Never mind... problem SOLVED...
My krpanoiphone.license.js was not in my krpanotools folder along with the other licenses. Copied one over from my krpano folder and all is well. Dumb mistake.
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None of my Mac OS X droplets are not producing the necessary files for HTML5 viewing:
I've checked their respective config files and the following line is present:
However, when I run the droplet, Terminal displays the following line:
When I view the file via iPad it tells me Flash is required.
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OS X 10.8.3
krpano 1.16.2-mac64