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Subsequent Events
12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

NOTE 12 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through the date of this filing, and with the exception of the following, no material subsequent events have occurred:

 

Loss of Significant Employee

 

Effective February 19, 2021 one (1) of our significant employees, Vyacheslav “Slava” Yanson resigned his position as Chief Technology Officer of Apeiron Systems. The Company is in the process of evaluating several channels for replacing Mr. Yanson’s industry knowledge and expertise.

 

Forgiveness of CARES Act Paycheck Protection Program (PPP) Loans

 

During March 2021, the Company received confirmation from the Small Business Administration that the PPP loans for Apeiron Systems ($101,800) and IM Telecom ($20,900) respectively have been forgiven. Application for forgiveness for the remaining loan to KonaTel Nevada in the amount of $186,300 is in process.

 

New Leased Headquarters Office Space

 

On December 18, 2020 the Company entered into a lease agreement for an office suite in Plano, TX to commence on January 25, 2021. Lease payments are deferred until May 1, 2021. Commencing on May 1, 2021 lease payments will be $3,650 per month for the 12-month period ended April 30, 2022. The lease term is five (5) years.

 

100,000 Incentive Stock Options granted to Terry Addington, a director who resigned effective January 1, 2020, expired on January 1, 2021.

 

The Company granted two (2) quarterly director 25,000 share Incentive Stock Options, one to Jeffrey Pearl on January 28, 2021, at an exercise price of $.4895, fully vested; and one to Robert Beaty on February 12, 2020, at an exercise price of $.44, fully vested. The exercise prices were based upon 110% of the fair market value of our common stock on these respective dates.

 

On April 1, 2021, the Company also granted 150,000 Incentive Stock Options to an employee at an exercise price of $0.32, with 50,000 shares vesting annually on April 1, 2022, 2023 and 2024.