KonaTel Reports First Quarter 2023 Results
First quarter sees increase in subscriber activity, on revenues of
DALLAS, TX / ACCESSWIRE / May 15, 2023 / KonaTel, Inc. (OTCQB:KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for the three-month period ended March 31, 2023.
First Quarter 2023 Financial Summary
- Revenues of
$4.0 million , down4.6% compared to the first quarter last year. - Gross profit of
$1.0 million , down39.2% compared to the first quarter last year. - Operating loss of (
$753,000) compared to operating income of$51,000 in the first quarter last year. - GAAP net loss of
$(915,000) , or$(0.02) per share, compared to$(44,000) , or$(0.00) per share, in the first quarter last year. - Non-GAAP net loss of
$(608,000) , or$(0.01) per diluted share, compared to Non-GAAP income of$135,000 , or$0.00 per diluted share, in the first quarter of last year.
Sean McEwen, Chairman and CEO of KonaTel stated, "Revenue growth was slightly lower in the first quarter, down
McEwen continued, "We are set to support a significantly larger customer base with minimal expansion of general and administrative expenses. Additionally, we continue to add distribution partners to broaden our growth across the United States, while also adding a new customer retention program in May and affinity partnerships to serve vertical markets such as healthcare. In addition to our current sales model, we expect to complete alternative "asset-light" growth relationships, like our Equiva partnership, that will enable us to expand our customer base without the need for substantial amounts of capital, generating additional cash flow to expand further."
McEwen concluded, "As we invest in our business and look towards substantive growth, we believe the economics of our business remain attractive and will yield profitability and positive cash flow as we expand our customer base. With our veteran leadership team in place, we are energized by the number of significant opportunities for expansion. We are creating a company to substantially grow predictable revenues, earnings and cash flow, even during weaker economic conditions."
Quarterly Financial Summary (Q1 2023 vs. Q1 2022)
Revenue of
Gross profit was
Total operating expenses were
GAAP net loss was
Non-GAAP net loss was (
Balance Sheet
The Company ended the quarter with
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 national wireless ACP and Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, licensed to provide government subsidized cellular service to low-income American families across ten states. 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.
Contacts
D. Sean McEwen
(214) 323-8410
inquiries@konatel.com
-- Unaudited Balance Sheets and Statements of Operations Follow -
KonaTel, Inc.
Consolidated Balance Sheets
(unaudited)
| March 31, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 1,596,048 | $ | 2,055,634 | ||||
Accounts Receivable, net | 1,202,255 | 1,510,118 | ||||||
Inventory, Net | 690,868 | 526,337 | ||||||
Prepaid Expenses | 35,170 | 61,241 | ||||||
Other Current Assets | 164 | 164 | ||||||
Total Current Assets | 3,524,505 | 4,153,494 | ||||||
Property and Equipment, Net | 33,448 | 36,536 | ||||||
Other Assets | ||||||||
Intangible Assets, Net | 634,251 | 634,251 | ||||||
Right of Use Asset | 519,894 | 553,686 | ||||||
Other Assets | 74,542 | 73,883 | ||||||
Total Other Assets | 1,228,687 | 1,261,820 | ||||||
Total Assets | $ | 4,786,640 | $ | 5,451,850 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts Payable and Accrued Expenses | $ | 1,399,838 | $ | 1,348,931 | ||||
Loans Payable, net of loan fees | 3,114,330 | 3,070,947 | ||||||
Right of Use Operating Lease Obligation - current | 120,658 | 118,382 | ||||||
Total Current Liabilities | 4,634,826 | 4,538,260 | ||||||
Long Term Liabilities | ||||||||
Right of Use Operating Lease Obligation - long term | 427,299 | 458,227 | ||||||
Total Long Term Liabilities | 427,299 | 458,227 | ||||||
Total Liabilities | 5,062,125 | 4,996,487 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock, $.001 par value, 50,000,000 shares authorized, 42,483,220 outstanding and issued at March 31, 2023 and 42,240,406 outstanding and issued at December 31, 2022 | 42,483 | 42,240 | ||||||
Additional Paid In Capital | 8,894,593 | 8,710,987 | ||||||
Accumulated Deficit | (9,212,561 | ) | (8,297,864 | ) | ||||
Total Stockholders' Equity | (275,485 | ) | 455,363 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,786,640 | $ | 5,451,850 | ||||
KonaTel, Inc.
Consolidated Statements of Operations
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2023 | 2022 | |||||||
Revenue | $ | 4,031,719 | $ | 4,227,856 | ||||
Cost of Revenue | 3,029,840 | 2,580,595 | ||||||
Gross Profit | 1,001,879 | 1,647,261 | ||||||
Operating Expenses | ||||||||
Payroll and Related Expenses | 1,139,546 | 1,132,313 | ||||||
Operating and Maintenance | 1,700 | 642 | ||||||
Bad Debt | 14 | 55 | ||||||
Professional and Other Expenses | 300,498 | 149,170 | ||||||
Utilities and Facilities | 57,045 | 35,687 | ||||||
Depreciation and Amortization | 3,088 | 4,117 | ||||||
General and Administrative | 40,234 | 60,918 | ||||||
Marketing and Advertising | 37,517 | 47,670 | ||||||
Application Development Costs | 143,529 | 134,605 | ||||||
Taxes and Insurance | 31,903 | 31,379 | ||||||
Total Operating Expenses | 1,755,074 | 1,596,556 | ||||||
Operating Income/(Loss) | (753,195 | ) | 50,705 | |||||
Other Income and Expense | ||||||||
Interest Expense | (161,502 | ) | (24,030 | ) | ||||
Other Income/(Expense), net | - | (71,124 | ) | |||||
Total Other Income and Expenses | (161,502 | ) | (95,154 | ) | ||||
Net Income (Loss) | $ | (914,697 | ) | $ | (44,449 | ) | ||
Earnings (Loss) per Share | ||||||||
Basic | $ | (0.02 | ) | $ | (0.00 | ) | ||
Diluted | $ | (0.02 | ) | $ | (0.00 | ) | ||
Weighted Average Outstanding Shares | ||||||||
Basic | 42,375,917 | 41,615,406 | ||||||
Diluted | 42,375,917 | 41,615,406 | ||||||
SOURCE: KonaTel
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