iQSTEL Inc (IQST)

[dh_]

Hi Broadway - sorry I was literally off the grid all day but I noticed that after your question the CEO put out an excellent rundown of the call, chock full of details. Actually it seems to me that the written version clarifies several points that I didn't fully understand during the call.

Perhaps the best example for me was some structure of how the spin off should go. iQSTEL as the largest shareholder. some new investment through IPO, and a distribution to iQSTEL shareholders. I take that to mean two benefits to current shareholders in the form of direct interest in the new company stock while still benefiting thorough iQSTEL for the remaining, majority interest in the new stock.

Of course the next question is just how much each party owns of the new company. iQSTEL, us, and any new shareholders from IPO. I hope we see that information soon, as the CEO states this is all moving faster than expected. Maybe we will finally see a Nasdaq listing for at least EVOSS, but IQST may still be in the running for that too?

I won't cover the whole letter but here are a few points for me, if anyone is interested.

* I love and appreciate the clear guidance on profitability. It implies that Q2 won't be profitable - no surprise there. But the Q3 close to B/E and Q4 likely positive is very specific and gives investors a solid bar to measure performance. Now they really need to try to meet or beat the expectation, but I much appreciate the clarity there. I have often said even news less positive than expected is better than no news, as it decreases the uncertainty. Especially, if its just that timeframes are a bit behind schedule. (Think Elon Musk).

* Telecom results sounds promising. Let's see the margins Monday, but the guidance is encouraging.

* Target pricing for motorcycles and EV cars is provided and helps clear up a few more questions. I would love to see some general revenue projections. If this goes IPO I assume there may be a prospectus. Hopefully some very good detail would be included therein. For now I appreciate the stated timeframes for revenues from each type of EVOSS vehicle.

Also, I love to see them continue to make improvements to the product including battery performance. IMO, they really seem to care about the product and won't rest on "good enough". Lastly on EVOSS, I think its great for shareholders that they plan to finance the division through lending, as to limit dilutive impacts for shareholders.

* Fintech, well not a lot of info there other than the partnerships and the potential target market. I hope some more clarity comes soon. Revenue when? Expected growth rate and margins?

* IoT news is very good, but I would love to see an announcement of a signed contract with BASF. But the negotiations with the large Mexican gas distributor, and OMG, Saudi Arabia sounds exciting. Can you imagine how many tanks either group might have? And perhaps stationary and/or mobile I assume?

One other thing, referring to the option purchase by Apollo, as seen in the last 10-Q, subsequent events, whereby they are said to have agreed on an option to purchase 4.8 million shares at a purchase price of $2.00 per share in consideration for $500,000. The initial exercise date is said to be September 30, 2022. I didn't see an expiration date for the option, and that would be interesting to know. But still I take this as a positive as the agreement implies some confidence that the stock price may reach $2 by September 2022, or thereafter. And if not executed we keep the $500K, but if executed then the company gets a huge cash infusion, albeit with some dilution for us. But I would like to believe it would be use for some valuable M&A activity. Just guessing, but how would they pay for the 2,300 mile fiber acquisition? The timing sure seems close.

I sure hope these calls with the guys at Alpha Status continue, I think its a great outreach opportunity for the company. But I also hope they will start having regular company hosted quarterly calls, following the quarterly results. It's a common public company practice and gives investors an update that includes the latest information, and should also allow just enough time for investors to read the 10-Q before the conference call so they can ask questions based on the latest information.

Like I say I don't expect Q2 to show a large improvement over Q1, but the real potential game changing catalyst aren't expected to show in the numbers until at least Q3, and that starts as the first full quarter with the Smartbiz and Whisl acquisitions contributing to the whole quarter. The one thing I can say though is I still see a company that is growing and showing consideration to its shareholders, while creating additional shareholder value. They really need to start coming through on their tech products but the speed of progress has been pretty quick I would think, and surely in a realm of reasonable expectation for the industry I expect.

Heck if any one of those three IoT deals alone come through don't you think stock prices at these levels would be laughable? Of course you would think the existing telecom revenue streams alone should way more than have it covered,. So they say (Field of Dreams), "If you build it they will come". Maybe they don't come as quick as they should, but once its there, the rest should follow.

BTW: Anyone notice that iQSTEL is already taking online orders for motorcycles? Not sure if that is available worldwide? Maybe so, IDK, but the English translated version doesn't seem to indicate the total price, at least before the form is completed.

https://evoss.net/landing-page/