iQSTEL (IQST) 10-K 14 Nov 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2018	Nov. 09, 2018	Dec. 31, 2017
Details
Registrant Name	iQSTEL Inc
Registrant CIK	1,527,702
SEC Form	10-K
Period End date	Jun. 30, 2018
Fiscal Year End	--06-30
Trading Symbol	iqst
Tax Identification Number (TIN)	452,808,620
Number of common stock shares outstanding		15,002,599
Public Float			$ 170,464
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Shell Company	false
Small Business	true
Emerging Growth Company	true
Ex Transition Period	false
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Entity File Number	000-53605
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	300 Aragon Avenue, Suite 375
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33,134
Entity Address, Address Description	Address of principal executive offices
Phone Fax Number Description	Registrant’s telephone number
City Area Code	954
Local Phone Number	951-8191
Entity Listing, Par Value Per Share	$ 0.001

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Current Assets
Cash	$ 25,355	$ 61,262
Accounts receivable, net	1,935,367	2,974,848
Prepaid and other current assets	181,537	304,980
Total Current Assets	2,142,259	3,341,090
Property and equipment, net	301,756	319,610
TOTAL ASSETS	2,444,015	3,660,700
Current Liabilities
Accounts payable and accrued liabilities	1,334,715	2,644,991
Due to related parties	26,593	0
Loans payable - current portion	233,704	114,173
Other current liabilities	257,077	262,871
Total Current Liabilities	1,852,089	3,022,035
Long-term loans payable - related parties	90,787	90,587
TOTAL LIABILITIES	1,942,876	3,112,622
Stockholders' Equity
Preferred Stock, Value	0	0
Common Stock, Value	15,003	11,086
Additional paid in capital	987,238	737,429
Stock subscription receivable	(8,750)	0
Accumulated deficit	(492,352)	(200,437)
Total Stockholder's Equity	501,139	548,078
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,444,015	$ 3,660,700

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical - $ / shares	Jun. 30, 2018	Jun. 30, 2017
Details
Preferred Stock, Shares Authorized	8,500,000	8,500,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Shares Authorized	2,000,000,000	2,000,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	15,002,599	11,085,965
Common Stock, Shares, Outstanding	15,002,599	11,085,965

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Details
Revenues	$ 9,621,015	$ 7,319,029
Cost of goods sold	8,750,089	6,304,076
Gross profit	870,926	1,014,953
Operating Expenses
General and administration	788,701	697,896
Total operating expenses	788,701	697,896
Operating income	82,225	317,057
Other income (expense)
Other income	0	4
Interest expense	(327,092)	(77,855)
Other expenses	(47,048)	(21,209)
Total other expense	(374,140)	(99,060)
Net income (loss) before provision for income taxes	(291,915)	217,997
Income taxes	0	0
Net income (loss)	$ (291,915)	$ 217,997
Basic and dilutive income (loss) per common share	$ (0.02)	$ 0.02
Weighted average number of common shares outstanding	11,909,161	10,415,430

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Subscription Receivable	Retained Earnings	Total
Equity Balance, Starting at Jun. 30, 2016	$ 9,605	$ 638,910	$ 0	$ (418,434)	$ 230,081
Shares Outstanding, Starting at Jun. 30, 2016	9,604,904
Stock Issued During Period, Value, New Issues	$ 1,481	98,519	0	0	100,000
Stock Issued During Period, Shares, New Issues	1,481,061
Net Income (Loss)	$ 0	0	0	217,997	217,997
Shares Outstanding, Ending at Jun. 30, 2017	11,085,965
Equity Balance, Ending at Jun. 30, 2017	$ 11,086	737,429	0	(200,437)	548,078
Stock Issued During Period, Value, New Issues	$ 2,666	177,334	0	0	180,000
Stock Issued During Period, Shares, New Issues	2,665,910
Stock Issued During Period, Value, Other	$ 1,176	(77,450)	(8,750)	0	(85,024)
Stock Issued During Period, Shares, Other	1,175,724
Stock Issued During Period, Value, Issued for Services	$ 75	149,925	0	0	150,000
Stock Issued During Period, Shares, Issued for Services	75,000
Net Income (Loss)	$ 0	0	0	(291,915)	(291,915)
Shares Outstanding, Ending at Jun. 30, 2018	15,002,599
Equity Balance, Ending at Jun. 30, 2018	$ 15,003	$ 987,238	$ (8,750)	$ (492,352)	$ 501,139

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (291,915)	$ 217,997
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock based compensation	150,000	0
Depreciation and amortization	17,854	62,850
Changes in operating assets and liabilities:
Accounts receivable	1,039,481	(2,025,068)
Other current assets	123,443	(217,435)
Accounts payable	(1,368,707)	1,546,082
Other current liabilities	(5,794)	235,947
Net cash used in operating activities	(335,638)	(179,627)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable	928,892	242,635
Repayments of loans payable	(809,161)	(117,875)
Common stock issued	180,000	100,000
Net cash provided by financing activities	299,731	224,760
Net change in cash and cash equivalents	(35,907)	45,133
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	61,262	16,129
Cash and Cash Equivalents, at Carrying Value, Ending Balance	25,355	61,262
Supplemental cash flow information
Cash paid for interest	327,092	77,855
Cash paid for taxes	$ 0	$ 15,879

NOTE 1 -ORGANIZATION AND DESCRI

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS Organization and Operations iQSTEL Inc. (“iQSTEL”, “we”, “us”, or the “Company”) 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. 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. Stock split. Effective May 9, 2018, we effected a 1 for 19,152 reverse stock split of our issued and outstanding common stock (the “Reverse Stock Split”). 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). Membership Interest Purchase Agreements and Reorganization On June 25, 2018 (the “Effective Date”), iQSTEL entered into a membership purchase agreement with Etelix.com USA, LLC (“Etelix”) and became a 100% subsidiary of iQSTEL. 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. The Company entered into certain ancillary agreements (the “Ancillary Agreements”) 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’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. Recapitalization 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.

NOTE 2 -SUMMARY OF SIGNIFICANT

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States. The Company’s fiscal year end is June 30. Consolidation Policy For June 30, 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. Use of Estimates 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. Cash and Cash Equivalents 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. Accounts Receivable and Allowance for Uncollectible Accounts Substantially all of the Company’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’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, 2018 and 2017, the Company had no valuation allowance for doubtful accounts for the Company’s accounts receivable and recorded no bad debt expense. Long-Lived Assets 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. Fixed Assets 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’ 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. Net Income (Loss) Per Share of Common Stock The Company has adopted ASC 260, ”Earnings per Share” Concentrations of Credit Risk The Company’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. During the year ended June 30, 2018 and 2017, three customers represented 40% of our revenues and three customer represented 22% of our revenues, respectively. Financial Instruments The Company follows ASC 820, “ Fair Value Measurements and Disclosures, Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 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. Level 3 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. 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. Transactions involving related parties cannot be presumed to be carried out on an arm’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’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’s due to their related party nature. Income Taxes 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. Related Parties The Company follows ASC 850, “Related Party Disclosures,” Revenue Recognition The Company recognizes revenue from the sale of products in accordance with ASC 606, “ Revenue from Contracts with Customers.” · · · · · 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’s payment terms vary by clients. Cost of revenue 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’s network. Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. Recently adopted accounting standards In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic ): Scope of Modification Accounting · · · ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance. The adoption of ASU 2017-09 effective July 1, 2017 did not have a material effect on the Company’s results of operations, financial condition or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic ) The Company adopted the new standard effective July 1, 2017 under the modified retrospective transition method, applying the new guidance to the most current period presented. The adoption of ASU 2014-09 effective July 1, 2017 did not have a material effect on the Company’s results of operations, financial condition or cash flows.

NOTE 3 - GOING CONCERN

NOTE 3 - GOING CONCERN	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 3 - GOING CONCERN	NOTE 3 - GOING CONCERN 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 June 30, 2018, the Company had a net loss of $291,915. These factors, among others, raise substantial doubt about the Company’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. 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. 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. 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.

NOTE 4 - OTHER CURRENT ASSETS

NOTE 4 - OTHER CURRENT ASSETS	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 4 - OTHER CURRENT ASSETS	NOTE 4 – OTHER CURRENT ASSETS Other current assets at June 30, 2018 and 2017 consist of the following: June 30, June 30, 2018 2017 Advance payment to suppliers $ - $ 52,843 Other receivable 174,635 244,298 Prepaid expenses 6,302 7,839 Tax receivable 600 - $ 181,537 $ 304,980

NOTE 5 - FIXED ASSETS, NET

NOTE 5 - FIXED ASSETS, NET	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 5 - FIXED ASSETS, NET	NOTE 5 – FIXED ASSETS, NET Fixed assets, net at June 30, 2018 and 2017 consist of the following: June 30, June 30, 2018 2017 Telecommunication equipment $ 245,260 $ 245,260 Telecommunication software 400,903 400,903 Total fixed assets 646,163 646,163 Accumulated depreciation and amortization (344,407) (326,553) Total Fixed assets $ 301,756 $ 319,610 Depreciation expense for the year ended June 30, 2018 and 2017 amounted to $17,854 and $62,850, respectively.

NOTE 6 -LOANS PAYABLE

NOTE 6 -LOANS PAYABLE	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 6 -LOANS PAYABLE	NOTE 6 –LOANS PAYABLE Loans payable at June 30, 2018 and 2017 consist of the following: June 30, June 30, Interest 2018 2017 Term rate Pearl Capital $ - $ 9,122 Note was issued on February 6, 2017 and due in August 9, 2017 32.0% Unique Funding Solutions - 2,750 Note was issued on March 17, 2017 and due in July 6, 2017 32.0% Fusion Capital - 2,216 Note was issued on March 17, 2017 and due in July 18, 2017 35.0% Midnight Advance - 12,732 Note was issued on April 21, 2017 and due in August 17, 2017 31.0% Yellowstone Capital - 22,845 Note was issued on May 19, 2017 and due in October 13, 2017 31.0% APP Group Inter 983 64,508 Note was issued on June 28, 2017 and due in December 17, 2017 32.0% Advantage Platform Services_3 72,737 - Note was issued on December 19, 2017 and due in October 18, 2018 31.5% Advantage Platform Services_4 32,113 - Note was issued on February 2, 2018 and due in October 1, 2018 31.0% DMKA LLC 10,000 - Note was issued on March 9, 2018 and due in July 28, 2018 28.6% Complete Business Solutions_3 117,871 - Note was issued on April 13, 2018 and due in March 09, 2019 33.3% Total 233,704 114,173 Less : Current portion of loans payable 233,704 114,173 Long-term loans payable $ - $ - During the year ended June 30, 2018 and 2017, the Company recorded interest expenses of $327,092 and $77,855, respectively. During the year ended June 30, 2018 and 2017, the Company borrowed $928,892 and $242,635, respectively, and repaid the principal amount of $809,161 and $117,875 and interest expense of $327,092 and $77,855, respectively.

NOTE 7 - OTHER CURRENT LIABILIT

NOTE 7 - OTHER CURRENT LIABILITIES	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 7 - OTHER CURRENT LIABILITIES	NOTE 7 – OTHER CURRENT LIABILITIES Other current liabilities at June 30, 2018 and 2017 consist of the following: June 30, June 30, 2018 , Accrued expenses $ 98,081 $ 156,764 Accrued expenses - related party 931 - Accrued interest 2,200 4,400 Salary payable - management 138,297 78,145 Salary payable 17,568 13,362 Other payable - 10,200 $ 257,077 $ 262,871

NOTE 8 - SHAREHOLDERS' EQUITY

NOTE 8 - SHAREHOLDERS' EQUITY	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 8 - SHAREHOLDERS' EQUITY	NOTE 8 – SHAREHOLDERS’ EQUITY The Company’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 June 30, 2018. 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. Common Stock 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. The 13,751,875 shares of common stock consisted of the following; · · During the year ended June 30, 2018, the Company issued 75,000 shares valued at $150,000 for the legal services related to the acquisition of Etelix USA LLC. As of June 30, 2018 and 2017, 15,002,598 and 11,085,965 shares of common stock were issued and outstanding, respectively.

NOTE 9 - PROVISION FOR INCOME T

NOTE 9 - PROVISION FOR INCOME TAXES	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 9 - PROVISION FOR INCOME TAXES	NOTE 9 – PROVISION FOR INCOME TAXES The Company provides for income taxes under ASC 740, “ Income Taxes.” On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has completed the accounting for the effects of the Act during the year ended June 30, 2018. The Company’s financial statements for the year ended June 30, 2018 reflect certain effects of the Act which includes a reduction in the corporate tax rate from 35% to 21% as well as other changes. The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of June 30, 2018 and 2017, are as follows: June 30, June 30, 2018 2017 Net Operating loss carryforward $ 342,354 $ 200,437 Effective tax rate 35% 35% Deferred tax asset 119,824 70,153 Effect of change in the statutory rate (47,930) - Less: valuation allowance (71,894) (70,153) Net deferred tax asset $ - $ - As of June 30, 2017, 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 “Code”). 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 “ownership change” 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. Tax returns for the years ended 2012 through 2018 are subject to review by the tax authorities.

NOTE 10 - RELATED PARTY TRANSAC

NOTE 10 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 10 - RELATED PARTY TRANSACTIONS	NOTE 10 - RELATED PARTY TRANSACTIONS Loans payable – related parties June 30, June 30, Interest 2018 2017 Term rate Alonso Van Der Biest $ 80,200 $ 80,000 Note was issued on June 12, 2015 and due in June 11, 2019 16.5% Alvaro Quintana 10,587 10,587 Note was issue on September 30, 2016 and due in September 29, 2019 0% Total 90,787 90,587 Less : Current portion of loans payable - - Long-term loans payable $ 90,787 $ 90,587 Due to related parties As of June 30, 2018 and 2017, the Company had due to related parties of $26,593 and $0, respectively. The loans are unsecured, non-interest bearing and due on demand. Employment agreements 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’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. As at June 30, 2018 and 2017, the Company recorded and accrued management salaries of $138,297 and $78,145, respectively.

NOTE 11 - SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2018
Notes
NOTE 11 - SUBSEQUENT EVENTS	NOTE 11 - SUBSEQUENT EVENTS Subsequent to June 30, 2018 and through the date that these financials were made available, the Company had the following subsequent events: Convertible notes On July 16, 2018, we issued a convertible note in the principal amount of $25,000. The convertible note has a term of twelve months, accrues interest at 10% annually and the balance outstanding thereunder is convertible into the Company’s common stock at a price equal the lesser of (i) 50% multiplied by the lowest trading price during the previous fifteen days period ending on the latest complete trading day prior to the issue date of this Note and (ii) 50% multiplied by the lowest trading price for the common stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date. The Note in currently in default. On August 16, 2018, we issued a convertible note in the principal amount of $50,000. The convertible note has a term of nine months, accrues interest at 10% annually and the balance outstanding thereunder is convertible into the Company’s common stock at a price equal the lesser of (i) 50% multiplied by the lowest trading price during the previous twelve days before the issue date of this Note and (ii) 50% multiplied by the lowest trading price for the common stock during the twelve days period ending on the latest complete trading day prior to the conversion date. The Note in currently in default. On October 1, 2018, we issued a convertible note in the principal amount of $30,000. The convertible note has a term of nine months, accrues interest at 10% annually and the balance outstanding thereunder is convertible into the Company’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. The Note in currently in default. Subscription receivable The company received $7,500 from unrelated investors for 350,000 shares of common stock subscribed for at $0.025 per share.

NOTE 2 -SUMMARY OF SIGNIFICAN_2

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Basis of Presentation	Basis of Presentation The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States. The Company’s fiscal year end is June 30.

NOTE 2 -SUMMARY OF SIGNIFICAN_3

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Consolidation, Policy (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Consolidation, Policy	Consolidation Policy For June 30, 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.

NOTE 2 -SUMMARY OF SIGNIFICAN_4

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates, Policy (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Use of Estimates, Policy	Use of Estimates 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.

NOTE 2 -SUMMARY OF SIGNIFICAN_5

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents, Policy (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Cash and Cash Equivalents, Policy	Cash and Cash Equivalents 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.

NOTE 2 -SUMMARY OF SIGNIFICAN_6

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable and Allowance for Uncollectible Accounts (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Accounts Receivable and Allowance for Uncollectible Accounts	Accounts Receivable and Allowance for Uncollectible Accounts Substantially all of the Company’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’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, 2018 and 2017, the Company had no valuation allowance for doubtful accounts for the Company’s accounts receivable and recorded no bad debt expense.

NOTE 2 -SUMMARY OF SIGNIFICAN_7

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Long-Lived Assets (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Long-Lived Assets	Long-Lived Assets 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.

NOTE 2 -SUMMARY OF SIGNIFICAN_8

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fixed Assets (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Fixed Assets	Fixed Assets 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’ 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.

NOTE 2 -SUMMARY OF SIGNIFICAN_9

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Net Income (Loss) Per Share of Common Stock (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Net Income (Loss) Per Share of Common Stock	Net Income (Loss) Per Share of Common Stock The Company has adopted ASC 260, ”Earnings per Share”

NOTE 2 -SUMMARY OF SIGNIFICA_10

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentrations of Credit Risk (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’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. During the year ended June 30, 2018 and 2017, three customers represented 40% of our revenues and three customer represented 22% of our revenues, respectively.

NOTE 2 -SUMMARY OF SIGNIFICA_11

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Financial Instruments (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Financial Instruments	Financial Instruments The Company follows ASC 820, “ Fair Value Measurements and Disclosures, Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 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. Level 3 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. 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. Transactions involving related parties cannot be presumed to be carried out on an arm’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’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’s due to their related party nature.

NOTE 2 -SUMMARY OF SIGNIFICA_12

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Income Taxes	Income Taxes 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.

NOTE 2 -SUMMARY OF SIGNIFICA_13

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Related Parties (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Related Parties	Related Parties The Company follows ASC 850, “Related Party Disclosures,”

NOTE 2 -SUMMARY OF SIGNIFICA_14

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Revenue Recognition	Revenue Recognition The Company recognizes revenue from the sale of products in accordance with ASC 606, “ Revenue from Contracts with Customers.” · · · · · 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’s payment terms vary by clients.

NOTE 2 -SUMMARY OF SIGNIFICA_15

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cost of revenue (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Cost of revenue	Cost of revenue 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’s network.

NOTE 2 -SUMMARY OF SIGNIFICA_16

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

NOTE 2 -SUMMARY OF SIGNIFICA_17

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recently adopted accounting standards (Policies)	12 Months Ended
	Jun. 30, 2018
Policies
Recently adopted accounting standards	Recently adopted accounting standards In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic ): Scope of Modification Accounting · · · ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for all entities. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued or made available for issuance. The adoption of ASU 2017-09 effective July 1, 2017 did not have a material effect on the Company’s results of operations, financial condition or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic ) The Company adopted the new standard effective July 1, 2017 under the modified retrospective transition method, applying the new guidance to the most current period presented. The adoption of ASU 2014-09 effective July 1, 2017 did not have a material effect on the Company’s results of operations, financial condition or cash flows.

NOTE 4 - OTHER CURRENT ASSETS_

NOTE 4 - OTHER CURRENT ASSETS: Schedule of Other Current Assets (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of Other Current Assets	June 30, June 30, 2018 2017 Advance payment to suppliers $ - $ 52,843 Other receivable 174,635 244,298 Prepaid expenses 6,302 7,839 Tax receivable 600 - $ 181,537 $ 304,980

NOTE 5 - FIXED ASSETS, NET_ Sch

NOTE 5 - FIXED ASSETS, NET: Schedule of Fixed Assets (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of Fixed Assets	June 30, June 30, 2018 2017 Telecommunication equipment $ 245,260 $ 245,260 Telecommunication software 400,903 400,903 Total fixed assets 646,163 646,163 Accumulated depreciation and amortization (344,407) (326,553) Total Fixed assets $ 301,756 $ 319,610

NOTE 6 -LOANS PAYABLE_ Schedule

NOTE 6 -LOANS PAYABLE: Schedule of Loans Payable (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of Loans Payable	June 30, June 30, Interest 2018 2017 Term rate Pearl Capital $ - $ 9,122 Note was issued on February 6, 2017 and due in August 9, 2017 32.0% Unique Funding Solutions - 2,750 Note was issued on March 17, 2017 and due in July 6, 2017 32.0% Fusion Capital - 2,216 Note was issued on March 17, 2017 and due in July 18, 2017 35.0% Midnight Advance - 12,732 Note was issued on April 21, 2017 and due in August 17, 2017 31.0% Yellowstone Capital - 22,845 Note was issued on May 19, 2017 and due in October 13, 2017 31.0% APP Group Inter 983 64,508 Note was issued on June 28, 2017 and due in December 17, 2017 32.0% Advantage Platform Services_3 72,737 - Note was issued on December 19, 2017 and due in October 18, 2018 31.5% Advantage Platform Services_4 32,113 - Note was issued on February 2, 2018 and due in October 1, 2018 31.0% DMKA LLC 10,000 - Note was issued on March 9, 2018 and due in July 28, 2018 28.6% Complete Business Solutions_3 117,871 - Note was issued on April 13, 2018 and due in March 09, 2019 33.3% Total 233,704 114,173 Less : Current portion of loans payable 233,704 114,173 Long-term loans payable $ - $ -

NOTE 7 - OTHER CURRENT LIABIL_2

NOTE 7 - OTHER CURRENT LIABILITIES: Schedule of Other Current Liabilities (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of Other Current Liabilities	June 30, June 30, 2018 , Accrued expenses $ 98,081 $ 156,764 Accrued expenses - related party 931 - Accrued interest 2,200 4,400 Salary payable - management 138,297 78,145 Salary payable 17,568 13,362 Other payable - 10,200 $ 257,077 $ 262,871

NOTE 9 - PROVISION FOR INCOME_2

NOTE 9 - PROVISION FOR INCOME TAXES: Schedule of deferred tax asset and reconciliation of income taxes (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of deferred tax asset and reconciliation of income taxes	June 30, June 30, 2018 2017 Net Operating loss carryforward $ 342,354 $ 200,437 Effective tax rate 35% 35% Deferred tax asset 119,824 70,153 Effect of change in the statutory rate (47,930) - Less: valuation allowance (71,894) (70,153) Net deferred tax asset $ - $ -

NOTE 10 - RELATED PARTY TRANS_2

NOTE 10 - RELATED PARTY TRANSACTIONS: Schedule of Related Party Loans Payable (Tables)	12 Months Ended
	Jun. 30, 2018
Tables/Schedules
Schedule of Related Party Loans Payable	June 30, June 30, Interest 2018 2017 Term rate Alonso Van Der Biest $ 80,200 $ 80,000 Note was issued on June 12, 2015 and due in June 11, 2019 16.5% Alvaro Quintana 10,587 10,587 Note was issue on September 30, 2016 and due in September 29, 2019 0% Total 90,787 90,587 Less : Current portion of loans payable - - Long-term loans payable $ 90,787 $ 90,587

NOTE 1 -ORGANIZATION AND DESC_2

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	12 Months Ended
	Jun. 30, 2018
Details
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Jun. 24, 2011
Entity Information, Former Legal or Registered Name	PureSnax International, Inc.

NOTE 3 - GOING CONCERN (Details

NOTE 3 - GOING CONCERN (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Details
Net income (loss)	$ (291,915)	$ 217,997

NOTE 4 - OTHER CURRENT ASSETS_2

NOTE 4 - OTHER CURRENT ASSETS: Schedule of Other Current Assets (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Details
Other Current Assets, Advance payment to suppliers	$ 0	$ 52,843
Other Current Assets, Other receivable	174,635	244,298
Other Current Assets, Prepaid expenses	6,302	7,839
Other Current Assets, Tax receivable	600	0
Other Current Assets	$ 181,537	$ 304,980

NOTE 5 - FIXED ASSETS, NET_ S_2

NOTE 5 - FIXED ASSETS, NET: Schedule of Fixed Assets (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Details
Fixed Assets, Telecommunication equipment	$ 245,260	$ 245,260
Fixed Assets, Telecommunication software	400,903	400,903
Fixed Assets, Total fixed assets	646,163	646,163
Fixed Assets, Accumulated depreciation and amortization	(344,407)	(326,553)
Fixed Assets, Total Fixed assets	$ 301,756	$ 319,610

NOTE 6 -LOANS PAYABLE (Details)

NOTE 6 -LOANS PAYABLE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Details
Cash paid for interest	$ 327,092	$ 77,855
Proceeds from loans payable	928,892	242,635
Repayments of Other Debt	$ 809,161	$ 117,875

NOTE 7 - OTHER CURRENT LIABIL_3

NOTE 7 - OTHER CURRENT LIABILITIES: Schedule of Other Current Liabilities (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Details
Other Current Liabilities, Accrued expenses	$ 98,081	$ 156,764
Other Current Liabilities, Accrued expenses - related party	931	0
Other Current Liabilities, Accrued interest	2,200	4,400
Other Current Liabilities, Salary payable - management	138,297	78,145
Other Current Liabilities, Salary payable	17,568	13,362
Other Current Liabilities, Other payable	0	10,200
Other Current Liabilities	$ 257,077	$ 262,871

NOTE 9 - PROVISION FOR INCOME_3

NOTE 9 - PROVISION FOR INCOME TAXES: Schedule of deferred tax asset and reconciliation of income taxes (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Details
Net Operating loss carryforward	$ 342,354	$ 200,437
Deferred tax asset	119,824	70,153
Less: valuation allowance	(71,894)	(70,153)
Net deferred tax asset	$ 0	$ 0

NOTE 11 - SUBSEQUENT EVENTS (De

NOTE 11 - SUBSEQUENT EVENTS (Details)	12 Months Ended
	Jun. 30, 2018USD ($)
Event 1
Subsequent Event, Date	Jul. 16, 2018
Subsequent Event, Description	we issued a convertible note in the principal amount of $25,000
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Event 2
Subsequent Event, Date	Aug. 16, 2018
Subsequent Event, Description	we issued a convertible note in the principal amount of $50,000
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Event 3
Subsequent Event, Date	Oct. 1, 2018
Subsequent Event, Description	we issued a convertible note in the principal amount of $30,000
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Event 4
Subsequent Event, Description	company received $7,500 from unrelated investors for 350,000 shares of common stock