KonaTel Reports Third Quarter Financial Results, Uplisting

DALLAS, Jan. 5, 2021 /PRNewswire/ — KonaTel, Inc. (OTCMKTS: KTEL) (www.konatel.com), a voice/knowledge communications holding firm, right this moment introduced monetary outcomes for the third quarter and 9 month interval ended September 30, 2020.

Third Quarter Monetary Abstract

Revenues of $2.5 million, up 7.7% in comparison with the third quarter final yr, as a consequence of growing work-from-home traits and natural development in each CPaaS operations and ETC operations.
Intra-year 2020 sequential quarterly enhancements included Q1 to Q2 income improve of 15% and Q2 to Q3 income improve of 12%.
Gross revenue elevated by 8.8% in comparison with the third quarter final yr reflecting a continued concentrate on higher-margin income, which resulted in a shedding of lower-margin, commoditized enterprise.
Internet Working Revenue grew by 65.7% in comparison with the third quarter final yr as a consequence of improved administration of direct prices.
Internet Revenue of $19,953 or $0.0005 per share, in comparison with a internet lack of $(175,805), or $(0.0043) per share within the third quarter final yr.

“We’re very happy to report each yr over yr and sequential quarterly enhancements in income, gross revenue, and working revenue,” acknowledged KonaTel Chairman and CEO Sean McEwen. “We proceed to shed decrease margin, commoditized enterprise in favor of significant, worth add income that permits us to earn the next return on our capital. Latest nationwide traits in work-from-home and natural development in each CPaaS operations and ETC operations have been the important thing drivers of this efficiency. Larger margin income drives efficiencies and scale in our enterprise. Improved overhead utilization between working corporations pushed working and upkeep bills decrease by virtually 30% yr over yr.”

12 months-to-Date Monetary Element (First 9 Months of 2020 vs. First 9 Months of 2019)

Revenues decreased 7.1% to $6.7 million in comparison with $7.3 million as a result of Firm’s emphasis on larger margin income. Gross revenue elevated to $2.5 million, or 37.3% revenue margin, in comparison with gross revenue of $2.4 million, or 33.3% revenue margin. Complete working bills have been $2.9 million, down 18%, primarily as a consequence of improved administration of direct prices. Internet revenue was $262,835, or $0.01 per share (based mostly on 44.1 million weighted common diluted shares), versus a internet lack of lack of $(0.03) per share (based mostly on 40.7 million weighted common diluted shares).

Stability Sheet

The Firm ended the quarter with $588,213 in money, in comparison with $191,474 in money on December 31, 2019. Long run debt was $329,542 versus $63,545 on December 31, 2019.

Uplisting

The Firm can also be happy to announce that its widespread shares have been authorised for itemizing on OTC Markets Group Inc.’s OTCQB® Enterprise Market (“OTCQB”). OTCQB is a enterprise market operated by the OTC Markets Group, Inc. To be eligible for citation on the OTCQB, corporations should be present of their reporting and endure an annual verification and administration certification course of. Firms should additionally meet a minimal bid value check and different monetary situations. OTCQB is acknowledged by the U.S. Securities and Alternate Fee as a longtime public market and gives present public data to buyers that want to research, worth, and commerce securities.

“Uplisting to the OTCQB is a vital milestone for our Firm,” acknowledged Sean McEwen. “We’re enthusiastic concerning the means of our new itemizing to extend investor consciousness, visibility, and buying and selling liquidity round our public shares. Our uplisting can also be a serious step in the direction of assembly the necessities for potential admission to a different main change equivalent to NASDAQ or NYSE someday sooner or later.”

About KonaTel

KonaTel gives a wide range of retail and wholesale telecommunications companies together with cell voice/textual content/knowledge companies supported by nationwide U.S. cell networks, cell numbers, SMS/MMS companies, IOT cell knowledge service, SD-WAN and different digital communications companies. KonaTel’s subsidiary, Apeiron Methods (www.apeiron.io), is an FCC licensed Web Telephony Service Supplier (ITSP) that owns and operates its personal nationwide digital telecommunications community supported by an “as a service” (CPaaS/UCaaS/CCaaS/PaaS) telecommunications SAS (Software program as a Service) platform. Apeiron gives fastened and wi-fi digital voice, messaging, community, knowledge, and platform companies by its API (Software Programming Interface) software program infrastructure. KonaTel’s different subsidiary, Infiniti Cellular (www.infinitimobile.com), is an FCC licensed Lifeline wi-fi service supplier delivering backed cell service to low-income American households and one in all about 12 energetic cell Lifeline carriers to carry an FCC authorised Compliance Plan. KonaTel is headquartered in Dallas, Texas.

Secure Harbor Assertion

This press launch incorporates forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. Ahead-looking statements should not a assure of future efficiency or outcomes and won’t essentially be correct indications of the instances at, or by, which such efficiency or outcomes can be achieved. Ahead-looking statements are based mostly on data accessible on the time the statements are made and contain identified and unknown dangers, uncertainties and different components which will trigger our outcomes, ranges of exercise, efficiency or achievements to be materially completely different from the data expressed or implied by the forward-looking statements on this press launch. This press launch needs to be thought-about in mild of the disclosures contained within the filings of KonaTel and its “forward-looking statements” in such filings which are contained within the EDGAR Archives of the SEC at www.sec.gov.

KonaTel, Inc.
Condensed Consolidated Stability Sheets

	September 30, 2020
	(Unaudited)	December 31, 2019
Property
Present Property
Money and Money Equivalents	$ 588,213	$ 191,474
Accounts Receivable, internet	485,469	377,485
Stock, internet	4,972	4,659
Pay as you go Bills	1,348	1,743
Different Present Asset	194	–
Complete Present Property	1,080,196	575,361

Fastened Asset
Property and Tools, internet	91,873	102,689
Proper of Use Property, internet	64,690	78,584
Complete Fastened Property	156,563	181,273

Different Property
Intangible Property, internet	1,637,168	2,238,918
Different Property	172,065	207,740
Complete Different Property	1,809,233	2,446,658
Complete Property	$ 3,045,992	$ 3,203,292

Liabilities and Stockholders’ Fairness
Present Liabilities
Accounts Payable and Accrued Bills	$ 1,060,340	$ 1,223,195
Quantity Resulting from Stockholder	41,692	151,357
Revolving Line of Credit score	–	12,237
Observe Payable – present portion	–	75,905
Lease Liabilities – present portion	69,449	69,148
Deferred Income	37,748	53,074
Buyer Deposits	–	31,087
Complete Present Liabilities	1,209,229	1,616,003

Lengthy Time period Liabilities
Lease Liabilities – long run	56,438	12,942
Observe Payable – long run	273,104	50,603
Complete Lengthy Time period Liabilities	329,542	63,545
Complete Liabilities	1,538,771	1,679,548

Stockholders’ Fairness
Widespread inventory, $.001 par worth, 50,000,000 shares approved, 40,692,286 excellent and issued at September 30, 2020 and December 31, 2019	40,692	40,692
Extra Paid-In Capital	7,410,800	7,380,029
Gathered Deficit	(5,944,271)	(5,896,977)
Complete Stockholders’ Fairness	1,507,221	1,523,744
Complete Liabilities and Stockholders’ Fairness	$ 3,045,992	$ 3,203,292

See accompanying notes to unaudited condensed consolidated monetary statements.

KonaTel, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended September 30,		9 Months Ended September 30,
	2020	2019	2020	2019
Income	$ 2,527,281	$ 2,346,975	$ 6,741,830	$ 7,253,641
Price of Income	1,625,481	1,517,834	4,196,528	4,836,732

Gross Revenue	901,800	829,141	2,545,302	2,416,909

Working Bills
Payroll and Associated Bills	505,236	461,331	1,403,315	1,403,872
Working and Upkeep	161,650	225,252	582,349	1,034,287
Unhealthy Debt	39	3,300	1,729	3,300
Utilities and Amenities	8,438	21,066	24,928	80,839
Depreciation and Amortization	246,090	251,117	763,358	753,350
Normal and Administrative	17,641	13,306	44,777	91,639
Advertising and Promoting	5,534	2,550	7,350	24,020
Taxes and Insurance coverage	13,595	15,615	55,720	85,508
Complete Working Bills	958,223	993,537	2,883,526	3,476,815

Working Loss	(56,423)	(164,396)	(338,224)	(1,059,906)

Different Revenue and Expense
Curiosity Revenue	–	221	–	1,562
Different Revenue	81,070	–	624,518	14,836
Curiosity Expense	(4,694)	(11,631)	(23,459)	(34,314)
Complete Different Revenue and Bills	76,376	(11,410)	601,059	(17,916)

Internet Revenue (Loss)	$ 19,953	$ (175,805)	$ 262,835	$ (1,077,822)

Internet Revenue (Loss) per Share	$ 0.00	$ (0.00)	$ 0.01	$ (0.03)

Weighted Common Excellent Shares – Fundamental	40,692,286	40,692,286	40,692,286	40,692,286

Diluted Internet Revenue (Loss) per Share	$ 0.000453	$ (0.004320)	$ 0.005961	$ (0.026487)

Weighted Common Excellent Shares – Diluted	44,092,286	40,692,286	44,092,286	40,692,286

See accompanying notes to unaudited condensed consolidated monetary statements.