangible assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,944)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,944)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Operating result before interest and taxes (EBIT)</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(335,865)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(650,297)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Financial expenses</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>7</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(140,330)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loss before tax</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(411,162)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(790,627)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Tax income</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loss for the year</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(656,220)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other comprehensive income</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><I>Items that will not be reclassified subsequently to profit and loss:</I></FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Re-measurement of defined benefit obligation</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>15</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,522)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Related tax</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,149</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,373)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,373)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other comprehensive income / (expenses) for the year, net of tax</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:328.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total comprehensive income / (expenses) for the year</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(273,054)</P>
</TD><TD valign=bottom style=width:31.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(671,593)</P>
</TD></TR>
</TABLE>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying Notes 1 to 24 form an integral part of these financial statements.</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'>5</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Statement of financial positions as at 31 December 2018</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:454.5pt><TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='3'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='3'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='3'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>ASSETS</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Note</P>
</TD><TD valign=middle style=width:23.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Current assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:73.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:23.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:75.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:65.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash and cash equivalents</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Trade accounts receivable (net)</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>626,567</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,233,978</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,086,895</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other current receivables</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>10</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>81,817</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>149,017</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>70,746</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Prepayments / accrued income</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>13,797</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total current assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>989,268</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,502,718</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,517,767</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Non-current assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Deferred tax assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>354,552</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>221,262</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Property, plant and equipment</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:73.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,089</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,915</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Intangible assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>23,775</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total non-current assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>408,495</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>387,416</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>258,466</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:148.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>TOTAL ASSETS</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,397,763</P>
</TD><TD valign=bottom style=width:23.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,890,134</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,776,233</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying Notes 1 to 25 form an integral part of these financial statements.</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'>6</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Statement of financial positions as at 31 December 2018</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:556.95pt><TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Statement of financial positions</P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:75.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:12.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:86.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:12.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:67.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:75.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:12.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:86.3pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=middle style=width:12.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:67.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Note</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Current liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Accounts payable, trade</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>11</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>579,773</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Accruals and deferred income</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>13</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,670</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,996</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,032</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Employee benefits</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>14</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,476</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>71,226</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other current liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>12</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183,601</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>48,520</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,815</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total current liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,020,027</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,086,845</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>670,054</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Non-current liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loans, shareholder</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,286,270</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loans, related parties</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>642,459</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>623,059</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Deferred tax liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,511</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,777</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Employee benefits</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>15</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>184,395</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>146,381</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total non-current liabilities</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,279,691</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,432,190</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,063,487</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>TOTAL LIABILITIES</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,299,718</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,519,035</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,733,541</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Shareholders, equity</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Share capital</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Accumulated losses</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,001,955)</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,728,901)</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,057,308)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total Equity</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,901,955)</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,628,901)</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(957,308)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:270pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>TOTAL LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</FONT></P>
</TD><TD valign=bottom style=width:32.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,397,763</P>
</TD><TD valign=bottom style=width:12.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86.3pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,890,134</P>
</TD><TD valign=bottom style=width:12.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:67.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,776,233</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying Notes 1 to 25 form an integral part of these financial statements.</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'>7</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Statement of cash flow for the year ended December 31, 2018</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:572.35pt><TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Statement of cash flows</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:54.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year</B></P>
</TD><TD valign=middle style=width:24.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:54.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:54.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>ended 2018</B></P>
</TD><TD valign=middle style=width:24.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:54.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>ended 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Note</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash flow from operating activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loss for the year</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(656,220)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Adjustments for:</I></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Depreciation of fixed assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,826</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,826</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Amortization of intangible assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Change in employee benefits</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>15</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>38,974</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>18,403</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Non-cash financial expense/(income), net Tax income</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,448</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>52,456</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(69,897)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(134,407)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(351,970)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(710,998)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Changes in:</I></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Trade and other receivables</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>674,611</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(211,557)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Trade and other payables and accruals Current employee benefits</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(39,068)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>370,999</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,750)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>45,792</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>607,793</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>205,234</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Income taxes paid</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>8</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash-flow from operating activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>255,823</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(505,764)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash flow from investing activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Capital expenditures for tangible assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(4,430)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Proceeds from sale of tangible assets Proceeds from sale of intangible assets</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>16</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,773</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>29,719</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Net cash provided / (used in) by investing activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>41,492</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(4,430)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash flow from financing activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Proceeds of loans, shareholder</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>535,252</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>315,555</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Proceeds of loans, related parties</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>174,400</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Repayment of loans, related parties</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(642,459)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(155,000)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Interest paid</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,201)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,487)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Interest on shareholder loans paid</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Bank fees and other finance fees paid</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>7</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(14,887)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(33,432)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Net cash used in financing activities</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(138,233)</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>272,807</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Net increase / (decrease) in cash and cash equivalents</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>159,082</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(237,387)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash and cash equivalents at beginning of year Effect of foreign exchange rate changes</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,079</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>10,781</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:391.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Cash and cash equivalents at end of year</FONT></P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:24.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying Notes 1 to 25 form an integral part of these financial statements.</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'>8</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><B>Statement of changes in equity for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:558pt><TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Statement of changes in equity</FONT></P>
</TD><TD valign=middle style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Share capital</B></FONT></P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Translation</B></FONT></P>
<P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>reserve</B></FONT></P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Accumulated</B></FONT></P>
<P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>losses</B></FONT></P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Total equity</B></FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>(in CHF)</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:63.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:65.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:73.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:69.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Balance as at 31 December 2016 as originally presented according to Swiss Code of Obligations</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,155,160)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,055,160)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Effect of Transition to IFRS (see Note 24)</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>97,852</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>97,852</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Restated balance as at 1 January 2017</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,057,308)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(957,308)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loss for the year</FONT></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(656,220)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(656,220)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other comprehensive income / (expenses)</FONT></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,373)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,373)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>- Remeasurements of defined benefit obligation (see Note 15)</I></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,522)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,522)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Related tax (see Note 8)</I></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,149</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,149</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total comprehensive income / (expenses)</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(671,593)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(671,593)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Balance as at 31 December 2017</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,728,901)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,628,901)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Loss for the year</FONT></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Other comprehensive income / (expenses)</FONT></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>- Remeasurements of defined benefit obligation (see Note 15)</I></P>
</TD><TD valign=bottom style=width:63.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:65.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Related tax (see Note 8)</I></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Total comprehensive income / (expenses)</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(273,054)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(273,054)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt>Balance as at 31 December 2018</FONT></P>
</TD><TD valign=bottom style='width:63.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:65.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,001,955)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,901,955)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As of 1 January 2017, 31 December 2017 and 31 December 2018 the share capital consists of 1,000 shares, each with a par value of CHF 100. The share capital is fully liberated.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>The accompanying Notes 1 to 25 form an integral part of these financial statements.</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'>9</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>1.</B></KBD><KBD style=margin-left:36pt></KBD><B>General information</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>SwissLink Carrier AG (formerly Swissphone Carrier AG), (&#8220;The Company&#8221;) is a company incorporated and domiciled in Baar, Switzerland. The registered office is located at Schochenm&#252;hlestrasse 4, 6340 Baar, Switzerland. It was established on 22 September 2015.</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'>SwissLink Carrier AG is a provider of international telephone traffic around the globe, which trades international VoIP (voice over IP) telephone minutes through its Software Management platform named VAMP.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>2.</B></KBD><KBD style=margin-left:36pt></KBD><B>Basis of accounting</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Statement of compliance</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements were authorized for issue by the Board of Directors on August 14, 2019. Details of the Company&#8217;s accounting policies are included in Note 3.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>First-Time adoption of IFRS</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The financial statements for the year ended 31 December 2018 are the Company&#8217;s first financial statements prepared in accordance with IFRSs and IFRS 1 First-time Adoption of International Financial Reporting Standards has been applied. The accounting policies comply with each IFRS effective at 31 December 2018 and are the same for both periods respectively all three balance sheet dates, except for the mandatory exceptions and the optional exemptions applied by the Company (see Note 24) in accordance with IFRS 1.</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'>In preparing these financial statements, the Company&#8217;s date of transition to IFRSs is 1 January 2017. Until 31 December 2018, the Company has applied Swiss accounting law in its financial statements. An explanation of how the transition to IFRSs has affected the reported financial position, financial performance and cash flows of the Company is provided in Note 24.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Standards and interpretations issued but not yet effective</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'>These will be applied by the Company when they become effective, if they are relevant for the Company. No standards or interpretations, which are described below, have been adopted early.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>New Standards or Interpretations</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:450.4pt><TR style=height:7.2pt><TD valign=middle style='width:229.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Standard / Interpretation</B></P>
</TD><TD valign=middle style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.4pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Effective date</B></P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:107.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Planned application</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>IFRS 16 Leases</P>
</TD><TD valign=middle style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:107.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>IFRIC 23 Uncertainty over Tax Treatments</P>
</TD><TD valign=middle style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:107.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Revisions and amendments of Standards and Interpretations</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:454.5pt><TR style=height:7.2pt><TD valign=middle style='width:238.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Standard / Interpretation</B></P>
</TD><TD valign=middle style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Effective date</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:103.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Planned application</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Prepayment Features with Negative Compensation (Amendments to IFRS 9)</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Annual Improvements to IFRS Standards 2015 - 2017 Cycle - various standards</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2019</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2019</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:238.5pt rowspan='2'><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Amendments to References to Conceptual Framework in IFRS Standards</P>
</TD><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:13.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>January 1, 2020</P>
</TD><TD valign=bottom style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:103.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Reporting year 2020</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>10</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>2.</B></KBD><KBD style=margin-left:36pt></KBD><B>Basis of accounting (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>IFRS 16 replaces the current guidance in IAS 17 and is a far-reaching change in accounting by lessees in particular. Under IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 requires lessees to recognize a lease liability reflecting future lease payments and a &#8216;right-of-use asset&#8217; for virtually all lease contracts. Under IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.</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'>The Company does not expect significant impacts from new pronouncements issued but not yet effective.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Basis of accounting</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The principal accounting policies are set out below.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The financial statements for the year ended 31 December 2018 are the Company&#8217;s first financial statements prepared in accordance with IFRS. For further information please refer to Note 24.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Functional and presentation currency</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company&#8217;s functional currency is US Dollar (USD). These financial statements are presented in Swiss Francs (CHF). The company was incorporated in 2016 in Switzerland and since that date the Swiss Franc has been adopted as presentation currency. Amounts in functional and foreign currencies are translated into the presentation currency at the actual monthly exchange rates published by the Swiss Federal Tax Authority.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Rounding of amounts</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>All amounts disclosed in the financial statements and notes have been rounded off to the nearest currency unit.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Foreign currencies</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Business transactions in currencies other than the entity&#8217;s functional currency (foreign currencies) are translated into the functional currency at the transaction rate. Monetary assets and liabilities are translated at the year-end balance sheet rate and the resulting foreign exchange gains and losses are presented within financial income and expense. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Fair value measurement</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>In the principal market for the asset or liability or&nbsp;</P>
<P style='font:10pt Arial;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD><FONT style='font:10pt Times New Roman'>In the absence of a principal market, in the most advantageous market for the asset or liability</FONT>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The principal or the most advantageous market must be accessible by the Company.</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'>The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.</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'>A fair value measurement of a non-financial asset takes into account a market participant&#8217;s ability to generate economic benefits from the asset&#8217;s highest and best use or by selling it to another market participant that would utilize the asset in its highest and best use.</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'>The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.</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'>11</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;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy. This is described, as follows, based on the lowest level input that is significant to the fair value measurement as a whole:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Level 1 &#8212; Quoted (unadjusted) market prices in active markets for identical assets or liabilities&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Level 2 &#8212; Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Level 3 &#8212; Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable&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'>For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.</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'>For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Composition and valuation of balance sheet items</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Current versus non-current classification</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Assets and liabilities are presented in the statement of financial position based on current/non-current classification. An asset is current when it is:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Expected to be realized or intended to sell or consumed in the normal operating cycle&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Held primarily for the purpose of trading&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Expected to be realized within 12 months after the balance sheet date, or&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>All other assets are classified as non-current. A liability is current when:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>It is expected to be settled in the normal operating cycle&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>It is held primarily for the purpose of trading&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>It is due to be settled within twelve months after the reporting period, or&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>All other liabilities are classified as non-current.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Deferred tax assets and liabilities are classified as non-current assets and liabilities.</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Financial assets </FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Classification</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company classifies its financial assets in the following measurement categories:</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-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>a)</KBD>those to be measured subsequently at fair value (either through other comprehensive income, or through the income statement), and&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>b)</KBD>those measured at amortized cost.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>For assets measured at fair value, gains and losses will either be recorded in the Income statement or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held.</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'>12</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;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Initial recognition and measurement</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'>At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the income statement. In the periods presented the Company does not have any financial assets categorized as FVTPL and FVOCI.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Subsequent measurements</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'>Subsequent measurement of financial assets depends on the Company&#8217;s business model for managing the asset and the latter&#8217;s cash flow characteristics. The Company classifies its asset instruments into the following categories:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in other income using the effective interest rate method.&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets where the cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in the Income statement. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to the income statement and recognized in other gains / (losses). Interest income from these financial assets is included in other income using the effective interest rate method.&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Fair value through profit and loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit and loss. Interest income from these financial assets is included in other income.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>De-recognition of financial assets</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'>A financial asset is derecognized only when:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the contractual rights to the cash flows from the financial asset expire;&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the Company has transferred a financial asset in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Impairment of financial assets</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'>The Company recognizes loss allowances for expected credit losses (ECLs) on financial assets measured at amortized cost. The Company measures loss allowances at an amount equal to lifetime ECLs, except for financial assets for which credit risk has not increased significantly since initial recognition; these are measured at 12-month ECLs.</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'>For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires lifetime ECLs to be recognized from initial recognition of the trade receivables.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company&#8217;s historical experience and informed credit assessment and including forward-looking information. The Company formulates a ,base-case, view of the future direction of relevant economic variables as well as a representative range of other possible forecast scenarios. This process involves developing additional economic scenarios and considering the relative probabilities of each outcome.</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'>13</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;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 365 days past due. The Company considers a financial asset to be in default when:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realizing security (if any is held); or&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>the financial asset is more than 360 days past due.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Measurement of ECLs</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'>ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Credit-impaired financial assets</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'>At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ,credit-impaired, when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.</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'>Evidence that a financial asset is credit-impaired includes the following observable data:</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>significant financial difficulty of the borrower or issuer;&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>a breach of contract such as a default; or&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>it is probable that the borrower will enter bankruptcy or other financial reorganization.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Presentation of allowance for ECL in the statement of financial position Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Write-off</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'>The gross carrying amount of a financial asset is written off on a case-by-case basis when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Cash and cash equivalents</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>These include cash in hand; cash in transit, balances in postal and bank accounts, as well as short- term time deposits with an original term not exceeding 90 days. Cash and cash equivalents are measured at cost.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Accounts receivable &amp; other receivable</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'>Trade receivables and other receivables are recognized initially at their transaction price and subsequently measured at amortized cost using the effective interest method, which includes the deduction of expected credit losses.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Property, plant and equipment</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'>Property, plant and equipment are carried at purchase or production cost less appropriate depreciation. In the case of an impairment loss, the appropriate charge is made to the income statement. Depreciation is charged on straight-line basis (difference between cost and residual value). For Hardware this period is usually 3-8 years.</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'>The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.</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'>14</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;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&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'>The assets, residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year end.</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'>An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) at the date of the disposal is included in the income statement in the year the asset is derecognized.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Finance and operating leases</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Assets acquired under lease agreements which effectively transfer substantially all the risks and rewards incidental to ownership from the lessor to the lessee are classified as finance leases. Finance leases on tangible fixed assets are capitalized at amounts equivalent to the lower of respective fair value of the tangible fixed asset or the estimated net present value of the future minimum lease payments plus any indirect costs associated with the lease. The same amount less finance costs is recorded correspondingly as a finance lease obligation. Assets under finance leases are amortized over the shorter of their estimated useful life and the term of the lease. The interest portion of the lease payment is recorded as interest expense in the income statement, calculated on the amortized cost.</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'>Lease agreements which do not transfer substantially all risks and rewards to the Company are classified as operating leases. Payments are recorded pro-rata over the lease period. Rental costs for short-term operating leases are charged directly to the income statement on a straight-line basis. Operating leases are not included in the balance sheet; the corresponding obligations are fully reported in the notes.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Intangible assets </FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Intangible assets acquired separately</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for accordingly.</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'>The amortization expense on intangible assets with finite lives is recognized in the income statement in the expense category consistent with the function of the intangible asset.</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'>Intangible assets held by the Company with finite useful lives include Software only.</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'>Software is capitalized at cost and is amortized on a straight-line basis over their useful life, typically not exceeding 6 years.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Impairment of tangible and intangible assets excluding goodwill</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Tangible and intangible assets (excluding goodwill) are assessed at each reporting date for indications that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset&#8217;s recoverable amount. The asset&#8217;s recoverable amount is the higher of an asset&#8217;s or cash-generating unit,s fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or a group of assets exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the group of assets.</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'>An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset&#8217;s recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset&#8217;s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.</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'>15</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 align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Retirement benefit costs</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Company&#8217;s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.</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'>For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the period in which they occur. They are recognized outside the income statement and are presented in other comprehensive income.</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'>Past service cost is recognized immediately in the income statement in the period in which it occurs.</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'>The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of the scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Financial liabilities</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Initial recognition and measurement</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>All financial liabilities are recognized initially at fair value and, in the case of financial liabilities not at FVTPL, net of directly attributable transaction costs.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Subsequent measurement</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The measurement of financial liabilities depends on their classification, as described below:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Financial liabilities at amortized cost&nbsp;</P>
<P style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Loans and Borrowings</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'>Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortized cost. The transaction costs incurred for floating interest rate borrowings is amortized over the tenure of the loan based on the effective interest rate method.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>De-recognition</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'>A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Provisions, contingent liabilities and contingent assets</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain.</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'>Provisions are not recognized for future operating losses.</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'>Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.</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'>16</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 align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>No liability is recognized if an outflow of economic resources as a result of present obligations is not probable. Such situations are disclosed as contingent liabilities unless the outflow of resources is remote.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Composition of items in the income statement</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='border-bottom:1px solid #000000'>Revenue recognition</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'>Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it transfers control over a good or service to a customer. When the Company acts as principal, revenues are recorded gross. However, when, from an economic point of view, the Company acts only as a broker or agent, revenues are reported net of related costs.</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'>The Company has entered into a number of interconnect agreements with other carriers. These agreements allow carriers to terminate traffic on their respective networks and to provide end-to-end routing of voice and data traffic.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Entity is a provider of international telephone traffic around the globe, which trades international VoIP (voice over IP) telephone minutes through its trading-software platform. Besides VoIP-Revenues, there are no other revenue streams. Therefore, all of the Company&#8217;s revenues are recognized at a specific time, which is when the call has been completed. There are no revenues recognized over time.</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'>There are no bonuses, kick-backs, etc.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Taxation</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Income tax expense comprises current and deferred tax. It is recognized in profit or loss except items recognized directly in equity or in OCI.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Current income tax</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'>Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.</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'>Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Current tax assets and liabilities are offset only if certain criteria are met.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Deferred tax</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is considered more likely than not that sufficient taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.</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'>The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is considered that more likely than not no longer sufficient taxable profits will be available to allow all or part of the asset to be recovered.</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'>17</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;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>3.</B></KBD><KBD style=margin-left:36pt></KBD><B>Significant accounting policies (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited to other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.</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'>Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>4.</B></KBD><KBD style=margin-left:36pt></KBD><B>Critical accounting judgements and key sources of estimation uncertainty</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In the application of the Company&#8217;s accounting policies, which are described in Note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.</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'>The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Going concern </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'>The current and prior year ended with a loss. Beginning in 2018 the Management and the Board of Directors took several measures to improve the financial situation. Due to these measures the Management expects to reach break-even in the financial year 2019. Until Q2 2019 there are no indicators, that this goal can not be reached.</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'>Furthermore, the Board of directors successfully raised new money. Until Q2 2019, shareholders and third parties invested additional CHF 200,000.</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'>Besides, it is planned that SwissLink will seek further investors in Q3 2019. For the sale of 51% of Company shares, a Letter of Intent (LOI) is already available.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Therefore, the Company has determined that it will have the ability to continue as a going concern for the foreseeable future which as a minimum covers 12 months from the date of signing the Company&#8217;s financial statements. As such, the financial statements have been prepared on a going concern basis. For more details refer to Note 18.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Pension obligations</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'>The Company provides employees with long-term employee benefits such as pensions. The long-term nature of these liabilities creates inherent uncertainties that are dependent on future events. Estimating the pension liability requires the Company to make an estimate of the expected return on plan assets, an appropriate discount rate, future salary increases, employee life expectancy and other projections. More details are disclosed in Note 15.</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'>18</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>5.</B></KBD><KBD style=margin-left:36pt></KBD><B>Revenue and Material costs</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Analysis of the Company&#8217;s revenue</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company&#8217;s revenue is generated with only one product; VoIP (voice over IP) in the following countries:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:239pt><TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:20pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>United States</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,159,719</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,948,690</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>United Kingdom</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,184,237</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,159,874</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Canada</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>843,993</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>537,184</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Germany</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>761,452</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>330,309</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Hong Kong</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>398,465</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>452,032</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Spain</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>359,889</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>476,405</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>India</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>263,452</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>143,233</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>France</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>148,243</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>438,526</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Norway</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,512</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>502,790</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Others</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>808,710</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>703,369</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:103pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total Revenue</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,930,672</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>8,692,412</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Assets and liabilities related to contracts with customers</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company has not recognized any assets or liabilities related to contracts with customers.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Analysis of the Company&#8217;s Material costs</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Material costs are fully related to the purchase of VoIP (voice over IP) capacity from several suppliers.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>6.</B></KBD><KBD style=margin-left:36pt></KBD><B>Personnel expenses</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Average number of employees</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The average monthly number of employees (including executive directors) were 1.5 in 2018 and 2.5 in 2017.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Employee benefits expense</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Their aggregate remuneration comprised:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:352pt><TR style=height:7.2pt><TD valign=middle style=width:205.9pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:12.8pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:58.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:11.9pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:63.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Wages and salaries</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(417,824)</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(572,568)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Social security expenses</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(25,699)</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(37,781)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Pension &#8211;&nbsp;defined benefit plans (Note 15)</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(69,987)</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(54,085)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other personnel expenses</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(246,578)</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:63.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(429,887)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:205.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total employee benefit expense</P>
</TD><TD valign=bottom style=width:12.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(760,088)</P>
</TD><TD valign=bottom style=width:11.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:63.2pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,091,321)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Other personnel expenses mainly consist of costs for temporary external employees.</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'>19</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>7.</B></KBD><KBD style=margin-left:36pt></KBD><B>Financial expense (net)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Financial Expenses</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:381pt><TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:13.7pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:50.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:13.7pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:50.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:252.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial income </P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial expenses</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(140,330)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial expenses, net</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(140,330)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest on short- and long-term debt (at amortized cost)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,201)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,487)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest on loans from related parties (at amortized cost)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total interest expenses</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(16,139)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(28,716)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Foreign exchange losses</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(42,844)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(77,093)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest (expenses) on plan assets (Note 15)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,427)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,089)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'> Bank charges</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(14,887)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(33,432)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial expenses</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(140,330)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>8.</B></KBD><KBD style=margin-left:36pt></KBD><B>Income taxes</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Income taxes</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:381pt><TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:14pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:14pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:257pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Current tax on profits for the year</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total current income tax expense</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred income taxes - change in temporary differences</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred income tax income / (expense)</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:257pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total income tax</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reconciliation of income taxes</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:381pt><TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:13.7pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:50.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:13.7pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:50.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:252.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Profit / (loss) before income taxes &nbsp;</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(411,162)</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(790,627)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Income tax rate of the parent company in % </P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>17.00%</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>17.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expected income tax (expense) / income</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax effect of non-deductible expenses / (non-taxable income) </P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax effect of Current year losses not recognized</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Taxes for prior years </P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Change in income tax rates</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Effect from different tax rate applied at local level</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:252.2pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Effective income tax</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style=width:13.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>20</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>8.</B></KBD><KBD style=margin-left:36pt></KBD><B>Income taxes (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reconciliation of deferred taxes</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Deferred tax assets and liabilities are attributed to the following items:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:534.65pt><TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>(in CHF)</FONT></P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:144pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance at December 31, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net balance at </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1</B></P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Recognized in profit or loss</B></P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Exchange differences</B></P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Recognized in OCI</B></P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net</B></P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Deferred tax assets</B></P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Deferred tax liabilities</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:54pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:62pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:57.45pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:59.7pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:45.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.7pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivables</P>
</TD><TD valign=bottom style=width:54pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,511)</P>
</TD><TD valign=bottom style=width:62pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>10,570</P>
</TD><TD valign=bottom style=width:57.45pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,059</P>
</TD><TD valign=bottom style=width:49.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,059</P>
</TD><TD valign=bottom style=width:49.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefit liabilities</P>
</TD><TD valign=bottom style=width:54pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31,348</P>
</TD><TD valign=bottom style=width:62pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>6,868</P>
</TD><TD valign=bottom style=width:57.45pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD><TD valign=bottom style=width:45.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>24,245</P>
</TD><TD valign=bottom style=width:49.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>24,245</P>
</TD><TD valign=bottom style=width:49.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax loss carry-forwards</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>323,204</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>52,459</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>375,663</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>375,663</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Gross Tax assets (liabilities)</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>351,041</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Set-off of tax</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net tax assets (liabilities)</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:539.15pt><TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt>(in CHF)</FONT></P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=3 valign=bottom style='width:144pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance at December 31, 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net balance at </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1</B></P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Recognized in profit or loss</B></P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Exchange differences</B></P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Recognized in OCI</B></P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net</B></P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Deferred tax assets</B></P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Deferred tax liabilities</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:54pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:62pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:57.45pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:59.7pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:45.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.15pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.7pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivables</P>
</TD><TD valign=bottom style=width:54pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,777)</P>
</TD><TD valign=bottom style=width:62pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>4,266</P>
</TD><TD valign=bottom style=width:57.45pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,511)</P>
</TD><TD valign=bottom style=width:49.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,511</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefit liabilities</P>
</TD><TD valign=bottom style=width:54pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>24,885</P>
</TD><TD valign=bottom style=width:62pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,314</P>
</TD><TD valign=bottom style=width:57.45pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,149</P>
</TD><TD valign=bottom style=width:45.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31,348</P>
</TD><TD valign=bottom style=width:49.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31,348</P>
</TD><TD valign=bottom style=width:49.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax loss carry-forwards</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>196,377</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>126,827</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>323,204</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>323,204</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Gross Tax assets (liabilities)</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>213,485</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>134,407</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,149</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>351,041</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>354,552</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,511</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Set-off of tax</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:162pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net tax assets (liabilities)</P>
</TD><TD valign=bottom style='width:54pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:62pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:57.45pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:59.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.15pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>354,552</P>
</TD><TD valign=bottom style='width:49.7pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,511</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Deferred tax assets including assets for unused tax loss carry-forwards and expected tax credits are only recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Tax loss carry forward</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company have the following tax losses carry forward:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:434pt><TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:94pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:17pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:17pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:94pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:86pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:73pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 1 year -</P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 2 years -</P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 3 years -</P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 4 years </P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>228,114</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 5 years </P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>927,046</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>228,114</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 6 years </P>
</TD><TD valign=bottom style=width:94pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>746,038</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>927,046</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>228,114</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Expiration in 7 years </P>
</TD><TD valign=bottom style='width:94pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>308,584</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>746,038</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>927,046</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:147pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total </P>
</TD><TD valign=bottom style='width:94pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,209,782</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,901,198</P>
</TD><TD valign=bottom style=width:17pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,155,160</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-0.05pt'>The above listed tax losses have a potential tax benefit of CHF 375,663 (2017: CHF 323,204). The Company expects to be able to use all incurred tax losses in the foreseeable future and have therefore recognized a deferred tax asset, based on the applicable tax rate.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>There is no unused tax loss carry forwards for which no deferred tax assets have been recognized.</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'>21</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>9.</B></KBD><KBD style=margin-left:36pt></KBD><B>Cash and cash equivalents, accounts receivables trade</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Cash and cash equivalents</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:439pt><TR style=height:7.2pt><TD valign=middle style=width:163.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:87.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:13.75pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:13.75pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:163.6pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:87.45pt;white-space:nowrap><P style='font:10pt Calibri;margin:0;color:#000000'><FONT style=font-size:10pt>&#160;</FONT></P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:87.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:163.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash at banks</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P align=right style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:163.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total cash and cash equivalents</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P align=right style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD><TD valign=bottom style=width:13.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The fair value of cash and short-term deposits equals their carrying amount.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Accounts receivables</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:497pt><TR style=height:7.2pt><TD valign=middle style=width:200.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:18.65pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:18.65pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:200.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivables, gross - third</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>673,093</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,289,408</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,029,562</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:200.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivables, gross &#8211;&nbsp;related</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>62,666</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:200.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Allowance for bad debts</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(46,526)</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(55,430)</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,333)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:200.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total trade accounts receivable, net</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>626,567</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,233,978</P>
</TD><TD valign=bottom style=width:18.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,086,895</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:395.9pt><TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=middle style='width:88.55pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:1.8pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:88.55pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Allowance for bad debts as of opening balance</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(55,430)</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,333)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Impairment losses recognized on receivables</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>8,904</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(50,097)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Impairment losses reversed</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amounts recovered during the year</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:88.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Currency effects</P>
</TD><TD valign=bottom style='width:88.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:88.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:217pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Allowance for bad debts as at December 31</P>
</TD><TD valign=bottom style='width:88.55pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(46,526)</P>
</TD><TD valign=bottom style=width:1.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:88.55pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(55,430)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>During the year, gains or losses of kCHF 9 (2017: kCHF -50) are included in the income statement.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Ageing analysis of receivables, trade (gross)</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>As at 31 December, the ageing analysis of receivables, trade (gross) is as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:355.45pt><TR style=height:7.2pt><TD valign=bottom style=width:67.5pt;white-space:nowrap><P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=middle style='width:187.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>past due gross</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:67.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style='width:52.8pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Total</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Current not due</P>
</TD><TD valign=middle style='width:47.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&lt; 30 days</P>
</TD><TD valign=middle style='width:45.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>31-60 days</P>
</TD><TD valign=middle style='width:47.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>61-180 days</P>
</TD><TD valign=middle style='width:47.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&gt; 180 days</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:67.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>2017</P>
</TD><TD valign=bottom style=width:52.8pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,289,408</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>343,605</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>333,181</P>
</TD><TD valign=bottom style=width:45.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>15,606</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>259,355</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>337,661</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:67.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>2018</P>
</TD><TD valign=bottom style=width:52.8pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>673,093</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>157,312</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>114,050</P>
</TD><TD valign=bottom style=width:45.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,419</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>158,814</P>
</TD><TD valign=bottom style=width:47.15pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>207,498</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The above balance is shown gross. The provision for doubtful accounts amounts to kCHF -47 (2017: kCHF -55) of which 100% are attributable to receivables past due more than 180 days.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The directors consider that the carrying amount of trade accounts receivables is approximately equal to the fair value.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Past due but not impaired</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As at 31 December 2018, trade receivables of CHF 469,255 (2017: CHF 890,373) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The other classes within trade and other receivables do not contain impaired assets and are not past due. Based on the credit history of these other classes, it is expected that these amounts will be received when due. The Company does not hold any collaterals in relation to these receivables.</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'>22</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>10.</B></KBD><KBD style=margin-left:36pt></KBD><B>Other current receivables</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Other receivables</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:493pt><TR style=height:7.2pt><TD valign=middle style=width:210.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:86.85pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:17.8pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:17.8pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:210.1pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:86.85pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17.8pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:87.45pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:17.8pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:73pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:210.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Prepayments to suppliers</P>
</TD><TD valign=bottom style=width:86.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>30,741</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:87.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>113,861</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73pt;white-space:nowrap><P align=right style='font:10pt Calibri;margin:0;color:#000000'><FONT style=font-size:10pt>52,212</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:210.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>VAT/sales tax receivables</P>
</TD><TD valign=bottom style='width:86.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>51,076</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,156</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>18,534</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:210.1pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total prepayments and accrued income</P>
</TD><TD valign=bottom style='width:86.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>81,817</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:87.45pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>149,017</P>
</TD><TD valign=bottom style=width:17.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:73pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>70,746</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>11.</B></KBD><KBD style=margin-left:36pt></KBD><B>Accounts payables, trade</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:430.8pt><TR style=height:7.2pt><TD valign=middle style=width:144pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:93.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.45pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:77.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:144pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:77.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:144pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payables, trade</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:77.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>579,773</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>Accounts payables, trade are non-interest bearing and are normally settled on 30-day terms.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>12.</B></KBD><KBD style=margin-left:36pt></KBD><B>Other current liabilities</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:463.2pt><TR style=height:7.2pt><TD valign=middle style=width:189pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:89pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:189pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:189pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Social security payables</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>241</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>27,491</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>45,398</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:189pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities &#8211;&nbsp;related parties</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183,360</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>21,229</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>10,417</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:189pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total other current liabilities</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183,601</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>48,520</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,815</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>13.</B></KBD><KBD style=margin-left:36pt></KBD><B>Accruals and deferred income</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:443pt><TR style=height:7.2pt><TD valign=middle style=width:160.3pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=middle style='width:89pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:15.35pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:89pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=middle style=width:15.35pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:74pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:160.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:160.3pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Service received, invoice pending</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,670</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,996</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,032</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:160.3pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total Accruals and deferred income</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,670</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,996</P>
</TD><TD valign=bottom style=width:15.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,032</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>14.</B></KBD><KBD style=margin-left:36pt></KBD><B>Employee benefits</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:481.1pt><TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:15.4pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:15.4pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee Benefits, current</P>
</TD><TD valign=bottom style=width:84.2pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Salaries/Bonuses</P>
</TD><TD valign=bottom style=width:84.2pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>14,873</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Holiday/Overtime accrual</P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>28,603</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>45,792</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total employee benefit, current</P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,476</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>71,226</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:15.4pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:15.4pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.2pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net defined benefit obligation (see Note 15)</P>
</TD><TD valign=bottom style=width:84.2pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:84.25pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>184,395</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74.85pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>146,381</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other employee benefits, non-current</P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:207pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total employee benefit, non-current</P>
</TD><TD valign=bottom style='width:84.2pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:84.25pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>184,395</P>
</TD><TD valign=bottom style=width:15.4pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:74.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>146,381</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>23</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>15.</B></KBD><KBD style=margin-left:36pt></KBD><B>Employee benefits &#8211; pension plan asset / liabilities</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>General information</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company maintains one defined benefit plan in Switzerland. This plan complies with prevailing legal requirements to cover the employees in the event of death, disability and retirement. The plan is financed by employer and employee contributions in compliance with local legal and fiscal regulations.</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'>The Swiss pension plans are governed by the Swiss Federal Law on Occupational Retirement, Survivors, and Disability Pension Plans (BVG), which stipulates that pension plans are to be managed by independent, legally autonomous units. The assets of the pension plan are held within a separate foundation and cannot revert to the employer. Pension plans are overseen by a regulator as well as by a state supervisory body.</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'>The Company&#8217;s pension fund is administered by AXA Pension Solutions AG.</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'>The funding requirements are based on the pension fund,s actuarial measurement framework set out in the funding policies of the plan. The Fund is based on a separate actuarial valuation performed for funding purposes and may therefore differ from those used in assessing defined benefit liabilities.</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'>Changes in the present value of defined benefit obligation and plan assets for the years ended December 31, 2018 and 2017 are as follows:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Amount recognized in balance sheet period end closing:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:461pt><TR style=height:7.2pt><TD valign=middle style=width:184pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:8.7pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:8.7pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Defined benefit obligation</P>
</TD><TD valign=bottom style=width:90.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(533,701)</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(469,182)</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(365,876)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Fair value of plan assets</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>391,087</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>284,787</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>219,495</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net defined benefit liability (asset)</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(142,614)</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(184,395)</P>
</TD><TD valign=bottom style=width:8.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(146,381)</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Analysis of profit and loss charge/(credit)</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:422pt><TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Service cost (employer)</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,987</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>54,085</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest expense on defined benefit obligation</P>
</TD><TD valign=bottom style=width:90.7pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,852</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,827</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest (income) on plan assets</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,425)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,738)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Administration expenses</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>235</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:229.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total charge/(credit) recognized in profit and loss</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>71,649</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,357</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Change in the present value of defined benefit obligation during the period:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:408.2pt><TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:15.3pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:83.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:83.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Defined benefit obligation, opening balance</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(469,182)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(365,876)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest expense on defined benefit obligation</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,852)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,827)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Current service cost (employer)</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(69,987)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(54,085)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Contributions by plan participants</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(25,558)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,345)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Benefits (paid) / deposited</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(66,563)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,501</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Administration expenses</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(235)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:83.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(183)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Actuarial (gain) / loss on DBO (balancing figure)</P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>101,676</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(24,367)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:225pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Defined benefit obligation, period end balance</P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(533,701)</P>
</TD><TD valign=bottom style=width:15.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:83.95pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(469,182)</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>24</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>15.</B></KBD><KBD style=margin-left:36pt></KBD><B>Employee benefits &#8211;&nbsp;pension plan asset / liabilities (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Change in the present value of the plan assets during the period:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:392pt><TR style=height:7.2pt><TD valign=middle style=width:204pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:16pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Fair value of plan assets, opening balance</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>284,787</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>219,495</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest income on plan assets</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,425</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,738</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Contributions by the employer</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31,248</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,865</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Contributions by plan participants</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,558</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>29,345</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Benefits (paid) / deposited</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>66,563</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:86pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,501)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Return on plan assets excl. interest income</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(19,494)</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,845</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Defined benefit obligation, period end balance</P>
</TD><TD valign=bottom style='width:86pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>391,087</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>284,787</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Analysis of amounts recognized in OCI:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:392pt><TR style=height:7.2pt><TD valign=middle style=width:204pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:16pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Actuarial (gain) / loss on DBO</P>
</TD><TD valign=bottom style='width:86pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>101,676</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(24,367)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Return on plan assets excl. interest income</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(19,494)</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,845</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total defined benefit cost recognized in OCI</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD><TD valign=bottom style=width:16pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:86pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18522</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Key financial assumptions:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:398.3pt><TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:51.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:18.95pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:51.95pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Discount rate at 1.1.</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.70%</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.70%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Discount rate at 31.12.</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.90%</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.70%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest rate on retirement savings capital (IR) at 31.12.</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.90%</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.70%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Future salary increases (SI) at 31.12.</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.00%</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.00%</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Date of last actuarial valuation</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31/12/18</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31/12/17</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Mortality tables</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>BVG2015</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>BVG2015</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:18.95pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>GT</P>
</TD><TD valign=middle style=width:18.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.95pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>GT</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Plan assets classes:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:396.5pt><TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:52pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:20pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Quoted market price</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,699</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>4140</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Equity Instruments</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>91,886</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>66,911</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Debt instruments (e.g. bonds) </P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>116,835</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>85,076</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Real estate</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>91,015</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>66,277</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Others</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>40,206</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>29,278</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Total plan assets at fair value (quoted market price)</I></P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>345,641</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>251,695</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Non-quoted market price</I></P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>394</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>287</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Equity instruments</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Debt instruments (e.g. bonds) Real estate</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,346</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,707</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Real estate</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Others</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>42,706</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>31,098</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Total plan assets at fair value (non-quoted market price)</I></P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>45,446</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>33,092</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:256.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style=font-size:10pt>Total plan assets at fair value</FONT></P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>391,087</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>284,787</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>25</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>15.</B></KBD><KBD style=margin-left:36pt></KBD><B>Employee benefits &#8211;&nbsp;pension plan asset / liabilities (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Sensitivity analysis &#8211;&nbsp;impact on DBO:</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:361pt><TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:52pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:20pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:221pt;border-top:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with DR -0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:52pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>558,001</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>492,271</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with DR +0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>511,216</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>447,837</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with IR -0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>524,200</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>462,571</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with IR +0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>543,455</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>475,945</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with SI -0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>531,433</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>465,550</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with SI +0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>537,201</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>474,209</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with life expectancy +1 year</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>539,634</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>472,695</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>DBO at 31.12. with life expectancy -1 year</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>527,906</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>465,938</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>SC of next year with DR +0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,426</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>64,983</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:221pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>SC of next year with DR -0.25%</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>28,157</P>
</TD><TD valign=bottom style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>71,456</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Other information</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:412pt><TR style=height:7.2pt><TD valign=middle style=width:272pt><P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:20pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:52pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:20pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:272pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Weighted average duration of defined benefit obligation in years</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:52pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>17.7</P>
</TD><TD valign=middle style=width:20pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:48pt;border-top:1pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>19.1</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company expects to pay CHF 22,431 in contributions to its defined benefit plan in the next financial year.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>16.</B></KBD><KBD style=margin-left:36pt></KBD><B> Property, plant and equipment &amp; Intangible assets</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:463.1pt><TR style=height:7.2pt><TD valign=middle style=width:204.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF) </P>
</TD><TD valign=bottom style=width:89pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.85pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:11.1pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204.05pt><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:89pt;border-top:1pt solid #000000'><P style='font:7.5pt Arial;margin:0;color:#000000'><FONT style='font-family:Times New Roman'>&#160;</FONT></P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:7.5pt Arial;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:73.85pt;border-top:1pt solid #000000'><P style='font:7.5pt Arial;margin:0;color:#000000'><FONT style='font-family:Times New Roman'>&#160;</FONT></P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P style='font:7.5pt Arial;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:74pt;border-top:1pt solid #000000'><P style='font:7.5pt Arial;margin:0;color:#000000'><FONT style='font-family:Times New Roman'>&#160;</FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Property, plant and equipment (Hardware)</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,089</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,915</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:204.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Intangible assets (Software)</P>
</TD><TD valign=bottom style=width:89pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:73.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>23,775</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:74pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>26</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>16.</B></KBD><KBD style=margin-left:36pt></KBD><B> Property, plant and equipment &amp; Intangible assets (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Property, plant and equipment &amp; Intangible assets</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:429pt><TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cost</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Hardware</B></P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Software</B></P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Other </B></P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At January 1, 2017</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>14,128</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>39,417</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Additions</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>4,430</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>4,430</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Disposals</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Exchange differences</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At December 31, 2017</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>14,128</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>29,719</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,847</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Additions</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Disposals</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(11,773)</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,719)</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>41,492</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Exchange differences</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At December 31, 2018</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,355</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,355</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'>Accumulated amortization and impairment </FONT></P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At January 1, 2017</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,213</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,213</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amortization/Depreciation for the period</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,826</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>8,770</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Disposals</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Exchange differences</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At 31 December 2017</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,039</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>10,983</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amortization/Depreciation for the period</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,826</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>8,770</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Disposals</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,038)</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(11,888)</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,926)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Reclassifications / Transfer in use</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Exchange differences</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>At December 31, 2018</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>827</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>827</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net book value as at January 1, 2017</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,915</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>37,204</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net book value as at December 31, 2017</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,089</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>23,775</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>32,864</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:50.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net book value as at December 31, 2018</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:50.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In 2018 Soft- and Hardware was sold to Swissphone Wireless AG. The transaction took place at residual book value; therefore no gain or loss was realized.</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'>27</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>17. </B></KBD><KBD style=margin-left:36pt></KBD><B>Loans and borrowings</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Loans and borrowings</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:566.55pt><TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:51.6pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:56.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=middle style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style='width:51.6pt;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Interest rate %</B></P>
</TD><TD valign=bottom style='width:56.4pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Maturity</B></P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Original</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>currency</B></P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:66pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=top style='width:51.6pt;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:56.4pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:51.05pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:66pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>Non-Current interest-bearing loans and borrowings</I></P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:51.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:66pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loan from related party (Lorymo AG) </P>
</TD><TD valign=top style=width:51.6pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>10/23/2018</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CHF</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>345,000</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>500,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>Total non-Current interest-bearing loans and borrowings</I></P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>345,000</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>500,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'>&nbsp;</P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>Non-Current non-interest-bearing loans and borrowings</I></P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loan from shareholder </P>
</TD><TD valign=top style=width:51.6pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>none</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CHF</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD><TD valign=bottom style=width:66pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,286,270</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loan from related parties </P>
</TD><TD valign=top style=width:51.6pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>none</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>CHF</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>297,459</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>123,059</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt;color:#000000'><I>Total non-Current non-interest-bearing loans and borrowings</I></P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,899,284</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,409,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:66pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total non-current loans and borrowings</P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style='width:80.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,244,284</P>
</TD><TD valign=bottom style='width:66pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,909,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:180pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Thereof under subordination</P>
</TD><TD valign=top style=width:51.6pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:56.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,137,077 </P>
</TD><TD valign=middle style=width:80.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,146,200 </P>
</TD><TD valign=middle style=width:66pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,909,329 </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='border-bottom:1px solid #000000'>Reconciliation of movements of liabilities to cash flows arising from financing activities</FONT></P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:462.9pt><TR style=height:7.2pt><TD valign=top style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Non-current, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>shareholder</B></P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Non-current, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>related parties</B></P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Non-current, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Balance at 01/01/17</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,286,270</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>623,059</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,909,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Changes from financing cash flows</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Proceeds from loans and borrowings</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>315,555</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>174,400</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>489,955</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Repayment of loans and borrowings</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(155,000)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(155,000)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total changes from financing cash flows</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>315,555</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>19,400</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>334,955</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Effect of changes in foreign exchange rates</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest expenses (see Note 7)</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>21,229</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>21,229</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest paid</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total other changes</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Balance at 31/12/17</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>642,459</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,244,284</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Changes from financing cash flows</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Proceeds from loans and borrowings</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>535,252</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>535,252</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Repayment of loans and borrowings</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(642,459)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(642,459)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total changes from financing cash flows</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>535,252</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(642,459)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(107,207)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Effect of changes in foreign exchange rates</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest expenses (see Note 7)</P>
</TD><TD valign=bottom style=width:81.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:80.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>12,938</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:89.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>12,938</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest paid</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total other changes</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:188.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Balance at 31/12/18</P>
</TD><TD valign=bottom style='width:81.1pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:80.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:11.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:89.9pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>28</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>18.</B></KBD><KBD style=margin-left:36pt></KBD><B> Financial risk management objectives and policies</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Capital management</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'>The objectives when managing capital are to safeguard the Company&#8217;s ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure. In order to maintain or adjust the capital structure, the Company may repay capital to shareholders, issue new capital or sell assets to reduce debt.</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'>By ensuring the Company adheres to defined debt/equity ratio covenant limits and other covenants under the Company&#8217;s financing arrangements, management meets the primary capital risk objective.</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'>The Company&#8217;s policy is to keep the net debt to adjusted equity ratio below 4. The Company&#8217;s adjusted net debt to equity ratio was as follows.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:351.3pt><TR style=height:7.2pt><TD valign=top style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total liabilities</P>
</TD><TD valign=bottom style=width:77.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,299,718</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,519,035</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Less: Total loans under subordination</P>
</TD><TD valign=bottom style=width:77.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,137,077)</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,146,200)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Less: cash and cash equivalents</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(280,884)</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(119,723)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net debt adjusted</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>881,757</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,253,112</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total equity</P>
</TD><TD valign=bottom style=width:77.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,901,955)</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,628,901)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total loans under subordination</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,146,200</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total adjusted equity</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>235,122</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>517,299</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:184.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Net debt to adjusted equity ratio</P>
</TD><TD valign=bottom style='width:77.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3.75</P>
</TD><TD valign=bottom style=width:13.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2.42</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Capital risk management</FONT></P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Company&#8217;s board of directors has overall responsibility for establishment and oversight of the Company&#8217;s risk management framework. Risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and to monitor risks and adherence to limits. These related processes are regularly performed in order to reflect changes in market conditions and the Company&#8217;s activities.</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'>The Company&#8217;s principal financial instruments comprise shareholder loans and cash. The main purpose of these financial instruments was to finance the operations of the Company. The Company has various other financial assets and liabilities such as trade receivables and payables, which arise directly from its operations.</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'>The main risks arising from the Company&#8217;s financial instruments are credit, and liquidity risks. The Board reviews and determines policies for managing each of these risks, as summarized below. The general entrepreneurial risks include operational, strategic and legal risks which the Company also monitors, analyses and controls. The interest rate risk and the foreign currency risk is only minor for the Company. As of 31 December 2018, there is no interest-bearing loan. Furthermore, does the Company not have significant balance sheet items in foreign currencies.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Credit risk</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'>Credit risk contains the danger of a financial loss that arises from one third party being unable or unwilling to fulfil its contractual payment obligations. The credit risk thus contains not only the immediate risk of default but also the risk of an impaired credit rating along with the risk of concentration of individual risk. The Company has a well distributed customer base. On one hand this helps to reduce the credit risk, on the other hand this may present some additional risk as a material portion of the business is done in very small transactions. The Company has set up a policy to minimize credit risk and monitor its clients. Key customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Company&#8217;s exposure to bad debts was not significant.</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'>The maximum exposure to the credit risk is represented by the carrying amount of each financial asset. To reduce the possibility of bad debt, it is the Company&#8217;s policy to have an as short as possible trading term of payment from its customers, which is usually between 3-30 days. It is recognized however that in certain countries and for certain customers, this policy has to be extended. The Company therefore monitors, at an individual customer level, its accounts receivable by payment due date rather than the number of days from invoice date. No concentrations of credit risk are currently present.</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'>29</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>18.</B></KBD><KBD style=margin-left:36pt></KBD><B> Financial risk management objectives and policies (continued)</B>&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'>A provision for bad debt is determined on both an individual basis and a general basis. An individual provision is determined when a customer disputes the amount due or if legal steps have been taken to recover the overdue amount. For all other amounts, a general bad debt provision is determined. Ageing and bad debt movements are disclosed in Note 9.</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'>With respect to credit risk arising from other financial assets of the Company (e.g. cash and cash equivalents), the Company&#8217;s exposure to credit risk arises from the default of the counterparty, with a maximum amount equal to the carrying amount of these instruments.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Liquidity risk</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'> Liquidity risk is the danger that the Company will be not able to meet its financial obligations as they fall due (e.g. settlement of its financial debt or paying its suppliers). Beyond net working capital and cash management, the Company mitigates liquidity risk by arranging borrowing facilities of varying terms mainly with the shareholder.</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'>The table below reflects all contractually fixed pay&#8211;offs for settlement, interest and repayments resulting from recognized financial liabilities. The risk implied from the values shown in the table, reflects the one-sided scenario of cash outflow only. Trade payables and other financial liabilities mainly originate from the financing of assets used in ongoing operations such as property, plant, equipment and investments in working capital e.g. trade receivables. These assets are to be considered against the cash outflows mentioned.</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'>The envisaged financing structure results in a well-balanced plan of cash flow in line with the financial and macroeconomic environment that allows the Company an improved control of the liquidity risk in the coming years. Unused loan facilities at the end of 2018 amounted to CHF 0 (2017: CHF 0). Current budget and midterm planning shows the Company&#8217;s ability to maintain a sufficient level of liquidity headroom.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Maturity profile of financial liabilities</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:508.75pt><TR style=height:7.2pt><TD valign=top style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>2018 (in CHF)</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD colspan=4 valign=bottom style='width:238.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Contractual cash flows</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Weighted </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>average </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>effective</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>interest</B></P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Carrying </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Amount</B></P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&lt; 1 year</B></P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 1-5 year</B></P>
</TD><TD valign=bottom style='width:72.25pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 6-10 year</B></P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 10 year</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:76.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:58.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&#160;</P>
</TD><TD valign=middle style=width:55.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:72.25pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:55.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Account payables, trade</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>n/a</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.25pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>All other current liabilities</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>n/a</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>282,506</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>282,506</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.25pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:55.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, shareholder</P>
</TD><TD valign=bottom style='width:76.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>106,854</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>427,415</P>
</TD><TD valign=bottom style='width:72.25pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>534,269</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total</P>
</TD><TD valign=bottom style='width:76.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,156,863</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,126,640</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>427,415</P>
</TD><TD valign=bottom style='width:72.25pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>534,269</P>
</TD><TD valign=bottom style='width:55.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:507.4pt><TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>2017 (in CHF)</P>
</TD><TD valign=middle style=width:76.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=middle style='width:237.4pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Contractual cash flows</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:76.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Weighted average effective interest</B></P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Carrying Amount</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&lt; 1 year</B></P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 1-5 year</B></P>
</TD><TD valign=bottom style='width:76.6pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 6-10 year</B></P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Maturity</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&gt; 10 year</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:76.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:58.5pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>&#160;</B></P>
</TD><TD valign=middle style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:76.6pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:52.8pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Account payables, trade</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>n/a</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:76.6pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>All other current liabilities</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>n/a</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>128,251</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>128,251</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:76.6pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, shareholder</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style=width:58.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>80,091</P>
</TD><TD valign=bottom style=width:54pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>320,365</P>
</TD><TD valign=bottom style=width:76.6pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>400,456</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, related parties</P>
</TD><TD valign=bottom style='width:76.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>5%</P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>642,459</P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>32,123</P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>674,582</P>
</TD><TD valign=bottom style='width:76.6pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total</P>
</TD><TD valign=bottom style=width:76.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.5pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,303,638</P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,171,568</P>
</TD><TD valign=bottom style='width:54pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>994,947</P>
</TD><TD valign=bottom style='width:76.6pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>400,456</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Company Liquidity analysis for its derivative financial instruments</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'>The Company does not hold any open derivative financial instruments as at 31 December 2018 or 31 December 2017. Therefore, no liquidity analysis for derivative financial instruments is to be disclosed in 2018 or 2017.</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'>30</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>19.</B></KBD><KBD style=margin-left:36pt></KBD><B> Recognized fair value measurements for financial and non-financial instruments</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Comparison by category of Company&#8217;s financial and non-financial instruments</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>This note explains the judgements and estimates made in determining the fair values of the financial and non-financial assets that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial and non-financial assets and liabilities into the three levels prescribed under the accounting standards. An explanation of each level is provided in Note 3.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:533.8pt><TR style=height:7.2pt><TD valign=middle style='width:289pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, 2018 (in CHF)</B></P>
</TD><TD valign=middle style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 1</B></P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 2</B></P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 3</B></P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable (net) </P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>626,567</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>30741</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial assets at amortized cost</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>657,308</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>11</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities, accruals and deferred income </P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>282,506</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:289pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Long-term debt</P>
</TD><TD valign=middle style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>17</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:289pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial liabilities at amortized cost</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,113,628</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:534.65pt><TR style=height:7.2pt><TD valign=middle style='width:288pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>At December 31, 2017 (in CHF)</B></P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 1</B></P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 2</B></P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 3</B></P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:49.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:49.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable (net) </P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,233,978</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:288pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>113,861</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial assets at amortized cost</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,347,839</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>11</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities, accruals and deferred income </P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>128,251</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:288pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Long-term debt</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,244,284</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:288pt;white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial liabilities at amortized cost</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,259,903</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:288pt;white-space:nowrap;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>At January 1,2017 (in CHF)</B></P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 1</B></P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 2</B></P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>Level 3</B></P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable (net) </P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>9</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,086,895</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:288pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>66,009</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial assets at amortized cost</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,152,904</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>11</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>579,773</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:288pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities, accruals and deferred income </P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:49.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:49.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:52.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>90,281</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style='width:288pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Long-term debt</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,909,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style='width:288pt;white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total financial liabilities at amortized cost</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:49.5pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:49.85pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style='width:52.8pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,553,949</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>In the periods presented the Company does not have any financial assets categorized as FVTPL and FVOCI. The carrying amounts of financial assets and financial liabilities equal the amortized cost values.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>20.</B></KBD><KBD style=margin-left:36pt></KBD><B>Contingent liabilities</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company does not have any contingent liabilities</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>21.</B></KBD><KBD style=margin-left:36pt></KBD><B>Lease commitments</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Operating leases</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company has not entered into any operating lease contract.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Finance leases</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The Company has not entered into any finance lease contract.</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'>31</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>22.</B></KBD><KBD style=margin-left:36pt></KBD><B>Currency rates applied</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Currency Rates Table</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:380.45pt><TR style=height:7.2pt><TD valign=top style=width:94.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(In CHF)</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:47.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Average annual rates </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year-end rates </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:46.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Average annual rates </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:43.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year-end rates 2017</B></P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:43.3pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year-end rates 2016</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:94.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>USD (US-Dollar) </P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:47.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.97771</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.98319</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:46.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.09845</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:43.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>0.97380</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:43.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.01887</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:94.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EUR (Euro) </P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:47.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.15500</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.12640</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:46.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.11210</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:43.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.17070</P>
</TD><TD valign=bottom style=width:12pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:43.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1.07364</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>23.</B></KBD><KBD style=margin-left:36pt></KBD><B>Related party disclosures</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Compensation of key management personnel</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The following table provides the total compensation for 1.5 (2017: 2.5) directors and key management personnel of the Company:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:392.3pt><TR style=height:7.2pt><TD valign=middle style=width:185.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:93.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period ended</B></P>
</TD><TD valign=middle style=width:20pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:93.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:185.4pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:93.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=middle style=width:20pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:93.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:185.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Short-term employee benefits</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>443,523</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:93.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>610,349</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:185.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Post-employment pension benefits</P>
</TD><TD valign=bottom style='width:93.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>67,380</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>58,118</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:185.4pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total compensation to key management</P>
</TD><TD valign=bottom style='width:93.45pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>510,903</P>
</TD><TD valign=bottom style=width:20pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:93.45pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>668,467</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Director Loan</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>No Director loan was granted in 2017 and 2018.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Majority Shareholders / Ultimate controlling party</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>At 31 December 2018 Mr. Ralf K&#246;hler owns 100% of the ordinary shares of the Company. As of December 31, 2017 and January 1, 2017 Swissphone Holding AG owned 95% of the shares. The residual 5% were hold by a third-party investor.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Balances with related parties</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The following balances existed with related parties</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:407.45pt><TR style=height:7.2pt><TD valign=top style='width:135pt;white-space:nowrap;border-bottom:1pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=bottom style='width:95.2pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD><TD valign=bottom style='width:95.2pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD><TD valign=bottom style='width:82.05pt;white-space:nowrap;border-bottom:1pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1,</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:95.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:95.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:82.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(183,601)</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD><TD valign=bottom style=width:82.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(45,157)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, shareholder</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,137,077)</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,601,825)</P>
</TD><TD valign=bottom style=width:82.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(623,059)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:135pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivables</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:82.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>62,666</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'>The outstanding balances with related parties are priced on an arm&#8217;s length basis and are to be settled in cash. None of the balances is secured. No guarantees have been given or received.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The following transactions were carried out with related parties.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Transactions with related parties</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:357.4pt><TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>(in CHF)</P>
</TD><TD valign=middle style=width:95.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period ended</B></P>
</TD><TD valign=middle style=width:14pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:95.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period ended</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:153pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:95.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, 2018</B></P>
</TD><TD valign=middle style=width:14pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:95.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Material costs</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(170,933)</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(222,969)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other operating expenses</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,666)</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(35,506)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:153pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial income (interests)</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD><TD valign=bottom style=width:14pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:95.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(21,229)</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>32</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>23.</B></KBD><KBD style=margin-left:36pt></KBD><B>Related party disclosures (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Definition of related parties</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Until 2018 the Company was a subsidiary of Swissphone Holding AG and therefore part of the Swissphone Group. As of 31. December 2017 and 1 January 2017 respectively for the period 2017 all subsidiaries of Swissphone Holding AG are a related party. As of 31. December 2018 and the period 2018 the Swissphone Group is third party.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Furthermore, as of 31. December 2018, 31 December 2017 and 1 January 2017, as well as the periods 2018 and 2017 the Lorymo AG, Mr. Ralf K&#246;hler and Ms. Dinah Sarah K&#246;hler are related parties.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>As stated in Note 2, these are the Company&#8217;s first financial statements prepared in accordance with IFRSs.</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'>The accounting policies set out in Notes 3 have been applied in preparing the financial statements for the year ended 31 December 2018, the comparative information presented for the year ended 31 December 2017 and in preparation of an opening IFRS statement of financial position at 1 January 2017 (the Company&#8217;s date of transition to IFRSs).</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'>In preparing its opening IFRS statement of financial position, the Company has adjusted amounts reported previously in its financial statements prepared in accordance with Swiss Code of Obligations. An explanation of how the transition from Swiss Code of Obligations to IFRSs has affected the Company&#8217;s financial position, financial performance and cash flows is set out in the following tables and the Notes that accompany the tables.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Exemptions applied</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>IFRS 1 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IFRS. The Company has applied the following exemptions:</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>IFRS 3 Business Combinations should not be applied to either acquisitions of subsidiaries that are considered businesses under IFRS, or acquisitions of interests in associates and joint ventures that occurred before 1 January 2017. Use of this exemption means that the Swiss Code of Obligations carrying amounts of assets and liabilities, that are required to be recognized under IFRS, is their deemed cost at the date of the acquisition. After the date of the acquisition, measurement is in accordance with IFRS. Assets and liabilities that do not qualify for recognition under IFRS are excluded from the opening IFRS statement of financial position.&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The Company applies IFRS 1.D34 in connection with the practical expedient in IFRS 15.C(5)(c) and does not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the Company expects to recognise that amount as revenue for the year ended 31 December 2016.&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-top:0.55pt;margin-bottom:0pt;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The Company applies the exemption in IFRS 1.D35 and does not restate contracts that were completed before 1 January 2017. A completed contract is a contract for which the Company has transferred all of the goods or services identified in accordance with Swiss Code of Obligations.&nbsp;</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'>33</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 Arial;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reconciliation of Equity</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:458.35pt><TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD colspan=4 valign=bottom style='width:252.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>01/01/2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>In CHF</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:67.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Swiss Code of Obligations</B></P>
</TD><TD valign=bottom style='width:53.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Reclass</B></P>
</TD><TD valign=bottom style='width:72.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Effect of transition to IFRS</B></P>
</TD><TD valign=bottom style='width:59.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>IFRS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:67.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:53.15pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:72.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:59.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(45,748)</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>346,329</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>F</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,041,147</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,086,895</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=top style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>70,746</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>70,746</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Prepayments/accrued income</P>
</TD><TD valign=top style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>13,797</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>13,797</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total current assets</P>
</TD><TD valign=top style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,472,019</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,517,767</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>A/C</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>221,262</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>221,262</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Property, plant and equipment</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>E</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>37,204</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(25,289)</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,915</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Intangible assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>D/E</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>15,000</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,000)</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,289</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total non-current assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>52,204</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>258,466</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL ASSETS</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,524,223</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,776,233</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>579,773</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>579,773</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accruals and deferred income</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>B</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>34,466</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(25,434)</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,032</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>B</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>25,434</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(55,574)</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>241</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,815</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>669,813</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>670,054</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Long-term debt</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>623,059</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>623,059</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans shareholder</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,286,270</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,286,270</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>F</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>241</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(241)</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,777)</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,777</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>A</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>146,381</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>146,381</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total non-current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,909,570</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,063,487</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL LIABILITIES</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,579,383</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,733,541</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Share capital</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Retained earnings</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>ACDF</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,155,160)</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>97,852</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,057,308)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL EQUITY</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,055,160)</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(957,308)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:157.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL LIAB. AND EQUITY</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:67.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,524,223</P>
</TD><TD valign=bottom style=width:53.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:72.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,776,233</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the reconciliation</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the transition as of January 1, 2017</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>A)</KBD>The Company has applied IAS 19 Employee Benefits to its post-employment benefit plan: The effect is to increase non-current employee benefit liabilities by CHF 146,381 at 1 January 2017. A deferred tax asset was capitalized using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 24,885.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>B)</KBD>Reclass of holiday/social security accrual&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>C)</KBD>Capitalization of unused tax losses of CHF 1,155,160 using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 196,377.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>D)</KBD>The amount of CHF 15,000 is related to a business combination before the transition date to IFRS. The Company applies the exemption, that IFRS 3 Business Combinations should not be applied to either acquisitions of subsidiaries that are considered businesses under IFRS, or acquisitions of interests in associates and joint ventures that occurred before 1 January 2017. The amount is fully eliminated against retained earnings. No deferred tax effect was accounted for, as the impairment or depreciation of such a Goodwill is not taxable expense according to Swiss tax law.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>E)</KBD>Reclass Software to intangible assets&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>F)</KBD>Adjustment of bad debt reserve according to IFRS 9 and related tax effect.&nbsp;</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'>34</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 align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reconciliation of Equity and Total Comprehensive Income</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>In CHF</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=top style='width:242.6pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>12/31/17</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:32.2pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Note</B></P>
</TD><TD valign=bottom style='width:69.1pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Swiss code</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Obligations</B></P>
</TD><TD valign=bottom style='width:61.65pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Reclass</B></P>
</TD><TD valign=bottom style='width:57.3pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Effect of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Transition</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>to IFRS</B></P>
</TD><TD valign=bottom style='width:54.55pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>IFRS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Cash and cash equivalents</P>
</TD><TD valign=top style='width:32.2pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:69.1pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>119,723</P>
</TD><TD valign=bottom style='width:61.65pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style='width:57.3pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style='width:54.55pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>119,723</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Trade accounts receivable</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>G</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,213,327</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>20,651</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,233,978</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Other current receivables</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>149,017</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>149,017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Total current assets</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,482,067</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,502,718</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Deferred tax assets</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>A/C</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>354,552</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>354,552</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Property, plant and equipment</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>F</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>32,864</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(23,775)</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>9,089</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Intangible assets</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>D/F</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>15,000</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>23,775</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-15,000</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>23,775</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Total non-current assets</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>47,864</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>387,416</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>TOTAL ASSETS</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,529,931</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,890,134</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Accounts payable, trade</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>931,103</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>931,103</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Accruals and deferred income</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>B</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>107,222</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(71,226)</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>35,996</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Employee benefits</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>B</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>71,226</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>71,226</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Other current liabilities</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>48,279</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>241</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>48,520</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Total current liabilities</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,086,604</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,086,845</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Long-term debt</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>642,459</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>642,459</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Loans shareholder</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,601,825</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,601,825</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Deferred tax liabilities</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>241</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(241)</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>3,511</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>3,511</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Employee benefits</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>A</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>184,395</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>184,395</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Total non-current liabilities</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>2,244,525</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>2,432,190</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>TOTAL LIABILITIES</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>3,331,129</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>3,519,035</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Share capital</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>100,000</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>100,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Retained earnings</P>
</TD><TD valign=top style=width:32.2pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,901,198)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>172,297</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,728,901)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>TOTAL EQUITY</P>
</TD><TD valign=top style=width:32.2pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,801,198)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,628,901)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>TOTAL LIAB. AND EQUITY</P>
</TD><TD valign=top style=width:32.2pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.1pt><P align=right style='font:10pt Times New Roman;margin:0'>1,529,931</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.3pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.55pt><P align=right style='font:10pt Times New Roman;margin:0'>1,890,134</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>35</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>In CHF</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=top style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=top style='width:242.15pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Period January 1 to December 31, 2017</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:34.4pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Note</B></P>
</TD><TD valign=bottom style='width:68.75pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Swiss Code </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>of </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Obligations</B></P>
</TD><TD valign=bottom style='width:61.65pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Reclass</B></P>
</TD><TD valign=bottom style='width:57.65pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>Effect of </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Transition </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>to IFRS</B></P>
</TD><TD valign=bottom style='width:54.1pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'><B>IFRS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Revenue</P>
</TD><TD valign=bottom style='width:34.4pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:68.75pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>8,717,509</P>
</TD><TD valign=bottom style='width:61.65pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style='width:57.65pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(25,097)</P>
</TD><TD valign=bottom style='width:54.1pt;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>8,692,412</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Material costs</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>G</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(7,799,454)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(7,799,454)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Gross profit</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>918,055</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>892,958</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Personnel expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>A</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,072,918)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(18,403)</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,091,321)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Travelling expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(22,941)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(22,941)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Repair and maint.costs</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(176,243)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(176,243)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Insurance costs</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(44,783)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(44,783)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Administration expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(28,939)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(28,939)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Consult., legal and audit fees</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(35,506)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(35,506)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Other Operating expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>E</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(68,200)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(66,552)</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(134,752)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>EBITDA</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(531,475)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(641,527)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Depreciation property, plant</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>and equipment</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(2,826)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(2,826)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Amortization of int. assets</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(5,944)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(5,944)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>EBIT</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(540,245)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(650,297)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Financial income</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Financial expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>A</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(139,241)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,089)</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(140,330)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Profit before tax</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(679,486)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-790,627</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>extraordinary expenses</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>E</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(66,552)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>66,552</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>extraordinary income</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Tax income / expense</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>ACG</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>134,407</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>134,407</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Profit for the year</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(746,038)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(656,220)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Re-measurement of DBO</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>A</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>(18,522)</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(18,522)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Related tax</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>A</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>3,149</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>3,149</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>OCI for the year, net of tax</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(15,373)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:166.5pt><P style='font:10pt Times New Roman;margin:0'>Total comp. inc. for the year</P>
</TD><TD valign=bottom style=width:34.4pt><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.75pt><P align=right style='font:10pt Times New Roman;margin:0'>(746,038)</P>
</TD><TD valign=bottom style=width:61.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:57.65pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:54.1pt><P align=right style='font:10pt Times New Roman;margin:0'>(671,593)</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>36</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the reconciliation</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the transition as of January 31, 2017 and the period from January 1 to December 31, 2017</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>A)</KBD>The Company has applied IAS 19 Employee Benefits to its post-employment benefit plan: The effect is to increase non-current employee benefit liabilities by CHF 184,395 at 31 December 2017. A deferred tax asset was capitalized using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 31,347.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>B)</KBD>Reclass of holiday/social security accrual&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>C)</KBD>Capitalization of unused tax losses of CHF 1,901,198 using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 323,204.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>D)</KBD>The amount of CHF 15,000 is related to a business combination before the transition date to IFRS. The Company applies the exemption, that IFRS 3 Business Combinations should not be applied to either acquisitions of subsidiaries that are considered businesses under IFRS, or acquisitions of interests in associates and joint ventures that occurred before 1 January 2017. The amount is fully eliminated against retained earnings. No deferred tax effect was accounted for, as the impairment or depreciation of such a Goodwill is not taxable expense according to Swiss tax law.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>E)</KBD>Reclass of &quot;extraordinary&quot; items&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>F)</KBD>Reclass Software to intangible assets&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>G)</KBD>Adjustment of bad debt reserve according to IFRS 9 and related tax effect.&nbsp;</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'>37</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Reconciliation of Equity and Total Comprehensive Income</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:464.2pt><TR style=height:7.2pt><TD valign=bottom style=width:175.5pt;white-space:nowrap><P style='font:10pt Calibri;margin:0;color:#000000'><FONT style='font:10pt Times New Roman'>In CHF</FONT></P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:11pt Calibri;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=bottom style='width:240.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:175.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:48pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:69.5pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Swiss Code</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Obligation</B></P>
</TD><TD valign=bottom style='width:45pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Reclass</B></P>
</TD><TD valign=bottom style='width:62.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Effect of </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Transition to</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>IFRS</B></P>
</TD><TD valign=bottom style='width:63.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>IFRS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>F</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>668,093</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(41,526)</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>626,567</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>81,817</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>81,817</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total current assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,030,794</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>989,268</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>ACF</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Property, plant and equipment</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Intangible assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>D</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>15,000</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(15,000)</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total non-current assets</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>16,528</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>408,495</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL ASSETS</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,047,322</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,397,763</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accruals and deferred income</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>B</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>99,146</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(43,476)</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,670</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>B</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,476</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,476</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183,360</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>241</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183,601</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,019,786</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,020,027</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Long-term debt</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans shareholder</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>241</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(241)</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>A</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total non-current liabilities</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,318</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,279,691</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL LIABILITIES</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,157,104</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,299,718</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Share capital</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Retained earnings</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,209,782)</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>207,827</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,001,955)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL EQUITY</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,109,782)</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,901,955)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:175.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>TOTAL LIAB. AND EQUITY</P>
</TD><TD valign=middle style=width:48pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:69.5pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,047,322</P>
</TD><TD valign=bottom style=width:45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:63.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,397,763</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>38</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:429.1pt><TR style=height:7.2pt><TD valign=bottom style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>In CHF</P>
</TD><TD valign=bottom style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=4 valign=bottom style='width:235.95pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period January 1, to December 31, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:150.05pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:42.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:68.15pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Swiss Code</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Obligation</B></P>
</TD><TD valign=bottom style='width:45.75pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Reclass</B></P>
</TD><TD valign=bottom style='width:62.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Effect of</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Transition</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>to IFRS</B></P>
</TD><TD colspan=2 valign=bottom style='width:59.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>IFRS</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Revenue</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,992,849</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(62,177)</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,930,672</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Material costs</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>F</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,225,167)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,225,167)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Gross profit</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>767,682</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>705,505</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Personnel expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(721,114)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(38,974)</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(760,088)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Travelling expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,813)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,813)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Repair and maint.costs</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(112,110)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(112,110)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Insurance costs</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,046)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,046)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Administration expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(31,487)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(31,487)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Consult., legal and audit fees</P>
</TD><TD valign=middle style=width:42.8pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,666)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,666)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other Operating expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>E</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,671)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(34,179)</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(53,390)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EBITDA</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(191,225)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(327,095)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Depreciation Property, plant</P>
</TD><TD valign=middle style=width:42.8pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>and equipment</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,826)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,826)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amortization of int. assets</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,944)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,944)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>EBIT</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(199,995)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(335,865)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial income</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(73,870)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,427)</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Profit before tax</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(273,865)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(411,162)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>extraordinary expenses</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>E</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(43,930)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,930</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>extraordinary income</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>E</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,211</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(9,211)</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax income / expense</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>ACF</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Profit for the year</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(308,584)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Re-measurement of DBO</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Related tax</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>OCI for the year, net of tax</P>
</TD><TD valign=middle style=width:42.8pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:150.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Total comp. inc. for the year</P>
</TD><TD valign=middle style=width:42.8pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:68.15pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(308,584)</P>
</TD><TD valign=bottom style=width:45.75pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style=width:59.8pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(273,054)</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>39</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 style='font:10pt Times New Roman;line-height:12.65pt;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;line-height:12.65pt;margin:0'><FONT style=line-height:12.65pt><B>Notes to the financial statements</B></FONT></P>
<P style='font:10pt Times New Roman;margin:0'><B>for the year ended December 31, 2018</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>24.</B></KBD><KBD style=margin-left:36pt></KBD><B>Transition to IFRS (continued)</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the reconciliation</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Notes to the transition as of January 31, 2018 and the period from January 1 to December 31, 2018</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>A)</KBD>The Company has applied IAS 19 Employee Benefits to its post-employment benefit plan: The effect is to increase non-current employee benefit liabilities by CHF 142,614 at 31 December 2018. A deferred tax asset was capitalized using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 24,244.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>B)</KBD>Reclass of holiday/social security accrual&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>C)</KBD>Capitalization of unused tax losses of CHF 2,209,782 using the Company&#8217;s tax rate of 17%, which resulted in a deferred tax asset of CHF 375,663.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>D)</KBD>The amount of CHF 15,000 is related to a business combination before the transition date to IFRS. The Company applies the exemption, that IFRS 3 Business Combinations should not be applied to either acquisitions of subsidiaries that are considered businesses under IFRS, or acquisitions of interests in associates and joint ventures that occurred before 1 January 2017. The amount is fully eliminated against retained earnings. No deferred tax effect was accounted for, as the impairment or depreciation of such a Goodwill is not taxable expense according to Swiss tax law.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>E)</KBD>Reclass of &quot;extraordinary&quot; items&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-22.5pt;margin-left:22.5pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:22.5pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-22.5pt'>F)</KBD>Adjustment of bad debt reserve according to IFRS 9 and related tax effect.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Explanation of material adjustments to statement of cash flows</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>According to Swiss Code of Obligations no Cash Flow Statements had to be disclosed. Therefore, no adjustments occurred.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><B>25.</B></KBD><KBD style=margin-left:36pt></KBD><B>Events occurring after the reporting period</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:18pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The Board of directors successfully raised new money. Until Q2 2019, shareholders and third parties invested additional CHF 200,000. It is planned that SwissLink will seek further investors in Q3 2019. For the sale of 51% of Company shares, a Letter of Intent (LOI) is already available.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Besides, no events took place between 31 December 2018 and August 14, 2019 that would require adjustments to the carrying amounts of the assets or liabilities in these financial statements or would need to be disclosed here.</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'>40</P>
<P style='font:10pt Arial;margin:0'>&nbsp;</P>
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<DOCUMENT>
<TYPE>EX1A-15 ADD EXHB
<SEQUENCE>5
<FILENAME>f1unaudited_152.htm
<DESCRIPTION>UNAUDITED FINANCIALS
<TEXT>
<HTML>
<!-- Produced by EDGARsuite software, Advanced Computer Innovations, Inc., Copyright (C) 2008-2019 [PPXAC8S3T1P2VHWGMNX8]. www.edgarsuite.com -->
<HEAD>
<TITLE>Exhibit 15.2 Unaudited Interim Financials</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:523.5pt><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0'><B>EXHIBIT 15.2</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;margin-left:5.6pt'><B>SwissLink Carrier AG (formerly Swissphone Carrier AG)</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;margin-left:5.6pt'><B>Quarterly reporting for the period from 1 January to 31 March 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;margin-left:5.6pt'><B>Unaudited figures</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:5.6pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>Registered office:</KBD><KBD style=margin-left:92.15pt></KBD>Schochenm&#252;hlestrasse 4&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:97.75pt;margin-right:283.05pt'>6340 Baar Switzerland</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;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;margin-left:5.6pt'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:5.2pt'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=top style=width:323.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>INCOME STATEMENT</P>
</TD><TD valign=top style=width:30.75pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>3</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:323.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>BALANCE SHEET</P>
</TD><TD valign=top style=width:30.75pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>4</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:323.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>STATEMENT OF CASH FLOWS</P>
</TD><TD valign=top style=width:30.75pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>5</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:323.7pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>STATEMENT OF CHANGES IN SHAREHOLDER&#8217; EQUITY</P>
</TD><TD valign=top style=width:30.75pt;padding-left:5.4pt;padding-right:5.4pt><P style='font:10pt Times New Roman;margin:0'>6</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;margin:0'>2</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Statement of comprehensive income</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>for the period from January 1 to March 31, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:540.3pt><TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Income statement</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:97.35pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:21.35pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:85.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:97.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period</B></P>
</TD><TD valign=middle style=width:21.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year ended </B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:97.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>To</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>March 31, 2019</B></P>
</TD><TD valign=middle style=width:21.35pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Continuing operations</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Revenue</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,361,292</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>7,930,672</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Material costs</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,150,599)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(7,225,167)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Gross profit</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>210,693</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>705,505</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Personnel expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(112,874)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(760,088)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Travelling expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(4,780)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(18,813)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Repair and maintenance costs</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(36,902)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(112,110)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Insurance costs</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(16,955)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,046)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Administration expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(9,191)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(31,487)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Consulting, legal and audit fees</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(29,666)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other Operating expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(6,981)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(53,390)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Operating result before interest and taxes (EBITDA)</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>23,010</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(327,095)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Depreciation PP&amp;E</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(553)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,826)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amortisation of intangible assets</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(5,944)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Operating result before interest and taxes (EBIT)</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>22,457</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(335,865)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other non operating expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,399)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Financial expenses</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,141)</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(75,297)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Profit/Loss before tax</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>17,917</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(411,162)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax income</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>69,897</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Profit/Loss for the period/year</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>17,917</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(341,265)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:294.95pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Other comprehensive income</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B><I>Items that will not be reclassified subsequently to profit and loss:</I></B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Re-measurement of defined benefit obligation</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>82,182</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Related tax</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(13,971)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>68,211</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Other comprehensive income / (expenses) for the year, net of tax</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>68,211</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:97.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:85.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:294.95pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total comprehensive income / (expenses) for the year</B></P>
</TD><TD valign=middle style=width:41pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:97.35pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:21.35pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:85.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(273,054)</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=Income_statement /><A name=_bookmark0 />&nbsp;</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;margin:0'>3</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Balance sheet</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>as at March 31, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:581.65pt><TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance sheet</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:75.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:90.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>March 31, 2019</B></P>
</TD><TD valign=middle style=width:13.3pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>December 31, 2018</B></P>
</TD><TD valign=middle style=width:13.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, 2018</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note</B></P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>ASSETS</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:75.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:90.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Current assets</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:75.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:90.7pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:13.45pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:78.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>149,682</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable (net)</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,270,434</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>626,567</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,233,978</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade accounts receivable, shareholder</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current receivables</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>76,958</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>81,817</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>149,017</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Prepayments / accrued income</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total current assets</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,497,074</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>989,268</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,502,718</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Non-current assets</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax assets</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>406,967</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>354,552</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Property, plant and equipment</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>12,018</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,528</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>9,089</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Intangible assets</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>23,775</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total non-current assets</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>418,985</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>408,495</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>387,416</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>TOTAL ASSETS</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,916,059</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,397,763</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,890,134</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:271.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>LIABILITIES AND SHAREHOLDERS' EQUITY</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Current liabilities</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accounts payable, trade</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,209,145</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>737,280</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>931,103</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Accruals and deferred income</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>55,670</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>35,996</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>43,476</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>71,226</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other current liabilities</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>213,305</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>183&#8217;601</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>48&#8217;520</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total current liabilities</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1&#8217;422&#8217;450</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,020,027</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,086,845</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Non-current liabilities</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loan, third party</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>97&#8217;956</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, shareholder</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,137,077</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>1,601,825</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loans, related parties</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>642,459</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Deferred tax liabilities</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>3,511</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Employee benefits</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>142,614</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>184,395</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total non-current liabilities</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>2,377,647</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>2,279,691</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>2,432,190</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>TOTAL LIABILITIES</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>3,800,097</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>3,299,718</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>3,519,035</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Shareholders' equity</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Share capital</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:75.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:90.7pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:78.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>100,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Retained earnings</P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,984,038)</P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,001,955)</P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(1,728,901)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total Equity</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,884,038)</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,901,955)</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,628,901)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:271.3pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</B></P>
</TD><TD valign=middle style=width:39pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:75.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,916,059</B></P>
</TD><TD valign=bottom style=width:13.3pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:90.7pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,397,763</B></P>
</TD><TD valign=bottom style=width:13.45pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:78.2pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,890,134</B></P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;margin:0'>4</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 style='font:10pt Times New Roman;margin:0;margin-left:15.2pt'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Statement of cash flow</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>for the period from January 1 to March 31, 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:482.4pt><TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Statement of cash flows</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap rowspan='3'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Period</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>January 1, 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>To</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>March 31, 2019</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF) </B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap rowspan='3'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Year</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>ended 2018</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF) </B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:43pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Note &nbsp;</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>Cash flow from operating activities</B></FONT></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:91.9pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:26.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:79.55pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Profit/Loss for the period/year </P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>17,917</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(341,265)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Adjustments for:</I></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Depreciation of fixed assets</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>553</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,826</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Amortization of intangible assets</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>5,944</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Change in employee benefits</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(43,476)</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>38,974</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Non-cash financial expense/(income), net</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,448</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Tax income <FONT style='border-bottom:1px solid #000000'> &nbsp;</FONT></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(69,897)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:241.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(42,923)</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>(351,970)</B></FONT></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>Changes in:</I></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade and other receivables</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(639,008)</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>674,611</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Trade and other payables and accruals</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>445,899</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(39,068)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Current employee benefits</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(27,750)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:241.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(193,109)</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>607,793</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Income taxes paid</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Cash-flow from operating activities</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(218,115)</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>255,823</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>Cash flow from investing activities</B></FONT></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Acquisition for intangible assets</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Acquisition of tangible assets</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(8,223)</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>11,773</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Proceeds from sale of intangible assets</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>29&#8217;719</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net cash provided / (used in) by investing activities</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(8,223)</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>41,492</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><FONT style='border-bottom:1px solid #000000'><B>Cash flow from financing activities</B></FONT></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Proceeds of loans, shareholder</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>535,252</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Proceeds of loans, third party</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>97,956</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Repayment of loans, related parties</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(642,459)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest paid</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(3,201)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Interest on shareholder loans paid</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(12,938)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Bank fees and other finance fees paid</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(14,887)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net cash used in financing activities</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:91.9pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>97,956</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:79.55pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(138,233)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Net increase / (decrease) in cash and cash equivalents</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(128,382)</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>159,082</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Cash and cash equivalents at beginning of year</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>280,884</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>119,723</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Effect of foreign exchange rate changes</P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(2,820)</P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>2,079</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:241.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Cash and cash equivalents at end of period/year</B></P>
</TD><TD valign=middle style=width:43pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:91.9pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>149,682</B></P>
</TD><TD valign=bottom style=width:26.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:79.55pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>280,884</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><A name=Statement_of_cash_flows /><A name=_bookmark2 />&nbsp;</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;margin:0'>5</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Statement of changes in shareholders' equity </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>for the period from 1 January to 31 March 2019</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:550.1pt><TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Statement of changes in shareholders' equity</B></P>
</TD><TD valign=middle style=width:60pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:60.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:51.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:58.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:60pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:60.85pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:19pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:58.2pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>(in CHF)</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Share capital</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Translation reserve</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Retained earnings</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total equity</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance as at 1 January 2018</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>100,000</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,728,901)</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,628,901)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Loss for the year</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>(341,265)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other comprehensive income / (expenses)</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>68,211</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Remeasurements of defined benefit obligation (see Note 15)</I></P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>82,182</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>82,182</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Related tax (see Note 8)</I></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>(13,971)</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>(13,971)</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total comprehensive income / (expenses)</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(273,054)</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(273,054)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance as at 31 December 2018</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>100,000</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(2,001,955)</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,901,955)</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Profit for the period/year</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>17,917</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>17,917</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'>Other comprehensive income / (expenses)</P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Remeasurements of defined benefit obligation (see Note 15)</I></P>
</TD><TD valign=bottom style=width:60pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:60.85pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:51.05pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:58.2pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><I>- Related tax (see Note 8)</I></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>-</P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><I>-</I></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Total comprehensive income / (expenses)</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>17,917</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>17,917</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=width:263pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;color:#000000'><B>Balance as at 31 March 2019</B></P>
</TD><TD valign=bottom style='width:60pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>100,000</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:60.85pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>-</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:51.05pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>1,984,038</B></P>
</TD><TD valign=bottom style=width:19pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:58.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0;color:#000000'><B>(1,884,038)</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'><A name=Statement_of_changes_in_shareholders__eq /><A name=_bookmark3 />&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:6.2pt'>As of 31 March 2019 the share capital consists of 1&#8217;000 shares, each with a par value of CHF 100. The share capital is fully liberated.</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Arial;margin:0'>6</P>
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<DOCUMENT>
<TYPE>EX1A-15 ADD EXHB
<SEQUENCE>6
<FILENAME>f1proforma_153.htm
<DESCRIPTION>PRO-FORMA FINANCIALS
<TEXT>
<HTML>
<!-- Produced by EDGARsuite software, Advanced Computer Innovations, Inc., Copyright (C) 2008-2019 [PPXAC8S3T1P2VHWGMNX8]. www.edgarsuite.com -->
<HEAD>
<TITLE>Exhibit 15.3 Pro-Formas</TITLE>
</HEAD>
<BODY>
<DIV style=margin-left:36pt;width:540pt><P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=right style='font:10pt Times New Roman;margin:0'><B>EXHIBIT 15.3</B></P>
<P align=right style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>IQSTEL INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B> </B>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><FONT style=background-color:#FFFFFF>The following unaudited pro forma combined financial statements give effect to the acquisition of Swisslink Carrier AG (&#8220;Swisslink&#8221;).</FONT> </P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:100%><TR style=height:7.2pt><TD valign=top style=width:95.52%;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=top style='width:4.48%;padding:0.75pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>Page</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:95.52%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2019</P>
</TD><TD valign=top style='width:4.48%;padding:0.75pt;border-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>2</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:95.52%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unaudited Pro Forma Consolidated Statement of Operations for the Three Months Ended March 31, 2019</P>
</TD><TD valign=top style=width:4.48%;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>3</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=top style=width:95.52%;padding:0.75pt><P style='font:10pt Times New Roman;margin:0'>Unaudited Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2018</P>
</TD><TD valign=top style=width:4.48%;padding:0.75pt><P align=center style='font:10pt Times New Roman;margin:0'>4</P>
</TD></TR>
</TABLE>
<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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>IQSTEL INC.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>Unaudited Pro Forma Condensed Combined Balance Sheet</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>As of March 31, 2019</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:587.15pt><TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL Inc</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>SwissLink </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Carrier AG</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:77.9pt;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Adjustments</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Notes</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>As Adjusted</B></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'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</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'><B>Assets</B></P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:62.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Current Assets</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:62.1pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Cash</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>71,084</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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>150,460</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(50,000)</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'>4(a)</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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>171,544</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts receivable, net</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'>1,853,614</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 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'>1,277,040</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>3,130,654</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Due form related parties</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'>258,020</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>258,020</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Prepaid and other current assets</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><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'>61,554</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 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'>77,358</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>138,912</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Current assets</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'>2,244,272</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 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'>1,504,858</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(50,000)</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'>&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 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'>3,699,130</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Deferred tax assets</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'>-</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 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'>409,083</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>409,083</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Property and equipment, net</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'>272,550</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 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'>12,080</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>284,630</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Goodwill</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'>-</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,465,857</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'>4(b)</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 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'>1,465,857</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Assets</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,516,822</B></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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,926,021</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,415,857</B></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'>&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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>5,858,700</B></P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle 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 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'>&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 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'>&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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;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'>&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'>&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'>&nbsp;</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'><B>Liabilities and Shareholders' Deficit</B></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'>&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 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'>&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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;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'>&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'>&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'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Current Liabilities</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'>&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 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'>&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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;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'>&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'>&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'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accounts payable</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,075,033</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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,215,433</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,290,466</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Due to related parties</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'>23,231</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>23,231</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Loans payable</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'>99,415</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>99,415</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Loans payable - related parties</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'>90,787</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>90,787</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Convertible notes - net of discount of $607,654</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'>151,596</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>151,596</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Other current liabilities</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'>355,849</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 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'>214,414</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>570,263</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Derivative liabilities</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><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'>3,084,136</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>3,084,136</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Current Liabilities</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'>4,880,047</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 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'>1,429,847</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>6,309,894</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Loan</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'>-</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 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'>98,465</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>98,465</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Loan - shareholder</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'>-</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 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'>2,148,190</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>2,148,190</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Employee benefits</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'>-</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 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'>143,356</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>143,356</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Liabilities</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>4,880,047</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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>3,819,858</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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>8,699,905</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Stockholders&#8217; Deficit</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'>&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 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'>&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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;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'>&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'>&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'>&nbsp;</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;text-indent:-7.2pt;margin-left:17.2pt'>Preferred stock: 8,500,000 authorized; $0.0001 par value - no shares issued and outstanding</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'>-</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</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'>&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 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'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;text-indent:-7.2pt;margin-left:17.2pt'>Common stock: 2,000,000,000 authorized; $0.001 par value 15,276,724 shares (pre-adjustment) and 15,620,236 share (post-adjustment) shares issued and outstanding</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'>15,277</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>343</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'>4(b)</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 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'>15,620</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Share capital</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'>-</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 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'>100,520</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(100,520)</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 rowspan='3'><P align=right style='font:10pt Times New Roman;margin:0'>4(c)</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 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'>-</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Additional paid in capital</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'>1,314,464</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>449,657</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'>&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'>1,764,121</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Accumulated deficit</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'>(3,692,966)</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 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'>(1,994,357)</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,994,357</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'>&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'>(3,692,966)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total iQSTEL Inc. Stockholder&#8217;s Deficit</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</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'>(2,363,225)</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-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</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'>(1,893,837)</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-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-top:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,343,837</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'>&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-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</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'>(1,913,225)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:10pt'>Non-controlling interest</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'>-</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 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'>-</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 style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:62.1pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(927,980)</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'>4(b)</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 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'>(927,980)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>Total Stockholders&#8217; Deficit</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,363,225)</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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,893,837)</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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,415,857</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'>&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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,841,205)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'><B>Total Liabilities and Stockholders' Deficit</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>2,516,822</B></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:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,926,021</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='width:62.1pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>1,415,857</B></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'>&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:3px double #000000'><P style='font:10pt Times New Roman;margin:0'><B>$</B></P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'><B>5,858,700</B></P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><I>See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Statements.</I></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'>2</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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>IQSTEL INC.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>Unaudited Pro Forma Condensed Combined Statement of Operations </B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>Three Months Ended March 31, 2019 </B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE style=border-collapse:collapse;width:528.1pt><TR style=height:15pt><TD valign=bottom style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='width:73.45pt;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL Inc</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>SwissLink </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Carrier AG</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Adjustments</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Notes</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>As Adjusted</B></P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><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'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:57.65pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Revenue</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>4,163,203</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,368,371</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>5,531,574</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Cost of Goods Sold</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>3,727,626</P>
</TD><TD valign=middle 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 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'>1,156,582</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>4,884,208</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Gross Profit</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>435,577</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>211,789</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>647,366</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Operating Expenses</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>General and Administrative Expenses</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>190,507</P>
</TD><TD valign=middle 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 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'>189,930</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>380,437</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Total Operating Expenses</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>190,507</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>189,930</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>380,437</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Operating Loss</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>245,070</P>
</TD><TD valign=middle 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 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'>21,859</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>266,929</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other Income (Expense)</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other income</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,600</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>2,600</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Interest expense</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(265,037)</P>
</TD><TD valign=middle 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 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'>(2,443)</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>(267,480)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other expenses</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(142)</P>
</TD><TD valign=middle 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 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'>(1,406)</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>(1,548)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Change in fair value of derivative liabilities</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,008,069)</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>(1,008,069)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Total other expense</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,270,648)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(3,849)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,274,497)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'><A name=RANGE!B21 />Net income (loss) before provision for income taxes</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,025,578)</P>
</TD><TD valign=middle 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 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'>18,010</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>(1,007,568)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Income taxes</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>-</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Net Income (Loss)</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,025,578)</P>
</TD><TD valign=middle 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 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'>18,010</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>(1,007,568)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Less: Net income attributable to noncontrolling interest</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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 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'>-</P>
</TD><TD valign=middle 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 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'>8,825</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>4(d)</P>
</TD><TD valign=middle 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 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'>8,825</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Net loss attributable to shareholders of iQSTEL Inc.</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,025,578)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>18,010</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>8,825</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(1,016,393)</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>&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=width:57.65pt;white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD><TD valign=middle 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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 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'>&nbsp;</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Basic and dilutive loss per common share</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.07)</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 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'>&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 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'>&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=center 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'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.07)</P>
</TD></TR>
<TR style=height:14.4pt><TD valign=middle style=width:166.5pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Weighted average number of common shares outstanding</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:57.65pt;white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,039,588</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 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'>&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:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>343,512</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=center style='font:10pt Times New Roman;margin:0'>4(b)(e)</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:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>15,620,236</P>
</TD></TR>
</TABLE>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><I>See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Statements.</I></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'>3</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=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>IQSTEL INC.</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>Unaudited Pro Forma Condensed Combined Statement of Operations</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style=background-color:#FFFFFF><B>Year Ended December 31, 2018</B></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<TABLE style=border-collapse:collapse;width:540.05pt><TR style=height:15pt><TD valign=bottom style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>iQSTEL Inc.</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>SwissLink </B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Carrier AG</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Adjustments</B></P>
</TD><TD valign=bottom><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='width:45.65pt;border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Notes</B></P>
</TD><TD valign=bottom style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD colspan=2 valign=bottom style='border-bottom:0.5pt solid #000000' rowspan='2'><P align=center style='font:10pt Times New Roman;margin:0'><B>Proforma</B></P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>As Adjusted</B></P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle><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'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='width:45.65pt;white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style='white-space:nowrap;border-top:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Revenue</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>13,775,361</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>8,065,493</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>21,840,854</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Cost of Goods Sold</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>12,582,955</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>7,347,995</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>19,930,950</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Gross Profit</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,192,406</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>717,498</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,909,904</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Operating Expenses</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>General and Administrative Expenses</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>1,117,785</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,338,086</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Total Operating Expenses</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,220,301</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,117,785</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>2,338,086</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Operating Loss</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(27,895)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(400,287)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(428,182)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other Income (Expense)</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other income</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,642</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>11,642</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Interest expense</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(460,185)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(17,865)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(478,050)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Other expenses</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(41,498)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(41,498)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Change in fair value of derivative liabilities</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,588,567)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(1,588,567)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Gain on settlement of debt</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,342</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>2,342</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Total other expense</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,076,266)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(17,865)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,094,131)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'><A name=RANGE!B22 />Net loss before provision for income taxes</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(418,152)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,522,313)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Income taxes</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'> &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'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>71,085</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>71,085</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Net loss </P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(347,067)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(2,451,228)</P>
</TD></TR>
<TR style=height:13.2pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Add: Net loss attributable to noncontrolling interest</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>-</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>(170,063)</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P align=center style='font:10pt Times New Roman;margin:0'>4(d)</P>
</TD><TD valign=middle 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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>(170,063)</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Net loss attributable to shareholders of iQSTEL Inc.</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,104,161)</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(347,067)</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(170,063)</P>
</TD><TD valign=middle style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle 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-top:0.5pt solid #000000;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-top:0.5pt solid #000000;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(2,281,165)</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;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'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P align=right style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD></TR>
<TR style=height:13.8pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Basic and dilutive loss per common share</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.15)</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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;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'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>$</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(0.17)</P>
</TD></TR>
<TR style=height:14.4pt><TD valign=middle style=width:171pt;white-space:nowrap><P style='font:10pt Times New Roman;margin:0;text-indent:-8.25pt;margin-left:8.25pt'>Weighted average number of common shares outstanding</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'> &nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>13,721,304</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 style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=white-space:nowrap><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&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'>&nbsp;</P>
</TD><TD valign=bottom style=width:45.65pt;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'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0;margin-left:-0.75pt'>&nbsp;</P>
</TD><TD valign=bottom style='white-space:nowrap;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>13,721,304</P>
</TD></TR>
</TABLE>
<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=background-color:#FFFFFF><I>See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Statements.</I></FONT></P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</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'>4</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=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>IQSTEL INC.</B></P>
<P align=center style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>Notes to the Unaudited Pro Forma Condensed Combined Financial Statements</B></P>
<P style='font:10pt Times New Roman;margin:0'><I> </I>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><A name=_Hlk19006338 />On April 1, 2019, iQSTEL Inc. (the &#8220;Company&#8221;) entered into a Company Purchase Agreement (the &#8220;Purchase Agreement&#8221;) by and between the Company and the Ralf Kohler (the &#8220;Seller&#8221;), which agreement provides for the purchase of 51% of the equity and certain assets of SwissLink Carrier AG (&#8220;SwissLink&#8221;) (www.swisslink-carrier.com), a Swiss corporation, by the Company.</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'>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 343,512 shares of common stock at $1.31 per share to the Seller for the 51% equity interest and certain assets in SwissLink and another 510 shares to Seller for 51% of the loan in SwissLink.</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>The consideration for the acquisition consists of $500,000 USD, payable as follows:</P>
<P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>$50,000 USD shall be paid in cash upon execution of the Purchase Agreement; and &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt'><KBD style='position:absolute;font:10pt Symbol;margin-left:-18pt'>&#61623;</KBD>The balance of $450,000 USD shall be paid at Closing in the form of 343,512 shares of common stock in the Company based upon an agreed upon, as adjusted, price of $1.31 per share. &nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;margin-left:36pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Under the Purchase Agreement, the acquisition includes both the 51% equity interest in SwissLink and what are referred to as Additional Assets, which include telecommunications equipment, telecommunications platform software for international long distance voice exchange (VAMP) designed by SwissLink, intellectual rights of the VAMP, receivables, cash in banks, interconnection and service agreements, company information in file and telecommunication license rights for Switzerland.</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>NOTE 1. BASIS OF PRO FORMA PRESENTATION</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>The unaudited pro forma condensed combined financial statements are based on the Company&#8217;s and SwissLink&#8217;s historical consolidated financial statements as adjusted to give effect to the acquisition of SwissLink and the cash and shares issued as part of the acquisition. The unaudited pro forma combined statements of operations for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 give effect to the SwissLink acquisition as if it had occurred on January 1, 2018. The unaudited proforma combined balance sheet as of March 31, 2019 gives effect to the SwissLink acquisition as if it had occurred on March 31, 2019. </P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the Company&#8217;s results of operations. The pro forma adjustments presented in the pro forma combined balance sheet and statement of operations are described in Note 4&#8212; Pro Forma Adjustments.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The unaudited pro forma condensed combined financial information is for illustrative purposes only. These companies may have performed differently had they actually been combined for the periods presented. You should not rely on the pro forma combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined companies will experience after the acquisition.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The unaudited pro forma condensed combined financial statements are presented in United States Dollars (&#8220;USD&#8221;). The financial statements of SwissLink have been translated from Swiss Francs (&#8220;CHF&#8221;) to USD using the closing foreign exchange rate as at March 31, 2019 and December 31, 2018 at a rate of one (1) CHF to USD of $1.0052 and $1.017, respectively.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>NOTE 2. ACCOUNTING PERIODS PRESENTED</B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>Certain pro forma adjustments were made to conform SwissLink accounting policies to the Company&#8217;s accounting policies as noted below.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The unaudited pro forma condensed combined balance sheet as of March 31, 2019 is presented as if the acquisition had occurred on March 31, 2019 and combines the historical balance sheet of the Company at March 31, 2019 and the historical balance sheet of the SwissLink at March 31, 2019.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2019 and has been prepared by combining the Company&#8217;s historical consolidated statement of operations for the three months ended March 31, 2019, with the historical statement of operations of SwissLink for the three months ended March 31, 2019.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2018 has been prepared by combining the Company&#8217;s historical consolidated statement of operations for the year ended December 31, 2018, with the historical statement of operations of SwissLink for the year ended December 31, 2018.</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'>5</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 align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>NOTE 3. PRELIMINARY PURCHASE PRICE ALLOCATION</B></P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>On April 7, 2019, the Company acquired SwissLink for total consideration of approximately $500,000. The unaudited pro forma condensed combined financial statements include various assumptions, including those related to the preliminary purchase price allocation of the assets acquired and liabilities assumed of SwissLink based on management&#8217;s best estimates of fair value. The final purchase price allocation may vary based on final appraisals, valuations and analysis of fair value of the acquired assets and assumed liabilities. Accordingly, pro forma adjustments are preliminary and have been made solely for illustrative purposes.</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The following table shows the preliminary allocation of the purchase price of SwissLink to the acquired identifiable assets, assumed liabilities and pro forma goodwill:</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse><TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Total purchase price</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:92.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>500,000</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Cash</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>150,460</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Accounts receivable, net</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>1,277,040</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Other current assets</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>77,358</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Deferred tax assets</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>409,083</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Property and equipment, net</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:92.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>12,080</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Total identifiable assets</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>1,926,021</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Accounts payable</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,215,433)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Other current liabilities</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(214,414)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Long term loans</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(98,465)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Long term loans &#8211; related party</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(2,148,190)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Employee benefits</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(143,356)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Total liabilities assumed</P>
</TD><TD valign=bottom style='border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:92.2pt;border-top:0.5pt solid #000000;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(3,819,858)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Net assets</P>
</TD><TD valign=bottom><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:92.2pt><P align=right style='font:10pt Times New Roman;margin:0'>(1,893,837)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Non-controlling interest</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:92.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>927,980</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Total net assets</P>
</TD><TD valign=bottom style='border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0'> &nbsp;</P>
</TD><TD valign=bottom style='width:92.2pt;border-bottom:0.5pt solid #000000'><P align=right style='font:10pt Times New Roman;margin:0'>(965,857)</P>
</TD></TR>
<TR style=height:7.2pt><TD valign=bottom style=width:162pt><P style='font:10pt Times New Roman;margin:0'>Goodwill</P>
</TD><TD valign=bottom style='border-bottom:3px double #000000'><P style='font:10pt Times New Roman;margin:0'>$</P>
</TD><TD valign=bottom style='width:92.2pt;border-bottom:3px double #000000'><P align=right style='font:10pt Times New Roman;margin:0'>1,465,857</P>
</TD></TR>
</TABLE>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'><B>NOTE 4. PRO FORMA ADJUSTMENTS</B></P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'>The pro forma adjustments are based on our preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the unaudited pro forma condensed combined financial information: </P>
<P style='font:10pt Times New Roman;margin:0;background-color:#FFFFFF'> &nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>a)</KBD><KBD style=margin-left:18pt></KBD>To record a prepayment of consideration of $50,000.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:36pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:-18pt'>b)</KBD>To record 343,512 shares of the Company&#8217;s unregistered common stock issued in exchange for 51% of equity of SwissLink and recognize goodwill from this acquisition.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:-18pt;margin-left:36pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>c)</KBD><KBD style=margin-left:18pt></KBD>To eliminate the equity account of SwissLink incurred before the closing date of Purchase Agreement.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>d)</KBD><KBD style=margin-left:18pt></KBD>To record 49% noncontrolling interest.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;margin-left:18pt;background-color:#FFFFFF'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>e)</KBD><KBD style=margin-left:18pt></KBD>Proforma as adjusted shares, as of March 31, 2019, are not weighted and are actual shares issued and outstanding. &nbsp;</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'>6</P>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
