KonaTel (KTEL) SEC Filings

KonaTel, Inc. transferred 98,600 common shares held of record in the names of 490 shareholders as “Unclaimed Property” to the Texas Comptroller of Public Accounts, Unclaimed Property Division, effective October 30, 2026.

The company intends to file post-effective amendments to three S-8 registration statements withdrawing 5,850,000 unissued shares from the 7,848,120 shares registered under its 2018 ISO Plan, followed by a Form 15 to deregister under the Exchange Act. The plan has 2,176,666 vested shares; their exercise prices are currently all “out of the market.” After withdrawal, future exercises of remaining granted or vested plan shares will result in restricted securities. KonaTel also intends to apply for Alternative Reporting Company status under the OTCID Tier and continue OTC Markets quarterly and annual reporting. It says these actions are intended to save approximately $250,000 in annual legal and auditing costs while it expands CPaaS services; it intends to return to full reporting when its board determines the costs are a prudent use of capital.

KonaTel, Inc. (KTEL) reported that Director Robert M. Beaty resigned from its board effective September 30, 2026, after nine years of service. Beaty said in his resignation email that personal reasons left him without time to dedicate to KonaTel. His departure left D. Sean McEwen, the company's CEO and Chairman, as its sole director.

KonaTel states that Delaware law provides for a board of one or more directors, while its bylaws provide for three directors unless the board designates a different number. McEwen designated the board to consist of one director, himself.

KonaTel, Inc. (KTEL) reported continued losses and liquidity pressure for the quarter and six months ended June 30, 2026 while materially reducing its loss versus 2025. Revenue was $1,869,848 for the quarter and $3,774,910 for the first half of 2026, down 12.8% from $4,327,370 a year earlier, mainly from lower Lifeline-related mobile services.

Gross profit for the first half increased to $1,298,498 from $1,202,133 as the mix shifted toward higher‑margin Hosted Services (about 87% of revenue) such as POTS replacement and SMS. Net loss narrowed to $481,933 from $2,105,169, but cash declined to $200,013 from $704,867, total assets fell to $1,819,150, and stockholders’ equity turned negative at $(222,720). The current ratio dropped to 0.36.

Management discloses substantial doubt about KonaTel’s ability to continue as a going concern, citing accumulated deficit of $10,566,076, reliance on new POTS and SMS growth, cost reductions, and the need for additional capital and expanded credit facilities. Disclosure controls and internal control over financial reporting were assessed as ineffective due to prior restatements and stock option adjustments.

KonaTel, Inc. director Robert Matthew Beaty reported the expiration of option awards linked to KonaTel common stock. Four option positions covering a total of 675,000 underlying shares, with exercise prices of $0.935 and $0.410, were reported as dispositions coded as "other acquisition or disposition" and footnoted as options that expired unexercised. Beaty continues to hold derivative positions shown as options on additional blocks of 25,000–333,334 underlying shares at exercise prices between $0.410 and $1.925, as well as 199,068 directly held KonaTel common shares.

KonaTel, Inc. filed a late-filing notice for its Quarterly Report for the period ended June 30, 2026. The company states it is still completing its unaudited financial statements and expects to file the Form 10-Q on or before August 19, 2026, relying on the extension available under Rule 12b-25.

KonaTel, Inc. reported that its 51%-owned affiliate IM Telecom, LLC received a July 27, 2026 notice from the FCC alleging violations of Lifeline program rules. IM Telecom has advised KonaTel that it believes it complies with these rules and will respond directly to the FCC.

The company outlined a multiyear restructuring of its interest in IM Telecom, including a January 22, 2024 Membership Interest Purchase Agreement with Excess Telecom, later revised by a September 19, 2025 First Omnibus Amendment to keep IM Telecom as a standalone partnership owned 51% by KonaTel and 49% by Excess Telecom.

KonaTel currently receives regular $16,500 monthly distributions from the IM Telecom partnership, which it anticipates will decrease by about 12% monthly over the next one to two years. Management stated a strategic shift toward Hosted Services operated by wholly owned subsidiary Apeiron Systems, citing higher margins and lower customer churn, and noted its belief, based on legal advice, that IM Telecom’s operations comply with the FCC’s “Intermountain Microwave Test,” while acknowledging that any consequences of the FCC’s action cannot be determined.

KonaTel, Inc. reports Q1 2026 revenue of $1.9 million, down from $2.2 million a year earlier, but narrows its net loss to $282,590 from $917,528 as gross margin improves on higher‑margin hosted services.

Hosted Services contributed about 74% of revenue, while Mobile Services provided 26%, reflecting the company’s strategic shift toward its Apeiron CPaaS and POTS replacement offerings. Operating expenses fell sharply, aided by transferring staff to the IM Telecom partnership and lower legal and development costs.

Despite better margins, KonaTel ended the quarter with $665,068 in cash, a current ratio of 0.59 and an accumulated deficit of $10.4 million. Management explicitly states that limited liquidity, dependence on growth initiatives and financing needs raise substantial doubt about its ability to continue as a going concern.

KonaTel, Inc. notified the SEC it will file its Form 10-Q for the period ended March 31, 2026 late under Rule 12b-25 and expects to submit the report on or before May 20, 2026.

The company states the delay is due to completing unaudited financial statements and provides a contact for the notification.