KonaTel, Inc. Files Q2 2025 10-Q Report

TL;DR

KonaTel's Q2 2025 10-Q is in. Check financials.

AI Summary

KonaTel, Inc. filed its 10-Q for the period ending June 30, 2025. The filing covers the second quarter of 2025 and provides financial updates. Specific financial figures for the quarter and year-to-date are detailed within the report.

Why It Matters

This 10-Q filing provides investors with the latest financial performance and position of KonaTel, Inc. for the second quarter of 2025, crucial for investment decisions.

Risk Assessment

Risk Level: low — This filing is a standard quarterly report and does not contain immediate red flags or significant new risks.

Key Numbers

• Q2 2025 — Reporting Period (The second quarter of 2025 financial results are detailed.)
• 20250630 — Period End Date (The financial data presented is as of this date.)
• 20250819 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• KonaTel, Inc. (company) — Filer of the 10-Q report
• 20250630 (date) — End of the reporting period
• 20250819 (date) — Filing date of the report
• 0000845819 (company) — Central Index Key for KonaTel, Inc.

FAQ

Key Financial Figures

• $0.001 — ble date: Common Capital Voting Stock, $0.001 par value per share 43,566,814 shares
• $100 — elecom to Excess Telecom for the sum of $100 on the "Final Closing." If not approved

Filing Documents

• ktel10q063025.htm (10-Q) — 690KB
• exhibit311.htm (EX-31) — 8KB
• exhibit312.htm (EX-31) — 8KB
• exhibit32.htm (EX-32) — 6KB
• 0001515971-25-000074.txt ( ) — 4095KB
• ktel-20250630.xsd (EX-101.SCH) — 25KB
• ktel-20250630_cal.xml (EX-101.CAL) — 50KB
• ktel-20250630_def.xml (EX-101.DEF) — 78KB
• ktel-20250630_lab.xml (EX-101.LAB) — 288KB
• ktel-20250630_pre.xml (EX-101.PRE) — 221KB
• ktel10q063025_htm.xml (XML) — 652KB

, Other Information, Item 6, Exhibits, hereof, and are incorporated herein by reference

Part II, Other Information, Item 6, Exhibits, hereof, and are incorporated herein by reference.

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. 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 Quarterly Report. We cannot assure you that the forward-looking reliance on forward-looking statements. You should carefully read this Quarterly Report completely, and it should be read and considered with all other reports filed by us with the SEC that are contained in the SEC Edgar Archives, including the "Risk Factors" enumerated in "Part I, Item IA. Risk Factors" of our 10-K Annual Report for the year ended December 31, 2024, filed with the SEC on April 15, 2025, which Risk Factors commence on page ten (10) thereof. A copy of the Annual Report is attached hereto by Hyperlink in Part II-Other Information, in Item 6, Exhibits, hereof, and is in

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements & Footnotes

Item 1. Financial Statements & Footnotes 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 21

Risk Factors

Item 1A. Risk Factors 21

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 21

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 21

Other Information

Item 5. Other Information 21

Exhibits

Item 6. Exhibits 21

- FINANCIAL STATEMENTS

PART I - FINANCIAL STATEMENTS June 30, 2025 Table of Contents Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited), and December 31, 2024 4 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025, and 2024 (unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the three and six months ended June 30, 2025, and 2024 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025, and 2024 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8 3 KonaTel, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, 2025 December 31, 2024 Assets Current Assets Cash and Cash Equivalents $ 1,491,346 $ 1,679,345 Accounts Receivable, Net 509,571 1,533,015 Inventory, Net 118,242 163,063 Prepaid Expenses 75,349 94,496 Other Current Assets 310,988 112,170 Total Current Assets 2,505,496 3,582,089 Property and Equipment, Net 13,563 15,128 Other Assets Intangible Assets, Net 323,468 323,468 Right of Use Asset 257,499 319,549 Notes Receivable 850,000 1,000,000 Other Assets 74,328 74,328 Total Other Assets 1,505,295 1,717,345 Total Assets $ 4,024,354 $ 5,314,562 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable and Accrued Expenses $ 2,675,605 $ 2,277,597 Right of Use Operating Lease Obligation - Current 78,457 113,740 Income Tax Payable 184,051 184,051 Total Current Liabilities 2,938,113 2,575,388 Long Term Liabilities Right of Use Operating Lease Obligation - Long Term 195,999 227,776 Total Long-Term Liabilities 195,999 227,776 Total Liabilities 3,134,112 2,803,164 Commitments and Contingencies Stockholders' Equity Common stock, $ 0.001 par value, 50,000,000 shares authorized 43,541,140 outstanding and issued at June 30, 2025, and 43,503,658 outstanding and issued at December 31,

financial statements

financial statements. 4 KonaTel, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 2,158,656 $ 4,343,179 $ 4,327,370 $ 9,979,016 Cost of Revenue 1,608,416 3,443,472 3,125,237 7,951,804 Gross Profit 550,240 899,707 1,202,133 2,027,212 Operating Expenses Payroll and Related Expenses 1,081,633 1,341,046 2,192,333 2,793,146 Operating and Maintenance 2,069 1,421 3,489 2,965 Credit Loss 13,910 — 13,910 1,448 Professional and Other Expenses 325,750 231,302 483,181 341,525 Utilities and Facilities 48,528 59,332 94,939 110,118 Depreciation and Amortization 782 2,449 1,565 4,899 General and Administrative 64,975 44,573 114,962 105,968 Marketing and Advertising 5,396 27,031 10,482 61,027 Application Development Costs 172,967 387,800 351,493 593,883 Taxes and Insurance 32,788 59,115 63,981 113,550 Total Operating Expenses 1,748,798 2,154,069 3,330,335 4,128,529 Operating Loss ( 1,198,558 ) ( 1,254,362 ) ( 2,128,202 ) ( 2,101,317 ) Other Income and Expense Gain on Sale — — — 9,247,726 Interest Expense — — ( 577 ) ( 104,329 ) Other Income/(Expense), net 10,917 ( 4,763 ) 23,610 ( 68,693 ) Total Other Income and Expenses 10,917 ( 4,763 ) 23,033 9,074,704 Income (Loss) Before Income Taxes ( 1,187,641 ) ( 1,259,125 ) ( 2,105,169 ) 6,973,387 Income Tax Expense (Benefit) — ( 149,428 ) — — Net Income (Loss) $ ( 1,187,641 ) $ ( 1,109,697 ) $ ( 2,105,169 ) $ 6,973,387 Earnings (Loss) per Share Basic $ ( 0.03 ) $ ( 0.03 ) $ ( 0.05 ) $ 0.16 Diluted $ ( 0.03 ) $ ( 0.03 ) $ ( 0.05 ) $ 0.16 Weighted Average Outstanding Shares Basic 43,537,102 43,412,602 43,536,341 43,301,670 Diluted 43,537,102 43,412,602 43,536,341 43,301,670 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. 5 KonaTel, Inc. Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) Common Shares Additional Accumulated Shares Amount Paid-in Capital Deficit Total Balances as of January 1, 2025 43,503,658 $ 43,504 $ 10,215,766 $ ( 7,747,873 ) $ 2,511,398 Exercised Stock Options 37,482 37 ( 37 ) — — Stock Based Compensation — — 484,014 — 484,014 Net Loss — — — ( 2,105,169 ) ( 2,105,169 ) Balances as of June 30, 2025 43,541,140 $ 43,541 $ 10,699,743 $ ( 9,853,042 ) $ 890,242 Common Shares Additional Accumulated Shares Amount Paid-in Capital Deficit Total Balances as of April 1, 2025 43,526,417 $ 43,527 $ 10,455,081 $ ( 8,665,401 ) $ 1,833,207 Exercised Stock Options 14,723 14 ( 14 ) — — Stock Based Compensation — — 244,677 — 244,677 Net Income — — — ( 1,187,641 ) ( 1,187,641 ) Balances as of June 30, 2025 43,541,140 $ 43,541 $ 10,699,743 $ ( 9,853,042 ) $ 890,242 Common Shares Additional Accumulated Shares Amount Paid-in Capital Deficit Total Balances as of January 1, 2024 43,145,720 $ 43,146 $ 9,182,140 $ ( 12,238,691 ) $ ( 3,013,405 ) Exercised Stock Options 327,234 327 40,923 — 41,250 Stock Based Compensation — — 446,746 — 446,746 Net Loss — — — 6,973,387 6,973,387 Balances as of June 30, 2024 43,472,954 $ 43,473 $ 9,669,809 $ ( 5,265,304 ) $ 4,447,978 Common Shares Additional Accumulated Shares Amount Paid-in Capital Deficit Total Balances as of April 1, 2024 43,333,220 $ 43,333 $ 9,447,272 $ ( 4,155,607 ) $ 5,334,998 Exercised Stock Options 139,734 140 ( 140 ) — — Stock Based Compensation — — 222,677 — 222,677 Net Income — — — ( 1,109,697 ) ( 1,109,697 ) Balances as of June 30, 2024 43,472,954 $ 43,473 $ 9,669,809 $ ( 5,265,304 ) $ 4,447,978 See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. Common Shares Additional Paid-in Capital Accumulated Deficit 6 KonaTel, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2025 2024 Cash Flows from Operating Activities: Net Income (Loss) $ ( 2,105,169 ) $ 6,973,387 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and Amortization 1,565 4,899 Gain on Sale of IM Telecom (49%) — ( 9,247,726 ) Loan Origination Cost Amortization — 49,579 Credit Loss 13,910 1,448 Stock-based Compensation 484,014 446,747 Change in Right of Use Asset 62,050 60,901 Change in Lease Liability ( 67,059 ) ( 51,983 ) Changes in Operating Assets and Liabilities: Accounts Receivable 1,009,534 ( 344,885 ) Inventory 44,821 674,911 Prepaid Expenses and Other Asset ( 179,672 ) 12,221 Accounts Payable and Accrued Expenses 398,007 ( 570,449 ) Income Tax Payable — — Net cash used in operating activities ( 337,999 ) ( 1,990,950 ) Cash Flows from Investing Activities Sale of IM Telecom (49%) — 9,558,509 Notes Receivable 150,000 ( 1,000,000 ) Net cash provided by investing activities 150,000 8,558,509 Cash Flows from Financing Activities Repayments of amounts of Notes Payable — ( 3,704,750 ) Cash received from Stock Options Exercised — 41,250 Net cash used in financing activities — ( 3,663,500 ) Net Change in Cash ( 187,999 ) 2,904,059 Cash - Beginning of Year 1,679,345 777,103 Cash - End of Period $ 1,491,346 $ 3,681,162 Supplemental Disclosure of Cash Flow Information Cash paid for interest $ — $ 54,750 Cash paid for taxes $ — $ — Non-cash investing and financing activities: See accompanying notes to unaudited condensed consolidated

financial statements

financial statements. 7 KonaTel, Inc. Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of Company KonaTel Inc., a Delaware corporation, formerly known as Dala Petroleum Corp. (the "Company," "we," "our," or "us"), also formerly known as "Westcott Products Corporation," was incorporated as "Light Tech, Inc." under the laws of the State of Nevada on May 24, 1984. A subsidiary in the name "Westcott Products Corporation" was organized by us under the laws of the State of Delaware on June 24, 1986, for the purpose of changing our name and domicile to the State of Delaware. On June 27, 1986, we merged with the Delaware subsidiary, with the survivor being Westcott Products Corporation, a Delaware corporation ("Westcott"). During 1990, we ceased our then current operations. On March 11, 2000, our Board of Directors began the process of re-entering the development stage, and on June 2, 2014, we completed a merger with Dala Petroleum Corp., a Nevada corporation (respectively, "Dala Nevada" and the "Dala Merger"). We operated as an early-stage oil exploration company focused on our leased acreage acquired by Dala Nevada until 2016, at which time we assigned substantially all of our leased acreage to the former owner of Dala Nevada, and our remaining oil and gas leasehold interests, comprising leases covering approximately 7,489 and 403 acres, more or less, expired in 2017 and 2018, respectively. On December 18, 2017, we acquired KonaTel, Inc, a Nevada subchapter S-Corporation ("KonaTel Nevada"), in a merger with our acquisition subsidiary under which KonaTel Nevada became our wholly owned subsidiary, and we succeeded to its operations; and we changed our name to "KonaTel, Inc." on February 5, 2018. KonaTel Nevada was organized under the laws of the the b