KonaTel Reports Second Quarter 2023 Results
- 74.9% increase in gross profit
- Narrowed operating and net losses
- 50% increase in subscriber activations
- Infrastructure improvements for scalable growth
- None.
Losses Narrow as Cost of Delivery is Reduced; Subscriber Activations Accelerate
DALLAS, TX / ACCESSWIRE / August 14, 2023 / KonaTel, Inc. (OTCQB:KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for the three-month period ended June 30, 2023.
Second Quarter 2023 Financial Summary
- Revenues of
$4.6 million , down10.2% compared to the second quarter last year. - Gross profit of
$774,000 , up74.9% compared to the second quarter last year. - Operating loss of
$(1.0) million compared to operating loss of$(1.4) million in the second quarter last year. - GAAP net loss of
$(1.2) million , or$(0.03) per share, compared to$(1.5) million , or$(0.04) per share, in the second quarter last year. - Non-GAAP net loss of
$(900,000) , or$(0.02) per diluted share, compared to Non-GAAP net loss of$(1.2) million , or$(0.03) per diluted share, in the second quarter of last year.
Sean McEwen, Chairman and CEO of KonaTel stated, "For the second quarter, our gross profit increased, and our operating and net losses narrowed despite lower revenue. Lower delivery and lower operating costs, as well as the addition of higher ARPU activations in our Mobile Services segment, are the primary factors driving the improvement in profitability. Demand for our government subsidized services remains robust, and the investments we have made in infrastructure in recent quarters will enable us to scale our business at a pace that is both manageable and sustainable over the long term."
McEwen continued, "Our infrastructure improvements are largely complete and customer acquisition is accelerating with second quarter subscriber activations up
Quarterly Financial Summary (Q2 2023 vs. Q2 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
Year-to-Date Financial Detail (First Six Months of 2023 vs. First Six Months of 2022)
Revenues decreased
Gross profit was
Total operating expenses were
GAAP net loss was
Non-GAAP net loss was
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 eleven 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)
| June 30, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 1,134,773 | $ | 2,055,634 | ||||
Accounts Receivable, Net | 1,438,342 | 1,510,118 | ||||||
Inventory, Net | 792,985 | 526,337 | ||||||
Prepaid Expenses | 9,098 | 61,241 | ||||||
Other Current Assets | - | 164 | ||||||
Total Current Assets | 3,375,198 | 4,153,494 | ||||||
Property and Equipment, Net | 30,360 | 36,536 | ||||||
Other Assets | ||||||||
Intangible Assets, Net | 634,251 | 634,251 | ||||||
Right of Use Asset | 486,042 | 553,686 | ||||||
Other Assets | 74,543 | 73,883 | ||||||
Total Other Assets | 1,194,836 | 1,261,820 | ||||||
Total Assets | $ | 4,600,394 | $ | 5,451,850 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts Payable and Accrued Expenses | $ | 1,815,560 | $ | 1,348,931 | ||||
Loans Payable, Net of Loan Fees | 3,583,213 | 3,070,947 | ||||||
Right of Use Operating Lease Obligation - Current | 122,972 | 118,382 | ||||||
Total Current Liabilities | 5,521,745 | 4,538,260 | ||||||
Long Term Liabilities | ||||||||
Right of Use Operating Lease Obligation - Long Term | 395,634 | 458,227 | ||||||
Total Long Term Liabilities | 395,634 | 458,227 | ||||||
Total Liabilities | 5,917,379 | 4,996,487 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock, $.001 par value, 50,000,000 shares authorized, 42,670,720 outstanding and issued at June 30, 2023 and 42,240,406 outstanding and issued at December 31, 2022 | 42,670 | 42,240 | ||||||
Additional Paid In Capital | 9,075,626 | 8,710,987 | ||||||
Accumulated Deficit | (10,435,281 | ) | (8,297,864 | ) | ||||
Total Stockholders' Equity | (1,316,985 | ) | 455,363 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,600,394 | $ | 5,451,850 | ||||
KonaTel, Inc.
Consolidated Statements of Operations
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 4,601,426 | $ | 5,123,097 | $ | 8,633,145 | $ | 9,350,954 | ||||||||
Cost of Revenue | 3,827,374 | 4,680,530 | 6,857,214 | 7,261,127 | ||||||||||||
Gross Profit | 774,052 | 442,567 | 1,775,931 | 2,089,827 | ||||||||||||
Operating Expenses | ||||||||||||||||
Payroll and Related Expenses | 1,107,303 | 1,238,979 | 2,246,849 | 2,371,294 | ||||||||||||
Operating and Maintenance | 1,621 | 717 | 3,321 | 1,359 | ||||||||||||
Bad Debt | - | 29,078 | 14 | 29,133 | ||||||||||||
Professional and Other Expenses | 204,023 | 145,477 | 463,418 | 294,647 | ||||||||||||
Utilities and Facilities | 52,030 | 39,348 | 109,075 | 75,035 | ||||||||||||
Depreciation and Amortization | 3,088 | 2,059 | 6,176 | 6,176 | ||||||||||||
General and Administrative | 43,259 | 119,316 | 83,492 | 180,233 | ||||||||||||
Marketing and Advertising | 46,490 | 37,357 | 84,008 | 85,027 | ||||||||||||
Application Development Costs | 299,629 | 115,089 | 443,158 | 249,694 | ||||||||||||
Taxes and Insurance | 16,907 | 92,281 | 33,163 | 123,660 | ||||||||||||
Total Operating Expenses | 1,774,350 | 1,819,701 | 3,472,674 | 3,416,258 | ||||||||||||
Operating Income/(Loss) | (1,000,298 | ) | (1,377,134 | ) | (1,696,743 | ) | (1,326,431 | ) | ||||||||
Other Income and Expense | ||||||||||||||||
Interest Expense | (179,630 | ) | (47,146 | ) | (341,132 | ) | (71,176 | ) | ||||||||
Other Income/(Expense), net | (42,792 | ) | (54,073 | ) | (99,542 | ) | (125,196 | ) | ||||||||
Total Other Income and Expenses | (222,422 | ) | (101,219 | ) | (440,674 | ) | (196,372 | ) | ||||||||
Net Loss | $ | (1,222,720 | ) | $ | (1,478,353 | ) | $ | (2,137,417 | ) | $ | (1,522,803 | ) | ||||
Earnings (Loss) per Share | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.04 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.04 | ) | ||||
Weighted Average Outstanding Shares | ||||||||||||||||
Basic | 42,520,720 | 41,615,406 | 42,539,672 | 41,615,406 | ||||||||||||
Diluted | 42,520,720 | 41,615,406 | 42,539,672 | 41,615,406 | ||||||||||||
SOURCE: KonaTel
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