KonaTel (KTEL) 10-KT 29 Jun 18 2017 FY Annual report (with FYE transition) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Jun. 29, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	KonaTel, Inc.
Entity Central Index Key	845,819
Document Type	10-KT
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 146,324
Entity Common Stock, Shares Outstanding		32,942,286
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and Cash Equivalents	$ 94,150	$ 116,838
Accounts Receivable	744,082	1,039,403
Inventory, Net	45,910	71,049
Prepaid Expenses	103,567	18,621
Total Current Assets	987,708	1,245,911
Property and Equipment, Net	142,067	225,412
Oil and natural gas properties using the full cost method of accounting, unproved	37,475	0
Intangible Assets, Net	184,628	516,958
Other Assets	4,340	7,269
Total assets	1,356,218	1,995,550
Current Liabilities
Accounts Payable and Accrued Expenses	1,374,709	1,244,526
Amount Due to Seller	0	18,000
Amount Due to Related Party	0	15,982
Amount Due to Stockholder	223,327	0
Revolving Line of Credit	153,141	219,168
Deferred Revenue	36,835	81,140
Customer Deposits	28,854	88,116
Total Current Liabilities	1,816,866	1,666,932
Total liabilities	1,816,866	1,666,932
Stockholders' Deficit
Capital stock	0	7,000
Common Stock	27,192	0
Additional Paid-In Capital	2,703,033	1,799,311
Accumulated Deficit	(3,190,873)	(1,477,693)
Total Stockholders' Equity	(460,648)	328,618
Total Liabilities and Stockholders' Equity	$ 1,356,218	$ 1,995,550

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value in dollars	$ 0.001	$ 0
Common stock, shares authorized	50,000,000	0
Common stock, shares issued	27,192,186	0
Common stock, shares outstanding	27,192,186	0
Capital stock, par value in dollars	$ 0	$ 1
Capital stock, shares authorized	0	300,000
Capital stock, shares issued	0	7,000
Capital stock, shares outstanding	0	7,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 11,477,723	$ 9,741,779
Cost of Revenue	9,283,398	7,070,796
Gross Profit	2,194,325	2,670,983
Operating expenses
Payroll and Related	2,380,099	2,067,731
Operating and Maintenance	524,658	206,519
Bad Debt	82,809	106,685
Utilities and Facilities	192,427	154,300
Depreciation and Amortization	421,520	392,395
General and administrative	82,710	110,142
Marketing and Advertising	55,582	56,202
Taxes and Insurance	58,011	54,587
Total Operating Expenses	3,797,816	3,148,561
Other Expense
Impairment of Goodwill	(80,867)	0
Interest Expense, Net	(28,822)	(24,737)
Total Other Expenses	(109,689)	(24,737)
Net loss	$ (1,713,180)	$ (502,315)
Net loss per share	$ (0.12)	$ (0.04)
Weighted average number of shares outstanding	14,210,094	13,692,286

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock	Capital Shares	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance at Dec. 31, 2015		$ 7,000	$ 1,363,000	$ (947,328)	$ 422,672
Beginning Balance, shares at Dec. 31, 2015		7,000
Capital Contribution			250,000		250,000
Acquisition of CS Agency			186,311		186,311
Distributions				(28,050)	(28,050)
Net loss				(502,315)	(502,315)
Ending Balance at Dec. 31, 2016		$ 7,000	1,799,311	(1,477,693)	328,618
Ending Balance, shares at Dec. 31, 2016		7,000
Capital Contribution			885,000		885,000
Eliminations of capital stock in reverse merger, value		$ (7,000)	(6,692)		(13,692)
Eliminations of capital stock in reverse merger, shares		(7,000)
Issuance of common stock in reverse merger, value	$ 13,500		(12,080)		1,420
Issuance of common stock in reverse merger, shares	13,500,000
Common stock from reverse merger, value	$ 13,692				13,692
Common stock from reverse merger, shares	13,692,286
Vested Stock Based Compensation			37,494		37,494
Net loss				(1,713,180)	(1,713,180)
Ending Balance at Dec. 31, 2017	$ 27,192		$ 2,703,033	$ (3,190,873)	$ (460,648)
Ending Balance, shares at Dec. 31, 2017	27,192,286

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net Loss	$ (1,713,180)	$ (502,315)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	421,520	392,395
Bad Debt	82,809	106,685
Impairment of Goodwill	80,867	0
Stock-based compensation	37,494	0
Changes in Operating Assets and Liabilities net of effects of acquisition:
Accounts Receivable	212,512	(714,158)
Inventory	25,139	33,048
Prepaid Expenses	(84,946)	(18,621)
Accounts Payable and Accrued Expenses	37,588	653,162
Deferred Revenue	(44,305)	18,148
Customer Deposits	(59,262)	(14,458)
Other Assets	2,929	(3,614)
Net cash used in operating activities	(1,000,835)	(49,728)
Cash Flows from Investing Activities
Capital Expenditures	(5,845)	(21,727)
Net cash used in investing activities	(5,845)	(21,727)
Cash Flows from Financing Activities
(Repayments of) Proceeds From Revolving Lines of Credit, Net	(66,028)	(4,779)
Advances made by Stockholder	199,000	0
Repayments of amounts due to Related Party and Seller	(33,980)	(56,687)
Contributions	885,000	250,000
Distributions	0	(28,050)
Net cash provided by financing activities	983,992	160,484
Net increase (decrease) in cash	(22,688)	89,029
Cash at beginning of period	116,838	27,809
Cash at end of period	94,150	116,838
Supplemental disclosure of cash flow information:
Cash paid for interest	22,430	12,471
Cash paid for taxes	0	0
Non-cash investing and financing activities
Dividends accrued on preferred stock	(43,214)
Forgiveness of dividends on preferred stock	145,497
Cancellation of stock	(15,842)
Issuance of common stock	367,500
Issuance of common stock with merger	(6,692)
Retirement of preferred stock	1,244,384
Issuance of common stock for services	12,500
CS Agency
Non-cash investing and financing activities
Accounts Payable and Accrued Expenses, net of Cash		(115,809)
Liabilities paid-off by stockholder		(186,311)
Customer List		302,120
Merger of Dala Acquisition, Inc. and KonaTel, Inc. - Nevada
Non-cash investing and financing activities
Accounts Payable and Accrued Expenses, net of Cash	(92,595)	0
Amount Due to Related Party	(24,327)	0
Goodwill	80,867	0
Oil and natural gas properties,at cost, using the full cost method of accounting, unproved	$ 37,475	$ 0

Organization

Organization	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	NOTE 1 – ORGANIZATION KonaTel Inc., formerly known as Dala Petroleum Corp. (the “Company,” “we,” “our,” or “Dala”), also formerly known as “Westcott Products Corporation,” was incorporated as “Light Tech, Inc.” under the laws of the State of Nevada on May 24, 1984. A subsidiary in the name “Westcott Products Corporation” was organized by us under the laws of the State of Delaware on June 24, 1986, for the purpose of changing our name and domicile to the State of Delaware. On June 27, 1986, we merged with the Delaware subsidiary, with the survivor being Westcott Products Corporation, a Delaware corporation. On December 18, 2017, we acquired KonaTel, Inc, a Nevada sub S-Corporation (“KonaTel Nevada”), in a merger with our acquisition subsidiary under which KonaTel Nevada became our wholly-owned subsidiary.

Transactions

Transactions	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Transactions	NOTE 2 – TRANSACTIONS June 2014 Merger On June 2, 2014, the Company, its newly formed and wholly-owned subsidiary, Dala Acquisition Corp., a Nevada corporation (“Merger Subsidiary”), and Dala Petroleum Corp., a Nevada corporation (“Dala Nevada”), executed and delivered an Agreement and Plan of Merger (the “Merger Agreement”), whereby Merger Subsidiary merged with and into Dala Nevada, and Dala Nevada was the surviving company under the merger and became a wholly-owned subsidiary of then-named Westcott (the “Merger”) on the closing of the Merger. As a result of the Merger, Westcott issued 10,000,000 shares of its common stock in exchange for all of the outstanding shares of common stock of Dala Nevada , which shares were distributed to Dala Nevada’s sole shareholder, Chisholm Partners II, LLC, a Louisiana limited liability company (“Chisholm II”), and was then distributed on a pro rata basis to its members. As a condition precedent to the Merger, Westcott raised $2,025,000 from persons who were “accredited investors” in consideration of the sale of 2,025 shares of its Series A 6% Convertible Preferred Stock and 2,893,725 warrants at an offering price of $1,000 per unit. Each $1,000 unit consisted of (i) one share of Series A 6% Convertible Preferred Stock that was convertible at any time at the option of the holder into common stock at the conversion price of $0.70 per common share based on the total dollar amount invested; and (ii) 1,429 warrants (issued for each share of Series A 6% Convertible Preferred Stock sold in each unit) to purchase common shares of the Company at an exercise price of $1.35 with a life of three years as of the “Effective Date” defined as the earliest date of the following to occur: (a) the initial registration statement required by the offering documents had been declared effective by the United States Securities and Exchange Commission (the “SEC”); (b) all of the underlying shares had been sold pursuant to SEC Rule 144 or may be sold pursuant to SEC Rule 144 without the requirement for the Company to be in compliance with the “current public information” required under SEC Rule 144 and without volume or manner-of-sale restrictions; or (c) following the one year anniversary of June 3, 2014. The Merger was accounted for as a reverse-merger and recapitalization of Dala. Dala Nevada possessed rights to engage in oil and natural gas exploration and development in north central Kansas, with total acreage of approximately 80,000 acres (the “Property”). Since the time of the Merger, we have been operating as an early-stage oil exploration company focused on the Property, which has oil potential at depths of less than 6,000 feet. Since May 2015, the Company had previously temporarily suspended its exploration program due to the decline in the price of oil and difficult market conditions; however, the Company is presently evaluating potential options for the extension of terms of the expired leases comprising the Property and funding the development of the Property, either singly or as a joint venture or with a working interest, carried or fully funded; or an outright sale of its remaining leases and geologic and seismic data on the area. May 2016 Transaction The Company entered into a Partial Cancellation Agreement (the “PCA”) by and among its subsidiary, Dala Nevada, Chisholm II and certain members of Chisholm II (the “Chisholm Members”), through which Chisholm II (after receiving shares from certain of its Chisholm Members) returned a total of 8,567,800 shares of the Company’s common stock to the Company for cancellation. In exchange for the return of these shares for cancellation, the Company assigned 55,000 acres of the Company’s Property rights (approximately 68.75% of its total holdings) to Chisholm II. Pursuant to terms of the PCA, on May 26, 2016, the 8,567,800 shares of common stock delivered by Chisholm II shareholders were cancelled on the books and records of the Company. Prior to that, the Company assigned 55,000 acres of its leased Property to Chisholm II. On May 16, 2016, as approved by the Board of Directors of the Company as part of a settlement with the Preferred Shareholders, the Company filed an Amended and Restated Certificate of Designation of the Company’s Series A 6% Convertible Preferred Stock (the “COD”), which (i) changed the conversion price of the preferred stock from $0.70 per share to $0.05 per share; and (ii) eliminated Section 7 “Certain Adjustments” of the COD. Pursuant to terms of the PCA, on July 28, 2016, the 1,030,000 shares of common stock delivered after the initial closing by Baldo Sanso (360,000 shares of common stock), Robert Sali (610,000 shares of common stock) and Chris Dabbs (60,000 shares of common stock) were cancelled on the books and records of the Company. The reduction was offset to additional paid-in capital. July 2017 Transaction On July 19, 2017, the Company entered into a Common Stock Purchase Agreement with M2 Equity Partners LLC, a Minnesota limited liability company (“M2”), whereby M2 has purchased 12,100,000 newly issued shares of the Company’s common stock (the “Common Stock”) for an aggregate purchase price of $347,500 (the “Purchase Price”), pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506(b) promulgated thereunder. Prior to the closing (the “Closing”) of the Common Stock Purchase Agreement, the Company had the following outstanding securities: (i) 2,926,486 shares of Common Stock; (ii) 2,008 shares of Series A 6% Convertible Preferred Stock (the “Preferred Stock”); and (iii) 1,928,571 warrants (the “Warrants”) to acquire 1,928,571 shares of Common Stock that were issued in connection with the issuance of its Preferred Stock. In connection with this purchase of Common Stock, certain of the Company’s shareholders agreed to cancel an aggregate 1,584,200 shares of the Company’s Common Stock for an aggregate amount of $15,842; and 2,008 shares of the Company’s Preferred Stock and all outstanding Warrants for an aggregate amount of $53,841, with an additional sum of approximately $4,700 due to those shareholders who had agreed to cancel their respective shares of Preferred Stock and Warrants being reserved for the payment of miscellaneous expenses or other liabilities of the Company not provided for in the schedules and exhibits to the Common Stock Purchase Agreement, and any remainder of this sum was to be paid to these shareholders, pro rata, based upon the respective percentage that the aggregate amount being paid for the cancellation of the Preferred Stock and Warrants bore, if any, to these additional funds, following payment of any such miscellaneous expenses or other liabilities of the Company. $10,750 of the Purchase Price was held in the Trust Account of the Company’s legal counsel to be expended on behalf of the Company or deposited into a new bank account to be opened by the Company, and these funds have been disbursed in payment of expenses or paid to the Company or those persons entitled to them. As a result of the cancellation of the 1,584,200 shares of Common Stock, Preferred Stock and Warrants, immediately prior to or simultaneous with the Closing, the Company had 1,342,286 shares of Common Stock issued and outstanding (the “Existing Shares”) and no shares of Preferred Stock or Warrants issued and outstanding; and taking into account the share cancellation and the 12,100,000 share Common Stock purchase and issuance, the Company then had issued and outstanding (i) 13,442,286 shares of its Common Stock, consisting of (a) the 1,342,286 Existing Shares, and (b) the 12,100,000 shares purchased by M2; and (ii) no other securities (as defined in the Securities Act) issued or outstanding. The Company used the remainder of the $347,500 to, among other items set forth in the schedules and exhibits to the Common Stock Purchase Agreement, pay or compromise all outstanding indebtedness and other liabilities of the Company, amounting to approximately $262,367, which included a payment of an aggregate of $10,000 ($5,000 to each) to our then two directors and executive officers, with the understanding that our then current assets would consist of approximately $10,750, our Property, consisting of our oil and gas lease assets that we then owned, along with other intangible assets, and following the payment of the indebtedness and other liabilities and financial obligations of the Company, there would be no liabilities of the Company at Closing. M2 agreed to pay M2 Capital Advisors, Inc., a Minnesota corporation (“M2 Capital”), which is wholly-owned by Mark Savage, a founding member of M2, an Introduction Fee of $25,000 for introducing the Company to M2. These funds were divided between M2 Capital and Elev8 Marketing, a firm owned by Matthew Atkinson, who is also a founding member of M2 and M2’s sole Manager, and were utilized to repay these entities for legal costs and miscellaneous expenses incurred by them in connection with the formation and funding of M2. Mr. Savage was appointed the President and Chief Financial Officer and a director at the Closing, and Mr. Atkinson was elected as the Secretary at the Closing. The Closing of the Common Stock Purchase Agreement resulted in a change in control of the Company. December 2017 Transaction On November 15, 2017, Company entered into an Agreement and Plan of Merger with Mark Savage, our then President, a director (currently serving as a director) and a beneficial shareholder, Matthew Atkinson, our Secretary, a beneficial shareholder and the Manager of our then principal shareholder, M2, and M2 and our wholly-owned Nevada acquisition subsidiary, Dala Subsidiary Corp., on the one hand; and KonaTel Nevada and D. Sean McEwen, KonaTel Nevada’s President and sole shareholder, on the other hand. The Merger was closed on December 18, 2017, and Articles of Merger were filed on that date with the Secretary of State of the State of Nevada whereby KonaTel Nevada was the surviving corporation and became our wholly-owned subsidiary. The Company issued 13,500,000 shares of our one mill ($0.001) par value common stock comprised of “restricted securities” as defined in SEC Rule 144 promulgated under the Securities Act, in exchange for all of the outstanding shares of common stock of KonaTel Nevada. Post-Merger, and except as discussed below about conditions to the Closing of the Merger, there were approximately 27,192,286 outstanding shares of our common stock, 13,500,000 shares of which are owned by Mr. McEwen; 12,100,000 shares of which were then owned by M2 (Messrs. Savage and Atkinson are members of M2 and collectively owned approximately 65.2% of M2, which equated to an indirect beneficial ownership of approximately 3,950,000 shares of our common stock each, and with Mr. Atkinson being the sole Manager of M2, he was then also the beneficial owner of all of M2’s shares of our common stock; and 1,692,286 shares, which are owned by public shareholders. On April 24, 2018, the 12,100,000 shares of our common stock that were acquired by M2 under the Common Stock Purchase Agreement referenced above were distributed to its members, pro rata, in accordance with their respective membership interests. See NOTE 18 below. The Company entered into Shareholder Voting Agreement between the Company, Mr. Savage, Mr. Atkinson, M2 and Mr. McEwen whereby Mr. McEwen was granted an irrevocable proxy coupled with an interest from each of the foregoing, together with the following rights, including a right of veto, for a period of two (2) years, on the following matters: (i) an increase in the compensation of any employee of the Company by more than $20,000 in any one calendar year and for these purposes, the term compensation includes any form of remuneration or monetary benefit; (ii) the issuance of stock, the creation of a new class of stock, the grant of options or warrants, modification of any shareholder, option holder or warrant holder’s rights, grants, conversion rights or the taking of any other action that directly or indirectly dilutes the outstanding securities of the Company, excepting the current private placement of common stock of the Company for an equity funding of $1,300,000 through the offer and sale of 6,500,000 shares of the Company’s common stock solely to “accredited investors”; (iii) the issuance of debt in excess of $100,000 in the aggregate in any one calendar year; (iv) the approval of a plan of merger, reorganization or conversion; (v) the sale, transfer or other conveyance of assets of the Company having an aggregate value in excess of $100,000 in any one calendar year, other than in the ordinary course of the business; and (vi) the entry into a contract or other transaction having a total aggregate contractual liability for the Company in excess of $100,000 in any one calendar year. The Company entered into a Lock-Up/Leak-Out Agreement by Mr. Savage, Mr. Atkinson, M2 and Mr. McEwen respecting the resale of their respective shares of common stock beneficially owned or subsequently acquired in the Company covering an 18 month period commencing at the Closing of the Merger. At the Effective Time, the Company changed its fiscal year from September 30 to a calendar year end of December 31 to coincide with the calendar fiscal year end of KonaTel Nevada; and the “S Corporation Election” of KonaTel Nevada was terminated. The parties agreed to make all necessary tax elections to achieve a direct tax accounting cut-off as of the date of the S Corporation Election termination for purposes of reporting the applicable short period S and C corporation tax returns, as applicable. The Merger was accounted for as a reverse-merger and recapitalization of the Company. Accordingly, the 2016 legal capital of KonaTel Nevada was adjusted retroactively to reflect the December 31, 2016 legal capital of Dala.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and customer lists. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand and all short-term investments with maturities of three months or less. Trade Accounts Receivable The Company accounts for trade receivables based on amounts billed to customers. Past due receivables are determined based on contractual terms. The Company does not accrue interest and does not require collateral on any of its trade receivables. Allowance for Doubtful Receivables The allowance for doubtful receivables is determined by management based on customer credit history, specific customer circumstances and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. As of December 31, 2017, and December 31, 2016, management has determined that no allowance for doubtful receivables is necessary. Inventory Inventory consists primarily of the cost of cellular phones and cellular accessories. Inventory is reported at the lower of cost and net realizable value. Cost is determined by the first-in, first-out ("FIFO") method. Due to the rapidly changing technology within the industry, inventory is evaluated on a regular basis to determine if any obsolescence exists. As of December 31, 2017, and December 31, 2016, the allowance for inventory obsolescence amounted to $10,083 and $19,243, respectively. Property and Equipment Property and equipment are recorded at cost, and are depreciated on the straight-line method over their estimated useful lives. Leasehold improvements are amortized over the lesser of the lease term or estimated useful life, furniture and fixtures, equipment, and vehicles are depreciated over periods ranging from five to seven (5-7) years, and billing software is depreciated over three (3) years which represents the estimated useful life of the assets. Maintenance and repairs are charged to expense as incurred while major replacements and improvements are capitalized. When property and equipment are retired or sold, the cost and applicable accumulated depreciation are removed from the respective accounts and the related gain or loss is recognized. The Company recognizes impairment losses for long-lived assets whenever changes in circumstances result in the carrying amount of the assets exceeding the sum of the expected future cash flows associated with such assets. Management has concluded that no impairment reserves are required as of December 31, 2017 and December 31, 2016. Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of net assets acquired in connection with business acquisitions. Goodwill is tested at the reporting unit level, which is defined as an operating segment or a component of an operating segment that constitutes a business for which financial information is available and is regularly reviewed by management. The Company assesses goodwill for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment. The annual impairment review is completed at the end of the year. If the carrying amount of a reporting unit exceeds its fair value, the Company measures the possible goodwill impairment based upon an allocation of the estimate of fair value to the underlying assets and liabilities of the reporting unit, including any previously unrecognized intangible assets, based upon known facts and circumstances as if the acquisition occurred currently. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized to the extent the carrying value of goodwill exceeds the implied fair value of the goodwill. It was determined that Goodwill of $80,867 created through the reverse merger was fully impaired as of December 31, 2017. Impairment losses, of $80,867 are reflected in the Consolidated Statements of Operations. Intangible assets consist of customer lists arising from acquisitions which are amortized on a straight line basis over three years, their estimated useful lives. Customer Deposits Before entering into a contract with a sub-reseller customer, the Company will require the customer to either secure a formal letter of credit with a bank, or require a certain level of cash collateral deposits from the customer. These collateral requirements are determined by management and may be adjusted upward or downward depending on the volume of business with the sub-reseller customer, or if management's assessment of credit risk for a sub-reseller customer would change. The Company held $28,854 and $88,116 in collateral deposits from various sub-reseller customers at December 31, 2017, and December 31, 2016, respectively. Such amounts represent collateral received from the sub-resellers in order to contract with the Company. The related contracts have an option to terminate the contract within a period of less than one year, and accordingly, these collateral deposits are classified as current liabilities in the accompanying balance sheet. Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the provisions of Statement of Financial Accounting Standards ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company measures its financial assets and liabilities in accordance with generally accepted accounting principles. For certain of our financial instruments, including cash, accounts payable, accrued expenses, deposits received from customers for receivables and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices, which are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Unproved oil and natural gas properties are accounted for and measured under Regulation S-X, Rule 4-10. We currently measure and report at fair value other intangible assets (due to our impairment analysis) and derivative liabilities using ASC 820-10, Fair Value Measurement. The fair value of intangible assets has been determined using the present value of estimated future cash flows method. The fair value of derivative liabilities is measured using the Black-Scholes option pricing method. The following table summarizes our non-financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: Fair Value Measurements at December 31, 2017 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Description Unproved oil and natural gas properties $ - $ - $ 37,475 $ 37,475 Oil and Natural Gas Properties The Company follows the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration and development of oil and natural gas properties are initially capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, a portion of employee salaries related to Property development, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Internal salaries are capitalized based on employee time allocated to the acquisition of leaseholds and development of oil and natural gas properties. The Company did not capitalize interest for the period ended December 31, 2017, as it was not required. Proceeds from Property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. The Company assesses all items classified as unproved Property on a quarterly basis for possible impairment or reduction in value. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves, and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such Property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and amortization. The costs of drilling exploratory dry holes are included in the amortization base immediately upon determination that the well is dry. Capitalized costs associated with impaired properties and properties having proven reserves, estimated future development costs, and asset retirement costs under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 410-20-25 are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves. The costs of unproved properties are withheld from the depletion base until such time as they are developed, impaired, or abandoned. Under the full cost method of accounting, capitalized oil and natural gas Property costs less accumulated depletion, net of deferred income taxes, may not exceed a ceiling amount equal to the present value, discounted at 10%, of estimated future net revenues from proved oil and natural gas reserves plus the cost of unproved properties not subject to amortization (without regard to estimates of fair value), or estimated fair value, if lower, of unproved properties that are subject to amortization. Should capitalized costs exceed this ceiling, which is tested on a quarterly basis, an impairment is recognized. The present value of estimated future net revenues is computed by applying prices based on a 12-month unweighted average of the oil and natural gas prices in effect on the first day of each month, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and result in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. During the period ended December 30, 2017, the Company incurred a total of $0 in oil and natural gas expenditures. No impairment was realized for the year ended September 30, 2016, or the period ended September 30, 2017, or the period ended December 31, 2017. On May 10, 2016, the Company entered into a Partial Cancellation Agreement (the “PCA”) by and among its subsidiary, Dala Petroleum Corp., a Nevada corporation (“Dala NV”), Chisholm II, and certain members of Chisholm II (the “Chisholm Members”) through which Chisholm II (after receiving shares from certain of Chisholm Members) returned a total of 8,567,800 shares of the Company’s common stock to the Company’s treasury for cancellation. In exchange for the return of these shares for cancellation, the Company returned 55,000 acres of the Company’s Property rights, held in the form of oil and gas leases acquired from Chisholm II (approximately 68.75% of its total holdings), to Chisholm II. Revenue Recognition Revenue from the sale of the Company's products is recognized when goods are provided to the customer, title and risk of loss are transferred, pricing is fixed or determinable and collection is reasonably assured. Revenue from the sale of the Company's cellular and telecommunication services is recognized when the services have been performed, evidence of an arrangement exists, the fee is fixed and determinable, and collection is probable. Revenue from these services is generally recognized monthly as the services are provided. Such revenue is recognized based on usage, which can vary from month-to-month or at a contractually committed amount, net of credits or other billing adjustments. Advance billings for future service in the form of monthly recurring charges are not recognized as revenue until the service is provided. We recognize oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. We use the sales method of accounting for balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. Cost of Revenue Cost of Revenue includes the cost of communication services, equipment and accessories, shipping costs, and commissions of sub-agents. Stock-based Compensation The Company records stock based compensation in accordance with the guidance in ASC 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This requires that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718-10 and the conclusions reached by the ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505-50. Income Taxes Beginning on December 18, 2018, the Effective Date of the KonaTel Nevada merger, KonaTel Nevada terminated its S Corporation status. For the short-tax year, there was no tax provision of federal or state taxes in the financial statements. Prior to the merger, with the consent of its shareholders, KonaTel Nevada had elected under the Internal Revenue Code and for Pennsylvania tax purposes to be a S Corporation. In lieu of corporation income taxes, the shareholders of a S Corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision for federal or state income tax is included in the financial statements. The Company evaluates tax positions taken and determines whether it is more-likely-than-not that the tax position will be sustained upon examination based on the technical merits of the position. Management has reviewed its tax positions regarding state nexus as well as its status as a pass-through entity and has determined there are no such positions that fail to meet the more-likely-than-not criterion. Net Loss Per Share The Company follows ASC Topic 260 to account for the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As the Company has incurred losses for the period ended December 31, 2017, the potentially dilutive shares totaling 0 are anti-dilutive and are thus not added into the loss per share calculations. Due to the anti-dilutive impact the weighted average dilutive shares outstanding for the period ended December 31, 2017, for basic and dilutive shares, are the same. For 2017, the weighted average common share equivalents were 14,210,094. As per ASC 810-40-45-5b, the net loss per share for December 31, 2017 and 2016 is calculated based on the weighted average shares as determined through the reverse merger. The exchange ratio of 1,928.57 was determined in the merger exchange. For December 2017, and 2016, the weighted average common share equivalents were 14,210,094 and 13,692,286, respectively. Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of receivables, cash, and cash equivalents. All cash and cash equivalents and restricted cash and cash equivalents are held at high credit financial institutions. These deposits are generally insured under the FDIC's deposit insurance coverage; however, from time to time, the deposit levels may exceed FDIC coverage levels. The Company also has a concentration of risk with respect to trade receivables from sub-resellers. As of December 31, 2017 and 2016, the Company had a significant concentration of receivables due from two and three major customers, respectively (defined as customers whose receivable balances are greater than 10% of total accounts receivable). These customers represented approximately 78% of the total accounts receivable as of December 31, 2017, and approximately 70% of total accounts receivable as of December 31, 2016. Concentration of Major Customer A significant amount of the revenue is derived from contracts with major sub-reseller customers. For the year ended December 31, 2017, the Company had two major sub-reseller customers which amounted to approximately 43% of total revenues. For the year ended December 31, 2016, the Company had two major customers which amounted to approximately 63% of total revenues. Effect of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or Equity. The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment consist of the following major classifications as of December 31, 2017, and December 31, 2016: 2017 2016 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 87,201 81,355 Billing Software 217,163 217,163 Office Equipment 89,590 89,591 440,904 435,059 Less: Accumulated Depreciation and Amortization (298,837) (209,647) $ 142,067 $ 225,412 Depreciation and amortization expense amounted to $89,190 and $97,664 for the years ended December 31, 2017, and 2016, respectively. Depreciation and amortization expense are included as a component of operating expenses in the accompanying statements of operations.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 5 – INTANGIBLE ASSETS Intangible Assets consist of customer lists that were acquired through acquisitions: 2017 2016 Customer Lists $ 1,135,961 $ 1,135,961 Less: Accumulated Amortization (951,333) (619,003) $ 184,628 $ 516,958 Amortization expense amounted to $332,330 and $294,731 for the years ended December 31, 2017, and 2016, respectively. Amortization expense is included as a component of operating expenses in the accompanying statements of operations. Future amortization over the next year will be $184,628, which fully amortizes intangible assets.

Lines of Credit

Lines of Credit	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Lines of Credit	NOTE 6 - LINES OF CREDIT The Company has three lines of credit with a bank which provide aggregate maximum borrowing availability of $1,050,000 as of December 31, 2017, and December 31, 2016. The lines of credit are payable on demand and bear interest at a variable rate with a floor set at 5.25%. Outstanding advances under these line of credit arrangements amounted to $153,141 and $219,168 as of December 31, 2017, and December 31, 2016. The lines of credit mature in June 2018. The lines are secured by the general assets of the Company and aggregate amounts drawn under the line of credit may be limited to a borrowing base, as defined. The lines of credit contain provisions which require the Company to maintain certain covenants including the maintenance of a debt service coverage ratio of 1.20X, a defined in the agreement. The revolving lines of credit are guaranteed by an officer of the Company.

Operating Leases

Operating Leases	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Operating Leases	NOTE 7 - OPERATING LEASES The Company leases property under non-cancelable operating leases with terms in excess of one year. The current property lease in excess of one year expires April 30, 2019. Future minimum lease payments over the next three years under the terms of these operating leases are as follows: Period Ended December 31, 2018 $ 66,099 2019 38,558 The Company also leases an office space on a month-to-month basis. Total lease expense for the years ended December 31, 2017 and 2016 amounted to $156,618 and $124,638, respectively.

Amount Due to Shareholder

Amount Due to Shareholder	12 Months Ended
	Dec. 31, 2017
Amount Due To Shareholder
Amount Due to Shareholder	NOTE 8 – AMOUNT DUE TO SHAREHOLDER During 2017, certain of the Company’s principal shareholders, D. Sean McEwen, Matthew Atkinson, and Mark Savage, advanced $191,500, $17,063 and $14,764, respectively. The amount advanced was used for working capital purposes and bears no interest and does not have a maturity date. Interest expense is imputed based on the applicable federal rate of 1.52%.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 9 - RELATED PARTY TRANSACTIONS Transactions with JBS Holdings Inc. As of December 31, 2016, amounts payable to JBS Holdings Inc. amounted to $15,892. This amount was part of the liabilities assumed when an entity was acquired in 2014. A Company officer, J. William Riner, partly owns JBS Holding, Inc. This was fully paid as of September 2017. Transactions with Shareholders As of December 31, 2017, amounts due from advances to shareholders were $223,327. The details of the advances are noted in NOTE 8.

Retirement Plan

Retirement Plan	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Retirement Plan	NOTE 10 – RETIREMENT PLAN The Company sponsors a 401(k) profit sharing plan for its employees, whereby participants may contribute through salary deductions as defined, not to exceed certain IRS limits. The plan also provides for an employer matching contribution and also discretionary employer contributions. The Company contributed $61,106 and $63,553 for the years ended December 31, 2017, and 2016, respectively.

Contingencies and Commitments

Contingencies and Commitments	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	NOTE 11 – CONTINGENCIES AND COMMITMENTS Litigation From time to time, the Company may be subject to legal proceedings and claims which arise in the ordinary course of business. The Company tentatively reached a settlement agreement on litigation, which arose from an issue with a lawsuit with a business purchased by KonaTel Nevada. Contract Contingency The Company has the normal obligation for the completion of its cellular provider contracts in accordance with the appropriate standards of the industry and that may be provided in the contractual agreements. Letters of Credit The Company maintains irrevocable standby letter of credit arrangements with certain cellular carriers in the aggregate amount of $593,000. The letters of credit serve as collateral and security for various resale contracts the Company has with their suppliers. The letters of credit are unused as of December 31, 2017, and December 31, 2016. Gross Receipts Filing The Company has not filed the annual return required for gross receipts tax in New York for 2015 and 2016 and in Pennsylvania for 2016. The Company accrued $30,369 as of December 31, 2016. The Company accrued $44,598 as of December 31, 2017. The interest and penalties are not significant. Going Concern As the Company did not generate net income during the year ending December 31, 2017, and 2016, we have been dependent upon equity financing to support our operations. In addition to losses of $1,713,180 and $502,315 in 2017 and 2016, respectively, we have experienced negative cash flow from operations of $1,000,836 and $49,728 in 2017 and 2016. The accumulated deficit as of December 31, 2017, is $3,190,873. We believe we have ameliorated any “going concern” issues by generating additional cash flow since the completion of our merger with KonaTel Nevada on December 18, 2017; receiving cash investments through the private placement of shares of our common stock; and the increase of revenues from the growth of our Virtual ETC program, all of which has contributed to an improvement in our working capital, resulting in a working capital surplus, without the use of additional lines of credit or borrowings. Additionally, we also have two options to finance our mobile phone equipment purchases whereby multiple equipment suppliers provide us short term credit terms of up to 60 days on mobile phone purchases and a bank line of credit for purchases of select mobile phones.

Amount Due to Seller

Amount Due to Seller	12 Months Ended
	Dec. 31, 2017
Amount Due To Seller
Amount Due to Seller	NOTE 12 – AMOUNT DUE TO SELLER As of December 31, 2016, the Company owed $18,000 to a seller of an entity which was acquired in 2014. This was fully paid as of September 2017.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Reporting	NOTE 13 – SEGMENT REPORTING The Company operates within three reportable segments. The Company’s management evaluates performance and allocates resources based on the profit or loss from operations. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Because the Company is a service business with very few physical assets, Management does not use total assets by segment to make decisions regarding operations, and therefore the total assets disclosure by segment has not been included. The Company’s reportable segments consist of a Wholesale unit, a Retail unit, and Gas & Oil Operations. The Wholesale unit purchases bulk rate services at a discounted cost. The Wholesale unit then sells to providers that provide services to the end-user. The Retail unit provides these same services to the end-user. The Wholesale unit had 24 customers for the years ended December 31, 2017, and 2016. The Retail Unit had an average lines/customers of 10,557 and 6,576 for the years ended December 31, 2017, and 2016, respectively. The Gross Profit per line for Wholesale was $1.86 and $2.25 for the years ended December 31, 2017, and 2016, respectively. The Gross Profit per line for Retail was $11.12 and $16.84 for the nine month periods ended December 31, 2017, and 2016, respectively. The following table reflects the result of operations of the Company’s reportable segments: Wholesale Retail Gas & Oil Total For the Year Ended December 31, 2017 Revenue $ 6,809,051 $ 4,668,672 $ - $ 11,477,723 Operating Loss $ (627,698) $ (1,085,482) $ - $ (1,713,180) Depreciation and amortization $ 154,442 $ 267,078 $ - $ 421,520 Additions to property and equipment $ - $ 5,845 $ - $ 5,845 For the Year Ended December 31, 2016 Revenue $ 6,075,797 $ 3,665,982 $ - $ 9,741,779 Operating Loss $ (252,475) $ (249,840) $ - $ (502,315) Depreciation and amortization $ 197,227 $ 195,168 $ - $ 392,395 Additions to property and equipment $ - $ 21,727 $ - $ 21,727

Preferred Convertible Stock and

Preferred Convertible Stock and Warrants	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Preferred Convertible Stock and Warrants	NOTE 14 – PREFERRED CONVERTIBLE STOCK AND WARRANTS As discussed above in NOTE 2, in fiscal year 2014, the Company sold 2,025 units consisting of a total of 2,025 shares of Series A 6% Convertible Preferred Stock and 2,893,725 warrants at the price of $1,000 per unit. Proceeds received totaled $2,025,000 (with a net of offering costs of $1,990,000). The warrants were valued at $711,044 and this amount was separated from the value of the preferred stock. Each $1,000 unit consisted of (i) one share of Series A 6% Convertible Preferred Stock that was convertible at any time at the option of the holder into common stock at the conversion price of $0.70 per common share based on the total dollar amount invested (subject to adjustment); and (ii) 1,429 warrants (issued for each share of Series A 6% Convertible Preferred Stock sold in each unit) to purchase common shares of the Company at an exercise price of $1.35 for three years of the “Effective Date,” defined as the earliest date of the following to occur: (a) the initial registration statement required by the Offering Documents has been declared effective by the SEC; (b) all of the underlying shares have been sold pursuant to SEC Rule 144 or may be sold pursuant to SEC Rule 144 without the requirement for the Company to be in compliance with the current public information required under SEC Rule 144 and without volume or manner-of-sale restrictions; or (c) following the one year anniversary of June 3, 2014. A total of 2,008 shares of Series A 6% Convertible Preferred Stock, exercisable into 2,868,571 shares of common stock, were issued and outstanding as of June 30, 2017. The 6% per annum dividends are cumulative and payable quarterly in cash or, at the Company’s option, in shares of the Company’s common stock. The Company discontinued paying the quarterly dividend as of July 1, 2015, and the amount owed thereunder had been accruing since that time until May 10, 2016, at which time all accrued dividends on 675 of the 2,025 shares were waived and cancelled by certain preferred shareholders. The cancelled dividends were accounted for by offsetting to additional paid-in capital. As the Series A 6% Convertible Preferred Stock is contingently redeemable at a fixed price and such redemption would not be solely within the control of the Company, the preferred stock is classified outside of stockholders’ equity, as “temporary equity” between liabilities and stockholders’ equity on the Company’s consolidated balance sheet. The Series A 6% Convertible Preferred Stock has no voting rights. On February 17, 2016, a supermajority of more than 67% of the shareholders of the Series A 6% Convertible Preferred Stock approved certain corporate transactions in an effort to settle certain violations of the Series A 6% Convertible Preferred Stock Certificate of Designation and other documents related to the sale of Series A 6% Convertible Preferred Stock in 2014. The transactions approved by a supermajority of the Series A 6% Convertible Preferred Shareholders are to be implemented by the Board of Directors at the Board’s discretion. The approved transactions included the following: (i) the approval of a potential settlement agreement with Chisholm Partners II, LLC and certain members of Chisholm II; (ii) the approval of the amendment of the Certificate of Designation for the Series A 6% Convertible Preferred Stock modifying the Conversion Price to $0.05; (iii) the Removal of Section 7, “Certain Adjustments” in the Series A 6% Convertible Preferred Stock Certificate of Designation; (iv) the modification of the permitted indebtedness allowable under the Series A 6% Convertible Preferred Stock Certificate of Designation to $200,000; (v) the approval of promissory notes with related parties in an amount up to $60,000; (vi) the waiver of the right of redemption upon Triggering Events for the Company’s violations of Section 10 of the Certificate of Designation; (vii) the waiver of the accrual of the late fee for unpaid dividends as of January 1, 2016; (viii) the waiver of the first right of refusal to purchase shares from other Series A 6% Convertible Preferred Shareholders; and (ix) waiver of the “Most Favored Nation” provision in the SPA for the Series A 6% Convertible Preferred Stock, among other things. None of the items approved by the shareholders have yet been effected by the Board. Upon the occurrence of a triggering event, each holder shall have the right to require the Company to redeem all of the Series A 6% Convertible Preferred Stock in cash at the redemption amount which is the sum of (a) the greater of (i) 130% of the stated value, and (ii) the product of (y) the VWAP on the trading day immediately preceding the date of the triggering event and (z) the stated value divided by the then conversion price, (b) all accrued but unpaid dividends thereon, if any, and (c) all liquidated damages and other costs, expenses or amounts due in respect of the Series A 6% Convertible Preferred Stock. On November 17, 2014, one of the Company’s shareholders of Series A 6% Convertible Preferred Stock, Chienn Consulting Company, converted 17 shares of its Series A 6% Convertible Preferred Stock into 24,286 shares of the Company’s common stock. As of September 30, 2017, there were no Convertible Preferred Shares outstanding. Effective December 31, 2015, the valuation of the derivative from the warrants using the Black Sholes model was no longer a liability given the decrease in the Company’s stock and the exercise price of the warrants. Effective July 19, 2017, the remaining 2008 outstanding shares of Series A 6% Convertible Preferred Stock, along with all Warrants issued in connection with their sale in 2014, were cancelled. See the “July 2017 Transaction” in NOTE 2 above.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Shareholders' Equity	NOTE 15 – SHAREHOLDERS’ EQUITY Common Stock On June 2, 2014, the Company issued 10,000,000 shares of its common stock to Chisholm II in exchange for oil and natural gas assets recorded at $1,898,947. As discussed above, the Company completed a reverse merger with Dala Nevada, with Dala Nevada being the acquirer for financial reporting purposes. At the date of the Merger, the Company had 2,500,000 shares of common stock outstanding. The total amount of shares issued and outstanding post-Merger, as of December 31, 2014, was 12,500,000 shares of common stock. On November 17, 2014, one of the Company’s shareholders of Series A 6% Convertible Preferred Stock, Chienn Consulting Company, converted 17 shares of its Series A 6% Convertible Preferred Stock into 24,286 shares of the Company’s common stock. As part of the Partial Cancellation Agreement executed in May 2016 (see NOTE 2), 9,597,800 shares of common stock were returned to the Company and recorded in treasury and were returned to the authorized but unissued shares of the Company. On July 19, 2017, the Company issued 12,100,000 shares of common stock to M2. On July 25, 2017, the Company issued 250,000 shares of our common stock as compensation and for a general release. We issued 50,000 shares to Daniel Ryweck for his service on our board of directors, and 200,000 to our attorney Leonard W. Burningham, Esq. for certain of his legal services in the change of control involving M2 and pursuant to his Engagement Letter. As discussed above, the Company completed a reverse merger with KonaTel Nevada, with KonaTel Nevada being the acquirer for financial reporting purposes. At the date of the Merger, the Company issued 13,500,000 shares of common stock to D. Sean McEwen, who was then the sole shareholder of KonaTel Nevada. At the date of the Merger, 12,100,000 shares of which were owned by M2 (Messrs. Mark Savage and Matthew Atkinson are members of M2 and collectively own approximately 65.2% of M2, which equated to an indirect beneficial ownership of approximately 3,950,000 shares of our common stock each, and with Mr. Atkinson being the sole Manager of M2, he was also the then beneficial owner of all of M2’s shares of our common stock; and 1,692,286 shares, which are owned by public shareholders. On April 24, 2018, the 12,100,000 shares of our common stock that were acquired by M2 under the Common Stock Purchase Agreement referenced above were distributed to its members, pro rata, in accordance with their respective membership interests. Also, see NOTE 2 above.

Income Tax

Income Tax	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	NOTE 16 – INCOME TAX For the fiscal year 2017 and 2016, there was no provision for income taxes and deferred tax assets have been entirely offset by valuation allowances. Prior to the merger with KonaTel Nevada, and, with the consent of its sole shareholder, KonaTel Nevada had elected under the Internal Revenue Code and for Pennsylvania tax purposes to be an S Corporation. In lieu of corporation income taxes, the shareholders of an S Corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision for federal or state income tax is included in the financial statements. The Company evaluates tax positions taken and determines whether it is more-likely-than-not that the tax position will be sustained upon examination based on the technical merits of the position. Management has reviewed its tax positions regarding state nexus as well as its status as a pass-through entity and has determined there are no such positions that fail to meet the more-likely-than-not criterion. On November 30, 2017, the Company adopted ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The Company’s tax expense differs from the “expected” tax expense for Federal income tax purposes (computed by applying the United States Federal tax rate of 34% to loss before taxes). The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities. The tax effect of significant components of the Company’s deferred tax assets and liabilities at December 31, 2017 and 2016, respectively, are as follows: December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward $ 262,244 $ 319,520 Total gross deferred tax assets 262,244 319,520 Less: Deferred tax asset valuation allowance (262,244) (319,520) Total net deferred tax assets - - Deferred tax liabilities: Depreciation 826 - Total deferred tax liabilities 826 - Total net deferred taxes $ (826) $ - In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Because of the historical earnings history of the Company, the net deferred tax assets for 2017 were fully offset by a 100% valuation allowance. The valuation allowance for the remaining net deferred tax assets was $260,117 and $319,520 as of December 31, 2017, and 2016, respectively. On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet. Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company’s financial position and net loss. However, if and when we become profitable, we will receive a reduced benefit from such deferred tax assets. Had this legislation passed prior to our September 30, 2017, fiscal year-end, the effect of the legislation would have been a reduction in deferred tax assets and the corresponding valuation allowance.

Business Combination

Business Combination	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Business Combination	NOTE 17 – BUSINESS COMBINATION On December 18, 2017, the Company completed its Merger with KonaTel Nevada and its acquisition subsidiary. The Company issued 13,500,000 shares of its one mill ($0.001) par value common stock in exchange for all of the outstanding shares of common stock of KonaTel Nevada. See the “December 17 Transaction” in NOTE 2 above. At the Effective Time of the Merger, the Company changed its fiscal year from September 30 to a calendar year end of December 31 to coincide with the calendar fiscal year end of KonaTel Nevada; and the “S Corporation Election” of KonaTel Nevada was terminated. The parties agreed to make all necessary tax elections to achieve a direct tax accounting cut-off as of the date of the S Corporation Election termination for purposes of reporting the applicable short period S and C corporation tax returns, as applicable. The Merger was accounted for as a reverse-merger and recapitalization of the Company. As such, the prior period equity amounts have been retroactively restated to reflect instruments of the legal acquirer. The consideration given was $1,420, consisting of the fair value of the common stock in the Merger transaction. The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date of KonaTel, Inc. Cash $ 7,405 Oil and natural gas properties 37,475 Current Liabilities (124,327) Total identifiable net assets (79,447) Goodwill 80,867 Total consideration $ 1,420 Pro-Forma Financial Information The following unaudited pro forma data summarizes the results of operations for the year ended December 31, 2017, as if the Merger between the Company, its Merger Subsidiary and KonaTel Nevada had been completed on September 30, 2017. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the Merger had taken place on September 30, 2017. KONATEL, INC. UNAUDITED PRO FORMA CONDENSED COMBINED INCOME STATEMENT For the Periods Ended SEPTEMBER 30, 2017 Dala Petroleum Corp. KonaTel Nevada Combined Historical Proforma Adjustments Combined Proforma Audited Unaudited Fiscal Year Ended September 30, 2017 Twelve Months Ended September 30, 2017 Revenue $ - $ 12,502,186 $ 12,502,186 $ - $ 12,502,186 Cost of Revenue - 10,040,679 10,040,679 - 10,040,679 Gross Profit - 2,461,507 2,461,507 - 2,461,507 Operating expenses: General and administrative 126,853 4,015,641 4,142,494 - 4,142,494 Total costs and expenses 126,853 4,015,641 4,142,494 - 4,142,494 Other income (expense) Gain on settlement of debt 4,912 - 4,912 - 4,912 Interest expense (18,841) (23,985) (42,826) - (42,826) Total non-operating expenses (13,929) (23,985) (37,914) - (37,914) Net loss (140,782) (1,578,119) (1,718,901) - (1,718,901) Dividend on preferred stock (62,758) - (62,758) - (62,758) Net loss attributable to common stock $ (203,540) $ (1,578,119) $ (1,781,659) $ - $ (1,781,659) Net loss per share - basic and diluted $ (0.04) $ (0.07) Weighted average number of shares outstanding - basic and diluted 5,075,536 27,192,286

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	NOTE 18 - SUBSEQUENT EVENTS On February 12, 2018, which is subsequent to the date of this Transition Report, we issued 300,000 Incentive Stock Options to our newly appointed directors. On March 8, 2018, we issued 4,750,000 shares of our common stock through a private placement at $0.20 per share for an aggregate of $950,000. We settled the legal proceedings related to our November 1, 2014, acquisition of most of the assets of Coast to Coast Cellular, Inc. Approximately 10 months following this purchase, Coast to Coast filed for bankruptcy protection, and the bankruptcy Trustee for Coast to Coast filed legal proceedings in the United States Bankruptcy Court for the Western District of Pennsylvania on September 23, 2016, Case No. 15-70602-JAD, known as Eric E. Bononi as Trustee to Coast to Coast Cellular, Inc. v. KonaTel, Inc. et. al. The bankruptcy Trustee alleged that we acquired the assets of Coast to Coast for less than their fair market value in its November 2014, purchase, and was seeking damages against the owners of Coast to Coast, as well as from us. We, D. Sean McEwen, our Chairman, CEO, President and a director, as Guarantor, and the bankruptcy Trustee, executed and delivered a Settlement Agreement resolving these legal proceedings against us on or about December 22, 2017, which Settlement Agreement was approved by the Chief U.S. Bankruptcy Judge of the United States Bankruptcy Court for the Western District of Pennsylvania on March 22, 2018. Under the Settlement Agreement, we agreed pay the Trustee $80,000 over a period of six (6) months, which payments are personally guaranteed by Mr. McEwen, with each party unconditionally releasing the other party of any further liability and each party agreeing to pay their respective expenses involved in this proceeding. The Company determined and accrued for a $80,000 liability as of December 31, 2016. On April 13, 2018, we issued 1,000,000 shares of our common stock through an additional private placement at $0.20 per share for an aggregate of $200,000, $100,000 in cash and $100,000 in payment of our note to this subscriber. On April 24, 2018, the 12,100,000 shares of our common stock that were acquired by M2 under the Common Stock Purchase Agreement referenced above were distributed to its members, pro rata, in accordance with their respective membership interests. This action was approved by the requisite members of M2 on April 9, 2018. Effective February 7, 2018, we entered into an Agreement for the Purchase and Sale of Membership Interest dated as of February 5, 2018 (the “PSMI”), with the transaction documents being deposited in escrow on February 7, 2018, respecting the acquisition of 100% of the membership interest in IM Telecom, LLC, an Oklahoma limited liability company (“IM Telecom”), from its sole owner, Trevan Morrow (“Mr. Morrow”). The principal asset of IM Telecom is a “Lifeline Program” license (a Federal Communications Commission [the “FCC”] approved Compliance Plan), the transfer of ownership of which requires prior approval of the FCC. If the transfer of the beneficial ownership of the Lifeline Program license to us is not approved by the FCC prior to April 30, 2018, or a later date agreed upon by the parties, either party may terminate the PSMI. The parties continue to seek FCC approval of the transfer of the Lifeline Program License, and neither party has exercised its right to terminate the PSMI. No assurance can be given that the transfer of this license will be approved. The Company has evaluated subsequent events through June __,

Accounting Policies (Policies)

Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial statements have been prepared using the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and customer lists. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand and all short-term investments with maturities of three months or less.
Trade Account Receivables	Trade Accounts Receivable The Company accounts for trade receivables based on amounts billed to customers. Past due receivables are determined based on contractual terms. The Company does not accrue interest and does not require collateral on any of its trade receivables.
Allowance for Doubtful Receivables	Allowance for Doubtful Receivables The allowance for doubtful receivables is determined by management based on customer credit history, specific customer circumstances and general economic conditions. Periodically, management reviews accounts receivable and adjusts the allowance based on current circumstances and charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. As of December 31, 2017, and December 31, 2016, management has determined that no allowance for doubtful receivables is necessary.
Inventory	Inventory Inventory consists primarily of the cost of cellular phones and cellular accessories. Inventory is reported at the lower of cost and net realizable value. Cost is determined by the first-in, first-out ("FIFO") method.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost, and are depreciated on the straight-line method over their estimated useful lives. Leasehold improvements are amortized over the lesser of the lease term or estimated useful life, furniture and fixtures, equipment, and vehicles are depreciated over periods ranging from five to seven (5-7) years, and billing software is depreciated over three (3) years which represents the estimated useful life of the assets. Maintenance and repairs are charged to expense as incurred while major replacements and improvements are capitalized. When property and equipment are retired or sold, the cost and applicable accumulated depreciation are removed from the respective accounts and the related gain or loss is recognized. The Company recognizes impairment losses for long-lived assets whenever changes in circumstances result in the carrying amount of the assets exceeding the sum of the expected future cash flows associated with such assets. Management has concluded that no impairment reserves are required as of December 31, 2017 and December 31, 2016.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of net assets acquired in connection with business acquisitions. Goodwill is tested at the reporting unit level, which is defined as an operating segment or a component of an operating segment that constitutes a business for which financial information is available and is regularly reviewed by management. The Company assesses goodwill for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment. The annual impairment review is completed at the end of the year. If the carrying amount of a reporting unit exceeds its fair value, the Company measures the possible goodwill impairment based upon an allocation of the estimate of fair value to the underlying assets and liabilities of the reporting unit, including any previously unrecognized intangible assets, based upon known facts and circumstances as if the acquisition occurred currently. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized to the extent the carrying value of goodwill exceeds the implied fair value of the goodwill. This test performed as of December 31, 2017 indicated that was no impairment. Impairment losses, if any, are reflected in operating income or loss in the Consolidated Statements of Operations. Intangible assets consist of customer lists arising from acquisitions which are amortized on a straight line basis over three years, their estimated useful lives.
Customer Deposits	Customer Deposits Before entering into a contract with a sub-reseller customer, the Company will require the customer to either secure a formal letter of credit with a bank, or require a certain level of cash collateral deposits from the customer. These collateral requirements are determined by management and may be adjusted upward or downward depending on the volume of business with the sub-reseller customer, or if management's assessment of credit risk for a sub-reseller customer would change. The Company held $28,854 and $88,116 in collateral deposits from various sub-reseller customers at December 31, 2017, and December 31, 2016, respectively. Such amounts represent collateral received from the sub-resellers in order to contract with the Company. The related contracts have an option to terminate the contract within a period of less than one year, and accordingly, these collateral deposits are classified as current liabilities in the accompanying balance sheet.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the provisions of Statement of Financial Accounting Standards ASC 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets”. This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company measures its financial assets and liabilities in accordance with generally accepted accounting principles. For certain of our financial instruments, including cash, accounts payable, accrued expenses, deposits received from customers for receivables and short-term loans the carrying amounts approximate fair value due to their short maturities. We follow accounting guidance for financial and non-financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices, which are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. Unproved oil and natural gas properties are accounted for and measured under Regulation S-X, Rule 4-10. We currently measure and report at fair value other intangible assets (due to our impairment analysis) and derivative liabilities using ASC 820-10, Fair Value Measurement. The fair value of intangible assets has been determined using the present value of estimated future cash flows method. The fair value of derivative liabilities is measured using the Black-Scholes option pricing method.
Oil and Natural Gas Properties	Oil and Natural Gas Properties The Company follows the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration and development of oil and natural gas properties are initially capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, a portion of employee salaries related to Property development, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Internal salaries are capitalized based on employee time allocated to the acquisition of leaseholds and development of oil and natural gas properties. The Company did not capitalize interest for the period ended December 31, 2017, as it was not required. Proceeds from Property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. The Company assesses all items classified as unproved Property on a quarterly basis for possible impairment or reduction in value. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves, and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such Property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and amortization. The costs of drilling exploratory dry holes are included in the amortization base immediately upon determination that the well is dry. Capitalized costs associated with impaired properties and properties having proven reserves, estimated future development costs, and asset retirement costs under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 410-20-25 are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves. The costs of unproved properties are withheld from the depletion base until such time as they are developed, impaired, or abandoned. Under the full cost method of accounting, capitalized oil and natural gas Property costs less accumulated depletion, net of deferred income taxes, may not exceed a ceiling amount equal to the present value, discounted at 10%, of estimated future net revenues from proved oil and natural gas reserves plus the cost of unproved properties not subject to amortization (without regard to estimates of fair value), or estimated fair value, if lower, of unproved properties that are subject to amortization. Should capitalized costs exceed this ceiling, which is tested on a quarterly basis, an impairment is recognized. The present value of estimated future net revenues is computed by applying prices based on a 12-month unweighted average of the oil and natural gas prices in effect on the first day of each month, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and result in a lower depreciation, depletion and amortization rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling.
Revenue Recognition	Revenue Recognition Revenue from the sale of the Company's products is recognized when goods are provided to the customer, title and risk of loss are transferred, pricing is fixed or determinable and collection is reasonably assured. Revenue from the sale of the Company's cellular and telecommunication services is recognized when the services have been performed, evidence of an arrangement exists, the fee is fixed and determinable, and collection is probable. Revenue from these services is generally recognized monthly as the services are provided. Such revenue is recognized based on usage, which can vary from month-to-month or at a contractually committed amount, net of credits or other billing adjustments. Advance billings for future service in the form of monthly recurring charges are not recognized as revenue until the service is provided. We recognize oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. We use the sales method of accounting for balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. Cost of Revenue Cost of Revenue includes the cost of communication services, equipment and accessories, shipping costs, and commissions of sub-agents.
Stock-Based Compensation	Stock-based Compensation The Company records stock based compensation in accordance with the guidance in ASC 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This requires that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718-10 and the conclusions reached by the ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505-50.
Income Taxes	Income Taxes Beginning on December 18, 2018, the Effective Date of the KonaTel Nevada merger, KonaTel Nevada terminated its S Corporation status. For the short-tax year, there was no tax provision of federal or state taxes in the financial statements. Prior to the merger, with the consent of its shareholders, KonaTel Nevada had elected under the Internal Revenue Code and for Pennsylvania tax purposes to be a S Corporation. In lieu of corporation income taxes, the shareholders of a S Corporation are taxed on their proportionate share of the Company's taxable income. Therefore, no provision for federal or state income tax is included in the financial statements. The Company evaluates tax positions taken and determines whether it is more-likely-than-not that the tax position will be sustained upon examination based on the technical merits of the position. Management has reviewed its tax positions regarding state nexus as well as its status as a pass-through entity and has determined there are no such positions that fail to meet the more-likely-than-not criterion.
Net Loss Per Share	Net Loss Per Share The Company follows ASC Topic 260 to account for the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As the Company has incurred losses for the period ended December 31, 2017, the potentially dilutive shares totaling 0 are anti-dilutive and are thus not added into the loss per share calculations. Due to the anti-dilutive impact the weighted average dilutive shares outstanding for the period ended December 31, 2017, for basic and dilutive shares, are the same. For 2017, the weighted average common share equivalents were 14,210,094. As per ASC 810-40-45-5b, the net loss per share for December 31, 2017 and 2016 is calculated based on the weighted average shares as determined through the reverse merger. The exchange ratio of 1,928.57 was determined in the merger exchange. For December 2017, and 2016, the weighted average common share equivalents were 14,210,094 and 13,692,286, respectively.
Concentration of Credit Risk	Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of receivables, cash, and cash equivalents. All cash and cash equivalents and restricted cash and cash equivalents are held at high credit financial institutions. These deposits are generally insured under the FDIC's deposit insurance coverage; however, from time to time, the deposit levels may exceed FDIC coverage levels.
Concentration of Major Customer	Concentration of Major Customer A significant amount of the revenue is derived from contracts with major sub-reseller customers. For the year ended December 31, 2017, the Company had two major sub-reseller customers which amounted to approximately 43% of total revenues. For the year ended December 31, 2016, the Company had two major customers which amounted to approximately 40% of total revenues.
Effect of Recent Accounting Pronouncements	Effect of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU No. 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or Equity. The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis	Fair Value Measurements at December 31, 2017 Quoted Prices In Active Significant Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Carrying (Level 1) (Level 2) (Level 3) Value Description Unproved oil and natural gas properties $ - $ - $ 37,475 $ 37,475

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	2017 2016 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 87,201 81,355 Billing Software 217,163 217,163 Office Equipment 89,590 89,591 440,904 435,059 Less: Accumulated Depreciation and Amortization (298,837) (209,647) $ 142,067 $ 225,412

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	2017 2016 Customer Lists $ 1,135,961 $ 1,135,961 Less: Accumulated Amortization (951,333) (619,003) $ 184,628 $ 516,958

Operating Leases (Tables)

Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Lease Payments for Operating Leases	Period Ended December 31, 2018 $ 66,099 2019 38,558

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Wholesale Retail Gas & Oil Total For the Year Ended December 31, 2017 Revenue $ 6,809,051 $ 4,668,672 $ - $ 11,477,723 Operating Loss $ (627,698) $ (1,085,482) $ - $ (1,713,180) Depreciation and amortization $ 154,442 $ 267,078 $ - $ 421,520 Additions to property and equipment $ - $ 5,845 $ - $ 5,845 For the Year Ended December 31, 2016 Revenue $ 6,075,797 $ 3,665,982 $ - $ 9,741,779 Operating Loss $ (252,475) $ (249,840) $ - $ (502,315) Depreciation and amortization $ 197,227 $ 195,168 $ - $ 392,395 Additions to property and equipment $ - $ 21,727 $ - $ 21,727

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities	December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward $ 262,244 $ 319,520 Total gross deferred tax assets 262,244 319,520 Less: Deferred tax asset valuation allowance (262,244) (319,520) Total net deferred tax assets - - Deferred tax liabilities: Depreciation 826 - Total deferred tax liabilities 826 - Total net deferred taxes $ (826) $ -

Business Combination (Tables)

Business Combination (Tables)	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Schedule of Business Combinations	Cash $ 7,405 Oil and natural gas properties 37,475 Current Liabilities (124,327) Total identifiable net assets (79,447) Goodwill 80,867 Total consideration $ 1,420
Schedule of Pro-Forma Financial Information	Dala Petroleum Corp. KonaTel Nevada Combined Historical Proforma Adjustments Combined Proforma Audited Unaudited Fiscal Year Ended September 30, 2017 Twelve Months Ended September 30, 2017 Revenue $ - $ 12,502,186 $ 12,502,186 $ - $ 12,502,186 Cost of Revenue - 10,040,679 10,040,679 - 10,040,679 Gross Profit - 2,461,507 2,461,507 - 2,461,507 Operating expenses: General and administrative 126,853 4,015,641 4,142,494 - 4,142,494 Total costs and expenses 126,853 4,015,641 4,142,494 - 4,142,494 Other income (expense) Gain on settlement of debt 4,912 - 4,912 - 4,912 Interest expense (18,841) (23,985) (42,826) - (42,826) Total non-operating expenses (13,929) (23,985) (37,914) - (37,914) Net loss (140,782) (1,578,119) (1,718,901) - (1,718,901) Dividend on preferred stock (62,758) - (62,758) - (62,758) Net loss attributable to common stock $ (203,540) $ (1,578,119) $ (1,781,659) $ - $ (1,781,659) Net loss per share - basic and diluted $ (0.04) $ (0.07) Weighted average number of shares outstanding - basic and diluted 5,075,536 27,192,286

Transactions (Details Narrative

Transactions (Details Narrative) - USD ($)		1 Months Ended	12 Months Ended
		Apr. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Effective date of acquisition					Jun. 2, 2014
Acquisition, shares issued					10,000,000
Contingent consideration arrangement, description					As a condition precedent to the Merger, Westcott raised $2,025,000 from persons who are “accredited investors” in consideration of the sale of 2,025 shares of its Series A 6% Convertible Preferred Stock and 2,893,725 warrants at the offering price of $1,000 per unit.
Common stock outstanding, shares			27,192,186	0
Preferred stock oustanding shares			2,008	2,008
Warrants issued					2,893,725
Proceeds from issuance of stock					$ 2,025,000
Series A preferred convertible stock, units issued			0		2,025
Series A convertible preferred stock, conversion terms					Each $1,000 unit consisted of (i) one share of Series A 6% Convertible Preferred Stock that is convertible at any time at the option of the Holder into common stock at the conversion price of $0.70 per common share based on the total dollar amount invested and (ii) 1,429 warrants (issued for each Series A 6% Convertible Preferred Stock sold in each unit) to purchase common shares of the Company at an exercise price of $1.35 with a life of three years as of the “Effective Date, ” defined as the earliest date of the following to occur: (a) the initial registration statement required by the Offering Documents has been declared effective by the United States Securities and Exchange Commission (the “SEC”), (b) all of the underlying shares have been sold pursuant to SEC Rule 144 or may be sold pursuant to SEC Rule 144 without the requirement for the Company to be in compliance with the current public information required under SEC Rule 144 and without volume or manner-of-sale restrictions or (c) following the one year anniversary of June 3, 2014.
Common stock, par value			$ 0.001	$ 0
Shareholder voting agreement, description			The Company entered into Shareholder Voting Agreement between the Company, Mr. Savage, Mr. Atkinson, M2 and Mr. McEwen whereby Mr. McEwen was granted an irrevocable proxy coupled with an interest from each of the foregoing, together with the following rights, including a right of veto, for a period of two (2) years, on the following matters: (i) an increase in the compensation of any employee of the Company by more than $20,000 in any one calendar year and for these purposes, the term compensation includes any form of remuneration or monetary benefit; (ii) the issuance of stock, the creation of a new class of stock, the grant of options or warrants, modification of any shareholder, option holder or warrant holder's rights, grants, conversion rights or the taking of any other action that directly or indirectly dilutes the outstanding securities of the Company, excepting the current private placement of common stock of the Company for an equity funding of $1,300,000 through the offer and sale of 6,500,000 shares of the Company's common stock solely to "accredited investors"; (iii) the issuance of debt in excess of $100,000 in the aggregate in any one calendar year; (iv) the approval of a plan of merger, reorganization or conversion; (v) the sale, transfer or other conveyance of assets of the Company having an aggregate value in excess of $100,000 in any one calendar year, other than in the ordinary course of the business; and (vi) the entry into a contract or other transaction having a total aggregate contractual liability for the Company in excess of $100,000 in any one calendar year.
Chisholm Partners II, LLC
Common and preferred shares cancelled				8,567,800
Series A convertible preferred stock, conversion terms				The conversion price was changed from $0.70 per share to $0.05 per share.
Partial Cancellation Agreement, description				In exchange for the return of 8,567,800 shares of Common Stock for cancellation, the Company returned 55,000 acres of the Company's property rights held in the form of oil and gas leases from Chisholm II (approximately 68.75% of its total holdings) to Chisholm II.
Shares returned and cancelled				1,030,000
M2 Equity Partners LLC | Common Stock Purchase Agreement
Effective date of acquisition			Jul. 19, 2017
Acquisition agreement terms			Prior to the closing of the Common Stock Purchase Agreement, the Company had the following outstanding securities: (i) 2,926,486 shares of Common Stock; (ii) 2,008 shares of Series A 6% Convertible Preferred Stock (the "Preferred Stock"); and (iii) 1,928,571 warrants (the "Warrants").
Acquisition, shares issued			12,100,000
Acquisition purchase price			$ 347,500
Common stock cancelled, shares			1,584,200
Common stock shares outstanding after cancellation prior to or simultaneous with the closing			1,342,286
Payment to repurchase common stock			$ 15,842
Common and preferred shares cancelled			2,008
Payment to repuchase preferred stock and warrants			$ 53,841
Purchase price funds held in Trust			10,750
Miscellaneous expenses and other liabilities			$ 4,700
Contingent consideration arrangement, description			The Company used the remainder of the $347,500 to, among other items set forth in the schedules and exhibits to the Common Stock Purchase Agreement, pay or compromise all outstanding indebtedness and other liabilities of the Company, amounting to approximately $262,367, which includes a payment of an aggregate of $10,000 ($5,000 to each) to our two directors and executive officers, with the understanding that our then current assets will consist of approximately $10,750, our Property, consisting of our oil and gas lease assets that we presently own, along with other intangible assets, and following the payment of the indebtedness and other liabilities and financial obligations of the Company, there will be no liabilities of the Company at Closing.
Common stock outstanding, shares	[1]		13,442,286
Preferred stock oustanding shares			0
Warrants outstanding			0
Restricted shares issued			13,500,000
Common stock, par value			$ 0.001
Indirect beneficial ownership rate			65.20%
Subsequent Events | M2 Equity Partners LLC | Common Stock Purchase Agreement
Shares distributed to members		12,100,000
[1]	1,342,286 Existing Shares and 12,100,000 shares purchased by M2

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Schedule of Fair Value Assets and Liabilities on Recurring Basis (Details)	Dec. 31, 2017USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unproved Oil and Gas Property, Successful Effort Method	$ 37,475
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unproved Oil and Gas Property, Successful Effort Method	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unproved Oil and Gas Property, Successful Effort Method	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unproved Oil and Gas Property, Successful Effort Method	$ 37,475

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Inventory
Allowance for inventory obsolescence	$ 10,083	$ 19,243
Customer Deposits
Collateral deposits	$ 28,854	$ 88,116
Intangible Assets
Estimated useful lives	3 years
Oil and Gas Properties
Oil and natural gas expenses	$ 0
Impairment of unproved oil and natural gas properties	$ 0
Earnings Per Share
Exchange ratio, description	The exchange ratio of 1,928.57 was determined in the merger agreement
Weighted average number of shares outstanding	14,210,094	13,692,286
Goodwill and Intangible Assets
Goodwill impairment loss	$ 80,867
Revenue from Contract with Customer
Concentration Risk
Concentration risk, percentage	43.00%	63.00%
Customer Concentration Risk
Concentration Risk
Concentration risk, percentage	78.00%	70.00%
Chisholm Partners II, LLC
Oil and Gas Properties
Common stock cancelled and returned to treasury		8,567,800
Partial Cancellation Agreement, description		In exchange for the return of 8,567,800 shares of Common Stock for cancellation, the Company returned 55,000 acres of the Company's property rights held in the form of oil and gas leases from Chisholm II (approximately 68.75% of its total holdings) to Chisholm II.
Leasehold Improvements
Property and Equipment
Depreciation method and terms	Depreciated on the straight-line method over their estimated useful life. Amortized over the lesser of the lease term or estimated useful life
Furniture and Fixtures
Property and Equipment
Depreciation method and terms	Depreciated on the straight-line method over periods ranging from 5-7 years
Equipment
Property and Equipment
Depreciation method and terms	Depreciated on the straight-line method over periods ranging from 5-7 years
Vehicles
Property and Equipment
Depreciation method and terms	Depreciated on the straight-line method over periods ranging from 5-7 years
Billing Software
Property and Equipment
Depreciation method and terms	Depreciated on the straight-line method over 3 years

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 440,904	$ 435,059
Less: Accumulated Depreciation and Amortization	(298,837)	(209,647)
Property, plant and equipment, net	142,067	225,412
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	46,950	46,950
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	87,201	81,355
Billing Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment	217,163	217,163
Office Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 89,590	$ 89,591

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 89,190	$ 97,664

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Customer Lists	$ 1,135,961	$ 1,135,961
Less: Accumulated Amortization	(951,333)	(619,003)
Intangible assets, net	$ 184,628	$ 516,958

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 332,330	$ 294,731
Future amortization expense of intangible assets	$ 184,628

Lines of Credit (Details Narrat

Lines of Credit (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Line of credit, maximum borrowing	$ 1,050,000	$ 1,050,000
Line of credit, interest rate description	Bears interest at a variable rate with a floor set at 5.25%.	Bears interest at a variable rate with a floor set at 5.25%.
Line of credit, advances	$ 153,141	$ 219,168
Line of credit, maturity date	Jun. 30, 2018	Jun. 30, 2018

Operating Leases - Schedule of

Operating Leases - Schedule of Future Minimum Lease Payments (Details)	Dec. 31, 2017USD ($)
Leases [Abstract]
Future minimum lease payments for the period ended December 31, 2018	$ 66,099
Future minimum lease payments for the period ended December 31, 2019	$ 38,558

Operating Leases (Details Narra

Operating Leases (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Leases [Abstract]
Operating lease expense	$ 156,618	$ 124,638

Amount Due to Shareholder (Deta

Amount Due to Shareholder (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Proceeds from related parties	$ 199,000	$ 0
D. Sean McEwen
Proceeds from related parties	$ 191,500
Interest expense, federal rate	1.52%
Matthew Atkinson
Proceeds from related parties	$ 17,063
Interest expense, federal rate	1.52%
Mark Savage
Proceeds from related parties	$ 14,764
Interest expense, federal rate	1.52%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Proceeds from related parties	$ 199,000	$ 0
JBS Holdings Inc.
Related party payable		$ 15,892
Repayment of related party payable	15,892
Shareholders
Proceeds from related parties	$ 223,327

Retirement Plan (Details Narrat

Retirement Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Company contributions to employee retirement plan	$ 61,106	$ 63,553

Contingencies and Commitments (

Contingencies and Commitments (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net loss	$ (1,713,180)	$ (502,315)
Cash flow from operations	(1,000,835)	(49,728)
Accumulated deficit	(3,190,873)	(1,477,693)
Standby Letters of Credit
Letters of credit	593,000	593,000
Accrued state taxes	$ 44,598	$ 30,369

Amount Due to Seller (Details N

Amount Due to Seller (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Amount Due To Seller
Other accrued liabilities		$ 18,000
Payment of other liabilities	$ 18,000

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 11,477,723	$ 9,741,779
Operating Loss	(1,713,180)	(502,315)
Depreciation and amortization	421,520	392,395
Additions to property and equipment	5,845	21,727
Wholesale
Segment Reporting Information [Line Items]
Revenue	6,809,051	6,075,797
Operating Loss	(627,698)	(252,475)
Depreciation and amortization	154,442	197,227
Additions to property and equipment	0	0
Retail
Segment Reporting Information [Line Items]
Revenue	4,668,672	3,665,982
Operating Loss	(1,085,482)	(249,840)
Depreciation and amortization	267,078	195,168
Additions to property and equipment	5,845	21,727
Gas & Oil
Segment Reporting Information [Line Items]
Revenue	0	0
Operating Loss	0	0
Depreciation and amortization	0	0
Additions to property and equipment	$ 0	$ 0

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	12 Months Ended
	Dec. 31, 2017Number	Dec. 31, 2016Number
Number of reportable segments	3
Wholesale
Number of customers	24	24
Gross profit per line	1.86	2.25
Retail
Number of customers	10,557	6,576
Gross profit per line	11.12	16.84

Preferred Convertible Stock a50

Preferred Convertible Stock and Warrants (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Equity [Abstract]
Series A preferred convertible stock, units issued			2,025
Series A preferred convertible stock, price per unit			$ 1,000
Series A preferred convertible stock, conversion basis			Each unit consisted of (i) one share of Series A 6% Convertible Preferred Stock that is convertible at any time at the option of the holder into common stock at the conversion price of $0.70 per common share based on the total dollar amount invested (subject to adjustment) and (ii) 1,429 warrants to purchase common shares of the Company at an exercise price of $1.35 for three years of the “Effective Date, ” defined as the earliest date of the following to occur: (a) the initial registration statement required by the Offering Documents has been declared effective by the United States Securities and Exchange Commission (the “SEC”), (b) all of the underlying shares have been sold pursuant to SEC Rule 144 or may be sold pursuant to SEC Rule 144 without the requirement for the Company to be in compliance with the current public information required under SEC Rule 144 and without volume or manner-of-sale restrictions or (c) following the one year anniversary of June 3, 2014.
Series A preferred convertible stock, dividend rate	6.00%
Conversion of Series A Convertible Preferred stock			17
Common stock issued as a result of conversion of Series A Convertible Preferred stock			24,286
Series A preferred convertible stock, shares outstanding	2,008	2,008
Series A preferred convertible stock, shares cancelled	2,008
Number of common shares contingently issuable upon conversion of preferred stock	2,868,571
Proceeds from issuance of convertible preferred stock, net of offering costs			$ 2,025,000
Warrants issued			2,893,725
Value of warrants issued			$ 711,044
Preferred stock dividends forfeited, shares		675
Supermajority of shareholders approval of certain corporate transactions, description		A supermajority of more than 67% of the shareholders of the Series A 6% Convertible Preferred Stock approved certain corporate transactions in an effort to settle certain violations of the Series A 6% Convertible Preferred Stock Certificate of Designation and other documents related to the sale of Series A 6% Convertible Preferred Stock in 2014. The transactions approved by a supermajority of the Series A 6% Convertible Preferred Shareholders are to be implemented by the Board of Directors at the Board's discretion. The approved transactions included the following: (i) the approval of a potential settlement agreement with Chisholm Partners II, LLC and certain members of Chisholm II; (ii) the approval of the amendment of the Certificate of Designation for the Series A 6% Convertible Preferred Stock modifying the Conversion Price to $0.05; (iii) the Removal of Section 7, "Certain Adjustments" in the Series A 6% Convertible Preferred Stock Certificate of Designation; (iv) the modification of the permitted indebtedness allowable under the Series A 6% Convertible Preferred Stock Certificate of Designation to $200,000; (v) the approval of promissory notes with related parties in an amount up to $60,000; (vi) the waiver of the right of redemption upon Triggering Events for the Company's violations of Section 10 of the Certificate of Designation; (vii) the waiver of the accrual of the late fee for unpaid dividends as of January 1, 2016; (viii) the waiver of the first right of refusal to purchase shares from other Series A 6% Convertible Preferred Shareholders; and (ix) waiver of the "Most Favored Nation" provision in the SPA for the Series A 6% Convertible Preferred Stock, among other things. None of the items approved by the shareholders have yet been effected by the Board.

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)		1 Months Ended		12 Months Ended
		Apr. 30, 2018	Feb. 28, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Stock-based compensation expense				$ 37,494	$ 0
Business acquisition, shares issued						10,000,000
Common shares outstanding				27,192,186	0
Conversion of Series A Convertible Preferred stock						17
Common stock issued as a result of conversion of Series A Convertible Preferred stock						24,286
Director
Issuance of common stock for services, shares				50,000
Director | Subsequent Events
Number of options, granted			300,000
Leonard W. Burningham
Issuance of common stock for services, shares				200,000
M2 Equity Partners LLC | Common Stock Purchase Agreement
Business acquisition, shares issued				12,100,000
Common shares outstanding	[1]			13,442,286
Common stock cancelled and returned to treasury				2,008
M2 Equity Partners LLC | Common Stock Purchase Agreement | Subsequent Events
Shares distributed to members		12,100,000
Common Stock
Business acquisition, shares issued				13,500,000		10,000,000
Oil and gas assets acquired						$ 1,898,947
Common shares outstanding				13,692,286		12,500,000
Conversion of Series A Convertible Preferred stock						17
Common stock issued as a result of conversion of Series A Convertible Preferred stock						24,286
Common stock cancelled and returned to treasury					9,597,800
Issuance of common stock for services, shares				250,000
[1]	1,342,286 Existing Shares and 12,100,000 shares purchased by M2

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets
Net operating loss carryforward	$ 262,244	$ 319,520
Total gross deferred tax assets	262,244	319,520
Less: Deferred tax asset valuation allowance	(262,244)	(319,520)
Total net deferred tax assets	0	0
Deferred Tax Liabilities
Depreciation	826	0
Total deferred tax liabilities	826	0
Total net deferred taxes	$ (826)	$ 0

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Deferred tax asset valuation allowance	$ (262,244)	$ (319,520)

Business Combination - Schedule

Business Combination - Schedule of Business Combinations (Details)	Dec. 31, 2017USD ($)
Business Combinations [Abstract]
Business combination, cash	$ 7,405
Business combination, oil and natural gas properties	37,475
Business combination, current liabilities	(124,327)
Business combination, total identifiable net assets	(79,447)
Business combination, goodwill	80,867
Business combination, total consideration	$ 1,420

Business Combination - Schedu55

Business Combination - Schedule of Pro-Forma Financial Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Cost of revenue	$ 9,283,398		$ 7,070,796
Gross Profit	2,194,325		2,670,983
Operating expenses:
General and administrative	82,710		110,142
Total costs and expenses	3,797,816		3,148,561
Other income (expense)
Interest expense	(28,822)		(24,737)
Total non-operating expenses	$ (109,689)		$ (24,737)
Net loss per share - basic and diluted	$ (0.12)		$ (0.04)
Weighted average number of shares outstanding - basic and diluted	14,210,094		13,692,286
Dala Petroleum Corp., Audited
Revenue		$ 0
Cost of revenue		0
Gross Profit		0
Operating expenses:
General and administrative		126,853
Total costs and expenses		126,853
Other income (expense)
Gain on settlement of debt		4,912
Interest expense		(18,841)
Total non-operating expenses		(13,929)
Net loss		(140,782)
Dividend on preferred stock		(62,758)
Net loss attributable to common stock		$ (203,540)
Net loss per share - basic and diluted		$ (0.04)
Weighted average number of shares outstanding - basic and diluted		5,075,536
KonaTel Nevada, Unaudited
Revenue		$ 12,502,186
Cost of revenue		10,040,679
Gross Profit		2,461,507
Operating expenses:
General and administrative		4,015,641
Total costs and expenses		4,015,641
Other income (expense)
Gain on settlement of debt		0
Interest expense		(23,985)
Total non-operating expenses		(23,985)
Net loss		(1,578,119)
Dividend on preferred stock		0
Net loss attributable to common stock		(1,578,119)
Combined Historical
Revenue		12,502,186
Cost of revenue		10,040,679
Gross Profit		2,461,507
Operating expenses:
General and administrative		4,142,494
Total costs and expenses		4,142,494
Other income (expense)
Gain on settlement of debt		4,912
Interest expense		(42,826)
Total non-operating expenses		(37,914)
Net loss		(1,718,901)
Dividend on preferred stock		(62,758)
Net loss attributable to common stock		(1,781,659)
Combined Proforma
Revenue		12,502,186
Cost of revenue		10,040,679
Gross Profit		2,461,507
Operating expenses:
General and administrative		4,142,494
Total costs and expenses		4,142,494
Other income (expense)
Gain on settlement of debt		4,912
Interest expense		(42,826)
Total non-operating expenses		(37,914)
Net loss		(1,718,901)
Dividend on preferred stock		(62,758)
Net loss attributable to common stock		$ (1,781,659)
Net loss per share - basic and diluted		$ (0.07)
Weighted average number of shares outstanding - basic and diluted		27,192,286

Business Combination (Details N

Business Combination (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2014
Business acquisition, shares issued		10,000,000
Business combination, total consideration	$ 1,420
Common Stock
Business acquisition, shares issued	13,500,000	10,000,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Events - USD ($)	1 Months Ended				3 Months Ended
	Apr. 30, 2018		Mar. 31, 2018	Feb. 28, 2018	Mar. 31, 2018
M2 Equity Partners LLC | Common Stock Purchase Agreement
Subsequent Event [Line Items]
Shares distributed to members	12,100,000
Settled Litigation
Subsequent Event [Line Items]
Litigation settlement, value awarded					$ 80,000
Private Placement
Subsequent Event [Line Items]
Common stock issued	1,000,000		4,750,000
Common stock issued, per share	$ 0.20		$ 0.20		$ 0.20
Common stock issued, aggregate value	$ 200,000	[1]	$ 950,000
Director
Subsequent Event [Line Items]
Incentive stock options issued				300,000
[1]	$100,000 in cash and $100,000 in payment of note to this subscriber.