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NOTE 13 – ACQUISITION
 9 Months Ended
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)