KonaTel Reports Fiscal Year 2022 Results
KonaTel, Inc. (OTCQB: KTEL) reported a 56% revenue increase to $20.0 million for the fiscal year 2022, driven by its expansion in mobile services for low-income consumers. Despite the revenue growth, the company faced a GAAP net loss of $(3.0) million, or $(0.07 per share, reversing from a profit of $623,000 in 2021. Gross profit fell 12.9% to $5.0 million due to high customer acquisition costs, yet cash reserves grew 120.4% to $2.1 million. The fourth quarter showed a 22.4% revenue rise, but also recorded a net loss of $(84,000). Strategic partnerships and financing of $3.15 million aim to bolster growth in 2023, emphasizing a balance between aggressive investment and sustainable growth.
- Revenue increased by 56% to $20.0 million.
- Secured $3.15 million in capital financing to support growth.
- Expanded mobile service subscriber base significantly.
- Increased cash reserves by 120.4% to $2.1 million.
- Entered strategic partnerships to enhance customer loyalty.
- GAAP net loss of $(3.0) million compared to a profit of $623,000 in 2021.
- Gross profit decreased by 12.9% to $5.0 million.
Delivers
DALLAS, TX / ACCESSWIRE / April 17, 2023 / KonaTel, Inc. (OTCQB:KTEL) (www.konatel.com), a voice and data communications holding company, today announced financial results for the twelve-month period ended December 31, 2022.
Full Fiscal Year 2022 Financial Highlights
- Revenues of
$20.0 million , up56.0% compared to the year ended December 31, 2021, due to the Company's planned expansion within its Mobile Services segment, distributing cellular and mobile data service to low-income consumers. - Gross profit of
$5.0 million , down12.9% compared to the year ended December 31, 2021, reflecting the Company's continued up-front investment in aggressive new customer acquisition within its Mobile Services segment. - GAAP net loss of
$(3.0) million , or$(0.07) per diluted share, compared to GAAP net income of$623,000 , or$0.01 per diluted share, in the year ended December 31, 2021. - Non-GAAP net loss of
$(1.8) million , or$(0.04) per diluted share, compared to non-GAAP net income of$2.1 million , or$0.05 per diluted share, in the year ended December 31, 2021. - Cash and cash equivalents of
$2.1 million , an increase of120.4% compared to December 31, 2021.
Fourth Quarter 2022 Financial Highlights
- Revenue of
$4.8 million , up22.4% compared to the fourth quarter last year. - GAAP net loss of
$(84,000) , or$(0.00) per diluted share, compared to net income of$195,000 , or$0.00 per diluted share, in the fourth quarter last year. - Non-GAAP net income of
$237,000 , or$0.01 per diluted share, compared to non-GAAP net income of$635,000 , or$0.02 per diluted share, in the fourth quarter last year.
Business Highlights 2022
- As part of the Company's goal to pursue value added markets that foster improved customer loyalty and reduced turnover, the Company's wholly owned subsidiary, Infiniti Mobile, entered into a national partnership with Equiva Health in August 2022, a digital patient engagement and health relationship management provider assisting hospitals, nursing homes, insurers and other healthcare organizations in advancing enrollment in the Affordable Connectivity Program (ACP).
- The Company's wholly owned subsidiary, Apeiron Systems, closed a three-year extended agreement with one of its largest cloud services customers providing communications services to U.S. prisons. The minimum value of the contract is
$7.2 million over the term, which was a75% increase compared to the previous agreement. - Secured
$3.15 million in capital financing to accelerate growth within the Company's mobile services business. - Increased the number of distribution partners and channels and nearly tripled the Company's mobile service subscriber base.
- Added new equipment and service suppliers, providing the Company with increased leverage to secure improved purchase terms and improve its use of working capital.
- Created a US-based national customer service center and a popular customer retention rewards program to improve customer satisfaction and loyalty, both of which have been extremely well received.
- Expanded the management team with the appointments of Chuck Griffin as President/COO of KonaTel, Jason Welch as President of Infiniti Mobile and Todd Murcer as Executive Vice President of Finance for KonaTel.
- Expanded our Lifeline state licensing (New York), ACP state licensing (Alaska and Hawaii) and intrastate coverage under the Company's FCC ETC designation, which provides additive reimbursement rates and enhances the value of the Company's ETC license.
- Shifted distribution to higher profit markets in Q4, increasing Average Revenue Per User ("ARPU").
- Recorded net operating income of
$301,000 in Q4.
"We delivered
McEwen continued, "We remain committed to growth, but more importantly, growth at a pace that is manageable and sustainable for the long-term. Investment in customer acquisition is a strong lever for growing our business and by using a stair-step approach to investing we are able to control growth and effectively manage our capital resources. This is highly evident in our fourth quarter results as we slowed investment to deliver positive operating income."
McEwen closed, "We intend to resume aggressive growth in 2023, commensurate with the expanded infrastructure (personnel, distribution, and systems) we created in 2022. We are laser focused on creating shareholder value, strengthening our competitive position and identifying niche markets and strategies to promote customer loyalty, such as our partnership with Equiva, while we build a stable, scalable and profitable enterprise."
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
KonaTel, Inc.
Consolidated Balance Sheet
| Years Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 2,055,634 | $ | 932,785 | ||||
Accounts Receivable, net | 1,510,118 | 1,274,687 | ||||||
Inventory, Net | 526,337 | 566,839 | ||||||
Prepaid Expenses | 61,241 | 79,467 | ||||||
Other Current Asset | 164 | 164 | ||||||
Total Current Assets | 4,153,494 | 2,853,942 | ||||||
Property and Equipment, Net | 36,536 | 48,887 | ||||||
Other Assets | ||||||||
Intangible Assets, Net | 1,187,937 | 807,775 | ||||||
Other Assets | 73,883 | 154,297 | ||||||
Investments | - | 10,000 | ||||||
Total Other Assets | 1,261,820 | 972,072 | ||||||
Total Assets | $ | 5,451,850 | $ | 3,874,901 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts Payable and Accrued Expenses | $ | 1,348,931 | $ | 930,449 | ||||
Loans Payable, net of loan fees | 3,070,947 | - | ||||||
Right of Use Operating Lease Obligation - current | 118,382 | 50,672 | ||||||
Total Current Liabilities | 4,538,260 | 981,121 | ||||||
Long Term Liabilities | ||||||||
Right of Use Operating Lease Obligation - long term | 458,227 | 136,445 | ||||||
Note Payable - long term | - | 150,000 | ||||||
Total Long Term Liabilities | 458,227 | 286,445 | ||||||
Total Liabilities | 4,996,487 | 1,267,566 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock, $.001 par value, 50,000,000 shares authorized, 42,240,406 outstanding and issued at December 31, 2022 and 41,615,406 outstanding and issued at December 31, 2021 | 42,240 | 41,615 | ||||||
Additional Paid In Capital | 8,710,987 | 7,911,224 | ||||||
Accumulated Deficit | (8,297,864 | ) | (5,345,504 | ) | ||||
Total Stockholders' Equity | 455,363 | 2,607,335 | ||||||
Total Liabilities and Stockholders' Equity | $ | 5,451,850 | $ | 3,874,901 | ||||
KonaTel, Inc.
Consolidated Statement of Operations
| Years Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
Revenue | $ | 20,023,340 | $ | 12,834,844 | ||||
Cost of Revenue | 15,033,733 | 7,105,464 | ||||||
Gross Profit | 4,989,607 | 5,729,380 | ||||||
Operating Expenses | ||||||||
Payroll and Related Expenses | 4,974,989 | 2,702,495 | ||||||
Operating and Maintenance | 8,129 | 1,887 | ||||||
Bad Debt | 29,133 | 31,318 | ||||||
Professional and Other Expenses | 1,509,269 | 697,594 | ||||||
Utilities and Facilities | 206,380 | 146,254 | ||||||
Depreciation and Amortization | 12,352 | 833,016 | ||||||
General and Administrative | 300,042 | 156,386 | ||||||
Marketing and Advertising | 106,402 | 90,635 | ||||||
Application Development Costs | 146,400 | 266,191 | ||||||
Taxes and Insurance | 251,196 | 165,257 | ||||||
Total Operating Expenses | 7,544,292 | 5,091,033 | ||||||
Operating Income/(Loss) | (2,554,685 | ) | 638,347 | |||||
Other Income and Expense | ||||||||
Interest Expense | (399,031 | ) | (15,361 | ) | ||||
Other Income/(Expense), net | 1,356 | - | ||||||
Total Other Income and Expenses | (397,675 | ) | (15,361 | ) | ||||
Net Income (Loss) | $ | (2,952,360 | ) | $ | 622,986 | |||
Earnings (Loss) per Share | ||||||||
Basic | $ | (0.07 | ) | $ | 0.02 | |||
Diluted | $ | (0.07 | ) | $ | 0.01 | |||
Weighted Average Outstanding Shares | ||||||||
Basic | 41,863,283 | 40,909,085 | ||||||
Diluted | 41,863,283 | 42,891,011 | ||||||
SOURCE: KonaTel
View source version on accesswire.com:
https://www.accesswire.com/749582/KonaTel-Reports-Fiscal-Year-2022-Results
FAQ
What were KonaTel's financial results for 2022?
How did KonaTel perform in the fourth quarter of 2022?
What is the outlook for KonaTel in 2023?
What were the key highlights from KonaTel's fiscal year 2022 report?
