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KonaTel, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $3,148,409 from $4,689,001 in the same quarter the previous year. The decrease is attributed to the cessation of the ACP Program funding.
Cost of revenue for the quarter was $2,439,037, compared to $3,424,832 in the same quarter of the previous year. This decrease is due to lower network, sales compensation, and device costs.
The company reported a gross profit of $709,372 for the quarter, compared to $1,264,169 in the previous year, with the decline attributed to fewer higher ARPU activations.
Operating expenses increased to $1,896,592 from $1,133,106, primarily due to a reversal of stock option expense and increased payroll expenses.
Net loss for the quarter was $1,188,914, compared to a net loss of $113,216 in the previous year.
For the nine months ended September 30, 2024, KonaTel reported revenues of $13,127,425, a slight decrease from $13,322,146 in the previous year. The decrease is primarily due to the loss of ACP Program revenues.
The company reported a net income of $5,784,473 for the nine-month period, compared to a net loss of $2,250,633 in the previous year. This increase is attributed to the gain from the sale of a 49% interest in IM Telecom.
KonaTel had $2,688,303 in cash and cash equivalents as of September 30, 2024, with a current ratio increase to 1.92 from 0.48 as of December 31, 2023.
The filing also details the company's efforts to expand its Lifeline services and the impact of the cessation of the ACP Program on its operations.
KonaTel continues to focus on its Hosted Services segment and has taken steps to reduce costs in response to the uncertainty surrounding the ACP Program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the KonaTel Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.