KonaTel (KTEL) 10-Q 21 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 21, 2019
Document And Entity Information
Entity Registrant Name	KonaTel, Inc.
Trading Symbol	KTEL
Entity Central Index Key	0000845819
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	true
Elected Not To Use the Extended Transition Period	true
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		40,692,286
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets
Cash and Cash Equivalents	$ 219,709	$ 56,510
Accounts Receivable, net	895,325	1,035,273
Note Receivable	41,666	66,667
Inventory, Net	950	1,085
Prepaid Expenses	4,843	7,354
Total Current Assets	1,162,493	1,166,889
Fixed Assets
Property and Equipment, Net	126,115	132,023
Right to Use Assets, Net	94,895
Total Fixed Assets	221,010	132,023
Other Assets
Intangible Assets, Net	2,923,644	2,490,922
Advances for Acquisition Target		561,309
Other Assets	258,289	57,266
Total Other Assets	3,181,933	3,109,497
Total assets	4,565,436	4,408,409
Current Liabilities
Accounts Payable and Accrued Expenses	1,244,409	1,265,080
Amount Due to Stockholder	263,588	91,152
Revolving Line of Credit	81,232	103,379
Lease Liabilities	72,443
Deferred Revenue	59,834	69,988
Income tax payable	108,941	108,941
Customer Deposits	28,854	28,854
Total Current Liabilities	1,859,301	1,667,394
Long Term Liabilities
Lease Liabilities	23,075
Deferred Tax Liability	10,700	10,700
Total Long Term Liabilities	33,775	10,700
Total Liabilities	1,893,076	1,678,094
Commitments and Contingencies
Stockholders' Equity (Deficit)
Common Stock	40,692	40,692
Additional Paid-In Capital	7,281,534	7,041,696
Accumulated Deficit	(4,649,866)	(4,352,073)
Total Stockholders' Equity (Deficit)	2,672,360	2,730,315
Total Liabilities and Stockholders' Equity (Deficit)	$ 4,565,436	$ 4,408,409

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value in dollars	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	40,692,286	40,692,286
Common stock, shares outstanding	40,692,286	40,692,286

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue	$ 2,640,296	$ 2,393,355
Cost of Revenue	1,503,460	1,934,690
Gross Profit	1,136,836	458,665
Operating expenses
Payroll and Related	471,305	376,927
Operating and Maintenance	557,100	340,717
Bad Debt		15,210
Utilities and Facilities	35,819	59,732
Depreciation and Amortization	251,116	88,034
General and administrative	41,902	17,637
Marketing and Advertising	21,614	20,477
Taxes and Insurance	45,070	55,135
Total Operating Expenses	1,423,926	973,869
Operating Loss	(287,090)	(515,204)
Other Income and Expense
Interest Income	676
Other Income		4,281
Interest Expense	(11,379)	(17,104)
Total Other Income and (Expenses)	(10,703)	(12,823)
Net Loss	$ (297,793)	$ (528,027)
Net loss per share	$ (0.01)	$ (0.02)
Weighted Average Number of Basic Shares	33,631,846	28,406,175

Condensed Consolidated Statemen

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance at Dec. 31, 2017	$ 27,192	$ 2,703,033	$ (3,190,874)	$ (460,649)
Beginning Balance, shares at Dec. 31, 2017	27,192,286
Issuance of common stock, value	$ 4,750	945,250		950,000
Issuance of common stock, shares	4,570,000
Stock Based Compensation		134,978		134,978
Net loss			(528,027)	(528,027)
Ending Balance at Mar. 31, 2018	$ 31,942	3,783,261	(3,718,901)	96,302
Ending Balance, shares at Mar. 31, 2018	31,942,286
Beginning Balance at Dec. 31, 2018	$ 40,692	7,041,696	(4,352,073)	2,730,315
Beginning Balance, shares at Dec. 31, 2018	40,692,286
Value of Options Issued as Part of IM Telecom Acquisitions		98,482		98,482
Stock Based Compensation		141,356		141,356
Net loss			(297,793)	(297,793)
Ending Balance at Mar. 31, 2019	$ 40,692	$ 7,281,534	$ (4,649,866)	$ 2,672,360
Ending Balance, shares at Mar. 31, 2019	40,692,286

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities
Net Loss	$ (297,793)	$ (528,027)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	251,116	88,034
Bad Debt		15,210
Stock-based compensation	141,356	134,978
Changes in Operating Assets and Liabilities, net of effects of acquisition:
Accounts Receivable	203,712	(119,797)
Notes Receivable	25,001
Inventory	135	(18,515)
Prepaid Expenses	3,461	14,577
Accounts Payable and Accrued Expenses	(44,541)	(204,489)
Deferred Revenue	(10,154)	24,366
Other Assets	(199,573)	71
Net cash provided by (used in) operating activities	72,720	(593,592)
Cash Flows from Investing Activities
Cash Received in Acquisition of IM Telecom	14,318
Advances for Acquistion Target		(114,314)
Asset Purchase of IM Telecom	(56,611)
Net cash used in investing activities	(42,293)	(114,314)
Cash Flows from Financing Activities
Proceeds from issuance of common stock		950,000
Repayment of of Revolving Lines of Credit	(22,147)
Principal Payments on Lease Liabilities	(17,517)
Advances made by Stockholder	200,000	100,000
Repayments of amounts due to Stockholder	(27,564)	(73,327)
Net cash provided by financing activities	132,772	976,673
Net Change in Cash	163,199	268,767
Cash, Beginning of period	56,510	94,149
Cash, End of period	219,709	362,916
Supplemental disclosure of cash flow information:
Cash paid for interest	14,297	11,674
Cash paid for taxes
Non-cash investing and financing activities:
Accounts receivable	63,764
Prepaid Expense	950
Furniture and Equipment at Fair Market Value	1,309
Other Assets	1,450
Accounts Payable and Accrued Expenses, net of cash	(23,870)
License	658,452
Value of Options	98,482
Lease Obligations for Right to Use Assets	$ 113,035

Organization

Organization	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	NOTE 1 – ORGANIZATION KonaTel Nevada (as defined below) was organized under the laws of the State of Nevada on October 14, 2014, by its founder and then sole shareholder, D. Sean McEwen, to conduct the business of a full-service MVNO (“Mobile Virtual Network Operator”) provider that delivered cellular products and services to individual and business customers in various retail and wholesale markets. KonaTel Inc., formerly known as Dala Petroleum Corp. (the “Company,” “we,” “our,” or “us” and words of similar import), and 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 (“Westcott”). 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. On December 31, 2018, we acquired Apeiron Systems, Inc., a Nevada corporation doing business as “Apeiron” (“Apeiron”), which is became our wholly-owned subsidiary on December 31, 2018. Apeiron was organized in 2013 and is an international hosted services CPaaS (“Communications Platform as a Service”) provider that designed, built, owns and operates its private core network, supporting a suite of real-time business communications services and Applications Programming Interfaces (“APIs”). As an Internet Telephony Service Provider (“ITSP”), Apeiron holds a Federal Communications Commission (“FCC”) numbering authority license. Some of Apeiron’s hosted services include SIP/VoIP services, SMS/MMS processing, BOT integration, NLP (“Natural Language Processing”), ML (“Machine Learning”), number services, including mobile, toll free and DID landline numbers, SMS to Email services, Database Dip services, SD-WAN, voice termination and numerous API driven services including voice, messaging and network management. On January 31, 2019, we acquired IM Telecom, an Oklahoma limited liability company doing business as “Infiniti Mobile” (“Infiniti Mobile”), which became our wholly-owned subsidiary on that date. Infiniti Mobile is an FCC licensed ETC (“Eligible Telecommunications Carrier”) and is one of 22 FCC licensed carriers to hold an FCC approved Lifeline Compliance Plan in the United States. Under the Lifeline program, Infiniti Mobile is currently authorized to provide government subsidized mobile telecommunications services to eligible low-income Americans currently in seven states.

Transactions

Transactions	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Transactions	NOTE 2 – TRANSACTIONS The following are significant transactions that impact the operations of the Company: Apeiron Acquisition On December 31, 2018, the Company purchased Apeiron, which became a wholly-owned subsidiary. The total purchase price was $2,450,000. The purchase included the issuance of 7,000,000 shares of the Company’s common stock in exchange for all the outstanding common shares of Apeiron common stock. The purchase price was derived and based on the fair market value of the 7,000,000 shares at the December 31, 2018, common stock price of $.35 per share. The acquisition provides the Company with expansion and diversification within the telecommunications industry. Apeiron Systems brings CPaaS and business networking services to the Company that have significant business in the wireless telecommunications industry. The combination allows the Company to share customers and provide bundled service integrations. Infiniti Mobile Acquisition On January 31, 2019, the Company completed the acquisition of Infiniti Mobile. The purchase price was $716,372 and included $100 in cash, advances to Infiniti Mobile for the period from the sales agreement dated February 5, 2018, until January 31, 2019, in the amount of $465,056, 500,000 incentive stock options valued at $98,452 and accounts receivables due to the Company in the amount of $152,764. The stock options were computed using the Black-Scholes-Merton pricing model using a stock price of $.20, a strike price of $.20, an expected term of three years, volatility of 278.00% and a risk-free discount rate of 2.43%. The transaction was accounted for under the purchase method. The purchase price allocation to assets and liabilities assumed in the transaction was: Cash $ 14,318 Accounts Receivable 63,764 Prepaid Expenses and Deposits 2,400 Furniture and Equipment at Fair Value 1,309 License 658,452 Accounts Payable (23,871 ) Net Assets Acquired $ 716,372 The following table provides unaudited proforma results, prepared in accordance with ASC 805, for the three months ended March 31, 2018 and 2017, as if Infiniti Mobile and Apeiron had been acquired on January 1, 2018: For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018 Net sales $ 2,706,577 $ 3,241,739 Net loss $ (262,939 ) (-415,823) Net loss per share, basic and diluted $ (0.01 ) $ (0.01 )

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	NOTE 3 – BASIS OF PRESENTATION Interim Financial Statements The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2018. 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. Basis of Consolidation The condensed consolidated financial statements include the Company and three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron and Infiniti Mobile. The condensed consolidated financial statements for the three-month period ended March 31, 2019, includes the Company and its three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron and Infiniti Mobile. The condensed consolidated balance sheet for year ended December 31, 2018, includes the Company and the wholly-owned corporate subsidiaries, KonaTel Nevada and Apeiron. The condensed consolidated statements of operations, cash flows, and stockholders’ equity for the three-month period ended March 31, 2018, include the Company and the wholly-owned corporate subsidiary, KonaTel Nevada. All significant intercompany transactions are eliminated. Going Concern As the Company did not generate net income during the three-month periods ended March 31, 2019, and 2018, the Company has been dependent upon equity financing to support its operations. The Company incurred losses of $297,793 and $528,027 for the three-month periods ended March 31, 2019, and 2018, respectively. The Company has had significant improvement in providing cash from the operations. Net cash provided by operating activities was $72,720 and used in operating activities was ($593,592) for the three-months ended March 31, 2019, and 2018, respectively. The accumulated deficit as of March 31, 2019, is $4,649,866. The Company has ameliorated any substantial doubt issues by generating additional cash flow since the completion of our merger with KonaTel Nevada on December 18, 2017; the acquisition of Apeiron and Infiniti Mobile; receiving cash investments through the private placement of shares of our common stock; and revenues from the growth of our Virtual ETC program, all of which has contributed to an improvement in our working capital, without the use of additional lines of credit or borrowings. Additionally, the Company also has 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. Net 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. As of March 31, 2019, and December 31, 2018, there are 4,750,000 and 4,325,000 potentially dilutive common shares, respectively. The dilutive common shares are not included in the computation of diluted earnings per share, because to do so would be anti-dilutive. 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 customers and cellular providers. As of March 31, 2019, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) from one customer in the amount of $136,639, or 15.3%. As of December 31, 2018, the Company had a significant concentration of receivables due from two customers in the amounts of $441,934, or 42.7%. Concentration of Major Customer A significant amount of the revenue is derived from contracts with major customers and cellular providers. For the three-month period ended March 31, 2019, the Company had one customer that accounted for $728,649, or 27.6%, and one cellular provider that accounted for $803,258, or 30.4%, of the total revenue. Effect of Recent Accounting Pronouncements On February 25, 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. Early application is permitted. The Company has determined that adoption of the standard will begin January 1, 2019. The Company currently has four equipment operating leases and one Property lease; and the Property lease expires in April 2020. The Company has determined that this pronouncement will not have a material impact on the financial statements. The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement. Emerging Growth Company The Company is an emerging growth company and has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment consist of the following major classifications as of March 31, 2019, and December 31, 2018: March 31, 2019 December 31, 2018 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 102,946 101,638 Billing Software 217,163 217,163 Office Equipment 86,887 86,887 453,946 452,638 Less: Accumulated Depreciation and Amortization (327,831 ) (320,615 ) Property and equipment, net $ 126,115 $ 132,023 Depreciation and amortization amounted to $7,216 and $12,243 for the three-month periods ended March 31, 2019, and March 31, 2018, respectively. Depreciation and amortization expense are included as a component of operating expenses in the accompanying statements of operations.

Right-To-Use Assets

Right-To-Use Assets	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Right-To-Use Assets	NOTE 5 – RIGHT-TO-USE ASSETS Right-to-Use Assets consist of assets accounted for under ASC 842. The assets are recorded at present value using implied interest rates between 5.29% and 5.34%. March 31, 2019 December 31, 2018 Right-to-Use Assets $ 113,035 $ — Less: Accumulated Depreciation (18,140 ) — Right-to-Use, net $ 94,895 $ — Depreciation amounted to $18,140 for the three-month period ended March 31, 2019. Depreciation expense is included as a component of operating expenses in the accompanying statements of operations.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 6 – INTANGIBLE ASSETS Intangible Assets with definite useful life consist of customer lists and software that were acquired through acquisitions: March 31, 2019 December 31, 2018 Customer Lists $ 1,135,961 $ 1,135,961 Software 2,407,001 2,407,001 Less: Accumulated Amortization (1,277,800 ) (1,052,040 ) Intangible Assets, net $ 2,265,162 $ 2,490,922 Amortization expense amounted to $225,760 and $75,791 for the three-month periods ended March 31, 2019 and March 31, 2018, respectively. Amortization expense is included as a component of operating expenses in the accompanying statements of operations. Amortization expense is expected to be as follows: 2019 $ 660,495 2020 $ 802,334 2021 $ 802,333 Intangible Assets with indefinite useful life consist of a license granted by the FCC: The License, because of the nature of the asset and the limitation on the number of granted licenses by the FCC, will not be amortized. The License was acquired through an acquisition. The fair market value of the License as of March 31, 2019, was $658,481.

Lines of Credit

Lines of Credit	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Lines of Credit	NOTE 7 – LINES OF CREDIT The Company has two lines of credit with a bank, which provide aggregate maximum borrowing availability of $1,050,000 as of March 31, 2019, and December 31, 2018. The lines of credit are payable on demand and bear interest at a variable rate with rate ranges from 7.5% to 8.0%. Outstanding advances under these line of credit arrangements amounted to $81,232 and $103,379 as of March 31, 2019, and December 31, 2018, respectively. The lines of credit mature on January 5, 2020, and February 14, 2020, respectively. 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 revolving lines of credit are guaranteed by an officer of the Company.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	NOTE 8 – LEASES The Company has right-to-use assets through leases of property under three non-cancelable leases with terms in excess of one year. The current lease liabilities expire April 30, 2020, September 1, 2020, and December 1, 2021. Future lease liability payments under the terms of these leases are as follows: 2019 $ 53,970 2020 $ 31,373 2021 $ 10,175 Total $ 95,518 Less Current Maturities $ 72,443 Long Term Maturities $ 23,075 The Company also leases two office spaces on a month-to-month basis. Total lease expense for the three-month period ended March 31, 2019, and March 31, 2018 amounted to $21,028 and $39,683, respectively.

Amount Due to Stockholder

Amount Due to Stockholder	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Amount Due to Stockholder	NOTE 9 – AMOUNT DUE TO STOCKHOLDER As of, March 31, 2019, and December 31, 2018, the Company’s principal shareholder, D. Sean McEwen was owed $63,588 and $91,152, respectively, for advances used for working capital under a note. The note bears a 10% per annum interest rate. The note matures on August 31, 2019. During 2019, Joshua Ploude, CEO of Apeiron, advanced the Company $200,000. The amount was used to provide a vendor security deposit. The note bears a 10% per annum interest rate until May 1, 2019, at which time, will increase to 12% per annum. The note matures on July 10, 2019.

Contingencies and Commitments

Contingencies and Commitments	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	NOTE 10 – 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. As of March 31, 2019, there are no legal proceedings, except the following: On August 28, 2018, we filed a claim in AAA Arbitration against a former employee, Saul Glosser. We have alleged that Mr. Glosser failed to honor an indemnification clause that was material to our 2014 purchase of Glosser’s former company, Coast to Coast Cellular, Inc. doing business as “Coast2Coast Cellular”. We believe our damages are in the $350,000 to $400,000 range. Mr. Glosser’s defense to the claim is believed by our counsel to be tenuous; however, no assurance can be given that we will be successful in recovering any amounts from Mr. Glosser. Our legal fees in this matter are being paid under one of our insurance policies. On, January 11, 2019, Mr. Glosser filed an employment claim against us, alleging that his July 2017 termination was not “for cause” and thus breached his employment agreement with us. Glosser has claimed damages of approximately $80,000. Our counsel believes we have strong defenses to Mr. Glosser’s employment claim. Both matters are consolidated at KonaTel, Inc. vs. Saul Glosser, Case No. 01-18-0003-2772, with the American Arbitration Association (International Center for Dispute Resolution). An arbitration hearing is currently scheduled for July 11-12, 2019, in Pittsburgh, Pennsylvania. 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 $63,000. 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 March 31, 2019, and December 31, 2018. The letters of credit are not considered in the financial statements.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Reporting	NOTE 11 – SEGMENT REPORTING The Company operates within four reportable segments. The Company’s management evaluates performance and allocates resources based on the profit or loss from operations. 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 reportable segments consist of Hosted Services, Mobile Services, Lifeline ETC (“Eligible Communications Carrier”), and Lifeline VETC (“Virtual Eligible Communications Carrier”). Hosted Services Mobile Services Lifeline ETC Lifeline VETC The following table reflects the result of operations of the Company’s reportable segments: Hosted Services Mobile Services Lifeline ETC Lifeline VETC Total For the three-month period ended March 31, 2019 Revenue $ 715,664 $ 726,188 $ 169,471 $ 1,028,973 $ 2,640,296 Net Loss $ 177 $ (222,215 ) $ (75,755 ) $ (157,173 ) $ (297,793 ) Depreciation and amortization $ 68,066 $ 69,067 $ 16,118 $ 97,865 $ 251,116 Additions to property and equipment $ — $ — $ — $ — $ — For the three-month period ended March 31, 2018 Revenue $ — $ 1,566,150 $ — $ 827,205 $ 2,393,355 Net Loss $ — $ (222,368 ) $ — $ (305,659 ) $ (528,027 ) Depreciation and amortization $ — $ 57,607 $ — $ 30,427 $ 88,034 Additions to property and equipment $ — $ — $ — $ — $ —

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Shareholders' Equity	NOTE 12 – STOCKHOLDERS’ EQUITY Common Stock On March 8, 2018, the Company issued 4,750,000 shares of our common stock in a private placement to “accredited investors” at $0.20 per share for an aggregate amount of $950,000. On April 13, 2018, the Company issued 1,000,000 shares in a private placement to “accredited investors” at $0.20 per share for an aggregate amount of $200,000, $100,000 of which was in cash and $100,000 of which was in settlement of an advance in that amount from this subscriber. The Company also issue 750,000 shares private placement to “accredited investors” at $0.20 per share for an aggregate amount of $150,000. Stock Compensation The Company offers stock option outstanding equity awards to directors and key employees. Options vested in tranches and expire in five (5) years. During the three-months ended March 31, 2019, and 2018, the Company recorded vested options expense of $141,356 and $134,978, respectively. The option expense not taken as of March 31, 2019, is $743,519 with a weighted average term of 3.7 years. The following table represents stock option activity as of and for the three-month period ended March 31, 2019: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2018 4,325,000 $ 0.22 3.7 $ — Granted 500,000 $ 0.20 3.0 Exercised Forfeited 75,000 Options Outstanding – March 31, 2019 4,750,000 $ 0.20 3.7 $ 95,000 Exercisable and Vested, March 31, 2019 2,375,000 $ 0.22 4.5 $ 1,375

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 13 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing and no material subsequent events have occurred.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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.
Basis of Consolidation	Basis of Consolidation The condensed consolidated financial statements include the Company and three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron and Infiniti Mobile. The condensed consolidated financial statements for the three-month period ended March 31, 2019, includes the Company and its three (3) wholly-owned corporate subsidiaries, KonaTel Nevada, Apeiron and Infiniti Mobile. The condensed consolidated balance sheet for year ended December 31, 2018, includes the Company and the wholly-owned corporate subsidiaries, KonaTel Nevada and Apeiron. The condensed consolidated statements of operations, cash flows, and stockholders’ equity for the three-month period ended March 31, 2018, include the Company and the wholly-owned corporate subsidiary, KonaTel Nevada. All significant intercompany transactions are eliminated.
Net Loss Per Share	Net 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. As of March 31, 2019, and December 31, 2018, there are 4,750,000 and 4,325,000 potentially dilutive common shares, respectively. The dilutive common shares are not included in the computation of diluted earnings per share, because to do so would be anti-dilutive.
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. The Company also has a concentration of risk with respect to trade receivables from customers and cellular providers. As of March 31, 2019, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) from one customer in the amount of $136,639, or 15.3%. As of December 31, 2018, the Company had a significant concentration of receivables due from two customers in the amounts of $441,934, or 42.7%.
Concentration of Major Customer	Concentration of Major Customer A significant amount of the revenue is derived from contracts with major customers and cellular providers. For the three-month period ended March 31, 2019, the Company had one customer that accounted for $728,649, or 27.6%, and one cellular provider that accounted for $803,258, or 30.4%, of the total revenue.
Effect of Recent Accounting Pronouncements	Effect of Recent Accounting Pronouncements On February 25, 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. Early application is permitted. The Company has determined that adoption of the standard will begin January 1, 2019. The Company currently has four equipment operating leases and one Property lease; and the Property lease expires in April 2020. The Company has determined that this pronouncement will not have a material impact on the financial statements. The Company has evaluated all other recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statement.

Transactions (Tables)

Transactions (Tables)	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Schedule of Noncash or Part Noncash Acquisitions	Cash $ 14,318 Accounts Receivable 63,764 Prepaid Expenses and Deposits 2,400 Furniture and Equipment at Fair Value 1,309 License 658,452 Accounts Payable (23,871 ) Net Assets Acquired $ 716,372
Schedule of Pro-Forma Financial Information	For the Three Months Ended March 31, 2019 For the Three Months Ended March 31, 2018 Net sales $ 2,706,577 $ 3,241,739 Net loss $ (262,939 ) (-415,823) Net loss per share, basic and diluted $ (0.01 ) $ (0.01 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	March 31, 2019 December 31, 2018 Leasehold Improvements $ 46,950 $ 46,950 Furniture and Fixtures 102,946 101,638 Billing Software 217,163 217,163 Office Equipment 86,887 86,887 453,946 452,638 Less: Accumulated Depreciation and Amortization (327,831 ) (320,615 ) Property and equipment, net $ 126,115 $ 132,023

Right-To-Use Assets (Tables)

Right-To-Use Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Right-To-Use Assets	March 31, 2019 December 31, 2018 Right-to-Use Assets $ 113,035 $ — Less: Accumulated Depreciation (18,140 ) — Right-to-Use, net $ 94,895 $ —

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	March 31, 2019 December 31, 2018 Customer Lists $ 1,135,961 $ 1,135,961 Software 2,407,001 2,407,001 Less: Accumulated Amortization (1,277,800 ) (1,052,040 ) Intangible Assets, net $ 2,265,162 $ 2,490,922
Schedule of Intangible Assets Future Amortization Expense	2019 $ 660,495 2020 $ 802,334 2021 $ 802,333

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Future Minimum Lease Payments for Operating Leases	2019 $ 53,970 2020 $ 31,373 2021 $ 10,175 Total $ 95,518 Less Current Maturities $ 72,443 Long Term Maturities $ 23,075

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Hosted Services Mobile Services Lifeline ETC Lifeline VETC Total For the three-month period ended March 31, 2019 Revenue $ 715,664 $ 726,188 $ 169,471 $ 1,028,973 $ 2,640,296 Net Loss $ 177 $ (222,215 ) $ (75,755 ) $ (157,173 ) $ (297,793 ) Depreciation and amortization $ 68,066 $ 69,067 $ 16,118 $ 97,865 $ 251,116 Additions to property and equipment $ — $ — $ — $ — $ — For the three-month period ended March 31, 2018 Revenue $ — $ 1,566,150 $ — $ 827,205 $ 2,393,355 Net Loss $ — $ (222,368 ) $ — $ (305,659 ) $ (528,027 ) Depreciation and amortization $ — $ 57,607 $ — $ 30,427 $ 88,034 Additions to property and equipment $ — $ — $ — $ — $ —

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of Share-Based Compensation , Stock Options, Activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2018 4,325,000 $ 0.22 3.7 $ — Granted 500,000 $ 0.20 3.0 Exercised Forfeited 75,000 Options Outstanding – March 31, 2019 4,750,000 $ 0.20 3.7 $ 95,000 Exercisable and Vested, March 31, 2019 2,375,000 $ 0.22 4.5 $ 1,375

Transactions - Schedule of Nonc

Transactions - Schedule of Noncash or Part Noncash Acquisitions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Received in Acquisition of IM Telecom	$ 14,318
Accounts Receivable	63,764
Prepaid Expense	950
Furniture and Equipment at Fair Value	1,309
License	658,452
Accounts Payable	(23,870)
Infiniti Mobile Acquisition
Cash Received in Acquisition of IM Telecom	14,318
Accounts Receivable	63,764
Prepaid Expense	2,400
Furniture and Equipment at Fair Value	1,309
License	658,452
Accounts Payable	(23,871)
Net Assets Acquired	$ 716,372

Transactions - Schedule of Pro-

Transactions - Schedule of Pro-Forma Financial Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net loss per share - basic and diluted	$ (0.01)	$ (0.02)
Apeiron Systems, Inc. and Infiniti Mobile
Net sales	$ 2,706,577	$ 3,241,739
Net loss	$ (262,939)	$ (415,823)
Net loss per share - basic and diluted	$ (0.01)	$ (0.01)

Transactions (Details Narrative

Transactions (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Acquisition purchase price		$ 950,000
Cash payments for acquisition		$ 114,314
Stock options issued	500,000
Value of Options Issued as Part of IM Telecom Acquisitions	$ 98,482
Apeiron Systems
Acquisition, shares issued			7,000,000
Equity interest issued, acquisition			7,000,000
Price per share			$ 0.35
Purchase price			$ 2,450,000
Infiniti Mobile Acquisition
Purchase price	716,372
Cash payments for acquisition	100
Advances for acqusition	$ 465,056
Stock options issued	500,000
Value of Options Issued as Part of IM Telecom Acquisitions	$ 98,452
Accounts receivable	$ 152,764
Stock price	$ 0.20
Strike price	$ 0.20
Expected term	3 years
Volatility	278.00%
Risk-free discount	2.43%

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Net Loss	$ (297,793)	$ (528,027)
Net cash provided by (used in) operating activities	72,720	(593,592)	$ (978,120)
Accumulated Deficit	$ (4,649,866)		$ (4,352,073)
Potentially dilutive common shares	4,750,000		4,325,000
Concentration risk, percentage	15.30%		42.70%
Receivable concentration	$ 136,639		$ 441,934
Revenues	$ 2,640,296	$ 2,393,355
Customer
Concentration risk, percentage	27.60%
Revenues	$ 728,649
Revenue | Cellular Provider
Concentration risk, percentage	30.40%
Revenues	$ 803,258

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 453,946	$ 452,638
Less: Accumulated Depreciation and Amortization	(327,831)	(320,615)
Property, plant and equipment, net	126,115	132,023
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	102,946	101,638
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	$ 86,887	$ 86,887

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 7,216	$ 12,243

Right-To-Use Assets - Schedule

Right-To-Use Assets - Schedule of Right-To-Use Assets (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Right-to-Use Assets	$ 113,035
Less: Accumulated Depreciation	(18,140)
Right to Use Assets, Net	$ 94,895

Right-To-Use Assets (Details Na

Right-To-Use Assets (Details Narrative)	3 Months Ended
	Mar. 31, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Depreciation	$ 18,140

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Customer Lists	$ 1,135,961	$ 1,135,961
Software	2,407,001	2,407,001
Less: Accumulated Amortization	(1,277,800)	(1,052,040)
Intangible assets, net	$ 2,265,162	$ 2,490,922

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Intangible Assets Future Amortization Expense (Details)	Mar. 31, 2019USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 660,495
2020	802,334
2021	$ 802,333

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 225,760	$ 75,791
License	$ 658,452

Lines of Credit (Details Narrat

Lines of Credit (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
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 rate ranges from 7.5% to 8.0%.	Bears interest at a variable rate with rate ranges from 7.5% to 8.0%.
Line of credit, advances	$ 81,232	$ 103,379
Line of credit, maturity date	Jan. 5, 2020	Feb. 14, 2020

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Future minimum lease payments, 2019	$ 53,970
Future minimum lease payments, 2020	31,373
Future minimum lease payments, 2021	10,175
Total	95,518
Less Current Maturities	72,443
Long Term Maturities	$ 23,075

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases [Abstract]
Lease expense	$ 21,028	$ 39,683

Amount Due to Stockholder (Deta

Amount Due to Stockholder (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Proceeds from related parties	$ 200,000	$ 100,000
Amount Due to related party	$ 263,588		$ 91,152
D. Sean McEwen
Interest rate	10.00%		10.00%
Maturity date	Aug. 31, 2019		Aug. 31, 2019
Amount Due to related party	$ 63,588		$ 91,152
Joshua Ploude, Ceo of Apeiron
Proceeds from related parties	$ 200,000
Interest rate	10.00%
Maturity date	Jul. 10, 2019

Contingencies and Commitments (

Contingencies and Commitments (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Potential Outcome of Litigation
Contingencies, description	The Company filed a claim in AAA Arbitration against a former employee, Saul Gosser.  We have alleged that Mr. Glosser failed to honor an indemnification clause that was material to our 2014 purchase of Glosser's former company, Coast to Coast Cellular, Inc. doing business as "Coast2Coast Cellular". Mr. Glosser's defense to the claim is believed by our counsel to be tenuous; however, no assurance can be given that we will be successful in recovering any amounts from Mr. Glosser.  Our legal fees in this matter are being paid under one of our insurance policies.
Potential gains from pending arbitration	$ 400,000
Name of plaintiff	Saul Glosser
Dispute resolution type, description	Arbitration
Damages sought	$ 80,000
Standby Letters of Credit
Letter of credit	$ 63,000	$ 63,000

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 2,640,296	$ 2,393,355
Net Loss	(297,793)	(528,027)
Depreciation and amortization	251,116	88,034
Additions to property and equipment
Hosted Services
Segment Reporting Information [Line Items]
Revenue	715,664
Net Loss	177
Depreciation and amortization	68,066
Additions to property and equipment
Mobile Services
Segment Reporting Information [Line Items]
Revenue	726,188	1,566,150
Net Loss	(222,215)	(222,368)
Depreciation and amortization	69,067	57,607
Additions to property and equipment
Lifeline ETC
Segment Reporting Information [Line Items]
Revenue	169,471
Net Loss	(75,755)
Depreciation and amortization	16,118
Additions to property and equipment
Lifeline VETC
Segment Reporting Information [Line Items]
Revenue	1,028,973	827,205
Net Loss	(157,173)	(305,659)
Depreciation and amortization	97,865	30,427
Additions to property and equipment

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	3 Months Ended
	Mar. 31, 2019Number
Segment Reporting [Abstract]
Number of reportable segments	4

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Share-Based Compensation , Stock Options, Activity (Details)	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Share-Based Compensation Arrangement By Share-Based Payment Award Options Outstanding
Options outstanding, beginning of period	4,325,000
Granted	500,000
Forfeited	75,000
Options outstanding, end of period	4,750,000
Options exercisable and vested, end of period	2,375,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Weighted average exercise price outstanding, beginning of period | $ / shares	$ 0.22
Weighted average exercise price, granted | $ / shares	0.20
Weighted average exercise price outstanding, end of period | $ / shares	0.20
Weighted average exercise price, exercisable and vested, end of period | $ / shares	$ 0.22
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Weighted average remaining contractual life outstanding, beginning of period	3 years 8 months
Weighted average remaining contractual life, granted	3 years
Weighted average remaining contractual life outstanding, end of period	3 years 8 months
Weighted average remaining contractual life, exercisable and vested, end of period	4 years 6 months
Average intrinsic value outstanding, end of period | $	$ 95,000
Average intrinsic value, exercisable and vested, end of period | $	$ 1,375

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018
Stock-based compensation expense, vested options	$ 141,356			$ 134,978
Deferred compensation expense	$ 743,519
Weighted average term, compensation expense	3 years 8 months
Private Placement
Common stock issued		750,000	1,000,000	4,750,000
Common stock issued, aggregate value		$ 150,000	$ 200,000	$ 950,000
Stock price		$ 0.20	$ 0.20	$ 0.20