KonaTel (KTEL) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover	9 Months Ended
	Sep. 30, 2022 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-10171
Entity Registrant Name	KonaTel, Inc.
Entity Central Index Key	0000845819
Entity Tax Identification Number	80-0973608
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	500 N. Central Expressway
Entity Address, Address Line Two	Ste. 202
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75074
City Area Code	214
Local Phone Number	323-8410
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	42,215,406

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash and Cash Equivalents	$ 2,243,195	$ 932,785
Accounts Receivable, net	1,503,055	1,274,687
Inventory, Net	297,393	566,839
Prepaid Expenses	7,443	79,467
Other Current Asset	164	164
Total Current Assets	4,051,250	2,853,942
Property and Equipment, Net	39,624	48,887
Other Assets
Intangible Assets, Net	1,224,790	807,775
Other Assets	127,864	154,297
Investments	10,000	10,000
Total Other Assets	1,362,654	972,072
Total Assets	5,453,528	3,874,901
Current Liabilities
Accounts Payable and Accrued Expenses	1,445,975	930,449
Loans Payable, net of origination fees	3,027,564
Right of Use Operating Lease Obligation - current	115,653	50,672
Total Current Liabilities	4,589,192	981,121
Long Term Liabilities
Right of Use Operating Lease Obligation - long term	495,385	136,445
Note Payable - long term		150,000
Total Long Term Liabilities	495,385	286,445
Total Liabilities	5,084,577	1,267,566
Stockholders’ Equity
Common stock, $0.001 par value, 50,000,000 shares authorized, 42,215,406 outstanding and issued at September 30, 2022 and 41,615,406 outstanding and issued at December 31, 2021	42,215	41,615
Additional Paid In Capital	8,540,557	7,911,224
Accumulated Deficit	(8,213,821)	(5,345,504)
Total Stockholders’ Equity	368,951	2,607,335
Total Liabilities and Stockholders’ Equity	$ 5,453,528	$ 3,874,901

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	42,215,406	41,615,406
Common stock, shares outstanding	42,215,406	41,615,406

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 5,880,333	$ 3,612,861	$ 15,231,288	$ 8,919,573
Cost of Revenue	4,969,251	1,988,624	12,230,378	4,946,786
Gross Profit	911,082	1,624,237	3,000,910	3,972,787
Operating Expenses
Payroll and Related Expenses	1,348,152	636,329	3,719,446	1,817,200
Operating and Maintenance	5,321	461	6,681	1,211
Bad Debt			29,133	427
Professional Services	381,340	77,335	675,987	206,671
Utilities and Facilities	60,083	39,726	135,118	110,523
Depreciation and Amortization	3,088	213,552	9,264	640,657
General and Administrative	71,545	32,668	251,778	93,994
Marketing and Advertising	15,542	37,350	100,570	50,073
Application Development Costs	142,237	179,427	391,930	396,715
Taxes and Insurance	26,729	35,784	150,389	60,479
Total Operating Expenses	2,054,037	1,252,632	5,470,296	3,377,950
Operating Income/(Loss)	(1,142,955)	371,605	(2,469,386)	594,837
Other Income and Expense
Interest Expense	(161,977)	(2,573)	(233,153)	(12,328)
Other Expenses	(40,582)	(49,197)	(165,778)	(154,310)
Total Other Income and Expenses	(202,559)	(51,770)	(398,931)	(166,638)
Net Income (Loss)	$ (1,345,514)	$ 319,836	$ (2,868,317)	$ 428,199
Earnings (Loss) per Share
Basic	$ (0.03)	$ 0.01	$ (0.07)	$ 0.01
Diluted	$ (0.03)	$ 0.01	$ (0.07)	$ 0.01
Weighted Average Outstanding Shares
Basic	41,912,145	40,899,569	41,715,406	40,758,495
Diluted	41,912,145	43,565,835	41,715,406	43,434,761

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Shares	Additional Paid-in Capital	Accumulated Deficit	Total
Beginning balance, value at Dec. 31, 2020	$ 40,692	$ 7,460,632	$ (5,968,489)	$ 1,532,835
Shares outstanding at Dec. 31, 2020	40,692,286
Exercised Stock Options	$ 575	109,425		110,000
Exercised Stock Options, shares	575,000
Stock Based Compensation	$ 0	141,935	0	141,935
Net Loss	0	0	428,199	428,199
Ending balance, value at Sep. 30, 2021	$ 41,267	7,711,992	(5,540,290)	2,212,968
Shares outstanding at Sep. 30, 2021	41,267,286
Beginning balance, value at Dec. 31, 2020	$ 40,692	7,460,632	(5,968,489)	1,532,835
Shares outstanding at Dec. 31, 2020	40,692,286
Ending balance, value at Dec. 31, 2021	$ 41,615	7,911,224	(5,345,504)	2,607,335
Shares outstanding at Dec. 31, 2021	41,615,406
Beginning balance, value at Jun. 30, 2021	$ 40,692	7,539,690	(5,860,126)	1,720,256
Shares outstanding at Jun. 30, 2021	40,692,286
Exercised Stock Options	$ 575	109,425		110,000
Exercised Stock Options, shares	575,000
Stock Based Compensation	$ 0	62,877	0	62,877
Net Loss	0	0	319,836	319,836
Ending balance, value at Sep. 30, 2021	$ 41,267	7,711,992	(5,540,290)	2,212,968
Shares outstanding at Sep. 30, 2021	41,267,286
Beginning balance, value at Dec. 31, 2021	$ 41,615	7,911,224	(5,345,504)	2,607,335
Shares outstanding at Dec. 31, 2021	41,615,406
Exercised Stock Options	$ 600	89,400		$ 90,000
Exercised Stock Options, shares	600,000			600,000
Stock Based Compensation	$ 0	539,933	0	$ 539,933
Net Loss	0	0	(2,868,317)	(2,868,317)
Ending balance, value at Sep. 30, 2022	$ 42,215	8,540,557	(8,213,821)	368,951
Shares outstanding at Sep. 30, 2022	42,215,406
Beginning balance, value at Jun. 30, 2022	$ 41,615	8,265,520	(6,868,307)	1,438,828
Shares outstanding at Jun. 30, 2022	41,615,406
Exercised Stock Options	$ 600	89,400		90,000
Exercised Stock Options, shares	600,000
Stock Based Compensation	$ 0	185,637	0	185,637
Net Loss	0	0	(1,345,514)	(1,345,514)
Ending balance, value at Sep. 30, 2022	$ 42,215	$ 8,540,557	$ (8,213,821)	$ 368,951
Shares outstanding at Sep. 30, 2022	42,215,406

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net Income (Loss)	$ (2,868,317)	$ 428,199
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and Amortization	9,264	640,657
Loan Origination Cost Amortization	51,095
Bad Debt	29,133	427
Stock-based Compensation	539,933	141,935
Change in Right of Use Asset	(417,014)	(118,085)
Change in Lease Liability	423,920	130,956
Changes in Operating Assets and Liabilities:
Accounts Receivable	(257,500)	(559,685)
Inventory	269,445	(90,200)
Prepaid Expenses	98,456	(13,657)
Accounts Payable and Accrued Expenses	515,527	95,887
Deferred Revenue		(37,677)
Other Assets		17,800
Net cash provided by (used in) operating activities	(1,606,058)	636,557
Cash Flows from Investing Activities
Purchase of Assets		(10,000)
Net cash (used in) investing activities		(10,000)
Cash Flows from Financing Activities
Proceeds from short-term note payable	3,150,000
Loan origination cost	(173,532)
Repayments of amounts of Notes Payable	(150,000)	(93,030)
Cash received from Stock Options Exercised	90,000	110,000
Net cash provided by (used in) financing activities	2,916,468	16,970
Net Change in Cash	1,310,410	643,527
Cash - Beginning of Year	932,785	715,195
Cash - End of Period	2,243,195	1,358,722
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	3,099	4,041
Cash paid for taxes
Non-cash investing and financing activities:
Right of use assets obtained in exchange for new operating lease liabilities	$ 472,974	$ 199,245

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of Company 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., a Delaware corporation, formerly known as Dala Petroleum Corp. (the “Company,” “we,” “our,” or “us”), 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 subchapter 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. (www.apeiron.io) (“Apeiron Systems” or “Apeiron”), which is also our wholly owned subsidiary. Apeiron was organized in 2013 and is an international hosted services Communications Platform as a Service (“CPaaS”) provider that designed, built, owns and operates its national private core network, supporting a suite of business communications services, all accessible via proprietary Applications Programming Interfaces (“APIs”). As a Federal Communications Commissions (“FCC”) licensed Internet Telephony Service Provider (“ITSP”), Apeiron also holds an FCC numbering authority license. Some of Apeiron’s hosted services include Voice over IP (“VoIP”), cellular and Over-The-Top (“OTT”) telephony, SMS/MMS messaging and broadcast services, numbering features, including Cloud IVRs, Voicemail, Fax, Call Recording and other services through local, toll-free and international phone numbers. Supported by its national redundant network, Apeiron also provides public and private IP network services, including Multiprotocol Label Switching (“MPLS”), Dedicated Internet and LTE Wireless WAN solutions. Apeiron’s cloud services include Information Data Dips, Software-Defined Wide Area Networking (“SD-WAN”) and Internet of Things (“IoT”) data and device management. Apeiron primarily distributes its services nationally through its website, its sales staff, independent sales agents and Independent Sales Organizations (“ISOs”). On February 5, 2018, we entered into a purchase agreement to acquire IM Telecom, LLC, an Oklahoma limited liability company (www.infinitimobile.com), doing business as Infiniti Mobile (“IM Telecom” or “Infiniti Mobile”). On October 23, 2018, the FCC approved our acquisition of IM Telecom, and on January 31, 2019, we completed the purchase of IM Telecom. IM Telecom operates as a wholly owned subsidiary of KonaTel. It is an FCC licensed Eligible Telecommunications Carrier (“ETC”) and is one of twenty-two (22) original FCC licensed wireless cellular resellers to hold an FCC approved Lifeline Compliance Plan since 2012, of which approximately twelve (12) license holders remain active today. The FCC has not approved (granted) a new wireless reseller Lifeline Compliance Plan since 2012. As a licensed ETC, IM Telecom is currently authorized to distribute Lifeline subsidized mobile voice/data service in nine (9) states. In addition to Lifeline, IM Telecom is also an FCC licensed Affordable Connectivity Program (“ACP”) provider, authorized to distribute ACP subsidized high-speed mobile data service in the forty-eight (48) contiguous states plus Washington D.C. and Puerto Rico. Lifeline is an FCC program that provides subsidized, fixed or mobile telecommunications services to low-income Americans. ACP is an FCC program that provides subsidized high-speed wireless data services to low-income Americans. IM Telecom distributes Lifeline and ACP services under its Infiniti Mobile brand name through its website, sales staff, retail location and ISOs. IM Telecom also offers non-Lifeline and non-ACP services throughout the United States. Apeiron Systems is headquartered in Los Angeles, California. It also has some management staff in Plano, Texas, customer service and software engineering resources staffed in Johnstown, Pennsylvania and software engineering services staffed in Europe and Asia. IM Telecom is headquartered in Plano, Texas, and operates a retail operation in Tulsa, Oklahoma. We are headquartered in Plano, Texas. Apeiron Systems has fourteen (14) full-time employees; IM Telecom has twenty-three (23) full-time employees and two (2) part-time employees; and we have four (4) full-time employees. Principal Products or Services and their Markets Our principal products and services, across our two wholly owned subsidiaries, Apeiron Systems and IM Telecom, include our CPaaS suite of services (SIP/VoIP, SMS/MMS), wholesale and retail mobile voice and mobile data IoT services, wholesale voice termination services, and our ETC and ACP subsidized services for low-income Americans. Except for our ETC Lifeline services distributed in up to nine (9) states and our ACP services distributed in the forty-eight (48) contiguous states, Washington D.C. and Puerto Rico, our Apeiron Systems’ products and services are available worldwide and subject to U.S., international and local/national regulations. We generate revenue from two (2) primary sources, Hosted Services and Mobile Services: · Our Hosted Services include a suite of hosted CPaaS services within the Apeiron Systems’ cloud platform, including Cloud IVRs, Voicemail, Fax, Call Recording and other services provided with local, toll-free and international phone numbers. Apeiron also delivers public and private IP network services from its national redundant network backbone, including MPLS, Dedicated Internet and LTE Wireless WAN solutions. Additionally, Apeiron’s Cloud Services include Information Data Dips, SD-WAN and IoT data and device management. These Hosted Services are marketed nationally and internationally through the Apeiron website, its sales staff, independent sales agents and ISOs. · Our Mobile Services include retail and wholesale cellular voice/text/data services and IoT mobile data services through our subsidiaries Apeiron Systems and IM Telecom. Mobile voice/text/data and IoT mobile data services are supported by a blend of reseller agreements with select national wireless carriers and national wireless wholesalers. A wireless communications service reseller typically does not own the wireless network infrastructure over which services are provided to its customers. Mobile voice/text/data and mobile data solutions are generally sold as traditional post-paid service plans that may include voice/text/data or wireless data only plans. Sometimes equipment is provided, which can include, but is not limited to, phones, tablets, modems, routers and accessories. Also included in our Mobile Services segment is the distribution of government subsidized mobile voice service and mobile data service by IM Telecom under its Infiniti Mobile brand and FCC license to low-income American households that qualify for the FCC’s Lifeline mobile voice service program and/or the FCC’s ACP mobile data program. Even though government programs like Lifeline have existed since 1985, these programs, along with newer programs like the ACP program, are subject to change and may have a material impact on our Mobile Services business if changed, reduced or eliminated. 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, 2021. 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. Estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and stock-based compensation. Actual results could differ from those estimates. Basis of Consolidation The condensed consolidated financial statements include the Company and three wholly owned corporate subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom. All significant intercompany transactions are eliminated. Earnings (Loss) Per Share Basic income (loss) per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Dilutive common share equivalents are computed by using the “Treasury Stock Method,” which computes the number of new shares that may potentially be created by unexercised options. Diluted common share equivalents are stock based compensation options. The dilutive common shares derived from stock options are 4,490,000 4,490,000 The following table reconciles the shares outstanding and net income used in the computations of both basic and diluted earnings per share of common stockholders: Summary of Significant Accounting Policies -Schedule of Earnings Per Share, Basic and Diluted Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Income (Loss) $ (1,345,514 ) $ 319,836 $ (2,868,317 ) $ 428,199 Weighted average shares outstanding during period on which basic earnings per share is calculated 41,912,145 40,899,569 41,715,406 40,758,495 Effect of dilutive shares Incremental shares under stock-based compensation 2,676,266 2,676,266 Weighted average shares outstanding during period on which diluted earnings per share was calculated 41,912,145 43,565,835 41,715,406 43,434,761 Earnings per share attributable to common stockholders Basic earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01 Diluted earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01 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 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. Trade Account Receivables Sales Revenue The Company has a concentration of risk with respect to trade receivables from customers and cellular providers. As of September 30, 2022, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from one (1) customer in the amount of $ 1,305,264 86.8 783,431 63.9 194,647 15.9 Concentration of Major Customer A significant amount of the revenue is derived from large customers and the government. For the three months ended September 30, 2022, the Company had two (2) customers that accounted for $ 826,901 14.1 4,173,492 71.0 1,037,717 28.7 1,637,712 45.3 9,915,189 65.1 2,639,730 17.3 3,297,984 37.0 2,818,465 31.6 Effect of Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statements.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
INVENTORY	NOTE 2 – INVENTORY Inventory primarily consists of sim cards and cell phones, which are stored at our warehouse, or have been delivered to distributors in the field. Inventories are stated at cost using the first-in, first-out (FIFO) valuation method. On a monthly basis, inventory is counted at our warehouse facility, and on a quarterly basis inventory is reviewed for obsolescence and counted for accuracy with distributors. At September 30, 2022, and December 31, 2021, the Company had inventory of $ 297,393 566,839

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consist of the following major classifications as of September 30, 2022, and December 31, 2021: Property and Equipment - Schedule of Property and Equipment September 30, 2022 December 31, 2021 Lease Improvements Lease Improvements $ 46,950 $ 46,950 Furniture and Fixtures Furniture and Fixtures 102,946 102,946 Billing Software 217,163 217,163 Office Equipment Office Equipment 94,552 94,552 461,611 461,611 Less: Accumulated Depreciation (421,987 ) (412,724 ) Property and equipment, net $ 39,624 $ 48,887 Depreciation related to Property and Equipment amounted to $ 3,088 12,969 9,264 38,907

RIGHT-OF-USE ASSETS

RIGHT-OF-USE ASSETS	9 Months Ended
	Sep. 30, 2022
Right-of-use Assets
RIGHT-OF-USE ASSETS	NOTE 4 – RIGHT-OF-USE ASSETS Minimum Maximum Right-of-Use Assets consist of assets accounted for under ASC 842. The assets are recorded at present value using implied interest rates between 4.75 7.50 The Company has Right-of-Use Assets through leases of property under four (4) non-cancelable leases. As of September 30, 2022, the Company had four (4) properties with a lease term more than one (1) year. These lease liabilities expire June 1, 2025, July 31, 2025, March 31, 2026, and September 2, 2030. The Company has no current lease liabilities. In January 2021, the Company entered a new five (5) year lease for its corporate headquarters located in Plano, TX. In June 2022, the Company entered a three (3) year lease for its new U.S. based national call center operation in Atmore, AL. In August 2022, the Company entered a three (3) year lease in Tulsa, OK, to support its distribution channel. In September 2022, the Company entered an eight (8) year lease in its Johnstown, PA location Future lease liability payments under the terms of these leases are as follows: Right-of-Use Assets - Schedule of Future Minimum Lease Payments for Operating Leases 2022 $ 38,134 2023 $ 153,593 2024 $ 155,325 2025 $ 129,543 2026 $ 65,967 2027 and thereafter $ 198,000 Total $ 740,562 Less Interest $ 129,524 Present value of minimum lease payments $ 611,038 Less Current Maturities $ 115,653 Long Term Maturities $ 495,385 The Company had (2) office/retail spaces on a month-to-month basis during Q3 2022, now supplanted under new lease obligations. Total lease expense for the three months ended September 30, 2022, and 2021, was $ 2,073 6,217 15,508 18,652

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5 – INTANGIBLE ASSETS Intangible Assets with definite useful life consist of licenses, customer lists and software that were acquired through acquisitions. Intangible Assets with indefinite useful life consist of a Lifeline License granted by the FCC. The Lifeline 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 Lifeline License was acquired through an acquisition. The fair market value of the License as of September 30, 2022, was $ 634,251 September 30, 2022 December 31, 2021 Customer List $ 1,135,962 $ 1,135,962 Software 2,407,001 2,407,001 ETC License 634,251 634,251 Less: Amortization (3,542,963 ) (3,542,963 ) Net Amortizable Intangibles 634,251 634,251 Right of Use Assets - net 590,539 173,524 Intangible Assets - net $ 1,224,790 $ 807,775 Amortization expense amounted to $ 0 200,583 0 601,750

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 6 – NOTES PAYABLE In 2020, the Company was granted a $ 150,000 30 3.75 On June 14, 2022, the Company and its wholly owned subsidiary companies entered into a Note Purchase Agreement and related Guarantee and Security Agreement with CCUR Holdings, Inc. (as collateral agent), and Symbolic Logic, Inc., whereby the Company pledged its assets to secure $ 3,150,000 12 15 153,284 2,984,181 153,284 2,984,181 150,000

CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND COMMITMENTS	NOTE 7 – 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 September 30, 2022, there are no ongoing legal proceedings. 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. Tax Audits In June of 2021, the Company received an audit determination and assessment from the State of Pennsylvania related to sales and use tax for the audit period of January 1, 2016, through September 30, 2019. The assessment is in the amount of $ 115,000 7,000 Letters of Credit The Company had no outstanding letters of credit as of September 30, 2022.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 8 – SEGMENT REPORTING The Company operates within two ( 2 The reportable segments consist of Hosted Services and Mobile Services. Hosted Services Mobile Services The following table reflects the result of operations of the Company’s reportable segments: Segment Reporting - Schedule of Segment Reporting Information Hosted Services Mobile Services Total For the nine months period ended September 30, 2022 Revenue $ 4,199,365 $ 11,031,923 $ 15,231,288 Gross Profit $ 1,372,019 $ 1,628,891 $ 3,000,910 Depreciation and amortization $ 8,958 $ 306 $ 9,264 Additions to property and equipment $ — $ — $ — For the three months period ended September 30, 2022 Revenue $ 1,328,333 $ 4,552,000 $ 5,880,333 Gross Profit $ 453,087 $ 457,995 $ 911,082 Depreciation and amortization $ 2,986 $ 102 $ 3,088 Additions to property and equipment $ — $ — $ — For the nine months period ended September 30, 2021 Revenue $ 4,380,547 $ 4,539,026 $ 8,919,573 Gross Profit $ 1,600,069 $ 2,372,718 $ 3,972,787 Depreciation and amortization $ 619,472 $ 21,185 $ 640,657 Additions to property and equipment $ — $ — $ — For the three months period ended September 30, 2021 Revenue $ 1,588,035 $ 2,024,826 $ 3,612,861 Gross Profit $ 559,785 $ 1,064,452 $ 1,624,237 Depreciation and amortization $ 206,490 $ 7,062 $ 213,552 Additions to property and equipment $ — $ — $ —

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 9 – STOCKHOLDERS’ EQUITY Common Stock The Company issued 600,000 in consideration of the sum of $90,000, or $45,000 for each 300,000 share tranche 423,120 in a cashless exchange of 76,880 shares underlying a 500,000 share incentive stock option grant made on December 18, 2017 Stock Compensation The Company offers incentive stock option equity grants to directors and key employees. Options vest in tranches and typically expire in five (5) years. For the three months ended September 30, 2022, and 2021, the Company recorded options expense of $ 185,637 62,877 539,933 141,935 1,889,371 2.54 Through September 30, 2022, the Company granted 900,000 700,000 4 150,000 50,000 5 2.32 615.19 1.26 The following table represents stock option activity as of and for the nine months ended September 30, 2022: Stockholders’ Equity - Schedule of Share-Based Compensation, Stock Option Activity No. Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2021 4,260,000 $ 0.37 2.25 $ 5,862,938 Granted 900,000 1.13 4.41 Exercised 600,000 — — — Forfeited 70,000 — — — Options Outstanding – September 30, 2022 4,490,000 $ 0.53 2.54 $ 3,351,936 Exercisable and Vested, September 30, 2022 1,936,189 $ 0.36 1.29 $ 1,789,202

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS Subsequent Event Below are events that have occurred since September 30, 2022: Incentive Stock Option Grants The Company granted a quarterly director 25,000 1.386 The Company also granted a quarterly director 25,000 1.32 Effective October 14, 2022, and pursuant to a Letter Agreement of that date and the consent of the Board of Directors of the Company dated October 12, 2022, the Company cancelled 50,000 0.85 Exhibit 4.1 50,000 Exhibit 10.2

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	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, 2021. 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. Estimates in these financial statements include the allowance for doubtful receivables, allowance for inventory obsolescence, the estimated useful lives of property and equipment, and stock-based compensation. Actual results could differ from those estimates.
Basis of Consolidation	Basis of Consolidation The condensed consolidated financial statements include the Company and three wholly owned corporate subsidiaries, KonaTel Nevada, Apeiron Systems and IM Telecom. All significant intercompany transactions are eliminated.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic income (loss) per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Dilutive common share equivalents are computed by using the “Treasury Stock Method,” which computes the number of new shares that may potentially be created by unexercised options. Diluted common share equivalents are stock based compensation options. The dilutive common shares derived from stock options are 4,490,000 4,490,000 The following table reconciles the shares outstanding and net income used in the computations of both basic and diluted earnings per share of common stockholders: Summary of Significant Accounting Policies -Schedule of Earnings Per Share, Basic and Diluted Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Income (Loss) $ (1,345,514 ) $ 319,836 $ (2,868,317 ) $ 428,199 Weighted average shares outstanding during period on which basic earnings per share is calculated 41,912,145 40,899,569 41,715,406 40,758,495 Effect of dilutive shares Incremental shares under stock-based compensation 2,676,266 2,676,266 Weighted average shares outstanding during period on which diluted earnings per share was calculated 41,912,145 43,565,835 41,715,406 43,434,761 Earnings per share attributable to common stockholders Basic earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01 Diluted earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01
Concentrations 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 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. Trade Account Receivables Sales Revenue The Company has a concentration of risk with respect to trade receivables from customers and cellular providers. As of September 30, 2022, the Company had a significant concentration of receivables (defined as customers whose receivable balances are greater than 10% of total receivables) due from one (1) customer in the amount of $ 1,305,264 86.8 783,431 63.9 194,647 15.9
Concentration of Major Customer	Concentration of Major Customer A significant amount of the revenue is derived from large customers and the government. For the three months ended September 30, 2022, the Company had two (2) customers that accounted for $ 826,901 14.1 4,173,492 71.0 1,037,717 28.7 1,637,712 45.3 9,915,189 65.1 2,639,730 17.3 3,297,984 37.0 2,818,465 31.6
Effect of Recent Accounting Pronouncements	Effect of Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and believes that none will have a significant effect on the Company’s financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies -Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the shares outstanding and net income used in the computations of both basic and diluted earnings per share of common stockholders: Summary of Significant Accounting Policies -Schedule of Earnings Per Share, Basic and Diluted Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Income (Loss) $ (1,345,514 ) $ 319,836 $ (2,868,317 ) $ 428,199 Weighted average shares outstanding during period on which basic earnings per share is calculated 41,912,145 40,899,569 41,715,406 40,758,495 Effect of dilutive shares Incremental shares under stock-based compensation 2,676,266 2,676,266 Weighted average shares outstanding during period on which diluted earnings per share was calculated 41,912,145 43,565,835 41,715,406 43,434,761 Earnings per share attributable to common stockholders Basic earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01 Diluted earnings per share $ (0.03 ) $ 0.01 $ (0.07 ) $ 0.01

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment - Schedule of Property and Equipment	Property and equipment consist of the following major classifications as of September 30, 2022, and December 31, 2021: Property and Equipment - Schedule of Property and Equipment September 30, 2022 December 31, 2021 Lease Improvements Lease Improvements $ 46,950 $ 46,950 Furniture and Fixtures Furniture and Fixtures 102,946 102,946 Billing Software 217,163 217,163 Office Equipment Office Equipment 94,552 94,552 461,611 461,611 Less: Accumulated Depreciation (421,987 ) (412,724 ) Property and equipment, net $ 39,624 $ 48,887

RIGHT-OF-USE ASSETS (Tables)

RIGHT-OF-USE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
Right-of-use Assets
Right-of-Use Assets - Schedule of Future Minimum Lease Payments for Operating Leases	Future lease liability payments under the terms of these leases are as follows: Right-of-Use Assets - Schedule of Future Minimum Lease Payments for Operating Leases 2022 $ 38,134 2023 $ 153,593 2024 $ 155,325 2025 $ 129,543 2026 $ 65,967 2027 and thereafter $ 198,000 Total $ 740,562 Less Interest $ 129,524 Present value of minimum lease payments $ 611,038 Less Current Maturities $ 115,653 Long Term Maturities $ 495,385

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets - Schedule of Acquired Finite Lived Intangible Assets	September 30, 2022 December 31, 2021 Customer List $ 1,135,962 $ 1,135,962 Software 2,407,001 2,407,001 ETC License 634,251 634,251 Less: Amortization (3,542,963 ) (3,542,963 ) Net Amortizable Intangibles 634,251 634,251 Right of Use Assets - net 590,539 173,524 Intangible Assets - net $ 1,224,790 $ 807,775

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Reporting - Schedule of Segment Reporting Information	The following table reflects the result of operations of the Company’s reportable segments: Segment Reporting - Schedule of Segment Reporting Information Hosted Services Mobile Services Total For the nine months period ended September 30, 2022 Revenue $ 4,199,365 $ 11,031,923 $ 15,231,288 Gross Profit $ 1,372,019 $ 1,628,891 $ 3,000,910 Depreciation and amortization $ 8,958 $ 306 $ 9,264 Additions to property and equipment $ — $ — $ — For the three months period ended September 30, 2022 Revenue $ 1,328,333 $ 4,552,000 $ 5,880,333 Gross Profit $ 453,087 $ 457,995 $ 911,082 Depreciation and amortization $ 2,986 $ 102 $ 3,088 Additions to property and equipment $ — $ — $ — For the nine months period ended September 30, 2021 Revenue $ 4,380,547 $ 4,539,026 $ 8,919,573 Gross Profit $ 1,600,069 $ 2,372,718 $ 3,972,787 Depreciation and amortization $ 619,472 $ 21,185 $ 640,657 Additions to property and equipment $ — $ — $ — For the three months period ended September 30, 2021 Revenue $ 1,588,035 $ 2,024,826 $ 3,612,861 Gross Profit $ 559,785 $ 1,064,452 $ 1,624,237 Depreciation and amortization $ 206,490 $ 7,062 $ 213,552 Additions to property and equipment $ — $ — $ —

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders’ Equity - Schedule of Share-Based Compensation, Stock Option Activity	The following table represents stock option activity as of and for the nine months ended September 30, 2022: Stockholders’ Equity - Schedule of Share-Based Compensation, Stock Option Activity No. Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options Outstanding – December 31, 2021 4,260,000 $ 0.37 2.25 $ 5,862,938 Granted 900,000 1.13 4.41 Exercised 600,000 — — — Forfeited 70,000 — — — Options Outstanding – September 30, 2022 4,490,000 $ 0.53 2.54 $ 3,351,936 Exercisable and Vested, September 30, 2022 1,936,189 $ 0.36 1.29 $ 1,789,202

Summary of Significant Accoun_4

Summary of Significant Accounting Policies -Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Net Income (Loss)	$ (1,345,514)	$ 319,836	$ (2,868,317)	$ 428,199
Weighted average shares outstanding during period on which basic earnings per share is calculated	41,912,145	40,899,569	41,715,406	40,758,495
Effect of dilutive shares
Incremental shares under stock-based compensation		2,676,266		2,676,266
Weighted average shares outstanding during period on which diluted earnings per share was calculated	41,912,145	43,565,835	41,715,406	43,434,761
Earnings per share attributable to common stockholders
Basic earnings per share	$ (0.03)	$ 0.01	$ (0.07)	$ 0.01
Diluted earnings per share	$ (0.03)	$ 0.01	$ (0.07)	$ 0.01

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Product Information [Line Items]
Antidilutive shares excluded from computation of diluted earnings per share	4,490,000		4,490,000
Revenue	$ 5,880,333	$ 3,612,861	$ 15,231,288	$ 8,919,573
Trade Account Receivables | Customer #1
Product Information [Line Items]
Receivables, concentration	$ 1,305,264		$ 1,305,264		$ 783,431
Concentration risk			86.80%		63.90%
Trade Account Receivables | Customer #2
Product Information [Line Items]
Receivables, concentration					$ 194,647
Concentration risk					15.90%
Sales Revenue | Customer #1
Product Information [Line Items]
Concentration risk	14.10%	28.70%	65.10%	37%
Revenue	$ 826,901	$ 1,037,717	$ 9,915,189	$ 3,297,984
Sales Revenue | Customer #2
Product Information [Line Items]
Concentration risk	71%	45.30%	17.30%	31.60%
Revenue	$ 4,173,492	$ 1,637,712	$ 2,639,730	$ 2,818,465

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventory, net	$ 297,393	$ 566,839

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 461,611	$ 461,611
Less:  Accumulated Depreciation	(421,987)	(412,724)
Property and equipment, net	39,624	48,887
Lease Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,950	46,950
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	102,946	102,946
Billing Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	217,163	217,163
Office Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 94,552	$ 94,552

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 3,088	$ 213,552	$ 9,264	$ 640,657
Property and Equipment
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 3,088	$ 12,969	$ 9,264	$ 38,907

Right-of-Use Assets - Schedule

Right-of-Use Assets - Schedule of Future Minimum Lease Payments for Operating Leases (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Right-of-use Assets
2022	$ 38,134
2023	153,593
2024	155,325
2025	129,543
2026	65,967
2027 and thereafter	198,000
Total	740,562
Less Interest	129,524
Present value of minimum lease payments	611,038
Less Current Maturities	115,653	$ 50,672
Long Term Maturities	$ 495,385	$ 136,445

RIGHT-OF-USE ASSETS (Details Na

RIGHT-OF-USE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease terms and expirations, description			the Company had four (4) properties with a lease term more than one (1) year. These lease liabilities expire June 1, 2025, July 31, 2025, March 31, 2026, and September 2, 2030. The Company has no current lease liabilities. In January 2021, the Company entered a new five (5) year lease for its corporate headquarters located in Plano, TX. In June 2022, the Company entered a three (3) year lease for its new U.S. based national call center operation in Atmore, AL. In August 2022, the Company entered a three (3) year lease in Tulsa, OK, to support its distribution channel. In September 2022, the Company entered an eight (8) year lease in its Johnstown, PA location
Lease expense	$ 2,073	$ 6,217	$ 15,508	$ 18,652
Minimum
Implied interest rate used	4.75%		4.75%
Maximum
Implied interest rate used	7.50%		7.50%

Intangible Assets - Schedule of

Intangible Assets - Schedule of Acquired Finite Lived Intangible Assets (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Customer List	$ 1,135,962	$ 1,135,962
Software	2,407,001	2,407,001
ETC License	634,251	634,251
Less: Amortization	(3,542,963)	(3,542,963)
Net Amortizable Intangibles	634,251	634,251
Right of Use Assets - net	590,539	173,524
Intangible Assets - net	$ 1,224,790	$ 807,775

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Lifeline License, fair market value	$ 634,251		$ 634,251
Amortization expense	$ 0	$ 200,583	$ 0	$ 601,750

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)		12 Months Ended
	Jun. 14, 2022	Dec. 31, 2020
Economic Injury Disaster Loan
Short-Term Debt [Line Items]
Proceeds from EIDL loan		$ 150,000
Note payable, term		30 years
Interest rate		3.75%
Repayment of SBA "EIDL" Loan	$ 150,000
Note Purchase Agreement
Short-Term Debt [Line Items]
Note payable, term	12 months
Interest rate	15%
Note payable	$ 3,150,000
Origination fee and other legal and closing expenses	153,284
Note payable, net	$ 2,984,181

CONTINGENCIES AND COMMITMENTS (

CONTINGENCIES AND COMMITMENTS (Details Narrative) - State of Pennsylvania	1 Months Ended
	Jun. 30, 2021 USD ($)
Operating Loss Carryforwards [Line Items]
Tax assessment	$ 115,000
Potential tax liability	$ 7,000

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Revenue	$ 5,880,333	$ 3,612,861	$ 15,231,288	$ 8,919,573
Gross Profit	911,082	1,624,237	3,000,910	3,972,787
Depreciation and amortization	3,088	213,552	9,264	640,657
Additions to property and equipment	0	0	0	0
Hosted Services
Segment Reporting Information [Line Items]
Revenue	1,328,333	1,588,035	4,199,365	4,380,547
Gross Profit	453,087	559,785	1,372,019	1,600,069
Depreciation and amortization	2,986	206,490	8,958	619,472
Additions to property and equipment	0	0	0	0
Mobile Services
Segment Reporting Information [Line Items]
Revenue	4,552,000	2,024,826	11,031,923	4,539,026
Gross Profit	457,995	1,064,452	1,628,891	2,372,718
Depreciation and amortization	102	7,062	306	21,185
Additions to property and equipment	$ 0	$ 0	$ 0	$ 0

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative)	9 Months Ended
	Sep. 30, 2022 Number
Segment Reporting [Abstract]
Number of reportable segments	2

Stockholders_ Equity - Schedule

Stockholders’ Equity - Schedule of Share-Based Compensation, Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Equity [Abstract]
Number of shares, options outstanding	4,260,000
Weighted average exercise price, outstanding | $ / shares	$ 0.37
Weighted average remaining life, outstanding	2 years 3 months
Aggregate intrinsic value, outstanding | $	$ 5,862,938
Number of shares, granted	900,000
Weighted average exercise price, granted | $ / shares	$ 1.13
Weighted average remaining life, granted	4 years 4 months 28 days
Number of shares, exercised	600,000
Number of shares, forfeited	70,000
Number of shares, options outstanding	4,490,000
Weighted average exercise price, outstanding | $ / shares	$ 0.53
Weighted average remaining life, outstanding	2 years 6 months 14 days
Aggregate intrinsic value, outstanding | $	$ 3,351,936
Number of shares, exercisable and vested	1,936,189
Weighted average exercise price, exercisable and vested | $ / shares	$ 0.36
Weighted average remaining life, exercisable and vested	1 year 3 months 14 days
Aggregate intrinsic value, exercisable and vested | $	$ 1,789,202

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock issued, exercise of options			600,000
Stock-based compensation expense, vested options	$ 185,637	$ 62,877	$ 539,933	$ 141,935
Deferred compensation expense			$ 1,889,371
Expected term			2 years 6 months 14 days
Stock options, granted			900,000
Average exercise price			$ 1.13
Incentive Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expected term			5 years
Interest-free rate			2.32%
Average volatility rate			615.19%
Average exercise price			$ 1.26
Incentive Stock | Two Employees
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options, granted			700,000
Incentive stock options, vesting term			4 years
Incentive Stock | Independent Board Members
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options, granted			150,000
Incentive Stock | Independent Consultant
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock options, granted			50,000
Common Shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock issued, exercise of options	600,000	575,000	600,000	575,000
Common Shares | 2018 Stock Option Plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock issued, exercise of options			600,000		423,120
Common stock issued, exercise of options			in consideration of the sum of $90,000, or $45,000 for each 300,000 share tranche		in a cashless exchange of 76,880 shares underlying a 500,000 share incentive stock option grant made on December 18, 2017

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)			1 Months Ended	9 Months Ended
	Nov. 11, 2022	Oct. 14, 2022	Oct. 28, 2022	Sep. 30, 2022
Subsequent Event [Line Items]
Incentive stock options, granted				900,000
Incentive stock options, exercise price				$ 1.13
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period				70,000
Subsequent Event
Subsequent Event [Line Items]
Incentive stock options, exercise price		$ 0.85
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period		50,000
[custom:PaymentInLieuOfStockOptions]		$ 50,000
Subsequent Event | Independent Director #1
Subsequent Event [Line Items]
Incentive stock options, granted			25,000
Incentive stock options, exercise price			$ 1.386
Subsequent Event | Independent Director #2
Subsequent Event [Line Items]
Incentive stock options, granted	25,000
Incentive stock options, exercise price	$ 1.32