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TMCNet:  KonaTel Reports First Quarter 2021 Financial Results

[May 25, 2021]

KonaTel Reports First Quarter 2021 Financial Results

DALLAS, May 25, 2021 /PRNewswire/ -- KonaTel, Inc. (OTCMKTS: KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for three-month period ended March 31, 2021.

First Quarter Financial Summary and Recent Business Highlights

  • Revenues of $2.4 million, up 22% compared to the first quarter last year.
  • Gross profit of $911,000, up 19% compared to the first quarter last year.
  • Operating loss of $(230,000) compared to $(190,000) in the first quarter last year.
  • Net Loss of $(233,000) or $(0.01) per share, compared to net income of $101,000, inclusive of non-recurring, other income of $300,000, or $0.00 per share, in the first quarter last year.
  • Subsequent to quarter end, the company's subsidiary, IM Telecom (d/b/a Infiniti Mobile), received approval to participate in the Federal Communications Commission's (FCC) new Emergency Broadband Benefit Program (EBB) (www.fcc.gov/broadbandbenefit) established by Congress to provide temporary broadband data service to low-income American households impacted by COVID.

"Demand for telecommunications and data services continues to be robust as work-from-home trends persist, IoT (Internet of Things) wireless data opportunities increase and consumers seek faster, more reliable connectivity from the accelerating deployment of smart devices," stated KonaTel Chairman and CEO Sean McEwen. "We are increasing our internal infrastructure, primarily employed and contracted personnel, to expand our sales channel strategy to meet this growing demand and pursue additional opportunities to further scale the higher margin, Hosted Services segment of our business."

First Quarter Financial Detail (First Quarter of 2021 vs. First Quarter of 2020)

Revenues increased 22% to $2.4 million compared to $2.0 million, reflecting a 32% increase in Hosted Services revenues and a 14% increase in Mobile Services revenues.

Gross profit was $911,000, or 38.1% profit margin, compared to gross profit of $765,000, or 39.1% profit margin.

Total operating expenses were $1.1 million, up 19.5% compared to $995,000. This increase was primarily a result of infrastructure expansion, mostly payroll and operating & maintenance expenses to support growth.

Net loss was $(233,000), or $(0.01) per diluted share (based on 40.7 million weighted average shares) compared to net income of $101,000, or $0.00 per diluted share (based on 44.1 million weighted average shares), inclusive of non-operating, other income of $300,000 related to a legal settlement.

Balance Sheet

The Company ended the quarter with $569,000 in cash, compared to $715,000 in cash on December 31, 2020. Long term debt was $150,000 as of March 31, 2021 and December 31, 2020.

About KonaTel

KonaTel provides a variety of retail and wholesale telecommunications services including mobile voice/text/data service supported by national U.S. mobile networks, mobile numbers, SMS/MMS services, IoT mobile data service, and a range of hosted cloud services. KonaTel's subsidiary, Apeiron Systems (www.apeiron.io), is a global cloud communications service provider employing a dynamic "as a service" (CPaaS/UCaaS/CCaaS/PaaS) platform. Apeiron provides voice, messaging, SD-WAN, and platform services using its national cloud network. All Apeiron's services can be accessed through legacy interfaces and rich communications APIs. KonaTel's other subsidiary, Infiniti Mobile (www.infinitimobile.com), is an FCC authorized wireless Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, authorized to provide government subsidized cellular service to low-income Americans.  KonaTel is headquartered in Plano, Texas. 

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of the disclosures contained in the filings of KonaTel and its "forward-looking statements" in such filings that are contained in the EDGAR Archives of the SEC at www.sec.gov.

-- Tables Follow –






KonaTel, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)



March 31, 2021


December 31, 2020

  Assets




    Current Assets




Cash and Cash Equivalents

$                   569,336


$                 715,195

Accounts Receivable, net

487,753


434,801

Inventory, Net

16,999


17,786

Prepaid Expenses

1,802


2,365

Other Current Asset

164


194

    Total Current Assets

1,076,054


1,170,341





Property and Equipment, Net

66,602


79,571





    Other Assets




Intangible Assets, Net

1,473,001


1,517,163

Other Assets

172,296


172,065

    Total Other Assets

1,645,297


1,689,228

  Total Assets

$                2,787,953


$              2,939,140





  Liabilities and Stockholders' Equity




    Current Liabilities




      Accounts Payable and Accrued Expenses

$                   980,260


$              1,042,567

      Note Payable - current portion

62,743


94,339

      Right of Use Operating Lease Obligation - current

98,501


66,323

      Deferred Revenue

-


37,677

    Total Current Liabilities

1,141,504


1,240,906





    Long Term Liabilities




      Right of Use Operating Lease Obligation - long term

164,992


15,399

      Note Payable - long term

150,000


150,000

    Total Long Term Liabilities

314,992


165,399

    Total Liabilities

1,456,496


1,406,305





    Commitments and contingencies




    Stockholders' Equity




Common stock, $.001 par value, 50,000,000 shares authorized,
40,692,286 outstanding and issued at March 31, 2021 and
December 31, 2020

40,692


40,692

      Additional Paid In Capital

7,491,976


7,460,632

      Accumulated Deficit

(6,201,211)


(5,968,489)

    Total Stockholders' Equity

1,331,457


1,532,835

  Total Liabilities and Stockholders' Equity

$                2,787,953


$              2,939,140

 

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



Three Months Ended March 31,


2021


2020

  Revenue

$           2,392,838


$              1,957,355

  Cost of Revenue

1,481,677


1,192,177

  Gross Profit

911,161


765,178





  Operating Expenses




    Payroll and Related Expenses

549,199


448,149

    Operating and Maintenance

290,322


193,852

    Utilities and Facilities

48,366


20,945

    Depreciation and Amortization

213,554


258,222

    General and Administrative

20,442


14,243

    Marketing and Advertising

11,086


944

    Taxes and Insurance

8,672


18,814

  Total Operating Expenses

1,141,641


955,169





  Operating Loss

(230,480)


(189,991)





  Other Income and Expense




    Other Income

-


301,373

    Interest Expense

(2,242)


(10,549)

  Total Other Income and Expenses

(2,242)


290,824





  Net Income (Loss)

$             (232,722)


$                 100,833





  Net Income (Loss) per Share




   Basic

$                   (0.01)


$                             -

   Diluted

(0.01)


-





  Weighted Average Outstanding Shares




   Basic

40,692,286


40,692,286

   Diluted

40,692,286


44,092,286

 

Cision View original content:http://www.prnewswire.com/news-releases/konatel-reports-first-quarter-2021-financial-results-301298252.html

SOURCE KonaTel, Inc.


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