NASDAQ: IQST

Also under the Telecom Division, our developing Blockchain
Platform Business Line offers our proprietary Mobile Number Portability Application (MNPA) through our subsidiary, itsBchain (www.itsbchain.com).

The Company’s developing Fintech Business Line
offers a complete Fintech ecosystem including a MasterCard Debit Card, US Bank Account (No SSN Needed), and a Mobile App/Wallet for remittances
and mobile top-up services. Our Fintech subsidiary, Global Money One Inc., aims to provide immigrants access to reliable financial services
that makes it easier to manage their money and stay connected with their families back home. Additionally, GlobeTopper LLC (www.globetopper.com),
our most recent acquisition, supports expansion and integration of our business divisions through its B2B digital gift card and incentives
platform, which represented 9% and 0% of our revenues for the years ended December 31, 2025 and 2024.

Our Artificial Intelligence (AI) division, Reality
Border (www.realityborder.com), initially developed an AI-enhanced immersive digital experience platform. Building on that early development
work—including conversational interfaces, multilingual models, and AI-driven workflows—Reality Border now develops practical
AI software solutions for enterprise and telecommunications applications.

Reality Border currently serves as IQSTEL’s AI innovation and product development platform. Its activities include AI agents and
related software solutions designed for web, voice, and contact center environments, as well as integration with telecommunications infrastructure,
business systems, and security layers. The Company’s AI strategy includes solutions such as Airweb.ai for AI-powered customer engagement
across web and phone channels, IQ2Call.ai for AI-enabled call center and customer care applications, and IQCortex.ai for broader AI platform
capabilities and enterprise use cases.

Reality Border’s current development efforts include software functionality, workflow orchestration, multilingual interaction,
system integration, and operational deployment models intended for business use. Reality Border’s earlier immersive platform work
contributed to capabilities that are now being applied in its AI products; however, the current business emphasis is on AI solutions
for enterprise and telecommunications operations rather than metaverse-based environments.

The information contained on our websites is not
incorporated by reference into this annual report and should not be considered part of this or any other report filed with the SEC.

Operating Subsidiaries

IQSTEL's mission is to serve basic human needs in
today's modern world by making the necessary tools accessible regardless of race, ethnicity, religion, socioeconomic status, or identity.
We recognize that access to ubiquitous communications, virtual banking, and information/content is critical to the pursuit of human needs
(physiological, safety, relationships, esteem, and self-actualization). IQSTEL operates through business divisions focused on telecommunications
(communications), fintech (financial freedom), and AI services (information and content). The Company continues to grow and expand its
suite of products and services both organically and through mergers and acquisitions (M&A).

Our telecommunication business currently represents
91% of our 2025 revenues, fintech services represent 9%, while our other business lines (including blockchain and certain AI initiatives)
are in a pre-revenue stage for the financial periods presented.

Telecom Subsidiaries for voice services:

Etelix.com USA LLC, a wholly owned subsidiary
of IQSTEL Inc., is a US based international telecom carrier founded in 2008 that provides telecom and technology solutions worldwide,
with commercial presence in North America, Latin America, and Europe. Etelix provides International Long-Distance voice services for
Telecommunications Operators (ILD Wholesale), and Submarine Fiber Optic Network capacity for internet (4G and 5G).

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Etelix is interconnected to the most important players
in the industry, with a very strong focus on Asian and Latin-American markets, among which it is worth mentioning: China Telecom, PCCW,
Hutchinson Telecom, Vodafone India, KDDI, Airtel, Reliance, Viettel, TATA Communications, Flow Jamaica (Cable and Wireless Caribbean),
Cable and Wireless Panama, Millicom (TIGO), Telefonica de España (Movistar), Telecom Italia (TIM), Portugal Telecom (MEU), Optimus
(NOS), Belgacom (BICS), Deutsche Telekom, iBasis, Orbitel and Entel.

In 2013, Etelix participated in a consortium of telecommunications
carriers that upgraded the Maya-1 submarine cable system, which runs from Hollywood, Florida to Tolú, Colombia. As part of this
arrangement, Etelix held 10 Gbps of capacity, which was subsequently sold to a third party customer. This transaction expanded Etelix’s
ability at that time to provide additional international connectivity capacity to support customer demand.

SwissLink Carrier AG, a 51% owned subsidiary
of IQSTEL Inc., strengthens the company’s international telecommunications portfolio as a Switzerland-based carrier with global
VoIP connectivity and notable commercial presence across Europe, the CIS, and Latin America. In addition to its license as a Swiss-licensed
operator, SwissLink expanded its regulatory footprint in February 2026 by obtaining two key licenses in Italy: (a) Network Infrastructure
& Provision, which authorizes the management of network infrastructure, licensed spectrum applications, number-hosting, transit operations,
and the support of third-party ISPs; and (b) Publicly Available Telephone Services, enabling the provision of fixed voice services and
direct interconnection agreements for voice resellers and value-added services. These dual Italian licenses, alongside its Swiss authorization,
position SwissLink as a full-cycle operator in Italy, granting end-to-end autonomy, technical sovereignty, enhanced reliability, cost
optimization, operational agility, and complete regulatory compliance. Thanks to its strategic position in Europe, SwissLink enables
the IQSTEL group to be highly competitive in capturing voice traffic destined for Asian and African markets. Notably, more than 50% of
traffic terminating in Africa originates from European customers, while nearly 40% of traffic to Asia also flows from Europe, underscoring
Europe’s crucial role as an international telecommunications hub. SwissLink’s robust interconnections with leading carriers—including
Orange Wholesale International, CJC Global Connections & Consulting LLC, iBASIS Communications AG, U.S. South Communications, Inc.,
Belgacom International Carrier, Bell Canada Inc., and SWISSCOM (SCHWEIZ) AG—further extend IQSTEL’s reach and operational
efficiency, supporting expansion in high-growth regions across Asia and Africa.

Whisl Telecom LLC, a 51% owned subsidiary
of IQSTEL Inc., significantly enhances the company’s telecom business through its provision of high-quality services and innovative,
out-of-the-box solutions. As a U.S.-based company, Whisl Telecom primarily serves the Carrier-to-Carrier Global industry, while also
maintaining the network infrastructure necessary to deliver services directly to retail end users (endpoints). Distinguished as one of
the few U.S. carriers with substantial Tier 1 capacity, Whisl offers true high-capacity voice termination, supporting high calls per
second (CPS) and ensuring optimal call quality.

Whisl Telecom’s capabilities contribute
a comprehensive suite of services to IQSTEL’s telecom portfolio, including: (1) US/Canada Inbound/Origination, (2) US/Canada DIDs,
(3) US/Canada Toll-Free Numbers, (4) Global DIDs, and (5) Global Toll-Free Numbers.

Smartbiz Telecom LLC. Is a 51% owned subsidiary
of IQSTEL Inc. acquired in June 2022. Smartbiz is a US based company that provides international voice termination to niche markets.
With this acquisition IQSTEL expanded its telecommunication services offer to markets the company was not serving before. Smartbiz has
commercial relations with relevant players in the industry, among which it is worth mentioning the following: Telefonica Global Solutions.
S.L, Telintel Ltd, Teliax, Inc Tf, Sistemas Satelitales de Colombia S.A. Esp, and IDT Global Limited.

QXTEL Limited is a 51% owned subsidiary of
IQSTEL Inc. acquired in April 2024. QXTEL is one of the most advanced and diversified telecommunications and technology services provider
focused on platform services for wholesale, retail and cloud communications service providers, wholesale carrier voice, wholesale carrier
messaging (A2P SMS) and carrier technology services with over 20 years in the telecom industry switching more than 5 billion voice and
A2P SMS transactions over 200 interconnections worldwide. QXTEL is headquartered in London (UK) with regional offices in Florida (USA),
Buenos Aires (Argentina), Dubai (UAE), Belgrade (Serbia) and Istanbul (Turkey). QXTEL maintains commercial relations with significant
players in the industry such as BTS Business Telecommunications Service Inc., China Mobile International Limited, Deutsche Telekom AG,
Digicel Jamaica Limited, Emirates Telecom Etisalat, Hutchison Global Communication, iBASIS Communications AG, IDT Global Limited, Messagebird,
Orange Wholesale International, Tata Communications (Canada) Ltd, Telekom Deutschland Gmbh (T-Mobile), T-Mobile USA, Inc., and Vodafone
US Inc.

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With the combination of the technology capabilities
of these five subsidiaries, IQSTEL has put together a complete portfolio of services for carriers and end users. These services include:

• International
Voice Termination for carriers: This service enables the routing of international voice calls to their final destinations across
various countries. Telecom carriers use this to handle large volumes of cross-border voice traffic by connecting through intermediary
providers or directly to in-country networks.

• US/Canada
Inbound / Origination: This refers to the ability to receive incoming calls originating in the United States or Canada. It ensures
seamless connectivity for businesses or carriers looking to establish a local presence in these regions by offering local or toll-free
numbers.

• Global
DIDs: These are virtual phone numbers that allow users to receive calls from specific geographic locations, regardless of where
they are physically located. They are essential for businesses seeking global reach, providing local numbers for customers worldwide.

• Global
Toll-Free Numbers: Toll-free numbers work internationally, allowing customers to call businesses without incurring charges. These
numbers are ideal for companies serving global clients, offering free and easy access to customer service or sales teams.

• PBX
(Private Branch Exchange) for small businesses: A PBX is a private telephone network used within an organization, enabling efficient
internal and external communication. For small businesses, modern PBX systems often come as cloud-based or hosted solutions, offering
affordability and advanced features like call routing and voicemail.

• SIP
Trunking: SIP Trunking enables voice communication over the internet rather than traditional phone lines. It connects a business’s
PBX system to the telephone network, offering cost savings, scalability, and support for voice, video, and messaging services.

Telecom services represented 100% of our consolidated
revenue in 2024. In 2025, revenue from the telecom services represented 91% of the total revenue.

Voice services accounted for 59.83% of the total
revenue in 2025 ($189,605,526 out of the total $316,899,498) compared to 66.09% of the total revenue in 2024 ($187,194,236 out of the
total $283,220,442).

Telecom Subsidiaries for SMS services:

QGlobal SMS LLC is a 100% owned subsidiary
of IQSTEL Inc. QGlobal SMS is a USA based company founded in 2020 specializing in international and domestic SMS termination. QGlobal
SMS has a commercial presence in Europe, USA and Latin America, with robust international interconnection with Tier-1 SMS Aggregators,
guaranteeing its customers high quality and low termination rates, in over more than 100 countries. Main customers are Computer-Tel Inc.,
iBasis Communications AG, Telefonica Global Solutions. S.L, Telintel Ltd., and Twilio Ireland Limited.

IoT Labs LLC is a 51% owned subsidiary of
IQSTEL Inc. IoT Labs is an SMS service provider based in Austin, TX. Specialized in the SMS traffic exchange between US and Mexico. Main
customers are Aztek Corporative Properties Inc, Bytescale C., Codek Connect LLC, and Nuvoteq LLC.

The Company entered into the SMS business in 2020
through the acquisition of QGlobal and IoT Labs. Both companies specialize in international and domestic SMS termination, with emphasis
on the Applications to Person (A2P), Person to Person (P2P) and OmniChannel Marketing Services for several markets: Wholesale Carrier,
Government, Corporate, Enterprise, Small and Medium Companies.

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The Global A2P SMS Market is expected to grow at
a CAGR of 4.1% to account for $101 billion in 2030, according to Transparency Market Research. This market has experienced significant
growth and adoption rate in the past few years and is expected to experience notable growth and adoption in years to come.

The Company’s role in these services is to
ensure seamless voice and SMS communication across international borders by establishing peering agreements with other telecommunication
entities. This is possible using sophisticated algorithms to determine the most cost-effective and reliable paths for voice/SMS traffic,
managing media protocols such as SIP (Session Initiation Protocol) and RTP (Real-time Transport Protocol) to ensure smooth communication
between different networks ensuring efficient call routing.

The Company acts as a transit network that allows
the completion of voice calls, or SMSs connecting the network where the calls/SMSs are originated and the network where the calls/SMSs
are intended to terminate. The graphic below shows the path of a voice call or SMS, all parties involved and where the Company is situated
in that ecosystem.

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Fintech services:

GlobeTopper, Inc. In July 2025, the Company
acquired a 51% controlling interest in GlobeTopper, Inc., a global business-to-business (“B2B”) digital gift card and incentives
platform. GlobeTopper provides enterprises with the infrastructure, catalog access, and operational support required to design, source,
and manage digital gift card programs across multiple geographies. Its platform enables clients to incorporate digital gift cards into
customer acquisition, loyalty, rewards, employee incentives, and other promotional or payment-adjacent use cases. The company continues
to expand its catalog and geographic coverage of more than 4,000 merchant brands across multiple regions and industry categories, adding
new brands and markets on an ongoing basis. Since 2024, GlobeTopper has processed over 1 million digital gift card transactions through
its platform. GlobeTopper operations reported 9% of our revenues for the year ended December 31, 2025.

New businesses subsidiaries:

ItsBchain LLC is a 75% owned subsidiary
of IQSTEL Inc. ItsBchain is a blockchain technology developer and solution provider, with a strong focus on the telecom sector. The company
has focused on the development of solutions aimed at using the blockchain ledger and smart contracts to enable more efficiency, quickness
in execution and fraud-prevention in the telecommunications industry. Specifically, the company has developed a solution that will enable
users and carriers to transfer mobile phone numbers with just a few clicks, allowing users and carriers the ability to transfer retail
users from one mobile carrier to another instantly.

The Company has done research covering 35 countries
where number portability is mandatory by law. Those 35 countries have a total of 3.3 billion in population and 4.0 billion phone lines
that can be ported from one carrier to another. It is estimated that an average of 5% of the total phone lines are ported every year.

Number portability is executed and supervised by
a third independent party, who acts as a database administrator and has the responsibility to guarantee all transactions requested by
the customers will be completed and his/her phone number will be ported from Carrier A to Carrier B. In the countries under our analysis
there are 11 different database administrators.

In terms of dollar value, the number portability
market in the countries under our analysis is estimated at over $86 million per year. This is based on the actual cost carriers and/or
customers have to pay to get the lines ported. Revenues of the Data Base Administrators comes from a monthly fee charged to all participant
carriers, plus a fee for every transaction completed over the platform. The monthly fee and the transactions fee vary from country to
country.

Our objective is to offer the market conformity by
data-based administrators a much more cost-effective solution, which will not only reduce the operating cost, but that will also make
the transactions to complete faster without any additional CAPEX.

Our mobile number portability solution is now being
tested prior to its commercial release.

Global Money One Inc. Is a 75% owned subsidiary
of IQSTEL Inc. The company offers a complete Fintech ecosystem including a MasterCard Debit Card, US Bank Account (No SSN Needed), and
a Mobile App/Wallet to manage Remittances and Mobile Top Up. Our focus is to provide immigrants access to reliable financial services
that make it easier to manage their money and stay connected with their families back home.

All available services can be managed through our
mobile App “GlobalMoneyOne” available for IOS and Android. The first non-commercial release of the Fintech suite was done
in June 2022. Since that date all services have been tested including the known-your-customer (KYC) process for the issuance of debits
cards, the settlement process with the issuer bank, the intermediary entities handling the remittances, and the intermediaries and cellular
operators for the Top Up, as well as the proper training of our customer care agents.

According to recent estimates from the World Bank,
remittances to low- and middle-income countries continued their upward trajectory, approaching nearly $700 billion in 2025. Transfers
to Latin America and the Caribbean reached record levels, driven largely by strong labor-market participation of regional migrants in
the United States. Within the region, remittances grew sharply in several countries: Nicaragua registered increases of over 22%, Guatemala
saw growth of around 14%, and Colombia reported gains of more than 14% during the first half of the year. In contrast, Mexico experienced
a decline of roughly 4.6% after more than a decade of uninterrupted growth. As a share of GDP, the most recent data show remittances
remaining highly significant across Central America and the Caribbean, with El Salvador and Honduras maintaining ratios above 24% and
25% respectively, while Jamaica and Haiti continue to depend heavily on inflows despite varying economic conditions. These metrics show
there are business opportunities in the remittances arena and Global Money One has a developed platform to take advantage of them.

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Reality Border LLC initially developed an
early proof-of-concept immersive digital platform for IQSTEL. Building on that early development work, Reality Border now develops AI
software solutions for enterprise and telecommunications applications. Reality Border currently serves as IQSTEL’s AI innovation
and product development platform, with activities that include AI agents and related software solutions for web, voice, and contact center
environments, as well as integration with telecommunications infrastructure, business systems, and security layers. Reality Border’s
current development efforts include software functionality, workflow orchestration, multilingual interaction, system integration, and
operational deployment models intended for business use.

Regulations

The following is a summary of what we believe to
be the material current and proposed international, federal, state, and local laws, regulations, orders, and legislation that could have
a material effect on our business, financial condition, and results of operations. This summary is not exhaustive, and new or changed
requirements could impose additional material obligations or costs.

Regulation of Telecom in the United States

Telecommunications services in the United States
are subject to comprehensive regulation at the federal, state, and local levels. Non-compliance with applicable requirements may result
in enforcement actions, including the imposition of interest, fines, or other penalties. The Federal Communications Commission (“FCC”)
exercises jurisdiction over all telecommunications common carriers to the extent they provide interstate or international services, including
the use of local networks to originate or terminate such traffic. State public utility commissions regulate these same carriers with
respect to the provision of intrastate and local services. In addition, local governmental authorities may indirectly affect our operations
through zoning restrictions, taxation, permitting and right-of-way requirements, and franchise obligations. Any material changes to the
laws, rules, or regulatory frameworks administered by these federal, state, or local authorities could adversely affect our business,
operating results, and financial condition.

Regulation of Telecom by the Federal Communications Commission

Universal Service and Other Regulatory Fees and
Charges

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’s interstate and international end user telecommunications revenues
reported to the FCC. Etelix and our other US-based telecom subsidiaries 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

In addition, based on the nature of our current business,
we receive certain exemptions from federal Universal Service Fund contributions. Changes in our business (including growth in our fintech
or AI operations) could eliminate our ability to qualify for some or all of these exemptions. Changes in regulations 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’ 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.

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Regulation of Telecom—International

In connection with our international operations,
we have obtained licenses or are otherwise authorized to provide telecommunications services in Switzerland and Italy (including SwissLink’s
recent expansion of its regulatory footprint in Italy in February 2026). In several of the jurisdictions in which we currently operate
or intend to operate, our activities are subject to local laws and regulatory frameworks that, among other provisions, may restrict or
limit the ability of private telecommunications providers to compete with state-owned or state-authorized incumbent carriers. These regulatory
constraints can materially affect the scope and manner in which we are permitted to offer telecommunications services in those markets,
increase compliance costs, or require additional licensing or approvals.

Regulation of Internet Telephony

The provision of voice communications services over
the Internet and private IP networks is generally subject to a less burdensome regulatory framework than traditional circuit-switched
telephony in the United States and many foreign jurisdictions. In numerous markets, these IP-based services are not currently subject
to certain taxes, fees, or regulatory assessments that apply to legacy telephony and that would otherwise increase our operating costs.
As a result, we are able, in many jurisdictions, to offer VoIP services at pricing levels that are more competitive than those applicable
to traditional telephone services. However, legislative and regulatory bodies in the United States and abroad have undertaken efforts
to align the regulatory treatment of VoIP with that of traditional telephony. Such initiatives could impose additional fees, taxes, charges,
or regulatory obligations on IP-based communications services, which could materially increase our costs and diminish or eliminate our
pricing advantages. Moreover, several foreign governments have enacted, or are considering, laws or regulations that restrict or prohibit
the provision of voice services over the Internet or private IP networks. These measures could similarly impair our ability to offer
VoIP services in affected markets.

Money Transmitter and Payment Instrument Laws
and Regulations

Our consumer payment services offerings—including prepaid
debit cards, remittances, and mobile top-up services provided through Global Money One and GlobeTopper—are heavily regulated industries.
Accordingly, we, and the products and services that we offer in consumer payment services, are subject to a variety of federal and state
laws and regulations, including:

·
Banking laws and regulations;

·
Money transmitter and payment instrument laws and regulations
(which may require state licensing and ongoing compliance);

·
Anti-money laundering laws (including the Bank Secrecy
Act and related know-your-customer (“KYC”) and customer due diligence requirements);

·
Privacy and data security laws and regulations (including
applicable state and federal requirements and, where relevant, international frameworks such as GDPR for European operations);

·
Consumer protection laws and regulations;

·
Unclaimed property laws; and

·
Card association and network organization rules (including
Mastercard rules applicable to our debit card offerings).

Compliance with these requirements involves significant ongoing costs,
reporting obligations, and risk of penalties for noncompliance. Failure to maintain necessary licenses or adhere to these regulations
could materially restrict our ability to offer or expand fintech services.

Employees

Attracting and retaining qualified personnel familiar
with our businesses who head our different businesses units is critical to our success. As of December 31, 2025, we had a total of 100
employees, including all subsidiaries.

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Our human capital resources objectives include identifying,
recruiting, retaining, incentivizing, and integrating employees, advisors, and consultants. To achieve this, our compensation practices
aim to attract and retain qualified personnel and align their interests with our goals and the best interests of our stockholders. Our
compensation philosophy is to provide remuneration that meets our current needs and growth initiatives and to offer incentives for achieving
our long-term plans, including equity and cash incentive plans that attract, retain, and reward personnel through stock-based and cash-based
compensation awards. We consider talent attraction and retention essential for achieving our strategy, and we recognize that a trained,
diverse, and engaged workforce is crucial to meeting our objectives. Our recruiting process targets a broad spectrum of potential employees,
and we employ a rigorous screening process to identify and hire qualified professionals.

We are committed to diversity and inclusion in the
workforce, implementing a policy of non-discriminatory treatment and respect for human rights for all current and prospective employees.
We prohibit discrimination based on an individual’s race, religion, creed, color, sex, sexual orientation, age, marital status,
disability, national origin, or veteran’s status, which is illegal in many jurisdictions. We respect the human rights of all employees
and strive to treat them with dignity in accordance with standards and practices recognized by the international community.

Corporate History

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 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. The company left the healthy snacks and foods business
to focus on the Telecommunications Business.

On August 30, 2018, PureSnax changed its name to
“IQSTEL Inc.” and received a new CUSIP number: 46265G107, as well as a new trading symbol “IQST” in order to
better resemble its new name. IQSTEL also changed the Standard Industrial Classification (SIC Code) to 4813, Telephone Communications,
Except Radiotelephone.

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

On February 10, 2020, the Company entered into a
Company Acquisition Agreement with Jesus Vega regarding the acquisition of 51% of the shares in QGlobal, LLC (“QGlobal”).
QGlobal is a company with the capacity to provide Short Messages (SMS), A2P and P2P messaging services.

On February 21, 2020, the Company entered into a
Company Acquisition Agreement with Miguel Scavo regarding the acquisition of 75% of the shares in ItsBchain, LLC (“ItsBchain”)
a company specialized in the development of Blockchain applications for telecommunications.

On April 15, 2020, the Company entered into a Company
Acquisition Agreement with Francisco Bunt regarding the acquisition of 51% of the shares in loT Labs, LLC (“loT Labs”). The
loT Labs’ principal business activity is the sale of SMS between USA and Mexico.

On November 12, 2020, the Company entered into partnership
Agreement with Payment Virtual Mobile Solutions, LLC (PayVMS), a Delaware Corporation regarding the incorporation of Global Money One
Inc, in which IQSTEL owns 75% of the shares and PayVMS owns the remaining 25%. Global Money One is a Fintech company with a complete
infrastructure to provide top-up services, international remittances and prepaid debit cards.

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On October 1, 2021, the Company entered into an agreement
with Jesus Vega regarding the acquisition of the remaining 49% of the shares in QGlobal, LLC (“QGlobal”). By means of this
transaction IQSTEL increased its ownership of QGlobal to 100%.

On May 13, 2022, the Company entered into a Company
Acquisition Agreement regarding the acquisition of 51% of the shares in Whisl telecom LLC (“Whisl”).

On June 1, 2022, the Company entered into a Company
Acquisition Agreement regarding the acquisition of 51% of the shares in Smartbiz Telecom LLC (“Smartbiz”).

On March 20, 2023, the Company entered into a Memorandum
of Understanding (the “MOU”) with Got My Idol, Inc., a Delaware corporation (“GotMy”). The MOU concerns the formation
of a joint venture to implement the commercial development of “Metaverse” products using the current intellectual property
of Got My Idol, improving it, and packaged as products under the to be formed joint venture company and using the to be formed joint
venture brand that will be owned by the to be formed joint venture company. Our equity position in the new company will be 51% and GotMy
shall hold the remaining 49% of the to be formed joint venture entity.

On January 19, 2024, the Company entered into a Share
Purchase Agreement with Yukon River Holdings, Ltd. (“Yukon River”), a corporation formed under the laws of the British Virgin
Islands concerning the contemplated sale by Yukon River and the purchase by us of 51% of the ordinary shares Yukon River holds in QXTEL
LIMITED, a company incorporated in England and Wales.

On November 1, 2024, the Company entered into a binding
Memorandum of Understanding (the “Agreement”) with Mr. Ralf Koehler ("Ralf"), SwissLink Carrier Ltd., ("SwissLink")
and Impact Trading & Consulting LLC ("Impact") for the purpose of outlining the understanding regarding the exchange of
49% ownership in SwissLink for our shares.

On May 14, 2025, the Company started trading in The
NASDAQ Capital Market under the ticker symbol IQST. This milestone marks a defining moment in the company’s journey—from
a telecom operator to a high-tech global enterprise.

On May 29, 2025, the Company entered into a Unit
Purchase Agreement (the “Agreement”) with Craig Span 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 closing occurred
on July 1, 2025.