A nationwide cellular and communications platform provider focusing on low-income subsidized mobile services, with significant growth in net income due to asset sales and ongoing expansion in government subsidized programs.

# Company Overview Summary

## Business Operations
- **Primary Business:** Full-service cellular provider and communications platform provider.
- **Products & Services:** 
  - CPaaS (Communications Platform as a Service) including SIP/VoIP, SMS/MMS, POTS replacement.
  - Wholesale and retail mobile voice, data, and IoT services.
  - Government subsidized mobile services under Lifeline and Affordable Connectivity Program (ACP).
  - Network services including MPLS, Dedicated Internet, LTE Wireless WAN.
  - Cloud services such as Data Dips, SD-WAN, IoT device and data management.

## Subsidiaries
- **KonaTel Nevada:** Organized 2014; primarily inactive since early 2021.
- **Apeiron Systems:** Acquired in 2018; provider of hosted communication services including VoIP, SMS/MMS, broadcast services, IP network solutions, cloud services, and IoT solutions.
- **IM Telecom (Infiniti Mobile):** 51% owned; acquired in 2019; FCC-licensed Eligible Telecommunications Carrier (ETC), operates Lifeline and ACP subsidy services distributed nationwide and in 40 states; distribution channels include website, retail, master agents, ISOs.
- **Excess Telecom:** 49% owner of IM Telecom as of 2024, with pending FCC approval to acquire remaining 51%.

## Customers
- **Lifeline & ACP Subscribers:** Served in up to 40 states; approximately 7.3 million current Lifeline users, with potential up to 38 million eligible customers.
- **Major Customers:** As of 2024, two major customers account for approximately 34.2% ($5.3M) and 22.5% ($3.5M) of revenue.
  - Largest customer is the federal government via USAC under Lifeline and ACP programs.
  
## Employees
- **Total Employees:** 28 full-time employees (as of December 31, 2024).
  - Apeiron Systems: 9 employees.
  - IM Telecom: 15 employees.
  - Corporate (including KonaTel Inc.): 4 employees.
  
## Revenue & Income (2024)
- **Total Revenue:** $15,503,251 (compared to $18,223,745 in 2023).
- **Cost of Revenue:** $12,088,944.
- **Gross Profit:** $3,414,307.
- **Net Income:** $4,490,818 (revenue increase driven mainly by sale of 49% interest in IM Telecom).
- **2023 Loss:** ($3,940,827).

## Financial Highlights
- **Key Transactions:**
  - Sale of 49% interest in IM Telecom to Excess Telecom for $10 million in early 2024.
  - Fully paid off debt related to CCUR and ACP Finance loans in January 2024.
- **Cash & Liquidity (2024):** $1,679,345 in cash (+116% from 2023).
- **Working Capital:** $2,006,701.
- **Liabilities:** Decreased 64.2% from 2023 due to repayment of debt.
- **Stockholders’ Equity:** Increased to approximately $2.5 million as of December 31, 2024.

## Additional Information
- The Company operates nationwide with a focus on low-income subsidized mobile services, and is expanding its ETC licenses.
- Regulatory environment heavily impacts business, especially regarding Lifeline/ACP programs.
- Industry competition includes larger national carriers (Verizon, AT&T, T-Mobile) and numerous smaller MVNOs and ETCs.
- The Company is publicly traded on OTCQB under the symbol "KTEL."

KonaTel, Inc. is a telecommunications company providing mobile and hosted services through its subsidiaries IM Telecom and Apeiron Systems.

# Company Overview: KonaTel, Inc.

## Business Summary
KonaTel, Inc. is a telecommunications company that operates primarily through its wholly owned subsidiaries: IM Telecom and Apeiron Systems. The company provides a diverse range of telecommunications services, including:

1. **Mobile Services**: Offered through the Infiniti Mobile brand, IM Telecom provides:
   - Retail and wholesale cellular voice and data services.
   - FCC licensed Lifeline mobile voice and data services to low-income households in eleven U.S. states.
   - Affordable Connectivity Program (ACP) subsidized high-speed wireless data services available nationwide, including in all fifty states, Washington D.C., and Puerto Rico.

2. **Hosted Services**: Offered by Apeiron Systems, these include:
   - A suite of hosted Communications Platform as a Service (CPaaS) products such as SIP/VoIP, SMS/MMS, Cloud IVRs, voicemail, fax, and call recording.
   - Public and private IP networking services, including MPLS, Dedicated Internet, and LTE Wireless WAN solutions.
   - Cloud Services for IoT data and device management and software-defined solutions.

## Operational Details
- **Headquarters**: Plano, Texas.
- **Employees**: The company employs a total of 35 staff members, with 34 working full-time and 1 part-time. This includes 22 full-time employees at IM Telecom, 8 at Apeiron Systems, and 4 others.

## Financial Performance 
As of December 31, 2023:
- **Total Revenue**: $18,223,745.
- **Cost of Revenues**: $14,850,105.
- **Operating Expenses**: $6,494,243.
- **Net Loss**: $3,940,827.
- **Prior Year Revenue** (2022): $20,023,340, with a net loss of $2,952,360.

## Customer Base
- IM Telecom, a significant player within KonaTel, has approximately **7,300,000 Lifeline users** and **38,000,000 eligible Lifeline customers** per Universal Service Administrative Company data. The company targets low-income consumers for its subsidized services.

_by integrating systems that adapt to evolving technology in the telecommunications market, KonaTel aims to meet the diverse needs of its customer base while navigating competitive pressures and regulatory demands._

KonaTel, Inc.

10-K / April 15, 2025

10-K / April 1, 2024

10-K / April 15, 2025

Company Overview Summary

Business Operations

Subsidiaries

Customers

Employees

Revenue & Income (2024)

Financial Highlights

Additional Information