WYTEC INTERNATIONAL INC - Quarter Report: 2021 September (Form 10-Q)

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended: September 30, 2021

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ___________ to____________

Commission File Number: 333-215496

Wytec International, Inc.

(Exact Name of registrant as specified in its charter)

Nevada	46-0720717
(State or other jurisdiction of	(IRS Employer I.D. No.)
incorporation)

19206 Huebner Rd., Suite 202

San Antonio, TX 78258

(Address of principal executive offices and Zip Code)

(210) 233-8980

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer o	Accelerated filer o
	Non-accelerated filer o	Smaller reporting company x
	Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No ý

As of November 8, 2021, 2021, there were 6,868,122 shares outstanding of the registrant’s common stock.

WYTEC INTERNATIONAL, INC.

FORM 10-Q

September 30, 2021

Table of Contents

		Page
PART I - FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS	1

	Consolidated Balance Sheets as of September 30 , 2021 (unaudited) and December 31, 2020	1

	Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2021 and September 30, 2020 (unaudited)	2

	Consolidated Statements of Stockholders’ Equity (Deficit) for the Nine Months ended September 30, 2021 and September 30, 2020 (unaudited)	3

	Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2021 and September 30, 2020 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	8

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	25

ITEM 4.	CONTROLS AND PROCEDURES	25

PART II - OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	27

ITEM 1A.	RISK FACTORS	27

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	27

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	27

ITEM 4.	MINE SAFETY DISCLOSURES	27

ITEM 5.	OTHER INFORMATION	27

ITEM 6.	EXHIBITS	28

	SIGNATURES	29

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

WYTEC INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30,			December 31,
	2021			2020
				(As Restated See Note L)
Assets

Current assets:
Cash	$	163,079		$	595,732
Accounts receivable		69,455			59,352
Inventory		3,899			2,371
Prepaid expenses and other current assets		–			1,581
Total current assets		236,433			659,036

Property and equipment, net		127,068			174,964

Operating lease, right-of-use assets		34,870			117,169

Total assets	$	398,371		$	951,169

Liabilities and Stockholders' Deficit

Current liabilities:
Accounts payable and accrued expenses	$	203,993		$	123,768
Accounts payable, related party		172,014			107,084
Other payable		895,000			895,000
Operating lease, right-of-use obligation, current portion		18,915			71,256
Contract liability		8,737			25,905
Notes payable, current portion		34,275			33,502
Promissory notes, shareholder, current portion		100,000			–
Short-term debt, net of unamortized discount		625,000			586,952
Total current liabilities		2,057,934			1,843,467

Long-term liabilities:
Operating lease, right-of-use obligation, long term portion		14,158			27,274
Notes payable, net of current portion		57,258			82,383
Promissory notes, shareholder, net of current		150,000			–
Total long term liabilities		221,416			109,657

Total liabilities		2,279,350			1,953,124

Stockholders' deficit:
Preferred stock, $0.001 par value 20,000,000 shares authorized:
Series A convertible preferred stock, par $.001, 4,100,000 shares designated, 2,480,000 shares and 2,520,000 shares issued, 2,380,000 shares and 2,420,000 shares outstanding		2,380			2,420
Series B convertible preferred stock, par $.001, 6,650,000 shares designated, 2,856,335 shares and 3,412,885 shares issued, 2,811,800 shares and 3,368,360 shares outstanding		2,856			3,412
Series C convertible preferred stock, par $.001, 1,000 shares designated, 1,000 issued and 1,000 outstanding		1			1
Common stock, $0.001 par value, 495,000,000 shares authorized, 6,810,322 shares and 30,224,653 shares issued, 6,810,322 shares and 6,090,205 shares outstanding		6,810			30,225
Additional paid-in capital		21,961,889			26,352,142
Accumulated deficit		(23,515,665	)		(22,071,742	)
Repurchased shares		(80,000	)		(80,000	)
Deposit for future common stock subscriptions		–			121,055
Treasury stock:
Common stock, at cost, 0 shares and 24,134,448 shares		–			(5,100,218	)
Series A convertible preferred stock, at cost, 100,000 shares and 100,000 shares		(179,368	)		(179,368	)
Series B convertible preferred stock, at cost, 44,535 shares and 44,535 shares		(79,882	)		(79,882	)
Total stockholders' deficit		(1,880,979	)		(1,001,955	)

Total liabilities and stockholders' deficit	$	398,371		$	951,169

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
				(As Restated See Note L)						(As Restated See Note L)

Revenue	$	77,999		$	111,625		$	392,375		$	444,390
Cost of sales		62,481			50,340			330,733			361,087

Gross profit		15,518			61,285			61,642			83,303

Expenses:
Selling, general and administrative		552,415			461,995			1,478,420			1,693,099
Research and development		19,555			5,852			40,953			10,577
Depreciation and amortization		12,351			17,307			46,932			53,042
Operating expenses, net		584,321			485,154			1,566,305			1,756,718

Net operating loss		(568,803	)		(423,869	)		(1,504,663	)		(1,673,415	)

Other income (expense):
Interest income		–			9			100			40
Pay check Protection Program loan forgiveness		160,075			–			160,075			–
Interest expense		(24,299	)		(25,711	)		(78,499	)		(60,591	)
Total other income (expense)		135,776			(25,702	)		81,676			(60,551	)

Net loss	$	(433,027	)	$	(449,571	)	$	(1,422,987	)	$	(1,733,966	)

Weighted average number of common shares Outstanding – Basic and fully diluted		6,810,322			5,482,206			6,650,120			5,469,502

Net loss per share -
Basic and fully diluted	$	(0.06	)	$	(0.08	)	$	(0.21	)	$	(0.32	)

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

(Unaudited)

Class A

Class B

Class C

Common

Preferred Stock

Common Stock

Treasury Stock

Amount

Balance, December 31, 2020, as restated see Note L

2,420,000

2,420

3,412,885

3,412

1,000

30,224,653

30,225

24,134,448

(5,100,218

)

Conversion of Series B preferred stock to common stock

–

(461,270

)

(461

)

–

461,270

461

–

Conversion of warrants

–

15,200

–

Issuance of common stock for cash already received

–

24,211

–

Issuance of common stock for cash

–

9,375

–

Issuance of Warrants for Service

–

Issuance of Warrants

–

Net loss for the three months ended March 31, 2021, as restated see Note L

–

Balance, March 31, 2021

2,420,000

2,420

2,951,615

2,951

1,000

30,734,709

30,734

24,134,448

(5,100,218

)

Conversion of series A preferred stock to common stock

(40,000

)

(40

)

–

40,000

–

Conversion of series B preferred stock to common stock

–

(55,280

)

(55

)

–

55,280

–

Issuance of warrants in connection with conversion of other warrants

–

Warrants exercised

–

29,006

–

Cancellation of Treasury Stock

–

(24,134,448

)

(24,134

)

(24,134,448

)

5,100,218

Net loss for the three months ended June 30, 2021

–

Balance, June 30, 2021

2,380,000

2,380

2,896,335

2,896

1,000

6,724,547

6,724

Issuance of common stock for services

–

400

–

Issuance of common stock

–

45,375

–

Conversion of warrants

–

Conversion of series B preferred stock to common stock

–

(40,000

)

(40

)

–

40,000

–

Net loss for the three months ended September 30, 2021

–

Balance, September 30, 2021

2,380,000

2,380

2,856,335

2,856

1,000

6,810,322

6,810

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Quarters ended March 31, 2021 and 2020

(Unaudited)

(Continued)

Class A

Class B

Class C

Common

Preferred Stock

Common Stock

Treasury Stock

Amount

Balance, December 31, 2019, as restated see Note L

2,560,000

2,560

3,735,784

3,735

1,000

29,564,014

29,564

24,134,448

(5,100,218

)

Issuance of common stock for services

–

10,554

–

Issuance of common stock for cash

–

20,000

–

Issuance of Warrants for Service

–

Issuance of detachable warrants with Debt

–

Net loss for the three months ended March 31, 2020, as restated see Note L

–

Balance, March 31, 2020, as restated see Note L

2,560,000

2,560

3,735,784

3,735

1,000

29,594,568

29,595

24,134,448

(5,100,218

)

Conversion of series A preferred stock to common stock

(40,000

)

(40

)

–

40,000

–

Repurchase agreement

–

Net loss for the three months ended June 30, 2020, as restated see Note L

–

Balance, June 30, 2020, as restated see Note L

2,520,000

2,520

3,735,784

3,735

1,000

29,634,568

29,635

24,134,448

(5,100,218

)

Issuance of common stock for services

–

2,296

–

Issuance of common stock

–

41,375

Conversion of warrants

–

500

–

Conversion of series B preferred stock to common stock

–

(83,333

)

(83

)

–

83,333

–

Net loss for the three months ended September 30, 2020, as restated see Note L

–

Balance, September 30, 2020, as restated see Note L

2,520,000

2,520

3,652,451

3,652

1,000

29,762,072

29,762

24,134,448

(5,100,218

)

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Quarters ended March 31, 2021 and 2020

(Unaudited)

(Continued)

Class A Preferred

Class B Preferred

Additional

Deposit for Future

Total Stockholders'

Treasury Stock

Paid-in

Repurchased

Stock

Accumulated

Equity

Amount

Capital

Subscriptions

Deficit

(Deficit)

Balance, December 31, 2020, as restated see Note L

100,000

(179,368

)

44,535

(79,882

)

26,352,142

(80,000

)

121,055

(22,071,742

)

(1,001,955

)

Conversion of Series B preferred stock to common stock

–

Conversion of warrants

–

75,985

–

76,000

Issuance of common stock for cash already received

–

121,031

–

(121,055

)

–

Issuance of common stock for cash

–

46,866

–

46,875

Issuance of Warrants for Service

–

51,344

–

51,344

Issuance of Warrants

–

6,047

–

6,047

Net loss for the three months ended March 31, 2021, as restated see Note L

–

(564,640

)

(564,640

)

Balance, March 31, 2021

100,000

(179,368

)

44,535

(79,882

)

26,653,415

(80,000

)

–

(22,636,382

)

(1,386,329

)

Conversion of series A preferred stock to common stock

–

Conversion of series B preferred stock to common stock

–

Issuance of warrants in connection with conversion of other warrants

–

10,728

–

10,728

Warrants exercised

–

145,001

–

145,030

Cancellation of Treasury Stock

–

(5,076,084

)

–

Net loss for the three months ended June 30, 2021

–

(446,256

)

(446,256

)

Balance, June 30, 2021

100,000

(179,368

)

44,535

(79,882

)

21,733,060

(80,000

)

–

(23,082,638

)

(1,676,827

)

Issuance of common stock for services

–

1,999

–

2,000

Issuance of common stock

–

226,830

–

226,875

Conversion of warrants

–

Conversion of series B preferred stock to common stock

–

Net loss for the three months ended September 30, 2021

–

(433,027

)

(433,027

)

Balance, September 30, 2021

100,000

(179,368

)

44,535

(79,882

)

21,961,889

(80,000

)

–

(23,515,665

)

(1,880,979

)

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Quarters ended March 31, 2021 and 2020

(Unaudited)

(Continued)

	Class A Preferred					Class B Preferred					Additional					Deposit for Future					Total Stockholders'
	Treasury Stock					Treasury Stock					Paid-in		Repurchased			Stock		Accumulated			Equity
	Shares		Amount			Shares		Amount			Capital		Shares			Subscriptions		Deficit			(Deficit)
Balance, December 31, 2019, as restated see Note L		100,000	$	(179,368	)		44,535	$	(79,882	)	$	25,207,137	$	–		$	–	$	(20,049,044	)	$	(165,515	)

Issuance of common stock for services		–		–			–		–			52,759		–			–		–			52,770

Issuance of common stock for cash		–		–			–		–			99,980		–			–		–			100,000

Issuance of Warrants for Service		–		–			–		–			89,155		–			–		–			89,155

Issuance of detachable warrants with Debt		–		–			–		–			80,053		–			–		–			80,053

Net loss for the three months ended March 31, 2020, as restated see Note L		–		–			–		–			–		–			–		(923,051	)		(923,051	)

Balance, March 31, 2020, as restated see Note L		100,000	$	(179,368	)		44,535	$	(79,882	)	$	25,529,084	$	0		$	0	$	(20,972,095	)	$	(766,588	)

Conversion of series A preferred stock to common stock		–		–			–		–			–		–			–		–			–

Repurchase agreement		–		–			–		–			–		(80,000	)		–		–			(80,000	)

Net loss for the three months ended June 30, 2020, as restated see Note L		–		–			–		–			–		–			–		(361,344	)		(361,344	)

Balance, June 30, 2020, as restated see Note L		100,000	$	(179,368	)		44,535	$	(79,882	)	$	25,529,084	$	(80,000	)	$	0	$	(21,333,439	)	$	(1,207,932	)

Issuance of common stock for services		–		–			–		–			11,478		–			–		–			11,480

Issuance of common stock		–		–								206,834		–			–		–			206,875

Conversion of warrants		–		–			–		–			2,499		–			–					2,500

Conversion of series B preferred stock to common stock		–		–			–		–			–		–			–		–			–

Net loss for the three months ended September 30, 2020, as restated see Note L		–		–			–		–			–		–			–		(449,571	)		(449,571	)

Balance, September 30, 2020, as restated see Note L		100,000	$	(179,368	)		44,535	$	(79,882	)	$	25,749,895	$	(80,000	)	$	0	$	(21,783,010	)	$	(1,436,648	)

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Nine Months
	Ended September 30,
	2021			2020 (As Restated See Note L)

Cash flows from operating activities
Net loss	$	(1,422,987	)	$	(1,733,966	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		46,932			53,042
Amortization of debt discount		38,048			28,788
Stock based compensation		70,119			153,405
Non-cash lease expense		80,952			100,538
Pay check protection program loan forgiveness		(160,073	)		–
Decrease (increase) in operating assets
Accounts receivable		(27,144	)		55,881
Inventory		(1,528	)		(1,098	)
Work in Process		–			(71,378	)
Prepaid expenses and other assets		1,581			10,606
Increase (decrease) in operating liabilities
Accounts payable and accrued expenses		80,225			128,150
Accounts payable, related party		64,930			26,744
Contract liability		(17,168	)		–
Operating lease liability		(63,146	)		(93,304	)
Net cash used in operating activities		(1,309,259	)		(1,342,592	)

Cash flows from investing activities
Purchase of equipment		–			(13,039	)
Net cash used in investing activities		–			(13,039	)

Cash flows from financing activities
Proceeds from issuance of non-convertible notes		–			803,158
Repurchase agreement		–			(60,000	)
Proceeds from Paycheck Protection Program loan		160,073			–
Proceeds from promissory notes, shareholder		250,000			–
Payments on notes payable		(28,247	)		(25,125	)
Proceeds from exercise of warrants		221,030			2,500
Proceeds from issuance of common stock		273,750			306,878
Net cash provided by financing activities		876,606			1,027,411

Net increase (decrease) in cash		(432,653	)		(328,220	)
Cash - beginning of period		595,732			619,104
Cash - end of period	$	163,079		$	290,884

Supplemental disclosures:
Interest paid	$	6,069		$	–

Non-cash investing and financing activities:
Conversion of series A preferred stock to common stock	$	40		$	40
Conversion of series B preferred stock to common stock	$	556		$	83
Cancellation and renegotiation of leases	$	–		$	134,616
Issuance of common stock in lieu of interest payment	$	43,750		$	–
Issuance of detachable warrants with Debt	$	–		$	80,053
Issuance of Stock Repurchase Note Payable	$	–		$	200,000

See accompanying notes to unaudited consolidated financial statements

WYTEC INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE A – SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and footnotes included in the Company's Annual Report on Form 10-K filed with the SEC on June 25, 2021. The results for the nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ended December 31, 2021. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.

Description of Business: Wytec International, Inc. (“Wytec,” “we,” “our,” “us,” or the “Company”), a Nevada corporation, designs, manufactures, and installs carrier-class Wi-Fi Solutions in the 70 and 80 gigahertz licensed frequency program to local government, Mobile Service Operations, National Telecommunications Operators, and corporate enterprises. Wytec is also involved in the sale of wired and wireless services, including products, wireless data cards, back-office platform and rate plans to their commercial and enterprise clients and was previously engaged in the sale of Federal Communications Commission (“FCC”) registered links participating in the 70 and 80 gigahertz licensed frequency program (the “Program”). The Program allows qualified individuals to own a segment of the “backhaul” infrastructure of Wytec’s city-wide business deployment.

On or about August 20, 2020, Capaciti Networks, Inc., our former subsidiary, was dissolved and on or about September 22, 2020, Wylink, Inc., our former subsidiary, was dissolved. No consideration was exchanged in either transaction. As a result of the dissolutions, we acquired the net assets and liabilities of both Wylink, Inc, and Capaciti Networks, Inc. and their operations continue as part of the Company.

Basis of Accounting: The accompanying financial statements have been prepared by the Company’s management in accordance with U. S. generally accepted accounting principles (“GAAP”) and applied on a consistent basis.

Revenue and Cost Recognition. Revenue is recognized by applying the following five steps: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) we satisfy a performance obligation.

The Company earns revenues from contracts with customers for (i) sales and installation of cellular enhancement equipment and (ii) support agreements. Revenue from the sale and installation of cellular enhancement equipment is recognized either when the installation is completed or as the Company installs the cellular enhancement equipment, depending on the complexity of the system, such as the degree of customization of the equipment being installed, and the agreement with the customer. The less complex systems installed by the Company where management believes the installed equipment has an alternative use, due to the standard nature of the equipment sourced from our vendors that can be used in other projects, revenue from such contacts is recognized for completed installations upon customer acceptance. This assessment, at contract inception, is a management judgment based on the combination of equipment ordered, the services performed and whether or not material effort, within the context of the contract, would be required to rework the equipment for another project, and the term and terms of the contract with the customer. For example, such contracts are usually completed within 30-45 days. In larger more complex projects where the Company is creating an asset for the customer with no alternative use and has an enforceable right to payment for performance prior to contract completion, we recognize revenue utilizing the percentage of completion method. This method measures completion based on management’s estimate of total costs to complete each contract because management considers total costs to be the best available measure of progress on the contract.

Support agreements entered into with customers are generally for a period of one year, during which the Company stands ready to provide service and support for installed systems at the customer site. Support agreement amounts are billed in advance to the customer, as agreed in the contract, and recorded as a contract liability. During the period, the Company provides unspecified firmware upgrades to installed client equipment as they are available. Management estimates that straight line recognition of revenue over the period of the support agreement contract is a faithful representation of the pattern of delivery on the Company’s obligation under these agreements.

Sales tax is recorded on a net basis and excluded from revenue.

Allowance for Doubtful Accounts: The allowance for doubtful accounts is evaluated on a regular basis through periodic reviews of the collectability of the receivables in light of historical experience, adverse situations that may affect our customers' ability to repay, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Accounts receivable are determined to be past due based on how recently payments have been received and those considered uncollectible are charged against the allowance account in the period they are deemed uncollectible. No allowance for trade accounts receivable was determined to be necessary at September 30, 2021 and December 31, 2020.

Operating Leases Right-of-use Assets and Operating Lease Obligations: If we determine that an arrangement is or contains a lease, we recognize a right-of-use (ROU) asset and lease obligation at the commencement date of the lease. ROU assets represent our right to use an underlying asset for the lease term and lease obligations represent our lease payments arising from the lease. Operating lease ROU assets and obligations are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Use of Estimates: The preparation of the financial statements in conformity with U.S. generally accepted accounting principles 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes: The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

NOTE B – GOING CONCERN

Our consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $23,515,665 at September 30, 2021, and have reported negative cash flows from operations. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months. The Company’s ability to continue as a going concern must be considered in light of the problems, expenses, and complications frequently encountered by entrance into established markets and the competitive nature in which we operate. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our operations will be adequate to meet our needs. These factors, among others, indicate that we may be unable to continue as a going concern for a reasonable period of time. Management expects to continue to seek additional funding through private or public equity sources and will seek debt financing.

NOTE C – REVENUE AND ACCOUNTS RECEIVABLE

The Company recognizes revenue in accordance with its accounting policy. The Company invoices customers and recognizes accounts receivable in an amount equivalent to which it has an unconditional right and expects to receive aligned with the agreement with the customer. The Company has contracted payment terms with its customer of net 15 days. The Company recognized revenue from performance obligations satisfied as of a point in time and over time as disaggregated in the table below.

Timing of Revenue Recognition

Disaggregation of Revenue
	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Point in Time	$	69,988	$	111,557	$	366,773	$	444,322
Over Time		8,011		68		25,602		68

	$	77,999	$	111,625	$	392,375	$	444,390

Due to the Company billing service agreements in advance and recognizing revenue for service agreements over time as more fully described in its accounting policy the Company carries a contract liability balance proportional to the time remaining on each customer agreement. The Company issues invoices to customers for completed work as performance obligations satisfied as of a point in time are fulfilled and does not carry a contract asset balance for these performance obligations.

Contract Assets and Liabilities

Contract Assets and Liabilities
	September 30,			December 31,
	2021			2020
Contract Liability	$	(8,737	)	$	(25,905	)
	$	(8,737	)	$	(25,905	)

The Company’s contracts for support services are typically for terms of one year or less. The aggregate amount of contract performance obligation as of September 30, 2021 and December 31, 2020 that the Company expects to recognize over the next year is $8,737 and $25,905, respectively.

The Company is under no obligation and is not in the practice of providing customers with returns, rebates, discounts, or refunds and has not in an amount material to the financial statements. The Company, accordingly, does not recognize these obligations at the time of revenue recognition. The Company may receive consideration from customers who enter into support agreements in the future for incremental services provided to such customers. Those services are delivered as of a point in time when the customer requests the service. Future consideration as described is excluded from the transaction price calculated for support agreement performance obligations.

The Company has applied the practical expedient that permits the Company to recognize revenue without regard to significant financing components based on the Company’s expectations about the transfer of services and the receipt of payment from customers. The effect of this practical expedient is not material to the Company’s financial statements.

NOTE D – PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

Schedule of Property and Equipment
	September 30,			December 31,
	2021			2020
Telecommunication equipment and computers	$	1,267,497		$	1,267,497
Less: accumulated depreciation		(1,140,429	)		(1,092,533	)

Property and equipment, net	$	127,068		$	174,964

Depreciation expense for the nine months ended September 30, 2021 and 2020 was $46,932 and $53,042, respectively, and $12,351 and $17,307 for the three months ended September 30, 2021 and 2020.

NOTE E – DEBT

The Company’s debt consists of the following:

Schedule of debt
	September 30,		December 31,
	2021		2020
Various promissory notes payable to due to shareholder, all carry simple interest of 7% per annum, due at various times between August 2022 and March 2023	$	250,000	$	–

Notes payable to a financial institution, interest rates of 4.7% per annum, with the equipment purchased pledged as collateral and varying due dates through November 2024		91,533		–

$625,000 of 7% unsecured note payable due February 2022, net of unamortized discount of $-0- and $38,048, respectively		625,000		586,952
	$	975,833	$	586,952

In February 2020, we issued a note in the amount of $625,000 bearing simple interest at a rate of 7% per annum to one shareholder due August, 2021. The note contains a feature that allows the Company to extend the maturity date up to six months, twice, in the Company’s sole discretion. This note was issued along with 62,500 common stock purchase warrants that were determined to have a fair market value of $80,053 on the issuance date, which was recorded as a debt discount and amortized over the term of the notes, with $9,910 amortized in the current quarter and reported in the income statement as interest expense. In September of 2021, the note was extended to a new maturity date of February 13, 2022.

In March 2021, we received a loan pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in the amount of $160,073. The loan contains a feature pursuant to which the Small Business Administration (“SBA”) will forgive the balance of the loan under statutory authority and conditions set forth in the CARES Act. This loan was fully forgiven in September 2021.

In June 18, 2021, a shareholder advanced funds in the amount of $100,000 to the Company. On August 10, 2021, the shareholder and the Company formalized a promissory note due to the shareholder. The note bears simple interest at a rate of 7% per annum with a due date of February 10, 2023. The maturity date of the note may be extended by an additional six months in the sole discretion of the Company up to two times.

In August and September 2021, a shareholder loaned a total of $150,000, to the Company under two separate promissory notes in the amounts of $100,000, and $50,000, respectively. The notes bear simple interest at a rate of 7% per annum with due dates of February 10, 2023 and March 30, 2023, respectively. Each promissory note may be extended by an additional six months in the sole discretion of the Company up to two times.

Schedule of long term debt maturities
12 Month Period Ending September 30,
2022	$	759,275
2023		179,534
2024		27,724
Total future payments		966,533
Less: discount		–
Total debt	$	966,533

NOTE F – REPURCHASE AGREEMENT

In April 2020, we entered into a Repurchase and General Release Agreement (the “Agreement”) with one shareholder pursuant to which we promised to pay the amount of $200,000 due on December 31, 2020, in consideration for the return to us of 40,000 shares of outstanding common stock and 40,000 shares of outstanding Series B Preferred Stock previously purchased and currently held by the shareholder. The Agreement stated that the Company was to make $10,000 monthly installments with the balance payable on the maturity date. The Agreement contains a feature that allows the Company to extend the maturity date of the amount payable to March 31, 2021 in the Company’s sole discretion, and if the Company exercises this option, the $10,000 monthly installments will continue until the extended maturity date on which date the remaining balance will be due. In September 2020, the Company extended the maturity date under the terms of the Agreement to March 31,2021. The Company made payments in the amount of $80,000 in good faith during 2020, however, the shareholder has not returned any of the shares that we paid for so that they may be canceled as contemplated in the Agreement. As the shares had not been returned, the Company is not obligated per the Agreement to pay any monies. The Company is pursuing action against the shareholder to have the shares returned or have the monies paid returned. Until such time, the $80,000 payments have been recorded as a reduction of additional paid in capital.

NOTE G – LEASES

The Company leases facilities and office equipment under various operating leases, which generally are expected to be renewed or replaced by other leases. For the nine-month periods ended September 30, 2021 and 2020, operating lease expense totaled $83,888 and $115,363, respectively. For the three-month periods ended September 30, 2021 and 2020, operating lease expense totaled $25,710 and $24,474, respectively.

The weighted average remaining lease term is 1.80 years and weighted average discount rate is 5.5% as of September 30, 2021.

Future minimum lease payments as of September 30, 2021 are as follows:

Minimum Lease Payments
2021	$	18,915
2022		12,815
2023		2,875
Total minimum lease payments		34,605
Less: imputed interest		(1,532	)
Present value of minimum lease payments	$	33,073
Less: current portion of lease obligation		18,915
Long-term lease obligation	$	14,158

NOTE H – WARRANTS

The Company has common stock purchase warrants outstanding at September 30, 2021 to purchase 2,491,074 shares of common stock exercisable until various dates through December 31, 2022. The warrants are exercisable at the following amounts and rates: 2,000,000 of which are exercisable at an exercise price of $1.00 per share, 268,019 of which are exercisable at an exercise price of $5.00 per share, and 223,055 of which are exercisable at an exercise price of the greater of $5.00 per share or (ii) 85% of the average closing price of our common stock, as quoted on the public securities trading market on which our common stock is then traded with the highest volume, for ten (10) consecutive trading days immediately prior to the date of exercise.

To calculate the fair value of stock warrants at the date of grant, we use the Black-Scholes option pricing model. The volatility used is based on historical volatilities of selected peer group companies. Management estimates the average volatility considering current and future expected market conditions. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Each issuance is individually valued according to this procedure as of the date of issue with maturity dates between December 31, 2021 and December 31, 2022, volatility estimates between 35% to 60% and risk-free rates 0.05% to 0.1% in the period.

On January 7, 2021 we issued 56,592 common stock purchase warrants to three consultants. The warrants are exercisable on a cash or cashless basis at an exercise price of $5.00 per share until December 31, 2021 with a fair market value on the issuance date of $51,344 recorded as an expense in the period.

During January 2021, we issued 24,211 common stock purchase warrants to three investors as part of our offering of units, each unit consisting of one share of our common stock and one common stock purchase warrant. The total value of these warrants was $22,173 recorded in Additional-Paid-In-Capital.

During February 2021, we issued 9,375 common stock purchase warrants to two investors as part of our offering of units, each unit consisting of one share of our common stock and one common stock purchase warrant. The total value of these warrants was $7,005 recorded in Additional-Paid-In-Capital.

During February 2021, we issued 3,750 common stock purchase warrants to two investors as part of their conversion of existing warrants. The exercise price of the warrants is $5.00. These warrants are exercisable on a cash or cashless basis until December 31, 2022. The total value of these warrants was $5,969 recorded in Additional-Paid-In-Capital.

During March 2021, we issued 50 common stock purchase warrants to one investor as part of the investor’s exercise of existing warrants. The exercise price of the warrants is $5.00. These warrants are exercisable on a cash or cashless basis until December 31, 2022. The total value of these warrants was $78 recorded in Additional-Paid-In-Capital.

During the quarter ended March 31, 2021, a total of 15,200 warrants were exercised and a total of 15,200 shares of common stock were issued to two investors at a price of $5.00 per share and a total of 3,800 common stock purchase warrants were issued to these two investors pursuant to the Warrant Offering (as below defined).

In April 2021, a total of 9,006 common stock purchase warrants were exercised by three investors for a total of 9,006 shares of Wytec’s common stock at an exercise price of $5.00 per share or a total of $45,030 and a total of 2,252 common stock purchase warrants were issued to these three investors pursuant to a private placement in accordance with Rule 506(b) of Regulation D of the Securities Act of 1933, as amended, in which existing warrant holders receive one cashless warrant exercisable until December 31, 2022 at an exercise price of $5.00 per share for every four currently outstanding warrants exercised by a warrant holder on or before July 31, 2021 (the “Warrant Offering”). The total value of the new warrants issued was $3,394 recorded in Additional-Paid-In-Capital.

In May 2021, a total of 20,000 common stock purchase warrants were issued to three investors for a total of 20,000 shares of Wytec’s common stock at an exercise price of $5.00 per share or a total of $100,000 and a total of 5,000 common stock purchase warrants were issued to these three investors pursuant to the Warrant Offering. The total value of the new warrants issued was $7,335 recorded in Additional-Paid-In-Capital.

In July 2021, we issued 20,000 common stock purchase warrants to four investors as part of our offering of units, each unit consisting of one share of our common stock and one common stock purchase warrant (the “Unit Offering”). The exercise price of the warrants is $5.00. These warrants are exercisable on a cash or cashless basis until December 31, 2022. The total value of these warrants was $27,159 recorded in Additional-Paid-In-Capital.

In August 2021, we issued 9,375 common stock purchase warrants to two investors as part of our Unit Offering. The exercise price of the warrants is $5.00. These warrants are exercisable on a cash or cashless basis until December 31, 2022. The total value of these warrants was $7,560 recorded in Additional-Paid-In-Capital.

In September 2021, we issued 16,000 common stock purchase warrants to three investors as part of our Unit Offering. The exercise price of the warrants is $5.00. These warrants are exercisable on a cash or cashless basis until December 31, 2022. The total value of these warrants was $15,836 recorded in Additional-Paid-In-Capital.

The following is a summary of activity and outstanding common stock warrants:

Schedule of warrant activity
	# of Warrants
Balance, December 31, 2020		2,388,675

Warrants granted		146,605
Warrants exercised		(44,206	)
Warrants expired		–

Balance, September 30, 2021		2,491,074

Exercisable, September 30, 2021		2,491,074

NOTE I – STOCKHOLDERS’ EQUITY

Holders of common stock are entitled to one vote per share. The common stock does not have cumulative voting rights in the election of directors. Accordingly, the holders of a majority of the outstanding shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election. Subject to preferential rights with respect to any series of preferred stock that may be issued, holders of the common stock are entitled to receive ratably such dividends as may be declared by the board of directors on the common stock out of funds legally available therefore and, in the event of liquidation, dissolution or winding-up of affairs, are entitled to share equally and ratably in all the remaining assets and funds.

Series A preferred stock is nonvoting capital stock but may be converted into voting common stock. Each share of series A preferred stock is convertible at the option of the holder at any time after the issuance into one share of common stock, subject to adjustment from time to time in the event (i) the Company subdivides or combines its outstanding common stock into a greater or smaller number of shares, including stock splits and stock dividends; or (ii) of a reorganization or reclassification of common stock, the consolidation or merger with or into another company, the sale, conveyance or other transfer of substantially all of the Company assets to another corporation or other similar event, whereby securities or other assets are issuable or distributable to the holders of the outstanding common stock upon the occurrence of any such event; or (iii) of the issuance to the holders of Company common stock of securities convertible into, or exchangeable for, such shares of common stock.

Each outstanding share of series A preferred stock will automatically convert into one share of common stock (a) if the common stock commences public trading on the NASDAQ capital market or better, (b) if the series A preferred stockholder receives distributions from the net profits pool equal to the original purchase price paid for their registered links, or (c) five years after the date of issuance of the series A preferred stock. The Company does not have any other right to require a conversion of the series A preferred stock into common stock. The Company does not have the option to redeem outstanding shares of series A preferred stock. A holder of the series A preferred stock has no preemptive rights to subscribe for any additional shares of any class of stock or for any issue of bonds, notes or other securities convertible into any class of stock. In the event of a liquidation, dissolution or winding-up whether voluntary or otherwise, after payment of debts and other liabilities, the holders of the series A preferred stock will be entitled to receive from the remaining net assets, before any distribution to the holders of the common stock, the amount of $1.50 per share. After payment of the liquidation preference to the holders of series A preferred stock and payment of any other distributions that may be required with respect to any other series of preferred stock, the remaining assets, if any, will be distributed ratably to the holders of the common stock and the holders of the series A preferred stock on an as-if converted basis.

The series B preferred stock is voting capital stock. The holders of the series B preferred stock will vote on an as-converted basis with the common stock on all matters submitted to a vote of the shareholders. The holders of the series B preferred stock are not entitled to any dividends unless and until the series B preferred stock is converted into common stock. Each share of series B preferred stock is convertible at the option of the holder at any time after issuance into one share of common stock, subject to adjustment from time to time in the event (i) the Company subdivides or combines into outstanding common stock into a greater or smaller number of shares, including stock splits and stock dividends; or (ii) of a reorganization or reclassification of common stock, the consolidation or merger with or into another company, the sale, conveyance or other transfer of substantially all of the Company assets to another corporation or other similar event, whereby securities or other assets are issuable or distributable to the holders of the outstanding common stock upon the occurrence of any such event; or (iii) of the issuance by us to the holders of common stock of securities convertible into, or exchangeable for, such shares of common stock.

Each outstanding share of series B preferred stock will automatically convert into one share of common stock at a conversion rate equal to the lesser of $3.00 per share or 75% of the average closing price of the Company’s common stock as quoted on the public securities trading market on which our common stock is then traded with the highest volume, for ten (10) consecutive trading days immediately after the first day of public trading of common stock if common stock commences public trading on the NASDAQ capital market or better, but in any event no less than $2.50 per share or at $3.00 per share five years after the date of issuance of the series B preferred stock. In the event of a liquidation, dissolution or winding-up whether voluntary or otherwise, after payment of debts and other liabilities, the holders of the series B preferred stock will be entitled to receive from the remaining net assets, before any distribution to the holders of the common stock, and pari pasu with the payment of a liquidation preference of $1.50 per share to the holders of the series A preferred stock, the amount of $3.00 per share. After payment of the liquidation preference to the holders of the series A preferred stock and the series B preferred stock, and payment of any other distribution that may be required with respect to any other series of preferred stock, the remaining assets, if any, will be distributed ratably to the holders of the common stock, the holders of the series A preferred stock, and the holders of the series B preferred stock on an as-if converted basis.

The series C preferred stock is voting capital stock. For so long as any shares of the series C preferred stock remain issued and outstanding, the holders thereof, voting separately as a class, shall have the right, on or after July 20, 2016, to vote in an amount equal to 51% of the total vote (representing a super majority voting power) with respect to all matters submitted to a vote of the shareholders of Wytec. Such vote shall be determined by the holder(s) of a majority of the then issued and outstanding shares of series C preferred stock. For example, if there are 10,000 shares of our common stock issued and outstanding at the time of such shareholder vote, the holders of the series C preferred stock, voting separately as a class, will have the right to vote an aggregate of 10,408 shares, out of a total number of 20,408 shares voting.

Additionally, the Company is prohibited from adopting any amendments to the Company’s bylaws or articles of incorporation, as amended, making any changes to the certificate of designation establishing the series C preferred stock, or effecting any reclassification of the series C preferred stock, without the affirmative vote of at least 66-2/3% of the outstanding shares of series C preferred stock. The Company may, however, by any means authorized by law and without any vote of the holders of shares of series C preferred stock, make technical, corrective, administrative or similar changes to such certificate of designation that do not, individually or in the aggregate, adversely affect the rights or preferences of the holders of shares of series C preferred stock.

The holders of the series C preferred stock are not entitled to any dividends. Holders of the series C preferred stock have no conversion rights. The shares of the series C preferred stock shall be automatically redeemed by us at their par value on the first to occur of the following: (i) on the date that Mr. Gray ceases, for any reason, to serve as officer, director or consultant of Wytec, or (ii) on the date that our shares of common stock first trade on any national securities exchange provided that the listing rules of any such exchange prohibit preferential voting rights of a class of securities of Wytec, or listing on any such national securities exchange is conditioned upon the elimination of the preferential voting rights of the series C preferred stock set forth in the certificate of designation. A holder of the series C preferred stock has no preemptive rights to subscribe for any additional shares of any class of stock of Wytec or for any issue of bonds, notes or other securities convertible into any class of stock of Wytec. The holders of the Series C preferred stock are not entitled to any liquidation preference.

During the first quarter of 2021, the Company issued a total of 461,270 shares of common stock in consideration for the conversion of 461,270 shares of Series B Preferred Stock by eight shareholders.

In January 2021, a total of 24,211 shares of common stock were issued in consideration for cash already received.

In February 2021, a total of 15,000 common stock purchase warrants were exercised for a total of 15,000 shares of Wytec’s common stock at an exercise price of $5.00 per share or a total of $75,000 as part of the Company’s Warrant Offering.

In February 2021, the Company issued a total of 9,375 shares of common stock to two investors for cash at $5.00 per share as part of the Company’s offering of units, each unit consisting of one share of the Company’s common stock and one common stock purchase warrant.

In March 2021, a total of 200 common stock purchase warrants were exercised for a total of 200 shares of Wytec’s common stock at an exercise price of $5.00 per share or a total of $1,000 as part of the Company’s Warrant Offering.

In April 2021, the Company issued a total of 25,280 shares of common stock in consideration for the conversion of 25,280 shares of Series B Preferred Stock by two shareholders.

In May 2021, a total of 20,000 common stock purchase warrants were exercised by three investors for a total of 20,000 shares of Wytec’s common stock at an exercise price of $5.00 per share or a total of $100,000 as part of the Company’s Warrant Offering.

In May 2021, the Company issued a total of 30,000 shares of common stock in consideration for the conversion of 30,000 shares of Series B Preferred Stock by two shareholders.

In June 2021, the Company issued a total of 40,000 shares of common stock in consideration for the conversion of 40,000 shares of Series A Preferred Stock by one shareholder.

On June 14, 2021, the Company cancelled 24,134,448 shares of the Company’s common stock which were held in treasury.

In July 2021, the Company issued a total of 20,000 shares of common stock to four investors for cash at $5.00 per share as part of the Company’s Unit Offering.

In July 2021, the Company issued a total of 30,000 shares of common stock in consideration for the conversion of 30,000 shares of Series B Preferred Stock by three shareholders.

In August 2021, the Company issued a total of 9,375 shares of common stock to two investors for cash at $5.00 per share as part of the Company’s Unit Offering.

In August 2021, the Company issued a total of 10,000 shares of common stock in consideration for the conversion of 10,000 shares of Series B Preferred Stock by one shareholder.

In August 2021, the Company issued a total of 400 shares of common stock in consideration for the services performed by one individual.

In September 2021, the Company issued a total of 16,000 shares of common stock to three investors for cash at $5.00 per share as part of the Company’s Unit Offering.

NOTE J – RELATED PARTY TRANSACTIONS

The Company has an account payable balance owed to Richardson & Associates in the amount of $172,014 as of September 30, 2021, and $107,084 as of December 31, 2020 for legal services rendered. The Company incurred expense of $106,870 and $47,285 with Richardson & Associates as of the nine months ended September 30, 2021 and 2020. Mark Richardson is the owner of Richardson & Associates and he was appointed as a director of Wytec International, Inc. in September 2019.

NOTE K – CONCENTRATION

The Company derived $272,843, 70%, and $365,692, 82%, of revenue in the nine months ended September 30, 2021 and 2020, respectively, from a single customer. We continue to endeavor to diversify our customer base and make efforts to mitigate the risk associated with excess concentration of sales from a limited number of customers.

NOTE L – PRIOR PERIOD MISSTATEMENTS

As part of its internal review prior to submitting its financial statements for the 3-month period ended March 31, 2021, the Company’s Management identified certain items, which pursuant to GAAP standards, required adjusting entries for proper financial presentation. The identified items related to prior periods dating back to 2019, and included: 1) Understatement of 2020 expenses, that related to 2019, in the amount of $49,174 for the nine months ended September 30, 2020 2) Understatement of 2019 accounts receivable and revenue by $17,041 due to billing not timely identified; and 3) Unrecorded gross up of fixed assets and corresponding loans on the Consolidated Balance Sheet as of December 31, 2020, which also resulted in a misclassification of costs on the Consolidated Statement of Operations by overstating Selling, General and Administrative expense and understating Depreciation and Amortization and Other Expense (for associated interest expense).

Management evaluated the impact of these misstatements and determined the impact is immaterial. Management has corrected the accompanying Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2020, which resulted in a decrease to net cash used in operating activities of $25,125 and a corresponding decrease to net cash provided by financing activities. Additionally, management has corrected the accompanying Condensed Consolidated Balance Sheet as of December 31, 2020 and Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2021 as summarized below:


	2020 Statement of Operations Impact
	For the Three Months Ended September 30, 2020				Adjustment for Error Correction			As Restated
Revenues	$	111,625			$	–		$	111,625
Cost of sales		50,340				–			50,340
Selling, general and administrative		472,464		(3)		(10,469	)		461,995
Depreciation and amortization		9,229		(3)		8,078			17,307
Research and development		5,852				–			5,852
Other expense		23,608		(3)		2,094			25,702
Net loss	$	(449,868	)		$	297		$	(449,571	)


	For the Nine Months Ended September 30, 2020				Adjustment for Error Correction			As Restated
Revenues	$	444,390			$	–		$	444,390
Cost of sales		361,087				–			361,087
Selling, general and administrative		1,675,332		(1/3)		17,767			1,693,099
Depreciation and amortization		28,808		(3)		24,234			53,042
Research and development		10,577				–			10,577
Other expense		54,269		(3)		6,282			60,551
Net loss	$	(1,685,683	)		$	(48,283	)	$	(1,733,966	)


	December 31, 2020 Balance Sheet Impact
	As Previously				Adjustment for		As
	Reported				Error Correction		Restated
Assets
Accounts Receivable	$	42,311		(2)	$	17,041	$	59,352
Other current assets		599,684				–		599,684
Other assets		117,169				–		117,169
Fixed Assets		55,184		(3)		119,780		174,964
Total Assets		814,348				136,821		951,169

Liabilities
Current liabilities	$	1,809,965		(3)	$	33,502	$	1,843,467
Note payables		–		(3)		82,383		82,383
Other liabilities		27,274				–		27,274
Total liabilities		1,837,239				115,885		1,953,124

Stockholders' deficit
Accumulated deficit		(22,092,678	)	(2)/(3)		20,936		(22,071,742	)
Total Stockholders' deficit	$	(1,022,891	)		$	20,936	$	(1,001,955	)

NOTE M – SUBSEQUENT EVENTS

In October 2021, the Company commenced an offering of up to $1,400,000 of convertible promissory notes (the “Notes”) under Rule 506(b) of Regulation D of the Securities Act of 1933, as amended, (the “Note Offering”). Each Note bears simple interest at the rate of 7% per annum and is due and payable twelve months after the initial issuance of the Note (the “Maturity Date”). If the Company’s common stock is listed on the NASDAQ Market System on or before the Maturity Date, the noteholders (“Noteholders”) will have the option to convert all or a portion of their outstanding Notes into shares of the Company’s common stock at a rate equal to the greater of $5.00 per share or a price equal to eighty-five percent (85%) of the 10-day moving average of the Company’s public trading price as shown on the NASDAQ Market System. If the Note is converted before the Company’s common stock has commenced to trade on the public securities trading market, then (a) the conversion price will be $5.00 per share, and (b) immediately upon the conversion, the converting Noteholders will be issued a number of new warrants from the Company equal to the dollar amount of the conversion divided by $5.00 (the “Warrants”). The Warrants will be exercisable until December 31, 2022 at an exercise price equal to the greater of (i) five dollars ($5.00) or (ii) eighty-five percent (85%) of the 10-day moving average of the Borrower’s public trading price as shown on the NASDAQ Market System.

In October 2021, Wytec issued a total of 40,000 shares of common stock and 40,000 of common stock purchase warrants to six investors pursuant to the Company’s Unit Offering.

In October 2021, the president of the Company loaned $10,000 to the Company pursuant to a promissory note. The note bears simple interest at a rate of 5% per annum with a maturity date of October 21, 2022.

In November 2021, the Company issued a total of 4,100 shares of common stock in consideration for the exercise of 4,100 common stock purchase warrants by two warrant holders at an exercise price of $5.00 per share.

In November 2021, Wytec issued a total of 17,000 shares of common stock and 17,000 of common stock purchase warrants to two investors pursuant to the Company’s Unit Offering.

On November 4, 2021, Ms. Erica Perez was appointed as a director of Wytec.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about Wytec International, Inc. (hereinafter, with its subsidiary, “Wytec,” “Company,” “us,” “we” or “our”), the industry in which we operate and other matters, as well as management's beliefs and assumptions and other statements regarding matters that are not historical facts. These statements include, in particular, statements about our plans, strategies and prospects. For example, when we use words such as “projects,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “should,” “would,” “could,” “will,” “opportunity,” “potential” or “may,” and variations of such words or other words that convey uncertainty of future events or outcomes, we are making forward-looking statements.

These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause the Company’s actual results to be materially different from any future results expressed or implied by the Company in those statements. The most important factors that could prevent the Company from achieving its stated goals include, but are not limited to, the following:

(a)

volatility or decline of our stock price;

(b)

potential fluctuation in quarterly results;

(c)

failure to earn revenues or profits;

(d)

inadequate capital to continue our business;

(e)

insufficient revenues to cover operating costs;

(f)

barriers to raising the additional capital or to obtaining the financing needed to implement our business plans;

(g)

dilution experienced by our shareholders in their ownership of the Company because of the issuance of additional securities by us, or the exercise of warrants or conversion of outstanding convertible securities;

(h)

inability to complete research and development of our technology with little or no current revenue;

(i)

lack of demand for our products and services;

(j)

loss of customers;

(k)

rapid and significant changes in markets;

(l)

technological innovations causing our technology to become obsolete;

(m)

increased competition from existing competitors and new entrants in the market;

(n)

litigation with or legal claims and allegations by outside parties;

(o)

inability to start or acquire new businesses, or lack of success of new businesses started or acquired by us, if any;

(p)

inability to effectively develop or commercialize our technology;

(q)

inability to obtain patent or other protection for our proprietary intellectual property; and

(r)

insufficient funds available to our prospective customers (such as our school district clients who depend on Federal Cares Act funding which may not materialize) to enable them to purchase and pay for our products and services.

Because the statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution you not to place undue reliance on the statements, which speak only as of the date of this Form 10-Q. The cautionary statements contained or referred to in this section should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.

The following discussion should be read in conjunction with our unaudited consolidated financial statements and notes to those statements. In addition to historical information, the following discussion and other parts of this annual report contain forward-looking statements and information that involves risks and uncertainties.

Overview of Current Operations

Wytec International, Inc., a Nevada corporation (“Wytec,” the “Company.” “we,” “us,” or “our”) is the developer of a technology called the “LPN-16,” consisting of chipsets, software, hardware designs and antennas that enable strengthened Wi-Fi and cellular transmission within a concentrated coverage area of approximately 500 feet in circumference. The hardware consists of a chassis or framework approximately 3 feet in height with a radius of approximately 32 inches. It is designed to be installed on a utility pole to provide dense network coverage. The unit, referred to as an outdoor “small cell”, is designed to increase Wi-Fi and cellular capacity and signal strength by placing a large number of them in densely populated areas as compared to the traditional macro site cellular towers covering a much larger area of approximately two (2) miles. The growth of small cells is in response to delivering substantially greater speeds to smartphones and other smart devices in preparation for the next generation of cellular technology now referred to as 5G.

When Wytec was first founded, we obtained five (5) United States patents (the “Patents”) related to Local Multipoint Distribution Service (“LMDS”) originally designed for digital television transmission, and later discovered to be useful in wireless broadband technology. Today Wytec utilizes Millimeter and Microwave spectrum as a wireless point to point backhaul for transmitting to small cells, including in the future its LPN-16 technology. This configuration is in place today and has become the center piece of Wytec’s private LTE initiatives requested by large commercial buildings, school districts and municipalities. Wytec’s ultimate configuration includes the extension of its private LTE design into the offering of its Mobile Virtual Network Operator (MVNO) wholesale services to both cable and Wireless Internet Service Providers (“WISPs”) throughout the United States. The Company believes that its MVNO services will become the foundation for supporting true 5G services in the U.S. as defined by the International Telecommunications Union (“ITU”), the standard for all previous mobile generations from 1G to 4G.

The 5G network is expected to have a transformative impact as it connects people with devices, data, transport systems and cities in a smart networked communications environment. The 5G network will rely substantially on small cell technology to achieve its goals. To facilitate this, operators need reliable connections with strong signal integrity, significant bandwidth and low latency. Small cells bring improved connectivity (speeds, reliability, and low latency) to the edge of existing macro networks, serving all morphologies from urban to rural markets.

We believe the LPN-16 small cell can solve many of the long-term challenges faced by operators deploying small cells who need access to backhaul, lower total cost of ownership and easier site acquisition and access. It can also assist cities wrestling with the on-going technology upgrades, network growth demands, political hurdles and new business models needed to realize the benefits of a 5G network. In addition to aligning with technical and governmental issues, the LPN-16 is designed to meet the standards for 5G deployment and, for operator needs, adheres to the Federal Communications Commission (“FCC”) policy initiatives addressing public safety and First Responder initiatives. Specifically, the FCC’s Report and Order 14-153, Acceleration of Broadband Deployment by Improving Wireless Facilities Siting Policies, adopts rules to help spur wireless broadband deployment by facilitating the sharing of wireless transmission equipment using “neutral host” functionality to simultaneously support multiple providers. The LPN-16 was specifically designed to support neutral host features and performance. The FCC’s goal of “shared used” and “neutral host” seeks to expand coverage and capacity more quickly, reduce costs and promote access to infrastructure which reduces barriers to deployment and incentivize the sharing of resources, rather than relying on new builds for every stakeholder, thereby safeguarding environmental, aesthetic, historic and local land-use values.

We have implemented an aggressive intellectual property strategy and continue to pursue patent protection for new innovations. In addition to the LPN-16 invention covered by our current patent, we have identified additional upgrades and additions to the LPN-16 which further tie it to the goals and timelines of Wytec’s 5G development business model, FCC policy initiatives and customer business usage which we believe could lead to additional patentable property. We intend to file for patent protection on these developments. Our strategy is to continually monitor the costs and benefits of our patent applications and pursue those that will best protect our business and expand the core value of the Company.

We have recruited and hired a seasoned management team with both private and public company experience and relevant technical and industry experience to develop and execute our operating plan. In addition, we have identified key engineering resources for intellectual property development, antenna development, hardware, software, and firmware engineering, as well as integration and testing that will allow us to continue to expand our technology and intellectual property.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations, including the discussion on liquidity and capital resources, are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management re-evaluates its estimates and judgments, particularly those related to the determination of the estimated recoverable amounts of trade accounts receivable, impairment of long-lived assets, revenue recognition and deferred tax assets. We believe the following critical accounting policies require more significant judgment and estimates used in the preparation of the financial statements.

We maintain an allowance for doubtful accounts for estimated losses that may arise if any of our customers are unable to make required payments. Management specifically analyzes the age of customer balances, historical bad debt experience, customer credit-worthiness, and changes in customer payment terms when making estimates of the collectability of our trade accounts receivable balances. If we determine that the financial conditions of any of our customers deteriorated, whether due to customer specific or general economic issues, increases in the allowance may be made. Accounts receivable are written off when all collection attempts have failed.

Effective January 1, 2018, Wytec International, Inc. adopted the revenue standards of Financial Accounting Standards Board Update No. 2014-09: “Revenue from Contracts with Customers (Topic 606).” Accordingly, Wytec International, Inc. recognizes revenue in accordance with the core principle of the revenue model in that revenue is recognized when a customer obtains control of a good or service. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Revenue is recognized in accordance with that core principle by applying the following five steps: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) we satisfy a performance obligation.

Effective January 1, 2019, Wytec International, Inc. adopted the leasing standards of Financial Accounting Standards Board Update No. 2016-02, “Leases (Topic 842)." If we determine that an arrangement is or contains a lease which is 12 months or longer, we recognize a right-of-use (“ROU”) asset and lease obligation at the commencement date of the lease. ROU assets represent our right to use an underlying asset for the lease term and lease obligations represent our lease payments arising from the lease. Operating lease ROU assets and obligations are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Income taxes are accounted for under the asset and liability method. Under this method, to the extent that we believe that the deferred tax asset is not likely to be recovered, a valuation allowance is provided. In making this determination, we consider estimated future taxable income and taxable timing differences expected in the future. Actual results may differ from those estimates.

Results of Operations for the Nine Months Ended September 30, 2021 and 2020 and Three Months Ended September 30, 2021 and 2020

Revenue for the nine months ended September 30, 2021 and 2020 was $392,375 and $444,390, respectively. This decrease in revenue of $52,015, or 11.7%, was primarily due to decreases in revenue from our Cel-fi systems. Revenue for the three months ended September 30, 2021and 2020 was $77,999 and $111,625, respectively. This decrease in revenue of $33,626, or 30%, was primarily due to a decrease in revenue from our Cel-fi systems.

Cost of sales for the nine months ended September 30, 2021 and 2020 was $330,733 and $361,087, respectively. This decrease of $30,354, or 8%, was due to the decrease in costs incurred related to the sales of our Cel-fi systems. Cost of sales for the three months ended September 30, 2021 and 2020 was $62,481 and $50,340, respectively. This increase of $12,141, or 24%, was due to the increase in costs incurred related to the sales of our Cel-fi systems.

General and administrative expenses were $552,415 for the three months ended September 30, 2021, as compared to $472,464 for the three months ended September 31, 2020, this resulted in an increase of $79,951 or 17% compared to the same period in 2020. Contributing factor to the increase include an increase in stock transfer fees of $42,580 and an increase in legal fees of $32,201 for the three months ended September 30, 2021 compared to the same period in 2020. The remaining increase is attributable to an overall rise in some office and administrative expenses due to increased activity regarding obtaining new contracts. General and administrative expenses were $1,478,420 for the nine months ended September 30, 2021, as compared to $1,675,332 for the nine months ended September 31, 2020, this resulted in a decrease of $196,912 or 12% compared to the same period in 2020. Contributing factors to the decrease include a decrease in professional fees of $64,069, a decrease in warrant and stock based compensation of $82,107, a decrease in dues and subscriptions of $50,455, a decrease of $95,334 in salaries and wages and a decrease in travel of $21,183 for the nine months ended September 30, 2021 compared to the same period in 2020. The remaining decrease is attributable to cost savings from reduced operating expense to ensure cash needs are met. Where a percentage is not listed, the comparison period expense category is $0 and the calculation is not meaningful.

We estimate that we will need approximately $3,000,000 of capital or financing over the next 12 months to fund our planned operations, which we plan to satisfy as described below under “Satisfaction of our Cash Needs for the Next 12 Months.”

We anticipate that we will incur operating losses in the next twelve months. Our revenue is not expected to exceed our investment and operating costs in the next twelve months. Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in their early stage of operations. To address these risks, we must, among other things, seek growth opportunities through investment and acquisitions, implement and successfully execute our business strategy, respond to competitive developments, and attract, retain and motivate qualified personnel. We cannot assure that we will be successful in, addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition and results of operations.

Cash Flow from Operating Activities

Cash flows used in operating activities during the nine months ended September 30, 2021 were $1,309,259 compared to $1,342,592 during the nine months ended September 30, 2020. This change of $33,333 was primarily due to changes in net loss during the nine months ended September 30, 2021 to the same period in 2020.

Cash Flow from Investing Activities

Cash flows used by investing activities during the nine months ended September 30, 2021 were $-0- compared to the cash flows used by investing activities of $13,039 during the nine months ended September 30, 2020. Capital expenditures totaled $-0- and $13,039 during the nine months ended September 30, 2021 and 2020, respectively.

Cash Flow from Financing Activities

Cash flows provided by financing activities during the nine months ended September 30, 2021 were $876,606 compared to $1,027,411 during the nine months ended September 30, 2020. These receipts represent proceeds from the sale of the Company’s common stock and from the issuance of debt.

Satisfaction of Our Cash Obligations for the Next 12 Months.

September 30, 2021, our cash balance was $163,079. Our plan for satisfying our cash requirements for the next twelve months is through sales-generated income, private placements of our capital stock, third party financing, and/or traditional bank financing. We anticipate sales-generated income during that same period of time, but do not anticipate generating sufficient revenue to meet our working capital requirements. Consequently, we intend to attempt to find sources of additional capital in the future to fund our growth and expansion through additional equity or debt financing or credit facilities. There is no assurance that we will be able to meet our working capital requirements through the private placement of equity or debt or from any other source.

Other Payable

Other Payable of $895,000 consists of amounts billed and collected before services related to registered links previously sold by the Company (“Registered Links”) have been completed. During 2019 deferred revenue was reclassified to other payables due by the Company which has exited the business of installing registered links. The Company intends to settle the liability through a combination of exchanges for common and preferred stock and cash.

Going Concern

Our consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit of $23,515,665 at September 30, 2021, and have reported negative cash flows from operations. In addition, we do not currently have the cash resources to meet our operating commitments for the next twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern must be considered in light of the problems, expenses, and complications frequently encountered by entrance into established markets and the competitive nature in which we operate.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Recently Issued Accounting Standards

We have reviewed the standards issued by the Financial Accounting Standards Board (“FASB”) through September 30, 2021 and which are not yet effective. None of the standards will have a material impact on our financial statements.

Item 3. Quantitative and Qualitative Disclosure About Market Risk.

Not Applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

Our chief executive officer, who is also currently our interim chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on this evaluation, our chief executive officer and interim chief financial officer has concluded that our disclosure controls and procedures were not effective as of September 30, 2021. Specifically, our disclosure controls and procedures were not effective in timely alerting our management to material information relating to us (including our consolidated subsidiaries) required to be included in our periodic SEC filings and ensuring that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief financial officer, or person performing similar functions, as appropriate to allow timely decisions regarding required disclosure, for the following reasons:

·		The Company does not have an independent board of directors or audit committee or adequate segregation of duties;
·		A significant portion of our financial reporting is prepared by our financial consultant;
·		We do not have an independent body to oversee our internal controls over financial reporting and lack segregation of duties due to the limited nature and resources of the Company; and
·		Inadequate closing process to ensure all material misstatements are corrected in the financial statements

We have begun to rectify these weaknesses by hiring additional personnel and will create an independent board of directors once we have additional resources to do so. We have also begun the interview process and the acceptance of bids for the implementation and monitoring of the required SOX guidelines.

Internal Control Over Financial Reporting

Our chief executive officer and interim chief financial officer is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Internal control over financial reporting is a process intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. Due to the matter identified above, we have identified the design and effectiveness of our internal control over financial reporting to not be effective.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

The Company may be involved in legal actions and claims arising in the ordinary course of business from time to time. As of the date of the report, there are no legal matters of which management is aware.

Item 1A. Risk Factors.

During the quarter ended September 30, 2021, there have been no material changes from the risk factors previously in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities.

During the third quarter of 2021, the Company issued a total of 45,375 shares of common stock and 45,375 common stock purchase warrants to nine investors pursuant to a private placement in accordance with Rule 506(c) of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”).

During the third quarter of 2021, the Company issued 400 shares of common stock to one shareholder in consideration for services rendered in accordance with Rule 506(b) of Regulation D of the Securities Act.

During the third quarter of 2021, the Company issued 40,000 shares of common stock in consideration for the conversion of 40,000 shares of Series B Preferred Stock by four shareholders in accordance with Rule 506(b) of Regulation D of the Securities Act.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit	Description

3.1	Articles of Incorporation, dated November 7, 2011 (1)
3.2	Amendment to Articles of Incorporation, dated January 14, 2014 (1)
3.3	Amendment to Articles of Incorporation, dated June 13, 2014 (1)
3.4	Bylaws(1)
4.1	Certificate of Designation for Series A Preferred Stock, dated February 14, 2014 (1)
4.2	Certificate of Designation for Series B Preferred Stock, dated June 13, 2014 (1)
4.3	Amendment to Certificate of Designation for Series B Preferred Stock, dated October 22, 2014 (1)
4.4	Amendment to Certificate of Designation for Series B Preferred Stock, dated March 4, 2015 (1)
4.5	Certificate of Designation for Series C Preferred Stock, dated July 26, 2016 (1)
4.6	Warrant issued by Wytec International, Inc. to William H. Gray (2)
4.7	Amendment to William H. Gray Warrants, dated December 30, 2020 (3)
10.1	Separation and Distribution Agreement by and between Wytec International, Inc. and Competitive Companies, Inc. (1)
10.2	License Agreement by and between Wytec International, Inc. and Competitive Companies, Inc. (1)
10.3	Broker-Dealer Agreement with Dalmore Group, LLC, executed as of December 28, 2020 (4)
10.4	Agreement with the Laredo School District (5)
10.5	Agreement with Southwest Research Institute (5)
14.1	Code of Conduct (1)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act *
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act *
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act *
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act*
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) **
101.SCH	Inline XBRL Taxonomy Extension Schema Document **
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document **
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document **
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document **
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document **
104	Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101). **

(1)	Incorporated by reference from the Company’s Registration Statement on Form S-1 and its amendments, originally filed on January 10, 2017.

(2)	Incorporated by reference to the Form 8-K filed with the Securities and Exchange Commission, dated September 21, 2018.

(3)	Incorporated by reference to the Form 8-K filed with the Securities and Exchange Commission, dated January 4, 2021.

(4)	Incorporated by reference to the Form 8-K filed with the Securities and Exchange Commission, dated January 8, 2021.

(5)	Incorporated by reference to the Form 10-K filed with the Securities and Exchange Commission on June 25, 2021.

Filed herewith. Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WYTEC INTERNATIONAL, INC.

By: /s/ William H. Gray

William H. Gray, Chief Executive Officer and

President (Principal Executive Officer) and interim

Chief Financial Officer (Principal Accounting

Officer)

Date: November 16, 2021