Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-10171 | |
Entity Registrant Name | KonaTel, Inc. | |
Entity Central Index Key | 0000845819 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,692,286 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and Cash Equivalents | $ 227,269 | $ 191,474 |
Accounts Receivable, net | 339,524 | 377,485 |
Inventory, Net | 4,960 | 4,659 |
Prepaid Expenses | 1,611 | 1,743 |
Total Current Assets | 573,364 | 575,361 |
Fixed Assets | ||
Property and Equipment, Net | 98,641 | 102,689 |
Right of Use Assets, Net | 142,148 | 78,584 |
Total Fixed Assets | 240,789 | 181,273 |
Other Assets | ||
Intangible Assets, Net | 2,038,336 | 2,238,918 |
Other Assets | 172,065 | 207,740 |
Total Other Assets | 2,210,401 | 2,446,658 |
Total Assets | 3,024,554 | 3,203,292 |
Current Liabilities | ||
Accounts Payable and Accrued Expenses | 1,275,300 | 1,223,195 |
Amount Due to Stockholder | 102,313 | 151,357 |
Revolving Line of Credit | 12,237 | |
Note Payable, current portion | 81,905 | 75,905 |
Lease Liabilities, current portion | 108,645 | 69,148 |
Deferred Revenue | 38,094 | 53,074 |
Customer Deposits | 544 | 31,087 |
Total Current Liabilities | 1,606,801 | 1,616,003 |
Long Term Liabilities | ||
Lease Liabilities, long term | 73,422 | 12,942 |
Note Payable, long term | 19,626 | 50,603 |
Total Long Term Liabilities | 93,048 | 63,545 |
Total Liabilities | 1,699,849 | 1,679,548 |
Stockholders' Equity | ||
Common Stock | 40,692 | 40,692 |
Additional Paid-In Capital | 7,390,286 | 7,380,029 |
Accumulated Deficit | (6,106,273) | (5,896,977) |
Total Stockholders' Equity | 1,324,705 | 1,523,744 |
Total Liabilities and Stockholders' Equity | $ 3,024,554 | $ 3,203,292 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value in dollars | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 40,692,286 | 40,692,286 |
Common stock, shares outstanding | 40,692,286 | 40,692,286 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 1,957,355 | $ 2,640,296 |
Cost of Revenue | 1,192,177 | 1,503,460 |
Gross Profit | 765,178 | 1,136,836 |
Operating expenses | ||
Payroll and Related Expenses | 448,149 | 471,305 |
Operating and Maintenance | 193,852 | 557,100 |
Bad Debt | 1,500 | |
Utilities and Facilities | 8,867 | 35,819 |
Depreciation and Amortization | 270,300 | 251,116 |
General and administrative | 12,743 | 41,902 |
Marketing and Advertising | 944 | 21,614 |
Taxes and Insurance | 18,814 | 45,070 |
Total Operating Expenses | 955,169 | 1,423,926 |
Operating Loss | (189,991) | (287,090) |
Other Income and Expense | ||
Interest Income | 1 | 676 |
Other Income | 301,372 | |
Interest Expense | (10,549) | (11,379) |
Total Other Income and Expenses | 290,824 | (10,703) |
Net Income (Loss) | $ 100,833 | $ (297,793) |
Net Income (Loss) per Share, Basic | $ 0 | $ (0.01) |
Weighted Average Outstanding Shares, Basic | 40,692,286 | 40,692,286 |
Diluted Net Income (Loss) per Share | $ 0 | $ (0.01) |
Weighted Average Outstanding Shares, Diluted | 44,092,286 | 43,067,286 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance at Dec. 31, 2018 | $ 40,692 | $ 7,041,696 | $ (4,352,073) | $ 2,730,315 |
Beginning Balance, shares at Dec. 31, 2018 | 40,692,286 | |||
Value of Options Issued as Part of IM Telecom Acquisition | 98,482 | 98,482 | ||
Stock Based Compensation | 141,356 | 141,356 | ||
Net loss | (297,793) | (297,793) | ||
Ending Balance at Mar. 31, 2019 | $ 40,692 | 7,281,534 | (4,649,866) | 2,672,360 |
Ending Balance, shares at Mar. 31, 2019 | 40,692,286 | |||
Beginning Balance at Dec. 31, 2019 | $ 40,692 | 7,380,029 | (5,896,977) | 1,523,744 |
Beginning Balance, shares at Dec. 31, 2019 | 40,692,286 | |||
Stock Based Compensation | 10,257 | 10,257 | ||
Dividends Paid to Apeiron Systems shareholders | (310,129) | (310,129) | ||
Net loss | 100,833 | 100,833 | ||
Ending Balance at Mar. 31, 2020 | $ 40,692 | $ 7,390,286 | $ (6,106,273) | $ 1,324,705 |
Ending Balance, shares at Mar. 31, 2020 | 40,692,286 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 100,833 | $ (297,793) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and Amortization | 270,300 | 251,116 |
Bad Debt | 1,500 | |
Stock-based compensation | 10,257 | 141,356 |
Changes in Operating Assets and Liabilities, net of effects of acquisition: | ||
Accounts Receivable | 36,461 | 203,712 |
Inventory | (301) | 135 |
Prepaid Expenses | 132 | 3,461 |
Accounts Payable and Accrued Expenses | (2,012) | (44,541) |
Deferred Revenue | (14,980) | (10,154) |
Customer Deposits | (30,543) | |
Other Assets | 35,675 | (199,573) |
Net cash provided by operating activities | 407,322 | 47,719 |
Cash Flows from Investing Activities | ||
Cash Received in Acquisition of IM Telecom | 14,318 | |
Purchase of Assets | (3,168) | |
Asset Purchase of IM Telecom | (56,611) | |
Net cash provided by (used in) investing activities | (3,168) | (42,293) |
Cash Flows from Financing Activities | ||
Payments received on Notes Receivable | 25,001 | |
Payments on Operating Lease Liabilities | (26,089) | (17,517) |
Repayment of Revolving Lines of Credit | (12,237) | (22,147) |
Repayment of Notes Payable | (24,977) | |
Advances made by Stockholder | 200,000 | |
Repayments of amounts due to Related Party and Seller | (49,044) | (27,564) |
Dividends Paid to Apeiron shareholders | (256,012) | |
Net cash provided by (used in) financing activities | (368,359) | 157,773 |
Net Change in Cash | 35,795 | 163,199 |
Cash, Beginning of period | 191,474 | 56,510 |
Cash, End of period | 227,269 | 219,709 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 7,201 | 14,297 |
Cash paid for taxes | ||
Asset Purchase | ||
Value of Options | 98,482 | |
Right of use assets obtained in exchange for new operating lease liabilities | $ 129,108 | 113,035 |
IM Telecom, LLC | ||
Asset Purchase | ||
Accounts receivable | 63,764 | |
Vendor Deposits | 1,450 | |
Prepaid Expense | 950 | |
Furniture and Equipment at Fair Market Value | 1,309 | |
Other Assets | 1,450 | |
Accounts Payable and Accrued Expenses, net of cash | (23,870) | |
License | 658,452 | |
Value of Options | $ 98,482 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of Company KonaTel Nevada (as defined below) was organized under the laws of the State of Nevada on October 14, 2014, by its founder and then sole shareholder, D. Sean McEwen, to conduct the business of a full-service MVNO (“Mobile Virtual Network Operator”) provider that delivered cellular products and services to individual and business customers in various retail and wholesale markets. KonaTel Inc., 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”). On December 18, 2017, we acquired KonaTel, Inc, a Nevada sub S-Corporation (“KonaTel Nevada”), in a merger with our acquisition subsidiary under which KonaTel Nevada became our wholly-owned subsidiary. On December 31, 2018, we acquired Apeiron Systems, Inc., a Nevada corporation d/b/a “Apeiron” (“Apeiron Systems”), which is also our wholly-owned subsidiary. Apeiron Systems was organized in 2013 and is an international hosted services CPaaS (“Communications Platform as a Service”) provider that designed, built, owns and operates its private core network, supporting a suite of real-time business communications services and Applications Programming Interfaces (“APIs”). As an Internet Telephony Service Provider (“ITSP”), Apeiron Systems holds a Federal Communications Commission (the “FCC”) numbering authority license. Some of Apeiron Systems’ hosted services include SIP/VoIP services, SMS/MMS processing, BOT integration, NLP (“Natural Language Processing”), ML (“Machine Learning”), number services including mobile, toll free and DID landline numbers, SMS to Email services, Database Dip services, SD-WAN, voice termination, and numerous API driven services including voice, messaging, and network management. On January 31, 2019, we acquired IM Telecom, LLC, an Oklahoma limited liability company, d/b/a “Infiniti Mobile” (“IM Telecom”), which became our wholly-owned subsidiary. Infiniti Mobile is an FCC licensed ETC (“Eligible Telecommunications Carrier”) and is one of 22 FCC licensed carriers to hold an FCC approved Lifeline Compliance Plan in the United States. Under the Lifeline program, Infiniti Mobile is currently authorized to provide government subsidized mobile telecommunications services to eligible low-income Americans currently in eight (8) states. Basis of Presentation Interim Financial Statements The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments), which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2019. The accompanying financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and customer lists. Actual results could differ from those estimates. Basis of Consolidation The condensed consolidated financial statements include the Company and three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom. The condensed consolidated balance sheet for year ended December 31, 2019, includes the Company and the wholly-owned corporate subsidiaries, KonaTel Nevada Apeiron Systems and IM Telecom. The condensed consolidated statements of operations, cash flows, and stockholders’ equity (deficit) for the three-month period ended March 31, 2019, include the Company and the three (3) wholly owned subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom (February and March). All significant intercompany transactions are eliminated. Net Income/(Loss) Per Share Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. As of March 31, 2020, and March 31, 2019, there are 3,400,000 potentially dilutive common shares. The dilutive common shares are not included in the computation of diluted earnings per share, because to do so would be anti-dilutive. The following table reconciles the shares outstanding and net income (loss) used in the computations of both basic and diluted earnings per share of common stockholders: Three Months Ended March 31, 2020 2019 Net income (loss) $ 100,833 $ (297,793 ) Weighted average shares outstanding during period on which basic earnings per share is calculated 40,692,286 40,692,286 Effect of dilutive shares Incremental shares under stock-based compensation 3,400,000 2,375,000 Weighted average shares outstanding during period on which diluted earnings per share is calculated 44,092,286 43,067,286 Earnings per share attributable to common stockholders Basic earnings (loss) per share $ 0.00 $ (0.01 ) Diluted earnings (loss) per share $ 0.00 $ (0.01 ) Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of receivables, cash, and cash equivalents. All cash and cash equivalents and restricted cash and cash equivalents are held at high credit financial institutions. These deposits are generally insured under the FDIC’s deposit insurance coverage; however, from time to time, the deposit levels may exceed FDIC coverage levels. The Company has a concentration of risk with respect to trade receivables from customers and cellular providers. As of March 31, 2020, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from one (1) customer in the amount of $53,649, or 15.8%, of accounts receivables. As of December 31, 2019, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from three (3) customers in the amounts of $89,078, or 24.4%, $77,662, or 21.3% and $48,475, or 13.3%, respectively. Concentration of Major Customer A significant amount of the revenue is derived from contracts with major customers and cellular partners. For the three months ended March 31, 2020, the Company had one (1) wholesale customer that accounted for $555,826, or 28.4%, of revenue. For the three months ended March 31, 2019, the Company had one (1) cellular partner that accounted for $728,649, in contractually obligated commission payments or 27.6% of revenue. Effect of Recent Accounting Pronouncements The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement. Emerging Growth Company The Company is an emerging growth company and 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. |
Transactions
Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Transactions | NOTE 2 – TRANSACTIONS January 2019 Transaction – IM Telecom Acquisition Effective February 7, 2018, we entered into an Agreement for the Purchase and Sale of Membership Interest (the “PMSI”) dated as of February 5, 2018, with the transaction documents being deposited in escrow on February 7, 2018, respecting the acquisition of 100% of the membership interest in IM Telecom from its sole owner, Trevan Morrow. The principal asset of IM Telecom was a “Lifeline Program” license (an FCC approved Compliance Plan), the transfer of ownership of which required prior approval of the FCC. Following the FCC approval of the transfer of the Lifeline Program license to us on October 23, 2018, the PSMI was completed on January 31, 2019. At the closing, we also engaged Mr. Morrow as an independent consultant for ninety (90) days in consideration of $100 and granted him an incentive stock option to purchase 500,000 shares of our common stock at an exercise price of $0.20 per share. The incentive stock option to purchase 500,000 shares was cancelled under a Settlement Agreement and Release between the Company and Mr. Morrow dated September 4, 2019, under the indemnifying obligations of Mr. Morrow under the PSMI, as amended, by reason of an overpayment made to IM Telecom of $168,677. The purchase price of $617,920 consisted of payments of debt and accounts payable made by the company on behalf of IM Telecom from the PMSI effective date of February 7, 2018, until January 31, 2019, the closing date. The purchase price allocation included the FCC license valued at $634,252, cash of $14,318, accounts receivable of $123,959, prepaid other assets of $2,400, furniture and equipment of $1,309. As part of the transaction, the Company also agreed to assume accounts payable of $24,271. The transaction was accounted for under the purchase method. The purchase price allocation to assets and liabilities assumed in the transaction was: Cash $ 14,318 Accounts Receivable 123,959 Prepaid Expenses and Deposits 2,400 Furniture and Equipment at Fair Value 1,309 License 634,252 Accounts Payable (24,271 ) Note Payable (168,277 ) Net Assets Acquired $ 583,690 The following table provides unaudited proforma results, prepared in accordance with ASC 805, for the three months ended March 31, 2020, and 2019 respectively, as if IM Telecom and Apeiron Systems had been acquired on January 1, 2018: For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Net Sales $ 1,957,355 $ 2,706,577 Net Profit (Loss) $ 100,833 $ (262,939 ) Net profit (loss) per share, basic and diluted $ 0.00 $ (0.01 ) |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consist of the following major classifications as of March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 102,946 102,946 Billing Software 217,163 217,163 Office Equipment 90,055 86,887 457,114 453,946 Less: Accumulated Depreciation and Amortization (358,473 ) (351,257 ) Property and equipment, net $ 98,641 $ 102,689 Depreciation and amortization amounted to $7,215 and $7,216 for the three months ended March 31, 2020, and 2019, respectively. Depreciation and amortization expense are included as a component of operating expenses in the accompanying statements of operations. |
Right-To-Use Assets
Right-To-Use Assets | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Right-To-Use Assets | NOTE 4 – RIGHT-OF-USE ASSETS Right-of-Use Assets consist of assets accounted for under ASC 842. The assets are recorded at present value using implied interest rates between 5.29% and 5.34%. March 31, 2020 December 31, 2019 Right-of-Use Assets $ 261,476 $ 151,472 Less: Accumulated Depreciation (119,328 ) (72,888 ) Right-of-Use, net $ 142,148 $ 78,584 Depreciation amounted to $62,502 and $18,140 for the three months ended March 31, 2020, and 2019, respectively. Depreciation expense is included as a component of operating expenses in the accompanying statements of operations. The Company has right-of-use assets through leases of property under three non-cancelable leases with terms in excess of one (1) year. The current lease liabilities expire January 1, 2021, December 1, 2021, and May 15, 2022. Future lease liability payments under the terms of these leases are as follows: 2020 $ 90,987 2021 $ 70,613 2022 $ 20,467 Total $ 182,067 Less Current Maturities $ 108,645 Long Term Maturities $ 73,422 The Company also leases two (2) office spaces on a month-to-month basis. Total lease expense for the three months ended March 31, 2020, and 2019 amounted to $3,468 and $21,028, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5 – INTANGIBLE ASSETS Intangible Assets with definite useful like consist of licenses, customer lists and software that were acquired through acquisitions. Intangible Assets with indefinite useful life consist of a license granted by the FCC. The License, because of the nature of the asset and the limitation on the number of granted licenses by the FCC, will not be amortized. The License was acquired through an acquisition. The fair market value of the License as of March 31, 2020 was $634,252. March 31, 2020 December 31, 2019 Customer Lists $ 1,135,961 $ 1,135,961 Software 2,407,001 2,407,001 License 634,252 634,252 Less: Accumulated Amortization (2,138,878 ) (1,938,296 ) Intangible Assets, net $ 2,038,336 $ 2,238,918 Amortization expense amounted to $200,583 and $225,760 for the three months ended March 31, 2020, and 2019, respectively. Amortization expense is included as a component of operating expenses in the accompanying statements of operations. Amortization expense is expected to be as follows: 2020 $ 601,751 2021 $ 802,332 |
Amount Due to Stockholder
Amount Due to Stockholder | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Amount Due to Stockholder | NOTE 6 – AMOUNT DUE TO STOCKHOLDER During 2019, Joshua Ploude, CEO of Apeiron Systems, advanced the Company $200,000. The amount was used to provide a vendor security deposit. The note bears a 10% per annum interest rate until May 1, 2019, at which time, the interest rate will increase to 12% per annum. The note had an original maturity date of July 10, 2019. The loan has been extended without a defined maturity end date. The amount due as of March 31, 2020, was $102,313. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | NOTE 7 – CONTINGENCIES AND COMMITMENTS Litigation From time to time, the Company may be subject to legal proceedings and claims which arise in the ordinary course of business. As of March 31, 2020, there are no legal proceedings, except the following: In August, 2019, the Company won an arbitration award (ratified by the court) from Mr. Glosser in the amount of $357,914, together with arbitrator’s compensation of $4,957, for a total award of $362,871; and Mr. Glosser’s counterclaim was found to be without merit. The Company and Mr. Glosser entered into a Settlement Agreement and Mutual Release on February 24, 2020, pursuant to which this matter was fully settled, resolving all claims, and Mr. Glosser paid the Company $300,000. The settlement amount was recorded and reported as other income. Contract Contingency The Company has the normal obligation for the completion of its cellular provider contracts in accordance with the appropriate standards of the industry and that may be provided in the contractual agreements. Letters of Credit The Company maintains irrevocable standby letter of credit arrangements with certain cellular carriers in the aggregate amount of $60,000. The letters of credit serve as collateral and security for various resale contracts the Company has with their suppliers. The letters of credit are unused as of March 31, 2020, and December 31, 2019. The letters of credit are not considered in the financial statements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 8 – SEGMENT REPORTING The Company operates within four (4) reportable segments. The Company’s management evaluates performance and allocates resources based on the profit or loss from operations. Because the Company is a service business with very few physical assets, management does not use total assets by segment to make decisions regarding operations, and therefore, the total assets disclosure by segment has not been included. The reportable segments consist of Hosted Services, Mobile Services, Lifeline ETC and Lifeline VETC. Hosted Services – This segment includes a suite of hosted CPaaS services including SIP/VoIP services, SMS/MMS, BOT integration, mobile numbers, toll free numbers, DID landline numbers, SMS to Email, Database Dip, SD-WAN, voice termination and numerous API driven services. Apeiron Systems developed, owns and supports its services through its dedicated national telecommunications network. Apeiron Systems provides telecommunications services to application developers, call centers and small and medium size businesses and markets these services through its website, independent sales agents, ISOs and SCOs. Mobile Services Lifeline ETC Lifeline VETC – This segment operates through a single VETC agent agreement with another ETC. We no longer distribute Lifeline service under this single VETC agent agreement; however, we continue to collect monthly commissions for those Lifeline lines that we distributed and which remain active under this single VETC agent agreement. The following table reflects the result of operations of the Company’s reportable segments: Hosted Services Mobile Services Lifeline ETC Lifeline VETC Total For the three-month period ended March 31, 2020 Revenue $ 978,675 $ 500,251 $ 326,341 $ 152,088 $ 1,957,355 Net Income $ 63,092 $ (42,254 ) $ 30,065 $ 49,930 $ 100,833 Depreciation and amortization $ 10,584 $ 17,217 $ 10,739 $ 31,760 $ 270,300 Additions to property and equipment $ — $ — $ — $ — $ — For the three-month period ended March 31, 2019 Revenue $ 715,664 $ 726,188 $ 169,471 $ 1,028,973 $ 2,640,296 Net Loss $ 24,178 $ (31,010 ) $ (135,192 ) $ (107,414 ) $ (297,794 ) Depreciation and amortization $ 68,066 $ 69,067 $ 16,118 $ 97,865 $ 251,116 Additions to property and equipment $ — $ — $ — $ — $ — |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 9 – STOCKHOLDERS’ EQUITY Common Stock The Company has not issued any common stock through March 31, 2020, nor for the year ended December 31, 2019. Stock Compensation The Company offers stock option equity awards to directors and key employees. Options vested in tranches and expire in five (5) years. During the three months ended March 31, 2020, and 2019, the Company recorded vested options expense of $10,257 and $141,356, respectively. The option expense not taken as of March 31, 2020, is $954,900, with a weighted average term of 2.9 years. The following table represents stock option activity as of and for the three months ended March 31, 2020: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2019 3,800,000 $ 0.21 3.0 $ — Granted — — — — Exercised — — — — Forfeited — — — — Options Outstanding – March 31, 2020 3,800,000 $ 0.21 3.0 $ — Exercisable and Vested, March 31, 2020 3,400,000 $ 0.21 2.9 $ — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing, and with the exception of the following, no material subsequent events have occurred: Euler Hermes/Sky Phone Settlement Between March and July 2019, IM Telecom purchased wireless handsets from Sky Phone, LLC in the amount of $192,293.34. Subsequently, a dispute arose between the parties regarding the amount of the debt, a lack of sufficient transaction documentation and problems with some of the handsets. On or about December, 2019, the debt was transferred to Euler Hermes North America Insurance Company. On April 22, 2020, the parties entered into an agreement to settle the matter whereby IM Telecom agreed to pay $80,000 in monthly payments of $4,000 over twenty (20) months. The first payment was made on April 28, 2020. SBA Paycheck Protection Program On April 14, 2020, the operating companies of KonaTel made loan applications to participate in the Small Business Administration’s (the “SBA”) Paycheck Protection Program created as a result of the COVID-19 pandemic. On April 15, 2020, the loan applications of Apeiron Systems, IM Telecom and KonaTel Nevada were approved and loan proceeds in the amounts of $101,800, $20,900 and $186,300, respectively, were received. The Company intends to follow all prescribed loan forgiveness guidelines provided by our local bank and the SBA by using these loan proceeds to fund employee payrolls through the 56-day period ending on June 10, 2020. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Interim Financial Statements The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments), which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2019. The accompanying financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and customer lists. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation The condensed consolidated financial statements include the Company and three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom. The condensed consolidated balance sheet for year ended December 31, 2019, includes the Company and the wholly-owned corporate subsidiaries, KonaTel Nevada Apeiron Systems and IM Telecom. The condensed consolidated statements of operations, cash flows, and stockholders’ equity (deficit) for the three-month period ended March 31, 2019, include the Company and the three (3) wholly owned subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom (February and March). All significant intercompany transactions are eliminated. |
Net Income/(Loss) Per Share | Net Income/(Loss) Per Share Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. As of March 31, 2020, and March 31, 2019, there are 3,400,000 potentially dilutive common shares. The dilutive common shares are not included in the computation of diluted earnings per share, because to do so would be anti-dilutive. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. |
Concentration of Credit Risk | Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of receivables, cash, and cash equivalents. All cash and cash equivalents and restricted cash and cash equivalents are held at high credit financial institutions. These deposits are generally insured under the FDIC’s deposit insurance coverage; however, from time to time, the deposit levels may exceed FDIC coverage levels. The Company has a concentration of risk with respect to trade receivables from customers and cellular providers. As of March 31, 2020, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from one (1) customer in the amount of $53,649, or 15.8%, of accounts receivables. As of December 31, 2019, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from three (3) customers in the amounts of $89,078, or 24.4%, $77,662, or 21.3% and $48,475, or 13.3%, respectively. |
Concentration of Major Customer | Concentration of Major Customer A significant amount of the revenue is derived from contracts with major customers and cellular providers. For the three months ended March 31, 2020, the Company had one (1) wholesale customer that accounted for $555,826, or 28.4%, of revenue. For the three months ended March 31, 2019, the Company had one (1) cellular partner that accounted for $728,649 in contractually obligated commission payments or 27.6% of revenue. |
Effect of Recent Accounting Pronouncements | Effect of Recent Accounting Pronouncements The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended March 31, 2020 2019 Net income (loss) $ 100,833 $ (297,793 ) Weighted average shares outstanding during period on which basic earnings per share is calculated 40,692,286 40,692,286 Effect of dilutive shares Incremental shares under stock-based compensation 3,400,000 2,375,000 Weighted average shares outstanding during period on which diluted earnings per share is calculated 44,092,286 43,067,286 Earnings per share attributable to common stockholders Basic earnings (loss) per share $ 0.00 $ (0.01 ) Diluted earnings (loss) per share $ 0.00 $ (0.01 ) |
Transactions (Tables)
Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Transactions of Recognized Assets Acquired and Liabilities Assumed | Cash $ 14,318 Accounts Receivable 123,959 Prepaid Expenses and Deposits 2,400 Furniture and Equipment at Fair Value 1,309 License 634,252 Accounts Payable (24,271 ) Note Payable (168,277 ) Net Assets Acquired $ 583,690 |
Schedule of Pro-Forma Financial Information | For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Net Sales $ 1,957,355 $ 2,706,577 Net Profit (Loss) $ 100,833 $ (262,939 ) Net profit (loss) per share, basic and diluted $ 0.00 $ (0.01 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | March 31, 2020 December 31, 2019 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 102,946 102,946 Billing Software 217,163 217,163 Office Equipment 90,055 86,887 457,114 453,946 Less: Accumulated Depreciation and Amortization (358,473 ) (351,257 ) Property and equipment, net $ 98,641 $ 102,689 |
Right-To-Use Assets (Tables)
Right-To-Use Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | March 31, 2020 December 31, 2019 Right-of-Use Assets $ 261,476 $ 151,472 Less: Accumulated Depreciation (119,328 ) (72,888 ) Right-of-Use, net $ 142,148 $ 78,584 |
Schedule of Future Minimum Lease Payments for Operating Leases | 2020 $ 90,987 2021 $ 70,613 2022 $ 20,467 Total $ 182,067 Less Current Maturities $ 108,645 Long Term Maturities $ 73,422 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | March 31, 2020 December 31, 2019 Customer Lists $ 1,135,961 $ 1,135,961 Software 2,407,001 2,407,001 License 634,252 634,252 Less: Accumulated Amortization (2,138,878 ) (1,938,296 ) Intangible Assets, net $ 2,038,336 $ 2,238,918 |
Schedule of Intangible Assets Future Amortization Expense | 2020 $ 601,751 2021 $ 802,332 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Hosted Services Mobile Services Lifeline ETC Lifeline VETC Total For the three-month period ended March 31, 2020 Revenue $ 978,675 $ 500,251 $ 326,341 $ 152,088 $ 1,957,355 Net Income $ 63,092 $ (42,254 ) $ 30,065 $ 49,930 $ 100,833 Depreciation and amortization $ 10,584 $ 17,217 $ 10,739 $ 31,760 $ 270,300 Additions to property and equipment $ — $ — $ — $ — $ — For the three-month period ended March 31, 2019 Revenue $ 715,664 $ 726,188 $ 169,471 $ 1,028,973 $ 2,640,296 Net Loss $ 24,178 $ (31,010 ) $ (135,192 ) $ (107,414 ) $ (297,794 ) Depreciation and amortization $ 68,066 $ 69,067 $ 16,118 $ 97,865 $ 251,116 Additions to property and equipment $ — $ — $ — $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Share-Based Compensation , Stock Options, Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2019 3,800,000 $ 0.21 3.0 $ — Granted — — — — Exercised — — — — Forfeited — — — — Options Outstanding – March 31, 2020 3,800,000 $ 0.21 3.0 $ — Exercisable and Vested, March 31, 2020 3,400,000 $ 0.21 2.9 $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) | $ 100,833 | $ (297,793) |
Weighted average shares outstanding during period on which basic earnings per share is calculated | 40,692,286 | 40,692,286 |
Effect of dilutive shares | ||
Incremental shares under stock-based compensation | 3,400,000 | 2,375,000 |
Weighted average shares outstanding during period on which diluted earnings per share is calculated | 44,092,286 | 43,067,286 |
Earnings per share attributable to common stockholders | ||
Basic earnings (loss) per share | $ 0 | $ (0.01) |
Diluted earnings (loss) per share | $ 0 | $ (0.01) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Earnings Per Share | |||
Potentially dilutive common shares | 3,400,000 | 3,400,000 | |
Concentration Risk | |||
Revenue | $ 1,957,355 | $ 2,640,296 | |
Trade Accounts Receivable | Customer #3 | |||
Concentration Risk | |||
Concentration risk, percentage | 13.30% | ||
Receivable concentration | $ 48,475 | ||
Trade Accounts Receivable | Customer #2 | |||
Concentration Risk | |||
Concentration risk, percentage | 21.30% | ||
Receivable concentration | $ 77,662 | ||
Trade Accounts Receivable | Customer #1 | |||
Concentration Risk | |||
Concentration risk, percentage | 15.80% | 24.40% | |
Receivable concentration | $ 53,649 | $ 89,078 | |
Revenue | Cellular Partner | |||
Concentration Risk | |||
Concentration risk, percentage | 27.60% | ||
Revenue | $ 728,649 | ||
Revenue | Customer #1 | |||
Concentration Risk | |||
Concentration risk, percentage | 28.40% | ||
Revenue | $ 555,826 |
Transactions - Schedule of Tran
Transactions - Schedule of Transactions of Recognized Assets Acquired and Liabilities Assumed (Details) - IM Telecom, LLC | Dec. 31, 2019USD ($) |
Cash | $ 14,318 |
Accounts Receivable | 123,959 |
Prepaid Expense | 2,400 |
Furniture and Equipment at Fair Value | 1,309 |
License | 634,252 |
Accounts Payable | (24,271) |
Note Payable | (168,277) |
Net Assets Acquired | $ 583,690 |
Transactions - Schedule of Pro-
Transactions - Schedule of Pro-Forma Financial Transactions (Details) - IM Telecom, LLC and Apeiron Systems, Inc. - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 1,957,355 | $ 2,706,577 |
Net Profit (Loss) | $ 100,833 | $ (262,939) |
Net profit (loss) per share, basic and diluted | $ 0 | $ (0.01) |
Transactions (Details Narrative
Transactions (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Incentive stock options granted | ||
Options, exercise price | ||
Options cancelled | ||
IM Telecom, LLC | ||
Acquisition purchase price | $ 617,920 | |
Ownership interest acquired | 100.00% | |
Consulting fees | $ 100 | |
Incentive stock options granted | 500,000 | |
Options, exercise price | $ 0.20 | |
Options cancelled | 500,000 | |
Settlement agreement and release, description | The incentive stock option to purchase 500,000 shares was cancelled under a Settlement Agreement and Release between the Company and Mr. Morrow dated September 4, 2019, by reason of the indemnifying obligations of Mr. Morrow under the PSMI, as amended, by reason of an overpayment made to IM Telecom of $168,677. | |
Accounts Receivable | $ 123,959 | |
Accounts payable and accrued expenses assumed | (24,271) | |
License | 634,252 | |
Cash | 14,318 | |
Prepaid Expense | 2,400 | |
Furniture and Equipment at Fair Value | $ 1,309 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 457,114 | $ 453,946 |
Less: Accumulated Depreciation and Amortization | (358,473) | (351,257) |
Property, plant and equipment, net | 98,641 | 102,689 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 46,950 | 46,950 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 102,946 | 102,946 |
Billing Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 217,163 | 217,163 |
Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 90,055 | $ 86,887 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 7,215 | $ 7,216 |
Right-To-Use Assets - Supplemen
Right-To-Use Assets - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-to-Use Assets | $ 261,476 | $ 151,472 |
Less: Accumulated Depreciation | (119,328) | (72,888) |
Right to Use Assets, Net | $ 142,148 | $ 78,584 |
Right-To-Use Assets (Details Na
Right-To-Use Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Depreciation | $ 62,502 | $ 18,140 |
Lease expense | $ 3,468 | $ 21,028 |
Minimum | ||
Implied interest rate used to record assets at present value | 5.29% | |
Maximum | ||
Implied interest rate used to record assets at present value | 5.34% |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Customer Lists | $ 1,135,961 | $ 1,135,961 |
Software | 2,407,001 | 2,407,001 |
License | 634,252 | 634,252 |
Less: Accumulated Amortization | (2,138,878) | (1,938,296) |
Intangible assets, net | $ 2,038,336 | $ 2,238,918 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Intangible Assets Future Amortization Expense (Details) | Mar. 31, 2020USD ($) |
Intangible Assets Future Amortization Expense | |
2020 | $ 601,751 |
2021 | $ 802,332 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 200,583 | $ 225,760 |
Fair market value of acquired license | $ 634,252 |
Amount Due to Stockholder (Deta
Amount Due to Stockholder (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | ||
Proceeds from related parties | $ 200,000 | |||
Amount due to related party | $ 151,357 | $ 102,313 | ||
Joshua Ploude, Ceo of Apeiron | ||||
Proceeds from related parties | $ 200,000 | |||
Interest rate | [1] | 10.00% | ||
Amount due to related party | $ 102,313 | |||
[1] | The interest rate will increase to 12% per annum after May 1, 2019. |
Contingencies and Commitments (
Contingencies and Commitments (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | ||
Positive Outcome of Litigation | |||
Litigation settlement, arbitration award | [1] | $ 362,871 | |
Name of plaintiff | Saul Glosser | ||
Dispute resolution type, description | Arbitration | ||
Proceeds received from litigation settlement | $ 300,000 | ||
Standby Letters of Credit | |||
Letter of credit | $ 60,000 | $ 60,000 | |
[1] | $357,914 plus arbitrator compensation of $4,957. |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,957,355 | $ 2,640,296 |
Net Loss | 100,833 | (297,793) |
Depreciation and amortization | 270,300 | 251,116 |
Additions to property and equipment | ||
Hosted Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 978,675 | 715,664 |
Net Loss | 63,092 | (24,178) |
Depreciation and amortization | 210,584 | 68,066 |
Additions to property and equipment | ||
Mobile Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 500,251 | 726,188 |
Net Loss | (42,254) | (31,010) |
Depreciation and amortization | 17,217 | 69,067 |
Additions to property and equipment | ||
Lifeline ETC | ||
Segment Reporting Information [Line Items] | ||
Revenue | 326,341 | 169,471 |
Net Loss | 30,065 | (135,192) |
Depreciation and amortization | 10,739 | 16,118 |
Additions to property and equipment | ||
Lifeline VETC | ||
Segment Reporting Information [Line Items] | ||
Revenue | 152,088 | 1,028,973 |
Net Loss | 49,930 | (107,414) |
Depreciation and amortization | 31,760 | 97,865 |
Additions to property and equipment |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 3 Months Ended |
Mar. 31, 2020Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-Based Compensation , Stock Options, Activity (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-Based Compensation Arrangement By Share-Based Payment Award Options Outstanding | |
Options outstanding, beginning of period | shares | 3,800,000 |
Granted | shares | |
Exercised | shares | |
Forfeited | shares | |
Options outstanding, end of period | shares | 3,800,000 |
Options exercisable and vested, end of period | shares | 3,400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |
Weighted average exercise price outstanding, beginning of period | $ / shares | $ 0.21 |
Weighted average exercise price, granted | $ / shares | |
Weighted average exercise price, exercised | $ / shares | |
Weighted average exercise priced, forfeited | $ / shares | |
Weighted average exercise price outstanding, end of period | $ / shares | 0.21 |
Weighted average exercise price, exercisable and vested, end of period | $ / shares | $ 0.21 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |
Weighted average remaining contractual life outstanding, beginning of period | 3 years |
Weighted average remaining contractual life outstanding, end of period | 3 years |
Weighted average remaining contractual life, exercisable and vested, end of period | 2 years 10 months |
Average intrinsic value outstanding, beginning of period | $ | |
Average intrinsic value outstanding, end of period | $ | |
Average intrinsic value, exercisable and vested, end of period | $ |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Stock-based compensation expense, vested options | $ 10,257 | $ 141,356 |
Deferred compensation expense | $ 954,900 | |
Weighted average term, compensation expense | 3 years | |
Options vesting period | 5 years | 5 years |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event - USD ($) | Apr. 22, 2020 | Apr. 15, 2020 | |
SBA's Paycheck Protection Program/Apeiron Systems | |||
Subsequent Event [Line Items] | |||
Proceeds received from SBA's Paycheck Protection Program | $ 101,800 | ||
SBA's Paycheck Protection Program/IM Telecom | |||
Subsequent Event [Line Items] | |||
Proceeds received from SBA's Paycheck Protection Program | 20,900 | ||
SBA's Paycheck Protection Program/KonaTel Nevada | |||
Subsequent Event [Line Items] | |||
Proceeds received from SBA's Paycheck Protection Program | $ 186,300 | ||
Euler Hermes/Sky Phone Settlement | |||
Subsequent Event [Line Items] | |||
Settlement agreement, description | Between March and July 2019 IM Telecom, LLC purchased wireless handsets from Sky Phone, LLC in the amount of $192,293.34. Subsequently, a dispute arose between the parties regarding the amount of the debt, a lack of sufficient transaction documentation and problems with some of the handsets. On or about December 2019 the debt was transferred to Euler Hermes North America Insurance Company. | ||
Obligation for purchases, agreed settlement | [1] | $ 80,000 | |
[1] | IM Telecom agreed to pay in monthly payments of $4,000 over twenty months. |