Thu, May 15, 9:27 PM (38 days ago)
**KonaTel, Inc. (KTEL) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,168,714 (down from $5,635,836 in Q1 2024) due to the expiration of the ACP program. - **Gross Profit:** $651,893 (down from $1,127,504 in Q1 2024). - **Operating Loss:** ($929,645) (improved from ($846,955) in Q1 2024). - **Net Loss:** ($917,528) (down from net income of $8,083,084 in Q1 2024). - **Cash Flow from Operations:** $269,038 (improved from ($1,787,215) in Q1 2024). **Key Metrics & Trends:** - **Profit Margins:** Gross margin was 30.05%, down from 19.99% in Q1 2024. - **Cash Position:** $2,098,383 in cash and cash equivalents (up from $1,679,345 in Q4 2024). - **Liquidity:** Current ratio decreased to 1.53 (from 1.78 in Q4 2024). - **Working Capital:** Decreased by 33.2%. - **Segment Performance:** Hosted Services accounted for 66% of revenue, Mobile Services 34%. **Future Operations & Uncertainties:** - **Going Concern:** Substantial doubt about the ability to remain a going concern due to net loss and accumulated deficit. - **Strategic Initiatives:** Focus on Lifeline services, health care initiatives, and hosted services partnerships. - **Regulatory Uncertainties:** Dependence on government programs and regulatory approvals. - **Customer Concentration:** Significant revenue and receivables concentration from a few customers. **Impact on Future Operations:** - **Cost Reduction:** Continued focus on cost reduction measures. - **Revenue Diversification:** Exploration of new revenue streams and market opportunities. - **Regulatory Compliance:** Ongoing efforts to comply with regulatory requirements and secure approvals. **Conclusion:** KonaTel, Inc. faces significant challenges due to the expiration of the ACP program and regulatory uncertainties. The company is focusing on cost reduction, revenue diversification, and strategic initiatives to improve its financial health and ensure future operations. However, substantial doubt remains about its ability to remain a going concern.