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NOTE 13 – ACQUISITION | 9 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
NOTE 13 – ACQUISITION | NOTE 13 – ACQUISITION On May 29, 2025, the Company entered into a Unit Purchase Agreement (the “Agreement”) with Craig Span (the “Seller”) and Globetopper, LLC, a Delaware limited liability company ( “Globetopper”), pursuant to which the Company agreed to acquire fifty-one percent (51%) of the membership interests of Globetopper (the “Transferred Membership Interest”) from the Seller. Pursuant to the Agreement, the Company acquired the Transferred Membership Interests of Globetopper for a total purchase price consisting of $700,000, payable as follows: $50,000 upon execution of the Agreement; $50,000 in cash on the closing date; $50,000 in cash 30 days after the closing date, secured by a promissory note and pledge agreement; $50,000 in cash 60 days after the closing date, secured by a promissory note and pledge agreement; $500,000 in restricted common shares of the Company, calculated at a 20% discount to the volume weighted average price (VWAP) during the five days preceding the closing date. Additional payments based on Globetopper’s EBITDA growth, payable in common shares of the Company at a 20% discount to the greater of the VWAP during the five days following the applicable period or preceding the payment date, will be payable as follows:
| • | September 30, 2026: 50% of the positive difference between EBITDA at acquisition and EBITDA 12 months post-Closing.
| • | September 30, 2027: 50% of the positive difference between EBITDA 12 months and 24 months post-Closing.
The acquisition was closed on July 1, 2025. Globetopper has been included in our consolidated results of operations since the acquisition date. The Company will invest up to $1,200,000 in Globetopper over 24 months post-Closing in monthly installments of $50,000, subject to the achievement of specified quarterly financial targets. The following table summarizes the fair value of the consideration paid by the Company:
|  | July 1,
Fair Value of Consideration: |  | 2025
Cash |  | $ | 100,000 |
Promissory note |  |  | 100,000 |
IQSTEL common stock |  |  | 500,000 |
Contingent liability |  |  | 285,175 |
Total Purchase Price |  | $ | 985,175 |
The following table summarizes the preliminary identifiable assets acquired and liabilities assumed upon acquisition of Globetopper and the calculation of goodwill:
Total purchase price |  | $ | 985,175 |
Assets Acquired: |  |  |  |
Cash |  |  | 129,531 |
Prepaid expenses and other current assets |  |  | 306,310 |
Total identifiable assets |  |  | 435,841 |
Liabilities Assumed: |  |  |  |
Other current liabilities |  |  | (71,580 | )
Contract liabilities |  |  | (703,262 | )
Line of credit |  |  | (99,000 | )
Total liabilities assumed |  |  | (873,842 | )
Net assets |  |  | (438,001 | )
Non-controlling interest - 49% |  |  | 214,620 |
Total net assets |  |  | (223,381 | )
Goodwill |  | $ | 1,208,556 |
Unaudited combined proforma results of operations for the three and nine months ended September 30, 2025 and 2024 as though the Company acquired Globetopper on January 1, 2024, are set forth below:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenues |  | $ | 102,867,553 |  |  | $ | 62,183,464 |  |  | $ | 258,349,274 |  |  | $ | 212,841,207 |
Cost of revenues |  |  | 100,126,838 |  |  |  | 59,991,984 |  |  |  | 251,263,440 |  |  |  | 206,623,461 |
Gross profit |  |  | 2,740,715 |  |  |  | 2,191,480 |  |  |  | 7,085,834 |  |  |  | 6,217,746 |
Operating expenses |  |  | 3,299,798 |  |  |  | 2,231,896 |  |  |  | 8,692,708 |  |  |  | 6,647,307 |
Operating loss |  |  | (559,083 | ) |  |  | (40,416 | ) |  |  | (1,606,874 | ) |  |  | (429,561 | )
Other expense |  |  | (1,694,867 | ) |  |  | (651,416 | ) |  |  | (3,819,843 | ) |  |  | (2,648,705 | )
Income tax |  |  | (71,919 | ) |  |  | (69,605 | ) |  |  | (184,190 | ) |  |  | (134,880 | )
Net loss |  | $ | (2,325,869 | ) |  | $ | (761,437 | ) |  | $ | (5,610,907 | ) |  | $ | (3,213,146 | )

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