KonaTel Inc (OTC:KTEL)

Konatel Inc (NASDAQ:KTEL) ($0.79; $35.6M market cap), a voice/data communications holding company, including providing government subsidized services to low income households through its Infiniti Mobile division, announced the closing of non-dilutive financing to help accelerate growth. 

“Approximately $1.5 million of financing was provided at closing to purchase equipment, with potentially up to $25 million available to support the growth of IM Telecom.”

 "ACP Finance maintains strict requirements for minimum revenue and monthly activations to qualify for this credit facility. We are pleased that in the fourth quarter of this year, Infiniti Mobile reached those minimum requirements. So, we are excited to partner with ACP Finance, which have provided other Lifeline and Affordable Connectivity Program ("ACP") providers with capital to substantially grow their revenues while improving their cash flow. As stated in prior Securities and Exchange Commission ("SEC") filings, our team has been working for many months to prepare the infrastructure for accelerated growth. Now with this credit facility, we will have the additional capital to expand our distribution without incurring term debt or diluting our shareholders' ownership. Through this agreement, we will be able to purchase mobile devices (cell phones and tablets) at an overall cost (equipment and financing) lower than existing sources. We believe the impact on our cash management and revenue will be positive with this credit instrument as we continue to expand our Lifeline and ACP customer base."

In this PodClip, Maj talks about some positive developments surrounding the industry in which KTEL operates.

Konatel Inc (NASDAQ:KTEL) ($1.75; $72.2M market cap), a voice/data communications holding company, including providing government subsidized services to low income households through its Infiniti Mobile division, announced the hire of seasoned Telecom executive Chuck Griffin as President and Chief Operating Officer. 

Background:

“Prior to joining KonaTel, Mr. Griffin served as Chairman and Chief Executive Officer of Lingo Communications, a provider of IP-based Cloud voice and data solutions, following its merger with Impact Telecom in 2018.

As one of the original founders of Impact Telecom, Griffin led Impact from a start-up to a company with annual revenues of over $290 million and more than 300 employees servicing 250,000 customers worldwide. He ultimately guided the company to a successful exit in 2020.”

Comments:

 "I am energized by the emerging opportunities for KonaTel. The Infrastructure Investment and Jobs Act that was signed into law in November significantly increases the company's addressable market and serves as a tremendous catalyst for its next level of growth. The company is well-positioned to capture a meaningful share of this government-funded spending, which is directed towards providing access to communications infrastructure for all U.S. residents. It's an exciting time in the industry, and I am eager to work with Sean and the team to help lead the company through this next phase."

Konatel Inc (NASDAQ:KTEL) ($1.43; $58.1M market cap), a voice/data communications holding company, including providing government subsidized services to low income households through its Infiniti Mobile division, announced Q3 2021 results:

• Sales of $3.6 million vs $2.5 million in the prior year
• EPS of $0.01 vs $0.00

"In our higher-margin Mobile Services business, which includes retail and wholesale cellular and IoT mobile device services, revenue is up 50.4% year-to-date on increased volumes driven by new agent distribution and recent approvals for participation in government subsidized cellular and broadband data distribution programs. Specifically, the Federal Communications Commission's (FCC) Emergency Broadband Benefit (EBB) program was opened for enrollment and as an approved provider of program services in several states, we have seen a marked uptick in the number of customers we serve under the program. In addition, expansion of our Lifeline mobile services into the state of California was approved earlier this year and accordingly, we expect distribution of essential voice and data services to California residents under our Infiniti Mobile brand to begin as planned later in the fourth quarter. According to the FCC, there are an estimated 3.6 million Lifeline eligible households in the state of California with nearly 2.4 million currently unserved. As one of only a handful of approved national wireless Lifeline providers to hold an FCC approved Compliance Plan, we are well positioned to provide basic cellular and wireless broadband data services to millions of eligible new customers. 

Furthermore, we recently contracted with two new master agencies with national distribution to further expand our channels and reach many more EBB and Lifeline eligible households across several states. Distribution through these new channels is on schedule to commence later this year.

The Infrastructure Bill that was approved this past weekend provides for $65 billion1 in new investment for broadband internet to advance government efforts to ensure all U.S. residents have access to reliable, high-speed internet," continued McEwen. "If signed, this legislation will significantly increase our total addressable market and serve as an additional catalyst for future growth."

Konatel Inc (NASDAQ:KTEL) ($0.90; $36.6M market cap), a voice/data communications holding company issued an 8K filing yesterday showing updated merger agreement disclosures with the Apeiron acquisition. With the recent strength in share price, the company met its obligation of obtaining a stock price average of over $1.00 for 10 days.  In doing so, the company avoids any further dilution that could have come had the stock not achieved these levels. 

“in the event that the KonaTel common stock does not reach an average closing price equal to or exceeding $1.00 per share (the ‘Guaranteed Value’) over any period of ten (10) consecutive Trading Days (the ‘Calculated Value’) during the period commencing on December 31, 2020 and ending on December 31, 2021 (the ‘Valuation Period’) as quoted by the applicable Trading Market on which the KonaTel Shares are listed or quoted for trading, KonaTel shall issue to the Apeiron Shareholders for each such share of the KonaTel Shares continuously owned and held of record in the respective names of the Apeiron Shareholders (the ‘Qualifying Shares’) during the Valuation Period the number of shares of KonaTel common stock that is equal to the number of Qualifying Shares multiplied by the difference between the Guaranteed Value and the highest Calculated Value achieved during the Valuation Period” 

Konatel Inc (NASDAQ:KTEL) ($0.45; $18.3M market cap) provides a variety of retail and wholesale telecommunications services including mobile voice/text/data service, mobile numbers, SMS/MMS services, SD-WAN and IoT mobile data service. On Wednesday we highlighted the Q4 2020 results which were issued in the 10-K filing. Today the company issued a press release with its year end results:

• Sales of $9.35 million vs $9.17 million in the prior year
• EPS of $0.01 vs a loss of $0.04
• Cash and short term assets up 103%

“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."

Uplist Update:

“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."