XML 60 R46.htm IDEA: XBRL DOCUMENT v3.19.1
Contingencies and Commitments (Details Narrative) - USD ($)
1 Months Ended 12 Months Ended
Jan. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Contingencies, description   The Company entered into an Agreement for the Purchase and Sale of Membership Interest dated as of February 5, 2018 (the "PSMI"), with the transaction documents being deposited in escrow on February 7, 2018, respecting the acquisition of 100% of the membership interest in IM Telecom, LLC, an Oklahoma limited liability company ("IM Telecom"), from its sole owner, Trevan Morrow ("Mr. Morrow"). The principal asset of IM Telecom is a "Lifeline Program" license (a Federal Communications Commission [the "FCC"] approved Compliance Plan), the transfer of ownership of which requires prior approval of the FCC. The PSMI provided that if the transfer of the beneficial ownership of the Lifeline Program license to us was not approved by the FCC prior to April 30, 2018, or a later date agreed upon by the parties, either party may terminate the PSMI; and the parties had agreed to continue the PSMI, with the FCC subsequently publishing notice of the approval of the transfer of the ownership of the Lifeline Program license to the Company on October 23, 2018. The parties finalized the closing of PSMI on February 1, 2019  
Stock options, exercise price   $ 0.33 $ 0.21
Net loss   $ (1,161,200) $ (1,713,180)
Cash flow from operations   (978,120) (1,000,835)
Accumulated deficit   $ (4,352,073) (3,190,873)
Pending Litigation | Subsequent Event      
Pending litigation Mr. Glosser filed an employment claim against us, alleging that his July 2017 firing was not "for cause" and thus breached his employment agreement with us. 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.    
Name of plaintiff Saul Glosser    
Dispute resolution type, description Arbitration    
Damages sought $ 80,000    
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  
Standby Letters of Credit      
Letter of credit   $ 275,000 $ 593,000