KonaTel, Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company experienced a notable increase in cash and cash equivalents, rising to $2.7 million from $777,103 at the end of 2023, marking a 245.9% increase. Total current assets also grew to $6.3 million, up from $3.6 million, while total assets rose to $7.1 million compared to $4.8 million at the end of the previous fiscal year.
On the liabilities side, current liabilities decreased significantly to $3.3 million from $7.5 million, and total liabilities fell to $3.5 million from $7.8 million. This reduction contributed to an improvement in the company's accumulated deficit, which decreased to $(6.5 million) from $(12.2 million). Additionally, total stockholders’ equity turned positive at $3.6 million, up from a deficit of $(3.0 million).
For the three months ended September 30, 2024, KonaTel reported revenue of $3.1 million, a decline from $4.7 million in the same period of 2023. Gross profit also decreased to $709,372 from $1.3 million year-over-year. Operating expenses surged to $1.9 million, up from $1.1 million, resulting in an operating loss of $(1.2 million) compared to an operating income of $131,063 in the prior year. The net loss for this quarter was $(1.2 million), a significant increase from a net loss of $(113,216) in the same period of 2023.
For the nine months ended September 30, 2024, total revenue was $13.1 million, slightly down from $13.3 million in the same period of 2023. Gross profit for this period was $2.7 million, compared to $3.0 million in the previous year. Operating expenses increased to $6.0 million from $4.6 million, but the company reported a net income of $5.8 million, a substantial improvement from a net loss of $(2.3 million) in the same period of 2023.
Notably, revenue from Hosted Services increased by 14.6% to $4.3 million, while Mobile Services revenue was reported at $8.8 million. Additionally, the sale of a 49% interest in IM Telecom generated cash flow from investing activities of $9.6 million for the nine months ended September 30, 2024.
About KonaTel, Inc.
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