| OPERATING EXPENSES |
NOTE 13 – OPERATING EXPENSES The main components of the operating expenses are the following: | | | | | | | | | | | Three month period ended | | Nine month period ended | | | September 30, | | September 30, | | | 2025 | | 2024 | | 2025 | | 2024 | | Cost of equipment | | Profit (loss) | Inventory balance at the beginning of the year (*) | | (137,589) | | (68,219) | | (83,216) | | (87,371) | Plus: | | | | | | | | | Acquisitions through business combination (**) | | — | | — | | (72,074) | | — | Purchases | | (33,952) | | (74,686) | | (175,944) | | (172,809) | Other | | 1,949 | | 1,721 | | 4,888 | | 9,893 | Less: | | | | | | | | | Inventory balance at the end of the period (*) | | 101,606 | | 76,667 | | 101,606 | | 76,667 | | | (67,986) | | (64,517) | | (224,740) | | (173,620) |
(*) Without considering allowance for obsolescence.
(**) See Note 16. Operating expenses disclosed by function of expense amounted to $5,270,240 million and $3,898,310 million for the nine-month period ended September 30, 2025, and 2024, respectively are as follows: | | | | | | | | | | | | | | | Operating | | Administration | | Commercialization | | Other | | Total | | Total | Concept | | costs | | costs | | costs | | expenses | | 09.30.25 | | 09.30.24 | Employee benefit expenses and severance payments | | (651,736) | | (329,526) | | (377,353) | | — | | (1,358,615) | | (915,085) | Interconnection costs and transmission costs | | (200,813) | | — | | — | | — | | (200,813) | | (112,382) | Fees for services, maintenance, materials and supplies | | (262,718) | | (162,172) | | (289,663) | | — | | (714,553) | | (506,572) | Taxes and fees with the Regulatory Authority | | (478,405) | | 1,166 | | (7,776) | | — | | (485,015) | | (293,654) | Commissions and advertising | | — | | — | | (297,533) | | — | | (297,533) | | (204,778) | Cost of equipment and handsets | | (224,740) | | — | | — | | — | | (224,740) | | (173,620) | Programming and content costs | | (266,780) | | — | | — | | — | | (266,780) | | (212,992) | Bad debt expenses | | — | | — | | (97,299) | | — | | (97,299) | | (77,335) | Other operating expenses, net | | (158,003) | | (56,262) | | (46,561) | | — | | (260,826) | | (178,313) | Depreciation, amortization and impairment of Fixed and intangible assets | | (1,152,212) | | (141,267) | | (70,648) | | 61 | | (1,364,066) | | (1,223,579) | Total as of 09.30.25 | | (3,395,407) | | (688,061) | | (1,186,833) | | 61 | | (5,270,240) | | | Total as of 09.30.24 | | (2,580,193) | | (487,329) | | (832,139) | | 1,351 | | — | | (3,898,310) |
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