UNITED STATES

SECURITIES EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-K/A-2



xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934



For the fiscal year ended December 31, 2019



oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934



For the transition period from



Commission File No. 001-10171



|KonaTel, Inc.                                 
|----------------------------------------------
|(Name of Small Business Issuer in its Charter)



|Delaware                                                       |  | 80-0000245                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other Jurisdiction of Incorporation or organization) |  | (I.R.S. Employer Identification No.)



|                                                      
|------------------------------------------------------
|13601 Preston Road, # E816
        Dallas, Texas 75240
|(Address of Principal Executive Offices)              



|214-323-8410                                        
|----------------------------------------------------
|(Registrant’s Telephone Number, including area code)



Securities Registered Pursuant to Section 12(b)
of the Act: None



Securities Registered Pursuant to Section 12(g)
of the Act: Common Stock, par value $0.001



Indicate by check mark if the Registrant is
a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   o
Yes x No



Indicate by check mark if the Registrant is
not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  o
Yes x No



Indicate by check mark whether the Registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. x Yes o No



Indicate by check mark whether the Registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).
x Yes o No



Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained,
to the best of Registrant’s knowledge, in definitive proxy
or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o



Indicate by check mark whether the Registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filer o   | Accelerated filer o                          
|--------------------------- | ---------------------------------------------
|Non-accelerated filer o     | (Do not check if a smaller reporting company)
|Smaller reporting company x | Emerging Growth company x                    



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Our website is KonaTel.com.



If an emerging growth company, indicate by
check mark if the Registrant 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. x



Indicate by check mark whether the Registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). o Yes x
No



On June 30, 2019, the last business day of
the Registrant’s most recently completed second quarter, the
aggregate market value of the Registrant’s common stock held by non-affiliates of the Registrant was $1,896,343, based upon
12,942,286 shares of the Registrant’s common stock being currently owned by such persons, and based upon the closing price
of the common stock of the Registrant on the OTC Markets Group Inc. (“OTC Markets”) “OTC Pink Tier” (“KTEL”)
of $0.15 per share on June 28, 2019.



As of December 31, 2019, March 31, 2020, and
May 11, 2020, the Registrant had 40,692,286 shares of its common stock, $0.001 par value, issued and outstanding.



FORWARD LOOKING STATEMENTS



In this Annual Report, references to “KonaTel,
Inc.,” “KonaTel,” the “Company,” “we,” “our,” “us” and words
of similar import, refer to KonaTel, Inc., a Delaware corporation, formerly named Dala Petroleum Corp., which is the Registrant,
and our wholly-owned subsidiaries, KonaTel, Inc., a Nevada corporation (“KonaTel Nevada”), Apeiron Systems, Inc., a
Nevada corporation (“Apeiron Systems”), and IM Telecom, LLC, an Oklahoma limited liability company doing business as
“Infiniti Mobile” (sometimes called “IM Telecom”).



This Annual Report contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify
forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,”
“potential,” “predict,” “project,” “should,” “will,” “would,”
or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications
of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information
available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause
our results, levels of activity, performance or achievements to be materially different from the information expressed or implied
by the forward-looking statements in this Annual Report. We cannot assure you that the forward-looking statements in this Annual
Report will prove to be accurate, and therefore, prospective investors are encouraged not to place undue reliance on forward-looking
statements. You should carefully read this Annual Report completely, and it should be read and considered with all other reports
filed by us with the United States Securities and Exchange Commission (the “SEC”). Other than as required by law, we
undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.



Explanatory Note



The Company is filing this Amendment No. 2
on Form 10-K/A (this “Amendment No. 2”) to amend its Annual Report on Form 10-K for the year ended December 31, 2019,
originally filed with the SEC on May 11, 2020 (the “Original 10-K”), and amended on May 19, 2020, to disclose the extended
filing date by reason of an order issued by the SEC under Section 36 of the Exchange Act dated March 4, 2020 (Release No. 34-88318),
as modified and superseded by a new SEC order issued on March 25, 2020 (Release No. 34-88465 (collectively, the “Order”)
(the “First Amended Form 10-K”), solely to disclose that the Company failed to provide required disclosure in its Original
10-K or its First Amended 10-K about management’s evaluation of disclosure controls and procedures as defined in SEC Rules
13a-15(e) and 15d-15(e) under the Exchange Act pursuant to Part II, Item 9A of SEC Form 10-K.



The Company has also amended Part IV, Item
15, to include currently dated Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 from the Company’s
principal executive officer and principal financial officer. Because no financial statements have been included in this Amendment
No. 2, paragraph 3 of the Certifications has been omitted. Similarly, because no financial statements have been included in this
Amendment No. 2, Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 have been omitted.



Except as described above, this Amendment No.
2 does not amend, modify or update the information in, or exhibits to, the Original 10-K or the First Amended 10-K, and we have
not updated disclosures included therein to reflect any subsequent events. This Amendment No. 2 should be read in conjunction with
the Original Form 10-K and the First Amended 10-K and with our other filings made by us with the SEC subsequent to the filing of
the Original Form 10-K and the First Amended 10-K.



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Item 9A: CONTROLS AND PROCEDURES



Disclosure Controls and Procedures



We maintain disclosure controls and procedures
as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that material information relating
to us is made known to the officers who certify our financial reports and to other members of senior management and the Board of
Directors. These disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports
that are filed or submitted under the Exchange Act are recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed
to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act
is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons
performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Management, with the participation
of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness, as of December 31, 2019, of our disclosure
controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures were effective as of December 31, 2019.



Management’s Annual Report on Internal
Control Over Financial Reporting



Our management is responsible for establishing
and maintaining effective internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Internal
control over financial reporting is a process designed by, or under the supervision of our Chief Executive Officer and our Chief
Financial Officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. Internal controls over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records, which in reasonable detail,
accurately and fairly reflect the transactions and disposition of our assets; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that our receipts and expenditures are being made in accordance with authorizations of management and directors of the issuer;
and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of our assets that could have a material effect on our consolidated financial statements.



Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become ineffective because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.



In evaluating the effectiveness of our internal
control over financial reporting as of December 31, 2019, management used the criteria established in the Internal Control –
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
Based on the criteria established by COSO, management, with the participation of our Chief Executive Officer and our Chief Financial
Officer, determined that our internal control over financial reporting as of December 31, 2019, was effective. Material weaknesses
in the Company’s internal control over financial reporting that were discovered in our financial reporting as of December
31, 2018, and which included (i) the limited number of staff at the Company; and (ii) the inability of the Company to achieve proper
segregation of duties among its staff for effective internal control over financial reporting, had been eliminated prior to December
31, 2019, by the engagement of a Vice President of Finance who established a payment approval process and implemented a closing
of the books to process our financial statements, which included multiple reviews of our internal controls and financial statements
prior to publication.



This Annual Report does not include an attestation
report of our registered public accounting firm regarding internal control over financial reporting.  Management’s
report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC that permit us to provide
only management’s report in this Annual Report.



Changes in Internal Control Over Financial
Reporting



Except as stated above, there have been no
changes in internal control over financial reporting during the period covered by this Annual Report.





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Limitations on the Effectiveness of Controls



Our management does not expect that our disclosure
controls and procedures or our internal control over financial reporting will prevent or detect all error and all fraud. A
control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control
system’s objectives will be met. Further, the design of the control system must reflect that there are resource constraints
and that the benefits must be considered relative to their costs. Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company
have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that
breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of controls. The design of any system of controls is
based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions.  Projections of any evaluation of controls
effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions
or deterioration in the degree of compliance with policies or procedures.





PART IV



ITEM 15:  EXHIBITS, FINANCIAL STATEMENT SCHEDULES



(a)(1)(2)

Financial Statements.  See the audited
financial statements of the Company contained in Part II, Item 8 above, of this Annual Report, which are incorporated herein by
this reference.



(a)(3)



Exhibits.  The following exhibits are filed as part of
this Annual Report:



(a) Exhibits.



|Exhibit
        Number |  | Description of Exhibit                                                                             |  | Filing         
|---------------------- |  | -------------------------------------------------------------------------------------------------- |  | ---------------
|31.1                   |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |  | Filed herewith.
|31.2                   |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |  | Filed herewith 



















































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SIGNATURES



Pursuant to the requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.



KonaTel, Inc.



|Date: | November 2, 2020 |  | By: | /s/ D. Sean McEwen         
|----- | ---------------- |  | --- | ---------------------------
|      |                  |  |     | D. Sean McEwen             
|      |                  |  |     | Chairman, President and CEO



|Date: | November 2, 2020 |  | By: | /s/ Brian R. Riffle    
|----- | ---------------- |  | --- | -----------------------
|      |                  |  |     | Brian R. Riffle        
|      |                  |  |     | Chief Financial Officer



Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities
and on the dates indicated.



|Date: | November 2, 2020 |  | By: | /s/ D. Sean McEwen                     
|----- | ---------------- |  | --- | ---------------------------------------
|      |                  |  |     | D. Sean McEwen                         
|      |                  |  |     | Chairman, President, CEO and a Director



|Date: | November 2, 2020 |  | By: | /s/ Brian R. Riffle    
|----- | ---------------- |  | --- | -----------------------
|      |                  |  |     | Brian R. Riffle        
|      |                  |  |     | Chief Financial Officer



|Date: | November 2, 2020 |  | By: | /s/ Robert Beaty
|----- | ---------------- |  | --- | ----------------
|      |                  |  |     | Robert Beaty    
|      |                  |  |     | Director        



|Date: | November 2, 2020 |  | By: | /s/ Jeffrey Pearl
|----- | ---------------- |  | --- | -----------------
|      |                  |  |     | Jeffrey Pearl    
|      |                  |  |     | Director         

















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