8-K - KTEL - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of earliest event reported: April 9, 2021

KonaTel, Inc.

(Exact name of registrant as specified in its charter)

N/A

(Former name or address, if changed since last report)

Delaware	001-10171	80-0000245

| (State or Other Jurisdiction<br> <br>Of Incorporation) | (Commission File Number) | (I.R.S. Employer<br> <br>Identification Number) |

500 N. Central Expressway, Suite 202

Plano, Texas 75074

(Address of Principal Executive Offices, Including Zip Code)

(214) 323-8410

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter or Rule 12b-2 of the Securities and Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

See Exhibit 99, below.

Item 7.01 Regulation FD Disclosure.

See Item 9.01, Exhibit 99.

The information contained in this Item 7.01 and in Exhibit 99 is being furnished, and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under such Section 18. Furthermore, the information contained in this Item 7.01 and in Exhibit 99 shall not be deemed to be incorporated by reference into our filings under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.

Description of Exhibit 99

Press Release dated April 9, 2021

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KonaTel, Inc.
Date: April 9, 2021	By:	/s/ D. Sean McEwen

| | | D. Sean McEwen |

| | | President, Chairman, Chief Executive Officer and Director |

KonaTel Reports Fiscal Year 2020 Results
KonaTel Reports Fiscal Year 2020 Results

Company Delivers First Full Year of Positive Net Income

Increase in Revenue, Gross Profit and Cash Flow from Operations

DALLAS, April 9, 2021 /PRNewswire/ -- KonaTel, Inc. (OTCMKTS: KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for twelve month period ended December 31, 2020.

Full Fiscal Year 2021 Financial Summary and Highlights

Revenues of $9.35 million, up 2.0% compared to the year ended December 31, 2019, due to increasing work-from-home usage trends and strong organic growth in its Hosted Services business.

Gross profit increased by 23.2% compared to the year ended December 31, 2019 reflecting a continued focus on Hosted Services, which grew over 84% compared to the year ended December 31, 2019.

Net Income of $238,618 or $0.01 per share, compared to a net loss of $(1,584,904), or $(0.04) per share in the year ended December 31, 2019.

Cash and short-term assets increased 103%.

Company uplisted from OTC Pink Sheets to OTCQB in December 2020.

"We are pleased to report our first full year of positive net income as a public company as we exhibited strong year over year growth in revenues, gross profit, and operating income," stated KonaTel Chairman and CEO Sean McEwen. "As we indicated last quarter, we are extremely focused on high margin, sustainable business that can drive scale and cash flow. To that end, we enjoyed strong growth in our CPaaS hosted services business, and emphasized its performance over retaining legacy mobile services revenues that contribute little to our bottom line. Going forward we will continue to grow our Hosted Services business through a combination of strong organic sales and potential commercial partnerships."

Balance Sheet

The Company ended the year with $715,195 in cash, compared to $191,474 in cash on December 31, 2019. Long term debt was $165,399 versus $63,545 on December 31, 2019.

Update on Listing

The Company successfully completed its uplisting to OTC Markets Group Inc.'s OTCQB® Venture Market ("OTCQB") in December of 2020. "Our recent OTCQB uplisting was an important milestone in our efforts to increase investor awareness, visibility, and trading liquidity around our public shares," stated Sean McEwen. "Our ultimate goal is a further uplisting to a major exchange such as NASDAQ or NYSE which we will continue to pursue."

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.aperion.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.