Item 5. Market for Registrant’s Common Equity
ITEM 5: MARKET FOR REGISTRANT’S
COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Until December 14, 2020, our common stock was quoted
on the OTC Pink Tier of the OTC Markets under the symbol “KTEL.” On December 14, 2020, our common was approved for up-listing
on the OTC Markets’ OTCQB® Venture Market or the OTCQB Tier. No assurance can be given that any established trading market for
our common stock will develop or be maintained.
For any market that develops for our common stock,
the sale of shares of our common stock comprised of “restricted securities” pursuant to Rule 144 of the SEC, any other available
exemption from registration under the Securities Act or by registration under the Securities Act by members of management or others, including
any person to whom any such securities may be issued in the future, may have a substantial adverse impact on any such public market. For
information regarding the requirements of resales under Rule 144, see the heading “Rule 144” of this Item below
The common stock that can be acquired under vested
and exercised incentive stock options that we have granted may also have an impact on any public trading market in our common stock. See
the heading “Outstanding Equity Awards” of the caption “Executive Compensation” in Part III, Item 11 hereof, for
a description of all of our outstanding incentive stock options.
Also, see the heading “Risks Related to Our
Common Stock” of the caption “Risk Factors” in Part I, Item 1A hereof.
The following table sets forth, for the periods indicated
over the last two (2) years, the high and low closing bid quotations, as reported by the OTC and OTCQB Markets, and represents prices
between dealers, does not include retail markups, markdowns, or commissions, and may not represent actual transactions:
For the Years Ended December 31,
2021
2020
High
Low
High
Low
First Quarter
$ 0.77
$ 0.24
$ 0.19
$ 0.11
Second Quarter
$ 1.06
$ 0.39
$ 0.29
$ 0.11
Third Quarter
$ 0.91
$ 0.65
$ 0.19
$ 0.05
Fourth Quarter
$ 1.93
$ 0.82
$ 0.42
$ 0.05
These prices were obtained from OTC Markets and do
not necessarily reflect actual transactions, retail markups, mark downs or commissions.
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Rule 144
The following is a summary of the current requirements of Rule 144, excluding
issues related to companies that are or have ever been a “shell company”:
Securities
Affiliate or Person Selling on Behalf of an Affiliate
Non-Affiliate (and has not been an Affiliate During the Prior Three Months)
Restricted Securities of Reporting Issuers
During six-month holding period – no resales
under Rule 144 Permitted.
After six-month holding period – may resell
in accordance with all Rule 144 requirements including:
*Current public information,
Volume limitations,
Manner of sale requirements for equity
securities, and
Filing of Form 144.
*Current public information is continually required for resales
under Rule 144 because the Company was a former “shell company.”
During six-month holding period – no resales under Rule 144
permitted.
After six-month holding period but before one year – unlimited
public resales under Rule 144 except that the current public information requirement still applies.
After one-year holding period – unlimited public resales under
Rule 144; need not comply with any other Rule 144 requirements.
Restricted Securities of Non-Reporting Issuers
During one-year holding period – no resales
under Rule 144 permitted.
After one-year holding period – may resell
in accordance with all Rule 144 requirements including:
Current public information,
Volume limitations,
Manner of sale requirements for equity
securities, and
Filing of Form 144.
During one-year holding period – no resales under Rule 144
permitted.
After one-year holding period – unlimited public resales under
Rule 144; need not comply with any other Rule 144 requirements.
Holders
We currently have 561 shareholders of record as of
December 31, 2021, not including an indeterminate number of shareholders who may hold their shares in “street name.”
Dividends
We have not declared any cash dividends with respect
to our common stock, and do not intend to declare dividends in the foreseeable future. All future earnings are anticipated to be utilized
for research, development and the furtherance of our business plan and our technologies, products, services, and platform, and accordingly,
it is highly unlikely that you will receive any dividends from us in the near future, if ever.
There are no material restrictions limiting, or that
are likely to limit, our ability to pay dividends on our securities.
Recent Sales of Unregistered Securities; Use of Proceeds from Registered
Securities
There have been no sales by us of any unregistered securities during the
past two (2) years ended December 31, 2021, and 2020.
Use of Proceeds of Registered Securities
None; not applicable.
Purchases of Equity Securities by Us and Affiliated Purchasers
None; not applicable.
ITEM 6: [RESERVED]
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.