10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2014
or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________________ to ___________________

Commission File Number: 001-33035

WidePoint Corporation

(Exact name of Registrant as specified in its charter)

Delaware	52-2040275
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)

7926 Jones Branch Drive, Suite 520, McLean, Virginia	22102
(Address of principal executive offices)	(Zip Code)

(703) 349-2577

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:

Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted 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 and post such files):

Yes þ   No ¨

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

Large accelerated filer ¨	Accelerated filer                   ¨
Non-accelerated filer   ¨ (Do not check if a smaller reporting company)	Smaller reporting company  þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No þ

As of August 14, 2014, there were 73,130,328 shares of the registrant’s Common Stock issued and outstanding.

WIDEPOINT CORPORATION

INDEX

		Page No.
Part I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013 (unaudited)	2
	Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2014 and 2013 (unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the three and six month periods ended June 30, 2014 and 2013 (unaudited)	4
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 4.	Controls and Procedures	27
Part II.	OTHER INFORMATION
Item 6.	Exhibits	29
SIGNATURES		30
CERTIFICATIONS		31

1

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	JUNE 30,			DECEMBER 31,
	2014			2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	4,103,311		$	-
Accounts receivable, net of allowance for doubtful accounts  of $29,794 and $30,038 in 2014 and 2013, respectively		6,177,272			7,612,400
Unbilled accounts receivable		2,860,011			1,561,030
Inventories		35,871			61,338
Prepaid expenses and other assets		549,789			533,944
Income taxes receivable		-			763
Total current assets		13,726,254			9,769,475
NONCURRENT ASSETS
Property and equipment, net		1,836,865			1,545,951
Intangibles, net		4,080,957			3,613,271
Goodwill		20,838,927			16,618,467
Deferred income tax asset, net of current		5,498,201			4,407,630
Deposits and other assets		118,228			120,046
TOTAL ASSETS	$	46,099,432		$	36,074,840
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance	$	-		$	916,663
Short term note payable		34,529			119,336
Accounts payable		3,550,495			3,228,586
Accrued expenses		4,221,829			4,407,286
Deferred revenue		829,257			40,911
Income taxes payable		21,121			217,982
Deferred income taxes		700,743			700,743
Current portion of long-term debt		2,164,185			1,150,455
Current portion of deferred rent		71,547			78,525
Current portion of capital lease obligations		75,835			45,125
Total current liabilities		11,669,541			10,905,612
NONCURRENT LIABILITIES
Long-term debt, net of current portion		1,759,501			2,509,492
Capital lease obligation, net of current portion		70,592			57,119
Deferred rent, net of current portion		18,395			2,421
Deferred revenue		68,672			82,494
Deposits and other liabilities		1,964			1,964
Total liabilities		13,588,665			13,559,102
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding		-			-
Common stock, $0.001 par value; 110,000,000 shares authorized; 73,040,329 and 63,907,357 shares issued  and outstanding, respectively		73,040			63,907
Additional paid-in capital		81,484,180			69,867,491
Accumulated other comprehensive (loss) income		(34,856	)		-
Accumulated deficit		(49,011,597	)		(47,415,660	)
Total stockholders’ equity		32,510,767			22,515,738
Total liabilities and stockholders’ equity	$	46,099,432		$	36,074,840

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
REVENUES	$	12,394,021		$	11,343,962		$	21,996,800		$	23,312,068
COST OF REVENUES (including amortization and depreciation of $391,899, $363,609, $666,840, and $737,928, respectively)		8,780,226			7,816,920			15,915,767			16,510,574
GROSS PROFIT		3,613,795			3,527,042			6,081,033			6,801,494
OPERATING EXPENSES
Sales and Marketing		1,038,059			880,303			1,883,171			1,686,120
General and Administrative Expenses (including share-based compensation of $83,988, $58,281, $166,704, and  $112,268, respectively, and gain on change in fair value of  contingent obligation of $0, $369,000, $0, and $589,000, respectively)		3,666,282			2,386,801			6,722,120			4,913,616
Depreciation and Amortization		143,219			73,241			212,729			139,519
Total Operating Expenses		4,847,560			3,340,345			8,818,020			6,739,255
(LOSS) INCOME FROM OPERATIONS		(1,233,765	)		186,697			(2,736,987	)		62,239
OTHER INCOME (EXPENSE)
Interest Income		4,594			2,612			5,324			3,461
Interest (Expense)		(46,332	)		(55,937	)		(92,558	)		(115,519	)
Other Income (Expense)		5,924			4,134			11,799			8,505
Total Other Income (Expense)		(35,814	)		(49,191	)		(75,435	)		(103,553	)
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES		(1,269,579	)		137,506			(2,812,422	)		(41,314	)
INCOME TAX BENEFIT		(600,340	)		(1,845	)		(1,216,485	)		(145,396	)
NET (LOSS) INCOME	$	(669,239	)	$	139,351		$	(1,595,937	)	$	104,082
BASIC EARNINGS PER SHARE	$	(0.009	)	$	0.002		$	(0.023	)	$	0.002
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING		72,998,461			63,751,857			69,929,300			63,751,857
DILUTED EARNINGS PER SHARE	$	(0.009	)	$	0.002		$	(0.023	)	$	0.002
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING		72,998,461			63,936,607			69,929,300			63,908,752

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	SIX MONTHS ENDED
	JUNE 30,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(1,595,937	)	$	104,082
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax benefit		(1,098,027	)		(248,225	)
Depreciation expense		224,128			188,705
Provision for doubtful accounts		(244	)		57,403
Amortization of intangibles		655,441			688,742
Amortization of deferred financing costs		4,728			5,819
Share-based compensation expense		166,704			112,268
Gain on change in fair value of contingent obligation		-			(589,000	)
Loss on disposal of equipment		4,510			-
Changes in assets and liabilities:
Accounts receivable and unbilled receivables		1,459,732			3,330,619
Inventories		76,051			27,927
Prepaid expenses and other current assets		141,598			118,204
Other assets excluding deferred financing costs		(2,910	)		(3,637	)
Accounts payable and accrued expenses		(1,006,496	)		(2,509,034	)
Income tax (payable) receivable		(184,780	)		214,135
Deferred revenue		(112,747	)		59,902
Net cash (used in) provided by operating activities		(1,268,249	)		1,557,910
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(176,543	)		(235,375	)
Software development costs		(138,781	)		-
Business combination, net of cash acquired		(4,079,628	)		-
Net cash used in investing activities		(4,394,952	)		(235,375	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit		4,266,689			481,018
Repayments of bank line of credit advances		(5,183,352	)		(481,018	)
Principal repayments of long term debt		(736,261	)		(655,059	)
Principal repayments under capital lease obligations		(22,922	)		(21,036	)
Proceeds from public stock offering, net of offering costs		11,425,118			-
Proceeds from exercise of stock options		34,000			-
Net cash provided by (used in) financing activities		9,783,272			(676,095	)
Net effect of exchange rate on cash and equivalents		(16,760	)		-
NET INCREASE IN CASH		4,103,311			646,440
CASH, beginning of period		-			1,857,614
CASH, end of period	$	4,103,311		$	2,504,054

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	SIX MONTHS ENDED
	JUNE 30,
	2014		2013
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	99,677	$	93,632
Cash paid for income taxes	$	91,527	$	-
NONCASH INVESTING AND FINANCING ACTIVITIES
Insurance policies financed by short term notes payable	$	-	$	50,662

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

WIDEPOINT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Nature of Operations

Organization

WidePoint Corporation (“WidePoint” or the “Company”) was incorporated in Delaware on May 30, 1997. The Company is a global provider of information technology (IT) based products, services, and solutions. The Company offers secure, cloud-based, enterprise-wide information technology-based solutions that enable commercial markets, and federal and state government organizations, to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. The Company has sales and operational offices strategically located throughout the continental United States, Ireland, the Netherlands and the United Kingdom. The Company’s principal executive and administrative headquarters is located in McLean, Virginia. See Note 3 for additional discussion regarding a recent business acquisition during the second quarter of 2014.

Nature of Operations

The Company has grown through the targeted acquisition of specialized IT companies that now provide a complementary suite of products and services for its Managed Mobility Solutions (MMS) offering. The Company’s MMS offers a portfolio of information technology based services and products with a set of streamlined mobile communications management, identity management, telecommunications data intelligence and consulting solutions that provide its customers with the ability to manage and protect their valuable communications assets and deploy compliant identity management solutions that provide secured virtual and physical access to restricted environments. Many of the Company’s solutions are accessible on-demand through cloud computing and provide customers with the ability to remotely manage their workforce mobility and identity management requirements in accordance with internal policies, the marketplace and the demands of its customers. The Company may authorize the use of discretionary operating capital to fund the development of MMS offerings, functionality and/or streamline the operation of its proprietary applications.

The Company’s operating results may vary significantly from quarter-to-quarter, due to revenues earned on contracts, the number of billable days in a quarter, the timing of the pass-through of other direct costs, the commencement and completion of contracts during any particular quarter, the schedule of the government agencies for awarding contracts, the term of each contract awarded and general economic conditions. A significant portion of the Company’s expenses, such as personnel and facilities costs, are fixed in the short term, successful contract performance and variation in the volume of activity as well as in the number of contracts commenced or completed during any quarter may cause significant variations in operating results from quarter to quarter.

2. Basis of Presentation and Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements as of June 30, 2014 and for each of the three and six month periods ended June 30, 2014 and 2013, respectively, included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to such regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. It is the opinion of management that all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results are reflected in the financial statements for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2013 was derived from the audited condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three and six month periods ended June 30, 2014 are not indicative of the operating results for the full year.

6

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and acquired entities since their respective dates of acquisition. All significant inter-company amounts were eliminated in consolidation.

Foreign Currency

Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each reporting period. The resulting translation adjustments, along with any related tax effects, are included in accumulated other comprehensive (loss) income, a component of stockholders’ equity. Translation adjustments are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. dollar, are reported net in the Company’s Consolidated Statements of Operations, depending on the nature of the activity.

Reclassifications

The Company reclassified amounts representing short term insurance financing arrangements previously included in the caption “principal repayments of short-term notes payable” within the caption “accounts payable and accrued expenses” on the condensed consolidated statement of cash flows presentation to conform to the current year presentation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring use of estimates and judgment relate to revenue recognition, accounts receivable valuation reserves, ability to realize intangible assets and goodwill, ability to realize deferred income tax assets, fair value of assets and liabilities acquired in connection with a business combination, fair value of certain financial instruments and the evaluation of contingencies and litigation. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Significant Accounting Policies

There have been no significant changes in the Company’s significant accounting policies during the first six months of 2014 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014.

Segment Reporting

The Company’s MMS offering is a portfolio of enterprise-wide information technology-based services which comprise a single MMS business from which the Company earns revenues and incurs costs. Currently the Company’s MMS offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its MMS business as a single segment. See Note 14 for detailed information regarding the composition of MMS services.

7

Accounting Standards Update

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The Company is evaluating the effect that ASU 2014-09 may have on our consolidated financial statements and related disclosures. The Company has neither selected a transition method nor determined the effect of the standard on its ongoing financial reporting.

3. Business Combinations

Soft-ex Communications Limited

On May 1, 2014, WidePoint Global Solutions, Inc. (“WGS”), a wholly-owned subsidiary of the Company entered into a Share Sale and Purchase Agreement (the “Agreement”), with Gutteridge Limited (“Gutteridge”), a wholly-owned subsidiary of Soft-Ex Holdings Limited (“SHL”), and the shareholders of Soft-Ex Holdings Limited, pursuant to which WGS purchased all of the outstanding equity of Soft-ex Communications Limited (“SCL”). As a result of this transaction, SCL became a wholly-owned subsidiary of WidePoint. WidePoint acquired all of the outstanding equity of SCL for $6.0 million. The purchase price for the outstanding equity of SCL consisted of (i) the payment at closing of cash in the amount of $5 million, subject to a post-closing net working capital adjustment, and (ii) the delivery of a subordinated unsecured loan note in the principal amount of $1.0 million (the “Note”).

WidePoint’s long term strategic objective of expanding its services and presence outside of the United States was launched with the acquisition of SCL. SCL is a leading supplier of telecom data intelligence services offered as a Software-as-a-Service (SaaS) solution that provides unique online data intelligence for Communication Service Providers (CSPs) and their enterprise customers for fixed, mobile, and IP/PABX communications. The addition of SCL complements the Company’s MMS offering and provides access to global CSPs and their customers and partners in over 90 countries throughout European and Middle Eastern markets.

SCL’s principal executive and administrative office headquarters is in Dublin, Ireland. SCL has two operating subsidiaries, Soft-Ex BV and Soft-Ex UK Limited, which maintain offices and operations in the Netherlands and the United Kingdom, respectively. SCL has been in business since 1989.

Purchase Consideration

The Company has not completed the detailed fair value calculations necessary to estimate the fair value of the assets acquired and the liabilities assumed and the related allocations of purchase consideration, nor has the Company identified all adjustments necessary to conform SCL’s accounting policies to the Company’s accounting policies. The excess of purchase price over the net tangible and intangible assets will be preliminarily recorded as goodwill. The following table sets forth the provisional fair value of consideration paid in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Cash consideration	$	5,000,000	(1)
Contingent subordinated unsecured loan note payable consideration		1,000,000	(2)
Net working capital escrow adjustment to consideration paid		-	(3)
Fair value of consideration paid	$	6,000,000

8

(1) The Company used operating cash on hand of $5.0 million, of which $4.35 million was released to the seller upon closing of the transaction and the remainder was delivered into escrow. Under the terms of the escrow agreement, the funds shall be released (subject to satisfaction of the terms of the escrow agreement) in two amounts with the first release of $0.15 million on or about May 1, 2015 and the second release of $0.5 million on or about August 1, 2015. The release of funds held in escrow may be subject to adjustment based on final net working capital as described in (3) below.

(2) The Company issued a subordinated unsecured loan Note in the principal amount of $1.0 million to satisfy the remainder of the purchase price. This is a US dollar denominated obligation. The Note accrues interest at the annual rate of 3% and provides for a lump sum payment of principal and interest on May 31, 2015; provided however that in the event that SCL fails to generate gross revenue for the three (3) months ending April 30, 2015 that is at least equal to 75% of the gross revenue generated by SCL for the three (3) months immediately preceding the acquisition of SCL, then the full face value of the Note shall be abrogated and all obligations of WGS under the Note shall be cancelled and waived. The principal amount may be subject to adjustment based on final net working capital as described in (3) below.

(3) Purchase consideration may be adjusted further upon determination of final net working capital as of May 1, 2014. Upon receipt of final net working capital the Company will determine the adjustment, if any, to purchase consideration. Under the terms of the Agreement there is a minimum required net working capital of €0.5 million ($0.7 million). The closing balance sheet shall be prepared in accordance with Irish GAAP within a reasonable period of time after the transaction close. To the extent the final closing net working capital results in a short fall of $50,000 (€36,150) or less, this shortfall shall be released to the Company from the second release tranche. If the net working capital shortfall is greater than $50,000 (€36,150), the Company shall offset this amount against the subordinated unsecured loan note as described in (2) above. To the extent the final closing net working capital results in a surplus of $50,000 (€36,150) or less, this surplus shall be paid into escrow by the Company into the second release tranche. If the net working capital surplus is greater than $50,000 (€36,150), the Company shall increase the subordinated unsecured loan note by the amount of the surplus.

Fair Value of Assets Acquired and Liabilities Assumed

The Company has not completed detailed fair value calculations necessary to estimate the fair value of the assets acquired and the liabilities assumed and the related allocations of purchase consideration, nor has the Company identified all adjustments necessary to conform SCL’s accounting policies to the Company’s accounting policies. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Fair value of identifiable assets acquired and liabilities assumed:
Cash	$	920,372
Trade receivables		1,294,573
Other current assets		248,026
Property and equipment		333,650
Intangibles		984,923
Other assets		2,437
Accounts payable and accrued expenses		(1,937,627	)
Capital lease obligation		(66,814	)
Total identifiable net assets acquired	$	1,779,540
Goodwill		4,220,460
Total purchase price	$	6,000,000

9

Transaction Costs

The Company incurred acquisition related due diligence, legal and accounting and transaction costs (including Irish stamp taxes and other processing costs) in connection with acquisition of SCL. For the three and six month periods ended June 30, 2014, the Company incurred costs of approximately $180,000 and $250,300, respectively. These transaction-related costs were expensed as incurred and reflected in general and administrative expense in the consolidated statements of operations for the periods presented.

Employment Agreements

In connection with acquisition of SCL, the Company entered into an employment agreement Ian Sparling, the Chief Executive Officer of SCL (the “Employment Agreement”), for Mr. Sparling to continue to serve as the Chief Executive Officer of SCL. The Employment Agreement provides for an annual base salary of €175,000 ($241,500). In addition, Mr. Sparling shall be eligible to receive bonus compensation of up to 50% of his annual salary. Mr. Sparling will also receive an annual automobile allowance in the amount €16,500 ($22,800) and SCL will contribute up to €15,000 ($20,700) to SCL's pension scheme.

Mr. Sparling was also granted an option to purchase 200,000 shares of common stock of WidePoint. The option has a term of 7 years, with the option to vest in full on the fifth anniversary of the grant date of the option. The vesting date of the option will accelerate in the event that certain performance goals are achieved or in the event of a change in control of WidePoint. Options were granted at market price on the date of grant.

The Employment Period will continue unless terminated earlier by (i) Mr. Sparling or SCL upon 9 months' advance written notice to the other party, (ii) SCL, immediately upon the provision of written notice to Mr. Sparling, provided that the remuneration to which Mr. Sparling is entitled under the Employment Agreement shall continue for a period of 9 months following such termination, or (iii) by SCL upon the occurrence of certain events or actions by Mr. Sparling, including Mr. Sparling being declared bankrupt or being found guilty of fraud, serious misconduct or willful neglect to carry out his duties under the Employment Agreement. Mr. Sparling agreed not to compete with the Company during the twelve months following a termination of his employment.

Supplemental Unaudited Pro Forma Information

The accompanying unaudited pro forma condensed consolidated financial information were prepared in accordance with the purchase method of accounting. The pro forma adjustments presented herein are preliminary, and do not reflect estimated amortization resulting from intangible assets, and may not reflect any final purchase price adjustments made. As the final fair value calculations are being prepared, increases or decreases in the fair value of relevant balance sheet amounts will result in adjustments, which may result in material differences from the information presented herein.

The following unaudited pro forma condensed consolidated statements of operations of WidePoint for each of the three and six month periods ended June 30, 2014 and 2013 have been prepared as if the acquisition of SCL had occurred at January 1, 2013 (unaudited):

	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
	2014			2013			2014			2013
	(a)			(a)			(a)			(a)
	(Unaudited)
Revenues, net	$	12,871,000		$	12,866,000		$	23,930,000		$	26,111,000
Net (loss) income	$	(943,000	)(b)	$	353,000	(b)	$	(1,741,000	)(b)	$	275,000	(b)
Basic (loss) earnings per share	$	(0.013	)	$	0.006		$	(0.025	)	$	0.004
Diluted (loss) earnings per share	$	(0.013	)	$	0.006		$	(0.025	)	$	0.004

10

(a) To reflect on a pro forma basis unaudited consolidated financial information for the three and six month periods ended June 30, 2014 and 2013 for WidePoint. SCL’s most recently completed fiscal year end was April 30, 2014 which differs from WidePoint’s December 31 year end. The unaudited financial information presented herein were derived from historical internally prepared financial statements for SCL and WidePoint’s Form 10-Q quarterly unaudited financial statements. SCL’s financial statements are prepared in accordance with Irish GAAP, as such additional adjustments were made to convert SCL Irish GAAP presentation to a US GAAP presentation to align with WidePoint’s accounting policies. SCL’s reporting currency unit is the Euro. SCL’s US GAAP unaudited historical statement of operations for the three and six month periods ended June 30, 2014 and 2013 were translated into WidePoint’s reporting currency using an average USD/EURO rate of $1.3715, $1.3709, $1.3056 and $1.3130, respectively.

(b) As more fully described above under “purchase consideration”, in conjunction with the share sale and purchase agreement with SCL, WidePoint issued a subordinated unsecured loan Note in the principal amount of $1.0 million. Pro forma interest expense was calculated for this Note under the assumption that the probability of failing to generate adequate gross revenues is considered remote at this time based on projection available at the time of the transaction. Pro forma interest expense adjustments included for each of the three and six month periods ended June 30, 2014 and 2013 was approximately $7,500 and $15,000, respectively.

4. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

Level 1 - Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

§ Quoted prices for similar assets or liabilities in active markets,

§ Quoted prices for identical or similar assets or liabilities in markets that are not active ,

§ Inputs other than quoted prices that are observable for the asset or liability, and

§ Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Inputs that are unobservable and reflect the Company’s own assumptions about the assumptions market participants would likely use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows).

The Company monitors applicable market conditions and evaluates the fair value hierarchy levels as they pertain to the Company at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, the Company elects to disclose the fair value measurement at the beginning of the reporting period during which the transfer occurred. There were no transfers into or out of Level 3 for the three or six month periods ended June 30, 2014 or 2013. At June 30, 2014, all of the Company’s assets and liabilities are classified as Level 1.

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5. Accounts Receivable and Unbilled Accounts Receivable

Accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,			DECEMBER 31,
	2014			2013
	(Unaudited)
Commercial	$	3,421,872		$	2,782,179
Government		2,785,194			4,860,259
Gross accounts receivable		6,207,066			7,642,438
Less: allowances for doubtful accounts		(29,794	)		(30,038	)
Accounts receivable, net	$	6,177,272		$	7,612,400

Unbilled accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Commercial	$	452,672	$	435,230
Government		2,407,339		1,125,800
Unbilled accounts receivable	$	2,860,011	$	1,561,030

Customers representing ten percent or more of consolidated revenues are set forth in the table below for each of the periods presented: 

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	As a % of			As a % of			As a % of			As a % of
Customer Name	Revenues			Revenues			Revenues			Revenues
	(Unaudited)						(Unaudited)
Transportation Security Administration		17	%		20	%		20	%		19	%
Department of Homeland Security		19	%		18	%		19	%		18	%
Lockheed Martin		—			—			—			11	%

Customers representing ten percent or more of consolidated trade accounts receivable are set forth in the table below for each of the periods presented:

	JUNE 30,			DECEMBER 31,
	2014			2013
	As a % of			As a % of
Customer Name	Receivables			Receivables
	(Unaudited)
Transportation Security Administration (“TSA”)		11	%		19	%
Department of Homeland Security (“DHS”)		11	%		8	%
US Airforce		—			14	%

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6. Property and Equipment

Major classes of property and equipment consisted of the following for each of the periods presented below:

	JUNE 30,			DECEMBER 31,
	2014			2013
	(Unaudited)
Land and building	$	677,054		$	677,054
Computer hardware and software		2,338,898			2,052,280
Furniture and fixtures		289,370			218,939
Leasehold improvements		368,596			368,596
Automobile		160,391			2,400
Gross property and equipment		3,834,309			3,319,269
Less: accumulated depreciation and amortization		(1,997,444	)		(1,773,318	)
Property and equipment, net	$	1,836,865		$	1,545,951

There were no changes in the estimated useful life used to depreciate property and equipment during the three and six month periods ended June 30, 2014 and 2013. For each of the three month periods ended June 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $125,000 and $99,700, respectively. For each of the six month periods ended June 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $224,000 and $188,780, respectively. For each of the three and six month periods ended June 30, 2014 and 2013, there were no material sales or disposals of owned property and equipment.

Included in property and equipment are certain equipment purchases acquired under capital lease arrangements. See Note 7 for additional information about historical capital lease obligations. In conjunction with the Company’s acquisition of SCL on May 1, 2014, the company assumed capital lease assets with a net book value of approximately $70,700. Total capitalized cost of equipment under capital leases at June 30, 2014 and December 31, 2013 was approximately $553,600 and $477,500, respectively. For each of the three and six month periods ended June 30, 2014 and 2013, the Company did not enter into any capital lease arrangements.

For the three month periods ended June 30, 2014 and 2013 depreciation expense for leased equipment was approximately $18,000 and $14,700, respectively. For the six month periods ended June 30, 2014 and 2013, depreciation expense for leased equipment was approximately $32,700 and $29,400, respectively. Accumulated depreciation for leased equipment at June 30, 2014 and December 31, 2013 was approximately $448,100 and $408,900, respectively. For the three month periods ended June 30, 2014, there were no disposals of leased equipment. Total net book value of assets under capital leases at June 30, 2014 and December 31, 2013 was approximately $105,500 and $68,600, respectively.

7. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill were as follows for the six months ended:

	JUNE 30,
	2014		2013
	(unaudited)
Beginning balances, January 1,	$	16,618,467	$	16,618,467
Additions:
Acquisition of Soft-ex Communications Ltd.		4,220,460		-
Ending balances, June 30,	$	20,838,927	$	16,618,467

The Company considered whether there were indicators of impairment during the six month period ended June 30, 2014 and determined that there were no quantitative or qualitative factors that would indicate impairment exists.

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The Company’s intangible assets are comprised of purchased intangibles consisting of customer relationships, channel relationships, telecommunications software, trade names and trademarks and non-compete agreements. The Company’s intangible assets also include internally developed software used in the sales and delivery of its MMS offering. The Company has intangible assets with a net carrying value of $4,080,957 as of June 30, 2014. The aggregate intangible asset amortization expense recorded for the three and six month periods ended June 30, 2014 and 2013 was approximately $353,000, $336,900, $655,400 and $688,700, respectively. The total weighted average life of purchased and internally developed intangible assets is approximately 4.0 years at June 30, 2014.

During the three months ended June 30, 2014, the Company completed the acquisition of SCL (as more fully described in Note 3 above) and included the carrying value of intangible assets on a preliminary basis until a detailed fair value calculation is prepared. As the final fair value calculations are being prepared, increases or decreases in the fair value of relevant balance sheet amounts will result in adjustments, which may create material differences in preliminary provisional goodwill and intangible balances and weighted average intangible asset amortization life presented herein.

For the three month period ended June 30, 2014 there were no additions of internally developed (cybersecurity software) intangible assets. For the six month period ended June 30, 2014 there were additions of internally developed (cybersecurity software) intangible assets of approximately $138,800. There were no disposals of intangible assets for the three and six month periods ended June 30, 2014. There were no material additions or dispositions of intangible assets for the three and six month periods ended June 30, 2013.

8. Line of Credit and Long Term Debt

Commercial Loan Agreement Facility

The Company has an $8,000,000 working capital line of credit facility with Cardinal Bank. The amount available varies from month to month depending upon the amount of qualified customer accounts receivable which currently consists of up to 90% of qualified federal receivables and up to 80% of qualified commercial receivables, less any amounts outstanding on the Cardinal Bank term note. The line of credit facility was extended on June 27, 2014 by Cardinal Bank to September 30, 2014 to permit the Company time to incorporate its recent acquisition of SCL on May 1, 2014. The Company was advanced approximately $4.3 million and repaid approximately $5.2 million during the six month period ended June 30, 2014. There was no outstanding balance on the credit facility at June 30, 2014.

Long-Term Debt

Long-term debt consisted of the following:

	JUNE 30,			DECEMBER 31,
	2014			2013
	(Unaudited)
Cardinal Bank mortgage dated December 17, 2010 (1)	$	476,432		$	484,532
Cardinal Bank term note dated December 31, 2011 (2)		2,113,920			2,508,748
Non-contingent subordinated unsecured promissory note dated December 31, 2011 (3)		333,334			666,667
Contingent subordinated unsecured loan note payable dated May 1, 2014 (4)		1,000,000			-
Total		3,923,686			3,659,947
Less: current portion		(2,164,185	)		(1,150,455	)
Long-term debt, net of current portion	$	1,759,501		$	2,509,492

(1) On December 17, 2010, the Company entered into a real estate purchase agreement to acquire an operations and call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement, the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.

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(2) On December 31, 2011, the Company entered into a $4.0 million 5-year term note with Cardinal Bank (“Cardinal Bank Term Note”) to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. (“AGS”) dated December 30, 2011. The term note bears interest at 4.5% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.

(3) On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note (“term note”) with AGS to fund a portion of the purchase price paid in connection with the asset purchase agreement with AGS dated December 30, 2011. The term note bears interest at 3.0% with estimated remaining annual principal payments of $333,334 payable on April 15, 2015. The note matures on April 15, 2015. The Company paid the second installment due on April 15, 2014. The term note is subordinated to the Cardinal Bank Term Note.

(4) On May 1, 2014, the Company entered into a $1.0 million 1-year term contingent subordinated unsecured loan note with SCL to fund a portion of the purchase price paid in connection with the Share Sale and Purchase Agreement with SHL dated May 1, 2014. The term note bears interest at 3.0% with an estimated lump-sum principal payment of $1.0 million payable on May 1, 2015. The term note is subordinated to the Cardinal Bank Term Note.

  Financial Covenant Compliance

The credit facility with Cardinal Bank requires the Company to maintain certain financial covenants, including maintaining (i) a debt service ratio of at least 1.2:1.0, (ii) a tangible net worth of at least $4.5 million and (iii) a current ratio of at least 1.1:1.0. On March 3, 2014, the Company completed a public offering of common stock which immediately brought the Company into compliance with its tangible net worth and current ratio financial covenants. As of June 30, 2014, the Company was not in compliance with its debt service ratio. The Company previously obtained a waiver from its financial institution as of December 31, 2013 through December 31, 2014 for compliance with such covenants. The Company is in the process of renewing its credit facility with Cardinal Bank and believes that it is more likely than not that the credit facility will be renewed and covenant compliance matters remediated. The Company believes the presentation of its debt obligations as long term remains appropriate at June 30, 2014.

  Capital Lease Obligations

The Company has leased certain equipment under capital lease arrangements which expire in 2016. Except for the assumption of certain capital lease arrangements in connection with the acquisition of SCL, there were no changes to existing lease arrangements during the three or six month periods ended June 30, 2014.

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9. Income Taxes

The Company files U.S. federal income tax returns with the Internal Revenue Service (“IRS”) as well as income tax returns in various states and certain foreign countries. The Company may be subject to examination by the IRS for tax years 2003 and forward. The Company may be subject to examinations by various state taxing jurisdictions for tax years 2003 and forward. The Company may be subject to examination by various foreign countries for tax years 2014 forward. As of June 30, 2014, the Company is currently not under examination by the IRS, any state or foreign tax jurisdiction. The Company did not have any unrecognized tax benefits at either June 30, 2014 or December 31, 2013. In the future, any interest and penalties related to uncertain tax positions will be recognized in income tax expense.

As of June 30, 2014, the Company had recorded a deferred tax asset of approximately $5.5 million reflecting the benefit of approximately $17.1 million in net operating loss (NOL) carry forwards available to offset future taxable income for federal income tax purposes, net of the potential Section 382 limitations. These federal NOL carry forwards expire between 2017 and 2032. Included in the recorded deferred tax asset, the Company had a benefit of approximately $14.5 million available to offset future taxable income for state income tax purposes. These state NOL carry forwards expire between 2024 and 2032. Realization of this deferred tax asset is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the recorded deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. During the first quarter of 2014, the Company received new task orders under the DHS blanket purchase order award. This award is an individually significant factor in supporting the realization of its net operating loss carry forward deferred tax asset. In the event this award is delayed or cancelled the Company may have to reassess the necessity for a valuation allowance against this deferred tax asset.

No tax benefit has been associated with the exercise of stock options for the three and six month periods ended June 30, 2014 and 2013, respectively, because of the existence of NOL carryforwards. There will be no credit to additional paid in capital for such until the associated benefit is realized through a reduction of income taxes payable. The tax benefit associated with the exercise of stock options included in NOL’s that will be credited to additional paid-in capital when the NOL’s are used to reduce taxes currently payable is approximately $4.1 million. As of June 30, 2014, there were no changes in the valuation allowance as there were no events that occurred which would indicate utilization of net operating loss deductions would be further limited.

10. Stockholders’ Equity

Preferred Stock

There were no issuances of preferred stock during the three or six month periods ended June 30, 2014 and 2013.

Common Stock

The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share. As of June 30, 2014, there were 73,040,329 shares of common stock outstanding.

Public Offering

On February 26, 2014, the Company entered into an underwriting agreement with B. Riley & Co., LLC (the “Underwriter”) relating to an underwritten public offering of 7,876,497 shares of the Company’s common stock, par value $0.001 per share. On February 27, 2014, the Company received notice from the Underwriter that it had fully-exercised its over-allotment option to purchase an additional 1,181,475 shares of common stock. On March 3, 2014, the Company completed the public offering of 9,057,972 shares of its common stock at a purchase price of $1.38 per share, which includes the full exercise of the over-allotment option granted to the underwriters. The gross proceeds to the Company from this offering were approximately $12.5 million, before deducting underwriting discounts and other estimated offering expenses incurred by the Underwriter. The Company received net proceeds of approximately $11.4 million after paying offering expenses of approximately $0.3 million incurred by the Company to complete the public offering.

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Employee Stock Option Exercises

Shares of common stock issued as a result of stock option exercises for the three and six month periods ended June 30, 2014 were 75,000. The Company realized gross proceeds of $34,000 from the exercise of stock options. See Note 11 for additional information regarding stock option plans.

11. Stock Options and Award Programs

The Company’s stock incentive plan is administered by the Compensation Committee and authorizes the grant or award of incentive stock options, non-qualified stock options, restricted stock awards, stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited are added back to the number of shares that underlie stock options to be granted under the stock incentive plan. The Company has issued restricted stock awards and non-qualified stock option awards as described below.

Restricted Stock Awards

On November 18, 2010, the Company’s Compensation Committee granted Steve L. Komar and James T. McCubbin each an award of 250,000 shares of restricted stock of the Company, the vesting of which is based on achievement of future performance goals of the Company. There were no changes in vesting requirements or activity related to restricted stock awards (RSA) during the three or six month periods ended June 30, 2014. At June 30, 2014, the Company had approximately $294,800 of total unamortized RSA compensation expense.

Stock Option Awards

For each of the three and six month periods ended June 30, 2014, the Company granted stock options of 310,000 and 360,000 (of which 50,000 was granted to a non-employee consultant), respectively. The fair value of each this option award was estimated on the date of grant using a Black-Scholes option pricing model (“Black-Scholes model”), which uses the assumptions of no dividend yield, risk free interest rate of 0.35% to 2.21% and expected life in years of approximately 7 years (or 2 years for non-employee consultants). Expected volatilities used in determining the fair value of options granted based on historical volatility of our common stock of approximately 73.7% to 85.9%. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. Stock option awards reflected in the tables below cover the period from 1999 through June 30, 2014. A summary of the stock option award activity under our plans during the six months ended June 30, 2014 is set forth below (unaudited):

				Weighted		Weighted
				Average Grant		Average
	# of			Date Fair Value		Remaining
NON-VESTED OPTIONS	Shares			per Share		Option Life
	(Unaudited)
Non-vested balances, January 1, 2014		1,900,000		$	0.36
Granted		360,000		$	1.03
Vested		(594,162	)	$	0.30
Non-vested balances, June 30, 2014		1,665,838		$	0.53		2.3

				Weighted		Weighted
				Average		Average
	# of			Exercise Price		Remaining
OUTSTANDING AND EXERCISABLE	Shares			per Share		Option Life
	(Unaudited)
Options outstanding, January 1, 2014		3,336,500		$	0.72
Granted		360,000		$	1.45
Exercised		(75,000	)	$	0.45
Options outstanding, June 30, 2014		3,621,500		$	0.79		3.7
Options outstanding and exercisable,  June 30, 2014		1,955,662		$	0.73		2.5

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Aggregate intrinsic value represents total pretax intrinsic value (the difference between the Company’s closing stock price on June 30, 2014, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2014. The intrinsic value will change based on the fair market value of the Company’s stock. The total intrinsic values of all options that were outstanding and the portion of those outstanding that were exercisable as of June 30, 2014, were $3.5 million and $2.0 million, respectively.

Share-based compensation (including restricted stock awards) represents both stock options based expense and stock grant expense. For the three and six month periods ended June 30, 2014 and 2013, the Company recognized share-based compensation expense of approximately $84,000, $58,300, $166,700 and $112,300, respectively. During the six month period ended June 30, 2014 there were no fully vested stock options that expired unexercised and/or were cancelled as a result of employment terminations.

At June 30, 2014, the Company had approximately $604,300 of total unamortized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 2.3 years.

See Note 9 for discussion about the tax benefit associated with the exercise of stock options.

12. Accumulated Other Comprehensive Income (Loss) (AOCI)

AOCI is a balance sheet item in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company’s acquisition of SCL on May 1, 2014 resulted in the recognition of net foreign currency translation adjustments due to translation of SCL’s Euro-currency financial statements into the Company’s reporting currency. Changes in AOCI were as follows during the three month period ended June 30, 2014 (unaudited):

Balances, May 1, 2014	$	-
Net foreign currency translation (loss)		(34,856	)
Balances, June 30, 2014	$	(34,856	)

13. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows for the periods presented below:

	THREE MONTHS ENDED					SIX MONTHS ENDED
	JUNE 30,					JUNE 30,
	2014			2013		2014			2013
	(Unaudited)					(Unaudited)
Basic EPS Computation:
Net (loss) income	$	(669,239	)	$	139,351	$	(1,595,937	)	$	104,082
Weighted average number of common shares		72,998,461			63,751,857		69,929,300			63,751,857
Basic EPS	$	(0.009	)	$	0.002	$	(0.023	)	$	0.002
Basic EPS Computation:
Net (loss) income	$	(669,239	)	$	139,351	$	(1,595,937	)	$	104,082
Weighted average number of common shares		72,998,461			63,751,857		69,929,300			63,751,857
Incremental shares from assumed conversions of stock options		-			184,750		-			156,895
Adjusted weighted average number of common shares		72,998,461			63,936,607		69,929,300			63,908,752
Diluted EPS	$	(0.009	)	$	0.002	$	(0.023	)	$	0.002

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14. Details of Consolidated Revenue

As further described in Note 2 above, the Company’s principal business is MMS. The following table was prepared to provide additional information about the composition of revenues based on broad service descriptions:

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
MMS Service Mix	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Carrier Services	$	4,301,378	$	4,232,388	$	8,253,070	$	8,330,729
Management Services		4,604,498		4,829,980		8,400,497		10,000,200
Resale and Other Services		3,488,145		2,281,594		5,343,233		4,981,139
	$	12,394,021	$	11,343,962	$	21,996,800	$	23,312,068

15. Commitments and Contingencies

Operating Lease Commitments

Except for the assumption of certain lease arrangements in connection with the acquisition of SCL, there were no changes to existing lease arrangements during the three or six month periods ended June 30, 2014.

Employment Agreements

The Company has employment agreements with certain executives that set forth compensation levels and provide for severance payments in certain instances. On February 18, 2014, the Company entered into an amendment to the Company’s employment agreements with Steve L. Komar, Chief Executive Officer, and James T. McCubbin, Executive Vice President and Chief Financial Officer, to extend the term of their original employment through March 31, 2016 at a salary of $260,000 and no change to the benefit levels then in effect. The Company has the option to terminate Messer’s Komar and McCubbin’s employment agreements as of March 31, 2015 by giving written notice on or before January 31, 2015. The Company has an employment agreement with certain members of SCL management as more fully described in Note 3 to the condensed consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

“Forward-Looking” Information

The following discussion and analysis of the financial condition and results of operations of the Company should be read in conjunction with the financial statements and the notes thereto which appear elsewhere in this Quarterly Report on Form 10-Q as well as the financial statements and the notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

The information set forth below contains statements that the Company believes to be “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, without limitation, any statement that is not a statement of historical fact, including, without limitation, statements regarding the our business strategy and plans and objectives of management for future operations or that may predict, forecast, indicate or imply future results, performance or achievements. The words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will,” “will likely,” “should,” “could,” “would,” “may” or the negative of such words or words or expressions of similar meaning are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, and all such forward-looking statements involve risks and uncertainties, many of which are beyond the company’s ability to control. Actual results may differ materially from those expressed or implied by such forward-looking statements as a result of various factors. All forward-looking statements and other information in this Quarterly Report on Form 10-Q speak only as of the date of this report. We do not undertake, and we disclaim, any obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.  Certain factors that could cause results to differ materially from those projected in the forward-looking statements, including, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; (iv) the ability to successfully integrate the operations Soft-ex Communications Ltd. (SCL); (v) decreased government spending, (vi) changes in government regulations, (vii) our focus on selling higher margin services, and (viii) the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014.  Readers are cautioned not to put undue reliance on forward-looking statements.  

Business Overview

We are a provider of information technology (IT) based products, services, and solutions. We offer secure, cloud-based, enterprise-wide information technology-based solutions that enable commercial markets, and federal and state government organizations, to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. Our Managed Mobility Solutions (MMS) offer a portfolio of information technology based services and products with a set of streamlined mobile communications management, identity management, and consulting solutions that provide our customers with the ability to manage and protect their valuable communications assets and deploy compliant identity management solutions that provide secured virtual and physical access to restricted environments. Many of our solutions are accessible on-demand through cloud computing and provide customers with the ability to remotely manage their workforce mobility and identity management requirements in accordance with internal policies, the marketplace and the demands of our customers.

During the first quarter of 2014, we rolled out our Certificate-on-Device service. Our Certificate-on-Device service is a robust cloud-based internally developed service that provides secure digital certificates to all types of mobile devices in order to enhance the information security assurance level of mobile transactions and access to corporation networks, databases and other IT assets. Certificate-on-Device enables an enterprise to attain a greater level of network security than user authentication alone by ensuring that only authorized devices connect to an organization's IT infrastructure. During the second quarter of 2014 we successfully loaded secure digital certificates onto a number of individual mobile devices, tablets and operating system platforms. We are also delivering machine to machine digital certificates that support data in motion. We are working with leading suppliers and manufacturers of mobile devices to develop mobile devices with this capability built-in as a ready feature and to accommodate other device operating systems.

For additional information related to our business operations see the description of our business set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014. 

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Acquisition of Soft-Ex Communications Limited

On May 1, 2014, we purchased all of the outstanding equity of Soft-ex Communications Limited (“SCL”). SCL, with headquarters in Dublin, Ireland. SCL is a provider of telecom data intelligence services offered as a software as a service solution throughout the European and Middle Eastern markets. SCL has two operating subsidiaries, Soft-Ex BV and Soft-Ex UK Limited, which maintain offices and operations in the Netherlands and the United Kingdom, respectively. We believe the combination of WidePoint’s secure managed mobility services coupled with Soft-Ex’s European and Middle East presence, channel partners, and additional portfolio of services provides our combined operations with a stronger base of operations, services and global growth opportunities. The transaction complements Soft-Ex’s focus and expertise in delivering business intelligence and subscriber data intelligence to the global telecommunications service provider market. Through the combination of our partnerships and customers we believe that we can leverage Soft-Ex’s innovative Software-as-a-Service solutions combined with the scale and breadth of WidePoint’s managed mobility offerings, optimizing the core strengths of both organizations.

Sources of Significant Operational and Administrative Expense

A significant source of operational costs consist of salaries and benefits paid to our technical, marketing and administrative personnel. These costs are largely fixed and may not be adjusted as quickly in the event there is a rapid expansion or reduction of the scope of work associated with a customer contract. Another significant source of operational costs are payments to technical subcontractor labor and vendor-related costs in connection with the delivery of our information technology based services.  These costs are tied to contracts and may be adjusted more quickly in the event there is a rapid expansion or reduction of the scope of work associated with a customer contract. Expansion of our internal growth initiatives and merger and acquisition opportunities will increase our operational costs and may require additional investments in technology infrastructure and personnel.  Our profitability also depends upon both the volume of services performed and the Company’s ability to manage costs. 

To date, the Company has attempted to maximize its operating margins through efficiencies achieved by the use of its proprietary technologies and methodologies, and by offsetting increases in consultant salaries with increases in consultant fees received from its clients.  The uncertainties relating to the ability to achieve and maintain profitability, obtain additional funding to partially fund the Company’s growth strategy, and provide the necessary investment to continue to upgrade its management reporting systems to meet the continuing demands of the present regulatory changes affect the comparability of the information reflected in the financial information presented above.

Results of Operations

Three Months Ended June 30, 2014 as Compared to Three Months Ended June 30, 2013

Revenues. Revenues for the three month period ended June 30, 2014 were approximately $12.4 million, an increase of approximately $1.1 million as compared to approximately $11.3 million in the same period last year. Our mix of MMS revenues for the periods presented is set forth below:

	THREE MONTHS ENDED
	JUNE 30,				Dollar
MMS Service Mix	2014		2013		Variance
	(Unaudited)
Carrier Services	$	4,301,378	$	4,232,388	$	68,990
Management Services		4,604,498		4,829,980		(225,482	)
Resale and Other Services		3,488,145		2,281,594		1,206,551
	$	12,394,021	$	11,343,962	$	1,050,059

21

We believe the following factors contributed to higher revenues:

§ Our carrier services were slightly higher compared to the same quarter last year as a result of the recognition of initial task orders issued related to our recent U.S Department Homeland Security (“DHS”) blanket purchase agreement (“BPA”) contract award. We anticipate carrier services will further expand during the second half of 2014 as we commence work under additional task orders presently being issued and/or being prepared by DHS in the near term.

§ Our managed services were lower as a result of the transition of our DHS award and related new task orders being issued and some commercial customer attrition, partially offset by additional revenues from our recent acquisition of SCL of approximately $0.9 million. We anticipate managed services will grow as additional task orders are issued during the second half of 2014 and recent commercial contracts awards are implemented.

§ Our resale and other services expanded as a result of increased software resale transactions and to a lesser extent an increase in consulting services. We anticipate that resale and other services could be erratic quarter to quarter due to timing of federal procurement activity.

Cost of Revenues. Cost of revenues for the three month period ended June 30, 2014 was approximately $8.8 million (or 71% of revenues), as compared to approximately $7.8 million (or 69% of revenues) in the same period last year. The increase in cost of revenues is largely due to an increased amount of low margin software resale activity during the quarter. The addition of SCL cost of sales did not have a material effect on our cost of revenues for the three month period ended June 30, 2014.

Gross Profit. Gross profit for the three month period ended June 30, 2014 was approximately $3.6 million (or 29% of revenues), as compared to approximately $3.5 million (or 31% of revenues) in the same period last year. The dollar basis increase in gross profit was due to the addition of SCL’s higher margin revenue, partially offset by sales of low margin government product resale revenues.

Sales and Marketing. Sales and marketing expense for the three month period ended June 30, 2014 was approximately $1.0 million (or 8% of revenues), as compared to approximately $0.9 million (or 8% of revenues) in the same period last year. The dollar basis increase in sales and marketing expense reflects the addition of SCL of approximately $0.3 million. There were no significant changes in our sales and marketing programs and initiatives as compared to the same period last year.

General and Administrative. General and administrative expenses for the three month period ended June 30, 2014 were approximately $3.7 million (or 30% of revenues), as compared to approximately $2.4 million (or 21% of revenues) in the same period last year. General and administrative expenses for the three month period ended June 30, 2013 included a non-cash gain of approximately $0.4 million that reflected a reduction in the fair value of a contingent obligation (related to the acquisition of Avalon Global Solutions, Inc. (“AGS”)) as re-measured at the reporting date. Excluding this non-cash gain, general and administrative expenses for the three month period ended June 30, 2013 would have been approximately $2.8 million (or 24% of revenues). Excluding the non-cash gain, we believe a combination of events contributed to an increase in general and administrative expense as set forth below:

§ General and administrative costs attributable to SCL (approximately $528,000);

§ Non-recurring technology infrastructure and research and development costs (approximately $200,000); and

§ Non-recurring audit, legal and tax acquisition-related transaction costs incurred to acquire SCL (approximately $180,000).

Depreciation and Amortization. Overhead and administrative related depreciation and amortization expense for the three month period ended June 30, 2014 was approximately $143,200 as compared to approximately $73,200 in the same period last year.  The increase in depreciation expense is primary due to the inclusion of SCL’s pool of depreciable assets during the quarter.  

22

Interest Income. Interest income for the three month period ended June 30, 2014 was approximately $4,600, as compared to approximately $2,600 in the same period last year.  This increase was due to higher amounts of invested cash and cash equivalents being held in interest bearing accounts and the length of time those deposits were earning interest throughout the quarter compared the same period last year.  

Interest Expense. Interest expense for the three months ended June 30, 2014 was approximately $46,300 as compared to approximately $55,900 in the same period last year.  The decrease in interest expense was predominantly due to reversal of accrued interest related to a contingent promissory note obligation that had a fair value of zero at end of fiscal 2013, partially offset by an increase in interest expense related to an unsecured loan note payable issued in connection with the SCL acquisition. There were no significant changes in the terms of other interest bearing debt during the three months ended June 30, 2014.

Income Taxes. Income tax benefit for the three month period ended June 30, 2014 was approximately $0.6 million, as compared to approximately $1,800 in the same period last year.  The income tax expense recognized in the three month period ended June 30, 2014 reflects state and foreign income taxes, offset by estimated federal net operating losses generated during the second quarter.

Net (Loss) Income. As a result of the factors above, the net loss for the three month period ended June 30, 2014 was approximately $(669,200), as compared to net income of approximately $139,300 in the same period last year.  

Six Months Ended June 30, 2014 as Compared to Six Months Ended June 30, 2013

Revenues. Revenues for the six month period ended June 30, 2014 were approximately $22.0 million, a decrease of approximately $1.3 million as compared to approximately $23.3 million in the same period last year. Our mix of MMS revenues for the periods presented is set forth below:

	SIX MONTHS ENDED
	JUNE 30,				Dollar
MMS Service Mix	2014		2013		Variance
	(Unaudited)
Carrier Services	$	8,253,070	$	8,330,729	$	(77,659	)
Management Services		8,400,497		10,000,200		(1,599,703	)
Resale and Other Services		5,343,233		4,981,139		362,094
	$	21,996,800	$	23,312,068	$	(1,315,268	)

We believe a combination of events, including delays affecting our customers operations caused by severe winter snow storms during the first quarter of 2014 and government contracts in transition, partially offset by the acquisition of SCL, contributed to our lower revenues as set forth below:

§ Our carrier services were slightly lower compared to the same period last year as a result of the transition of our DHS award and delays in DHS BPA task order issuances until the second quarter of 2014. We anticipate carrier services will expand during the second half of 2014 as we commence work under task orders presently being issued and/or being prepared by DHS under the BPA.

§ Our managed services were lower compared to the same period last year due to changes in timing of purchases of credentials by a prime contractor for a major federal government credentialing program. The prior prime contractor procured our services on a bulk basis, while the current prime contractor is procuring our services on a month to month basis. This decrease was partially offset by the addition of SCL revenues of approximately $0.9 million, the implementation of new commercial contract awards and additional task orders issued under our DHS BPA. We anticipate our managed services should expand as a full quarter of revenue from our recent acquisition of SCL is realized, additional task orders are issued under our DHS BPA, recent commercial contract awards are implemented, and the continued roll-out of our Certificate-on-Device service capability.

23

§ Our resale and other services expanded as a result of increased software resale transactions, partially offset by a decrease in hardware resale transactions as compared to the same period last year. We anticipate that resale and other services could be erratic quarter to quarter due to timing of federal procurement activity and commercial customer mobile equipment upgrades and deployments. The timing of these revenues tend to be erratic.

We continue to believe the second half of 2014 may be stronger than the first half of 2014 as a result of delays in receipt of contract awards and task orders delivered for fulfillment during the second quarter of 2014.

Cost of Revenues. Cost of revenues for the six month period ended June 30, 2014 was approximately $15.9 million (or 72% of revenues), as compared to approximately $16.5 million (or 71% of revenues) in the same period last year. The decrease in cost of revenues reflects lower commercial mobile equipment upgrades and deployments and the planned redeployment of billable technology staff labor on MMS product development and infrastructure projects reflected in general and administrative expense.

Gross Profit. Gross profit for the six month period ended June 30, 2014 was approximately $6.1 million (or 28% of revenues), as compared to approximately $6.8 million (or 29% of revenues) in the same period last year. The dollar basis decrease in gross profit was due to lower mix of managed service sales compared to an increase in resale and other services, partially offset by increased cost of sales of approximately $39,000 from our recent acquisition of SCL.

Sales and Marketing. Sales and marketing expense for the six month period ended June 30, 2014 was approximately $1.9 million (or 9% of revenues), as compared to approximately $1.7 million (or 7% of revenues) in the same period last year. The dollar basis increase in sales and marketing expense reflects the addition of SCL of approximately $0.3 million. There were no significant changes in our sales and marketing programs and initiatives as compared to the same period last year.

General and Administrative. General and administrative expenses for the six month period ended June 30, 2014 were approximately $6.7 million (or 31% of revenues), as compared to approximately $4.9 million (or 21% of revenues) in the same period last year. General and administrative expenses for the six month period ended June 30, 2013 include a non-cash gain of approximately $0.6 million that reflects a reduction in the fair value of a contingent obligation (related to the acquisition of Avalon Global Solutions, Inc. (“AGS”)) as re-measured at the reporting date. Excluding this non-cash gain, general and administrative expenses for the six month period ended June 30, 2013 would have been approximately $5.5 million (or 24% of revenues). Excluding the non-cash gain, we believe a combination of events contributed to an increase in general and administrative expense as set forth below:

§ General and administrative costs attributable to SCL (approximately $528,000);

§ Non-recurring infrastructure and technology research and development costs (approximately $390,000); and

§ Non-recurring audit, legal and tax acquisition-related transaction costs incurred to acquire SCL (approximately $250,300).

Depreciation and Amortization. Overhead and administrative related depreciation and amortization expense for the six month period ended June 30, 2014 was approximately $212,700 as compared to approximately $139,500 in the same period last year.  The increase in depreciation expense is primary due to the inclusion of SCL’s pool of depreciable assets during the period.   

Interest Income. Interest income for the six month period ended June 30, 2014 was approximately $5,300, as compared to approximately $3,500 in the same period last year.  This increase was due to higher amounts of invested cash and cash equivalents being held in interest bearing accounts and the length of time those deposits were earning interest throughout the quarter compared the same period last year.  

Interest Expense. Interest expense for the six months ended June 30, 2014 was approximately $92,600 as compared to approximately $115,500 in the same period last year.  The decrease in interest expense predominantly due to reversal of accrued interest related to a contingent promissory note obligation that had a fair value of zero at end of fiscal 2013, partially offset by an increase in interest expense related to an unsecured loan note payable issued in connection with the SCL acquisition. There were no significant changes in the terms of other interest bearing debt during the six months ended June 30, 2014.

24

Income Taxes. Income tax benefit for the six month period ended June 30, 2014 was approximately $1.2 million, as compared to approximately $145,400 in the same period last year.  The income tax expense recognized in the three month period ended June 30, 2014 reflects state and foreign income taxes, offset by estimated federal net operating losses generated.

Net (Loss) Income. As a result of the factors above, the net loss for the six month period ended June 30, 2014 was approximately $(1.6) million, as compared to net income of approximately $104,100 in the same period last year.  

Liquidity and Capital Resources

The Company has, since inception, financed its operations and capital expenditures through the sale of preferred and common stock, seller notes in connection with acquisitions, convertible notes, convertible exchangeable debentures, senior secured loans and the proceeds from the exercise of the warrants related to a convertible exchangeable debenture. The Company’s immediate sources of liquidity include cash and cash equivalents, accounts receivable, unbilled receivables and access to a working capital credit facility with Cardinal Bank for up to $8.0 million. The Company’s operating liabilities consist of vendor and payroll obligations.

The Company’s operations require working capital to fund planned growth strategies. At June 30, 2014, the Company’s net working capital was approximately $2.1 million. At December 31, 2013, the Company had net negative net working capital and financed operational requirements using its credit facility. On March 3, 2014, the Company completed a successful public offering of 9,057,972 shares of the Company’s common stock and realized net proceeds from this offering of approximately $11.4 million, after deducting seller offering expenses. The Company’s net working capital became positive after this public offering. During the six months ended June 30, 2014, the Company used approximately $5.0 million of the public offering proceeds to acquire Soft-ex Communications Ltd on May 1, 2014. The remainder of the proceeds were retained to fund operations and strategic investments. At June 30, 2014, there were no material commitments for additional capital expenditures, but that could change with the addition of material contract awards or task orders. At June 30, 2014, there were no outstanding borrowings against the Company’s working capital credit facility.

Cash provided by operating activities provides an indication of our ability to generate sufficient cash flow from our recurring business activities. For the six months ended June 30, 2014, net cash used in operations was approximately $1.3 million as compared to net cash provided by operations of approximately $1.6 million in the same period last year. The decrease in cash flow from operating activities reflects longer timing differences between billing and collection and lower billable revenues as compared to the same period last year.

Cash used in investing activities provides an indication of our long term infrastructure investments. We make recurring purchases of property and equipment to replace or enhance our hardware and software applications that support customer operations. For the six months ended June 30, 2014, cash used in investing activities was approximately $4.4 million as compared to approximately $235,400 in the same period last year. On May 1, 2014, we purchased all of the equity interests of SCL for approximately $6.0 million, consisting of $5.0 million in cash at closing, subject to post-closing net working capital adjustments, and a note payable in the amount of $1.0 million. The continuing property and equipment expenditures in the six months ended June 30, 2014 reflects decisions to move forward with further investments aimed at enhancing our internal infrastructure to support growth. For the six months ended June 30, 2014, we also made investments of approximately $138,800 in software development related to our Public Key Infrastructure software certificate credentialing tools and applications.

Cash provided by (used in) financing activities provides an indication of our debt financing and proceeds from capital raise transactions and stock option exercises. For the six months ended June 30, 2014, cash provided by financing activities was approximately $9.8 million as compared to cash used in financing of approximately $676,100 in the same period last year. The increase in cash provided by financing year is driven by the same factors described in our discussion above about our change in net working capital. Also, we repaid our line of credit advances in full with available cash balances and made our scheduled payments for current maturities of term debt.

25

We believe our current cash position and our working capital credit facility are sufficient to meet our minimum requirements for our current business operations (including sales and marketing initiatives), although any expansion of our operational needs, including as a result of any new contracts, could require additional working capital. Our business environment is characterized by rapid technological change with periods of high growth and contraction, and is influenced by material events such as mergers and acquisitions that can substantially change our performance and outlook. Constant growth and technological change in our market makes it difficult to predict future liquidity requirements with certainty.

We believe future capital requirements will depend on many factors, including the rate of revenue growth, if any, the timing and extent of spending for new product and service development, strategic acquisition funding and availability of suitable acquisition targets, technological changes in our proprietary software solutions and market acceptance of the Company’s branded products and service solutions.

Over the long term, the Company must successfully execute its growth plans to increase profitable revenue and income streams that should generate positive cash flows to sustain adequate liquidity without impairing growth initiatives or requiring the infusion of additional funds from external sources to meet minimum operating requirements, including debt service. There can be no assurance that additional financing, if required, will be available on acceptable terms, if at all, for future acquisitions and/or growth initiatives.

Off-Balance Sheet Arrangements

The Company has no existing off-balance sheet arrangements as defined under SEC regulations.

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ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to provide reasonable assurance that material information required to be disclosed by us in the reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that the information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We performed an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2014. Based on the existence of the material weaknesses discussed below in “Material Weakness in Internal Control Over Financial Reporting,” our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were not effective as of June 30, 2014 to provide such reasonable assurances.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures is also based partly 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.

Material Weakness in Internal Control Over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2014.  In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (1992).  Based on this assessment, management concluded that our internal control over financial reporting was not effective as of June 30, 2014 due to the existence of the following material weaknesses:

§ Inadequate policies and procedures. Management has determined that its existing policies and procedures continued to be limited and/or inadequate in scope to provide our sales, operational and financial staff with consistent guidance and/or framework for the collection and documentation of complex financial transactions and accounting entries to record such transactions. This deficiency could result in unintended, misleading entries being made in the financial system and precluding sufficient disclosure of complex transactions; and

§ Inadequate segregation of duties within an account or process. Management has determined that it continued to not have appropriate segregation of duties to ensure that financial transaction processing for all financial transactions are not controlled by one person. This control deficiency could result in a misstatement of substantially all of our financial statement accounts and disclosures that would result in a material misstatement to the annual or interim financial statements.

27

Remediation Plan for Material Weaknesses

The material weaknesses described above in "Management's Report on Internal Control Over Financial Reporting" (ICOFR) comprise control deficiencies that we discovered during our first assessment of ICOFR and were not remediated during the financial close process for the three month period ended June 30, 2014. Management made progress on implementing its remediation plan as described below:

§ Inadequate policies and procedures - We developed a centralized set of policies and procedures and deployed centralized forms to streamline collection of transactional accounting data and information across all business operations. We are continuing to develop additional forms to remediate collection of complex transactional accounting data used to record financial transactions and prepare our financial statement disclosures. We plan on conducting training and education for select members of our sales, operational and financial staff.

§ Inadequate segregation of duties within an account or process – We evaluated job responsibilities and established better segregation of duties when recording financial transactions that impact internal control over financial reporting. We are evaluating technology solutions that can minimize manual transactional reporting and automate segregation of duties for financial transactions, accounts and processes.

We believe that these measures, when effectively implemented and maintained, will remediate the remaining material weaknesses discussed above.

Changes in Internal Control Over Financial Reporting

Other than as described above, there have been no changes in our internal control over financial reporting during the three month period ended June 30, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal controls over financial reporting may vary over time. Our system contains self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified. 

28

PART II – OTHER INFORMATION

ITEM 6. EXHIBITS.

EXHIBIT
NO.	DESCRIPTION
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).
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
101.	Interactive Data Files

101.INS**+ XBRL Instance Document

101.SCH**+ XBRL Taxonomy Extension Schema Document

101.CAL**+ XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF**+ XBRL Taxonomy Definition Linkbase Document

101.LAB**+ XBRL Taxonomy Extension Label Linkbase Document

101.PRE**+ XBRL Taxonomy Extension Presentation Linkbase Document

29

SIGNATURES

Pursuant to the requirements 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.

	WIDEPOINT CORPORATION
Date:     August 14, 2014		/s/ STEVE L. KOMAR
		Steve L. Komar
		President and Chief Executive Officer
Date:     August 14, 2014		/s/ JAMES T. MCCUBBIN
		James T. McCubbin
		Chief Financial Officer

30

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, Steve L. Komar, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of WidePoint Corporation;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:         August 14, 2014	By:	/s/ STEVE L. KOMAR
	Steve L. Komar
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, James T. McCubbin, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of WidePoint Corporation;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation, and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:       August 14, 2014	By:	/s/ JAMES T. MCCUBBIN
		James T. McCubbin
		Chief Financial Officer

EX-32

Exhibit 32

Written Statement of the Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. § 1350

Solely for the purposes of complying with 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of WidePoint Corporation (the “Company”), respectively, hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2014 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ STEVE L. KOMAR

Steve L. Komar

Chief Executive Officer

/s/ JAMES T. MCCUBBIN

James T. McCubbin

Chief Financial Officer

Date: August 14, 2014

XML

Accounts Receivable and Unbilled Accounts Receivable (Details 3) (Trade accounts receivable [Member], Customer Concentration Risk [Member])	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Transportation Security Administration (“TSA”) [Member]
Concentration Risk [Line Items]
As a % of Receivables	11.00%	19.00%
Department of Homeland Security ("DHS") [Member]
Concentration Risk [Line Items]
As a % of Receivables	11.00%	8.00%
US Airforce [Member]
Concentration Risk [Line Items]
As a % of Receivables	0.00%	14.00%

XML

Commitments and Contingencies (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2014
Officers' Compensation	$ 260,000

XML

Stock Options and Award Programs (Details) (Employee Stock Option [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Non-vested balances, January 1, 2014	1,900,000
Number of Shares, Granted	360,000
Number of Shares, Vested	(594,162)
Number of shares, Non-vested balances, June 30, 2014	1,665,838
Weighted Average Grant Date Fair Value per Share, Non-vested balances, January 1, 2014	$ 0.36
Weighted Average Grant Date Fair Value per Share, Granted	$ 1.03
Weighted Average Grant Date Fair Value per Share, Vested	$ 0.30
Weighted Average Grant Date Fair Value per Share, Non-vested balances, June 30, 2014	$ 0.53
Weighted Average Remaining Option Life (in years)	2 years 3 months 18 days

XML

Income Taxes (Details Textual) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Net	$ 5.5
Excess Tax Benefit from Share-based Compensation, Operating Activities	4.1
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	17.1
Domestic Tax Authority [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Expiration Date	Jan. 01, 2017
Domestic Tax Authority [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Expiration Date	Jan. 01, 2032
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 14.5
State and Local Jurisdiction [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Expiration Date	Jan. 01, 2024
State and Local Jurisdiction [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards, Expiration Date	Jan. 01, 2032

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Business Combinations (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012	May 01, 2014 Soft-ex Communications Limited [Member]
Business Combination Segment Allocation [Line Items]
Cash					$ 920,372
Trade receivables					1,294,573
Other current assets					248,026
Property and equipment					333,650
Intangibles					984,923
Other assets					2,437
Accounts payable and accrued expenses					(1,937,627)
Capital lease obligation					(66,814)
Total identifiable net assets acquired					1,779,540
Goodwill	20,838,927	16,618,467	16,618,467	16,618,467	4,220,460
Total purchase price					$ 6,000,000

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Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2014

Property and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Major classes of property and equipment consisted of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Land and building	$	677,054	$	677,054
Computer hardware and software		2,338,898		2,052,280
Furniture and fixtures		289,370		218,939
Leasehold improvements		368,596		368,596
Automobile		160,391		2,400
Gross property and equipment		3,834,309		3,319,269
Less: accumulated depreciation and amortization		(1,997,444)		(1,773,318)
Property and equipment, net	$	1,836,865	$	1,545,951

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Stock Options and Award Programs (Details Textual) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended			1 Months Ended		1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 Employee Stock Option [Member]	Jun. 30, 2013 Employee Stock Option [Member]	Jun. 30, 2014 Employee Stock Option [Member]	Jun. 30, 2013 Employee Stock Option [Member]	Jun. 30, 2014 Employee Stock Option [Member] Non Employee Consultant [Member]	Nov. 18, 2010 Steve L. Komar [Member] Restricted Stock [Member]	Jun. 30, 2014 Steve L. Komar [Member] Restricted Stock [Member]	Nov. 18, 2010 James T. McCubbin [Member] Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					310,000		360,000		50,000	250,000		250,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum							0.35%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum							2.21%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term							7 years		2 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum							73.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum							85.90%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value					$ 3,500,000		$ 3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value					2,000,000		2,000,000
Allocated Share-Based Compensation Expense	83,988	58,281	166,704	112,268	84,000	58,300	166,700	112,300
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options					$ 604,300		$ 604,300				$ 294,800
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition							2 years 3 months 18 days

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Goodwill and Intangible Assets (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Goodwill [Line Items]
Goodwill, Beginning balances	$ 16,618,467	$ 16,618,467
Additions, Acquisition of Soft-ex Communications Ltd.	4,220,460	0
Goodwill, Ending balances	$ 20,838,927	$ 16,618,467

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Accounts Receivable and Unbilled Accounts Receivable (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unbilled accounts receivable	$ 2,860,011	$ 1,561,030
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unbilled accounts receivable	452,672	435,230
Government [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unbilled accounts receivable	$ 2,407,339	$ 1,125,800

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Earnings Per Common Share (EPS) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic EPS Computation:
Net (loss) income	$ (669,239)	$ 139,351	$ (1,595,937)	$ 104,082
Weighted average number of common shares	72,998,461	63,751,857	69,929,300	63,751,857
Basic EPS (in dollars per share)	$ (0.009)	$ 0.002	$ (0.023)	$ 0.002
Basic EPS Computation:
Net (loss) income	$ (669,239)	$ 139,351	$ (1,595,937)	$ 104,082
Weighted average number of common shares	72,998,461	63,751,857	69,929,300	63,751,857
Incremental shares from assumed conversions of stock options	0	184,750	0	156,895
Adjusted weighted average number of common shares	72,998,461	63,936,607	69,929,300	63,908,752
Diluted EPS (in dollars per share)	$ (0.009)	$ 0.002	$ (0.023)	$ 0.002

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Stockholders' Equity (Details Textual) (USD $)	6 Months Ended			1 Months Ended			3 Months Ended	6 Months Ended	1 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Mar. 03, 2014 Public Offering [Member]	Feb. 27, 2014 Public Offering [Member]	Feb. 26, 2014 Public Offering [Member]	Jun. 30, 2014 Employee Stock Option [Member]	Jun. 30, 2014 Employee Stock Option [Member]	Mar. 03, 2014 Common Stock [Member] Public Offering [Member]
Stockholders' Equity [Line Items]
Common Stock, Shares Authorized	110,000,000		110,000,000
Common Stock, Par Or Stated Value Per Share	$ 0.001		$ 0.001			$ 0.001
Common Stock, Shares, Outstanding	73,040,329		63,907,357
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						7,876,497
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized					1,181,475
Stock Issued During Period, Shares, New Issues				9,057,972
Sale of Stock, Price Per Share				$ 1.38
Proceeds from Issuance or Sale of Equity				$ 12,500,000
Proceeds from Issuance of Common Stock	11,425,118	0		11,400,000
Payments for Repurchase of Initial Public Offering									300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period							75,000	75,000
Proceeds from Stock Options Exercised	$ 34,000	$ 0

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Business Combinations

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3. Business Combinations

Soft-ex Communications Limited

On May 1, 2014, WidePoint Global Solutions, Inc. (“WGS”), a wholly-owned subsidiary of the Company entered into a Share Sale and Purchase Agreement (the “Agreement”), with Gutteridge Limited (“Gutteridge”), a wholly-owned subsidiary of Soft-Ex Holdings Limited (“SHL”), and the shareholders of Soft-Ex Holdings Limited, pursuant to which WGS purchased all of the outstanding equity of Soft-ex Communications Limited (“SCL”). As a result of this transaction, SCL became a wholly-owned subsidiary of WidePoint. WidePoint acquired all of the outstanding equity of SCL for $6.0 million. The purchase price for the outstanding equity of SCL consisted of (i) the payment at closing of cash in the amount of $5 million, subject to a post-closing net working capital adjustment, and (ii) the delivery of a subordinated unsecured loan note in the principal amount of $1.0 million (the “Note”).

WidePoint’s long term strategic objective of expanding its services and presence outside of the United States was launched with the acquisition of SCL. SCL is a leading supplier of telecom data intelligence services offered as a Software-as-a-Service (SaaS) solution that provides unique online data intelligence for Communication Service Providers (CSPs) and their enterprise customers for fixed, mobile, and IP/PABX communications. The addition of SCL complements the Company’s MMS offering and provides access to global CSPs and their customers and partners in over 90 countries throughout European and Middle Eastern markets. 

SCL’s principal executive and administrative office headquarters is in Dublin, Ireland. SCL has two operating subsidiaries, Soft-Ex BV and Soft-Ex UK Limited, which maintain offices and operations in the Netherlands and the United Kingdom, respectively. SCL has been in business since 1989.

Purchase Consideration

The Company has not completed the detailed fair value calculations necessary to estimate the fair value of the assets acquired and the liabilities assumed and the related allocations of purchase consideration, nor has the Company identified all adjustments necessary to conform SCL’s accounting policies to the Company’s accounting policies. The excess of purchase price over the net tangible and intangible assets will be preliminarily recorded as goodwill. The following table sets forth the provisional fair value of consideration paid in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Cash consideration	$	5,000,000	(1)
Contingent subordinated unsecured loan note payable consideration		1,000,000	(2)
Net working capital escrow adjustment to consideration paid		-	(3)
Fair value of consideration paid	$	6,000,000

(1) The Company used operating cash on hand of $5.0 million, of which $4.35 million was released to the seller upon closing of the transaction and the remainder was delivered into escrow. Under the terms of the escrow agreement, the funds shall be released (subject to satisfaction of the terms of the escrow agreement) in two amounts with the first release of $0.15 million on or about May 1, 2015 and the second release of $0.5 million on or about August 1, 2015. The release of funds held in escrow may be subject to adjustment based on final net working capital as described in (3) below.

(2) The Company issued a subordinated unsecured loan Note in the principal amount of $1.0 million to satisfy the remainder of the purchase price. This is a US dollar denominated obligation. The Note accrues interest at the annual rate of 3% and provides for a lump sum payment of principal and interest on May 31, 2015; provided however that in the event that SCL fails to generate gross revenue for the three (3) months ending April 30, 2015 that is at least equal to 75% of the gross revenue generated by SCL for the three (3) months immediately preceding the acquisition of SCL, then the full face value of the Note shall be abrogated and all obligations of WGS under the Note shall be cancelled and waived. The principal amount may be subject to adjustment based on final net working capital as described in (3) below.

(3) Purchase consideration may be adjusted further upon determination of final net working capital as of May 1, 2014. Upon receipt of final net working capital the Company will determine the adjustment, if any, to purchase consideration. Under the terms of the Agreement there is a minimum required net working capital of €0.5 million ($0.7 million). The closing balance sheet shall be prepared in accordance with Irish GAAP within a reasonable period of time after the transaction close. To the extent the final closing net working capital results in a short fall of $50,000 (€36,150) or less, this shortfall shall be released to the Company from the second release tranche. If the net working capital shortfall is greater than $50,000 (€36,150), the Company shall offset this amount against the subordinated unsecured loan note as described in (2) above. To the extent the final closing net working capital results in a surplus of $50,000 (€36,150) or less, this surplus shall be paid into escrow by the Company into the second release tranche. If the net working capital surplus is greater than $50,000 (€36,150), the Company shall increase the subordinated unsecured loan note by the amount of the surplus.

Fair Value of Assets Acquired and Liabilities Assumed

The Company has not completed detailed fair value calculations necessary to estimate the fair value of the assets acquired and the liabilities assumed and the related allocations of purchase consideration, nor has the Company identified all adjustments necessary to conform SCL’s accounting policies to the Company’s accounting policies. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Fair value of identifiable assets acquired and liabilities assumed:
Cash	$	920,372
Trade receivables		1,294,573
Other current assets		248,026
Property and equipment		333,650
Intangibles		984,923
Other assets		2,437
Accounts payable and accrued expenses		(1,937,627)
Capital lease obligation		(66,814)
Total identifiable net assets acquired	$	1,779,540
Goodwill		4,220,460
Total purchase price	$	6,000,000

Transaction Costs

The Company incurred acquisition related due diligence, legal and accounting and transaction costs (including Irish stamp taxes and other processing costs) in connection with acquisition of SCL. For the three and six month periods ended June 30, 2014, the Company incurred costs of approximately $180,000 and $250,300, respectively. These transaction-related costs were expensed as incurred and reflected in general and administrative expense in the consolidated statements of operations for the periods presented.

Employment Agreements

In connection with acquisition of SCL, the Company entered into an employment agreement Ian Sparling, the Chief Executive Officer of SCL (the “Employment Agreement”), for Mr. Sparling to continue to serve as the Chief Executive Officer of SCL. The Employment Agreement provides for an annual base salary of €175,000 ($241,500). In addition, Mr. Sparling shall be eligible to receive bonus compensation of up to 50% of his annual salary. Mr. Sparling will also receive an annual automobile allowance in the amount €16,500 ($22,800) and SCL will contribute up to €15,000 ($20,700) to SCL's pension scheme.

Mr. Sparling was also granted an option to purchase 200,000 shares of common stock of WidePoint. The option has a term of 7 years, with the option to vest in full on the fifth anniversary of the grant date of the option. The vesting date of the option will accelerate in the event that certain performance goals are achieved or in the event of a change in control of WidePoint. Options were granted at market price on the date of grant.

The Employment Period will continue unless terminated earlier by (i) Mr. Sparling or SCL upon 9 months' advance written notice to the other party, (ii) SCL, immediately upon the provision of written notice to Mr. Sparling, provided that the remuneration to which Mr. Sparling is entitled under the Employment Agreement shall continue for a period of 9 months following such termination, or (iii) by SCL upon the occurrence of certain events or actions by Mr. Sparling, including Mr. Sparling being declared bankrupt or being found guilty of fraud, serious misconduct or willful neglect to carry out his duties under the Employment Agreement. Mr. Sparling agreed not to compete with the Company during the twelve months following a termination of his employment.

Supplemental Unaudited Pro Forma Information

The accompanying unaudited pro forma condensed consolidated financial information were prepared in accordance with the purchase method of accounting. The pro forma adjustments presented herein are preliminary, and do not reflect estimated amortization resulting from intangible assets, and may not reflect any final purchase price adjustments made. As the final fair value calculations are being prepared, increases or decreases in the fair value of relevant balance sheet amounts will result in adjustments, which may result in material differences from the information presented herein.

The following unaudited pro forma condensed consolidated statements of operations of WidePoint for each of the three and six month periods ended June 30, 2014 and 2013 have been prepared as if the acquisition of SCL had occurred at January 1, 2013 (unaudited):

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	(a)			(a)			(a)			(a)
	(Unaudited)
Revenues, net	$	12,871,000		$	12,866,000		$	23,930,000		$	26,111,000
Net (loss) income	$	(943,000)	(b)	$	353,000	(b)	$	(1,741,000)	(b)	$	275,000	(b)
Basic (loss) earnings per share	$	(0.013)		$	0.006		$	(0.025)		$	0.004
Diluted (loss) earnings per share	$	(0.013)		$	0.006		$	(0.025)		$	0.004

(a) To reflect on a pro forma basis unaudited consolidated financial information for the three and six month periods ended June 30, 2014 and 2013 for WidePoint. SCL’s most recently completed fiscal year end was April 30, 2014 which differs from WidePoint’s December 31 year end. The unaudited financial information presented herein were derived from historical internally prepared financial statements for SCL and WidePoint’s Form 10-Q quarterly unaudited financial statements. SCL’s financial statements are prepared in accordance with Irish GAAP, as such additional adjustments were made to convert SCL Irish GAAP presentation to a US GAAP presentation to align with WidePoint’s accounting policies. SCL’s reporting currency unit is the Euro. SCL’s US GAAP unaudited historical statement of operations for the three and six month periods ended June 30, 2014 and 2013 were translated into WidePoint’s reporting currency using an average USD/EURO rate of $1.3715, $1.3709, $1.3056 and $1.3130, respectively.

(b) As more fully described above under “purchase consideration”, in conjunction with the share sale and purchase agreement with SCL, WidePoint issued a subordinated unsecured loan Note in the principal amount of $1.0 million. Pro forma interest expense was calculated for this Note under the assumption that the probability of failing to generate adequate gross revenues is considered remote at this time based on projection available at the time of the transaction. Pro forma interest expense adjustments included for each of the three and six month periods ended June 30, 2014 and 2013 was approximately $7,500 and $15,000, respectively.

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Goodwill and Intangible Assets (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Goodwill [Line Items]
Aggregate amortization expense	$ 353,000	$ 336,900	$ 655,441	$ 688,742
Weighted average life of intangible assets			4 years
Intangible Assets, Net (Excluding Goodwill)	4,080,957		4,080,957		3,613,271
Cybersecurity Software [Member]
Goodwill [Line Items]
Finite-lived Intangible Assets Acquired	$ 0		$ 138,800

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Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The Company’s acquisition of SCL on May 1, 2014 resulted in the recognition of net foreign currency translation adjustments due to translation of SCL’s Euro-currency financial statements into the Company’s reporting currency. Changes in AOCI were as follows during the three month period ended June 30, 2014 (unaudited):

Balances, May 1, 2014	$	-
Net foreign currency translation (loss)		(34,856)
Balances, June 30, 2014	$	(34,856)

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Stock Options and Award Programs (Tables)

6 Months Ended

Jun. 30, 2014

Stock Options and Award Programs [Abstract]

Schedule of Nonvested Share Activity [Table Text Block]

A summary of the stock option award activity under our plans during the six months ended June 30, 2014 is set forth below (unaudited):

			Weighted		Weighted
			Average Grant		Average
	# of		Date Fair Value		Remaining
NON-VESTED OPTIONS	Shares		per Share		Option Life
	(Unaudited)
Non-vested balances, January 1, 2014		1,900,000	$	0.36
Granted		360,000	$	1.03
Vested		(594,162)	$	0.30
Non-vested balances, June 30, 2014		1,665,838	$	0.53		2.3

Schedule Of Share-Based Compensation, Stock Options, Activity [Table Text Block]

			Weighted		Weighted
			Average		Average
	# of		Exercise Price		Remaining
OUTSTANDING AND EXERCISABLE	Shares		per Share		Option Life
	(Unaudited)
Options outstanding, January 1, 2014		3,336,500	$	0.72
Granted		360,000	$	1.45
Exercised		(75,000)	$	0.45
Options outstanding, June 30, 2014		3,621,500	$	0.79		3.7
Options outstanding and exercisable, June 30, 2014		1,955,662	$	0.73		2.5

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Line of Credit and Long Term Debt (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013
Debt Instrument [Line Items]
Long-Term Debt	$ 3,923,686		$ 3,659,947
Less: current portion	(2,164,185)		(1,150,455)
Long-term debt, net of current portion	1,759,501		2,509,492
Cardinal Bank Mortgage Dated December 17, 2010 [Member]
Debt Instrument [Line Items]
Long-Term Debt	476,432	[1]	484,532	[1]
Cardinal Bank Term Note Dated December 31, 2011 [Member]
Debt Instrument [Line Items]
Long-Term Debt	2,113,920	[2]	2,508,748	[2]
Non-contingent subordinated unsecured promissory note dated December 31, 2011 [Member]
Debt Instrument [Line Items]
Long-Term Debt	333,334	[3]	666,667	[3]
contingent subordinated unsecured loan note payable dated May 1, 2014 [Member]
Debt Instrument [Line Items]
Long-Term Debt	$ 1,000,000	[4]	$ 0	[4]

[1] On December 17, 2010, the Company entered into a real estate purchase agreement to acquire an operations and call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.

[2] On December 31, 2011, the Company entered into a $4.0 million 5-year term note with Cardinal Bank (“Cardinal Bank Term Note”) to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. (“AGS”) dated December 30, 2011. The term note bears interest at 4.5% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.

[3] On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note (“term note”) with AGS to fund a portion of the purchase price paid in connection with the asset purchase agreement with AGS dated December 30, 2011. The term note bears interest at 3.0% with estimated remaining annual principal payments of $333,334 payable on April 15, 2015. The note matures on April 15, 2015. The Company paid the second installment due on April 15, 2014. The term note is subordinated to the Cardinal Bank Term Note.

[4] On May 1, 2014, the Company entered into a $1.0 million 1-year term contingent subordinated unsecured loan note with SCL to fund a portion of the purchase price paid in connection with the Share Sale and Purchase Agreement with SHL dated May 1, 2014. The term note bears interest at 3.0% with an estimated lump-sum principal payment of $1.0 million payable on May 1, 2015. The term note is subordinated to the Cardinal Bank Term Note.

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Earnings Per Common Share (EPS) (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Common Share (EPS) [Abstract]

Schedule Of Earnings Per Share, Basic and Diluted [Table Text Block]

The computations of basic and diluted EPS were as follows for the periods presented below:

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Basic EPS Computation:
Net (loss) income	$	(669,239)	$	139,351	$	(1,595,937)	$	104,082
Weighted average number of common shares		72,998,461		63,751,857		69,929,300		63,751,857
Basic EPS	$	(0.009)	$	0.002	$	(0.023)	$	0.002
Basic EPS Computation:
Net (loss) income	$	(669,239)	$	139,351	$	(1,595,937)	$	104,082
Weighted average number of common shares		72,998,461		63,751,857		69,929,300		63,751,857
Incremental shares from assumed conversions of stock options		-		184,750		-		156,895
Adjusted weighted average number of common shares		72,998,461		63,936,607		69,929,300		63,908,752
Diluted EPS	$	(0.009)	$	0.002	$	(0.023)	$	0.002

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Details of Consolidated Revenue (Tables)

6 Months Ended

Jun. 30, 2014

Details of Consolidated Revenue [Abstract]

Schedule Of Consolidated Revenues [Table Text Block]

As further described in Note 2 above, the Company’s principal business is MMS. The following table was prepared to provide additional information about the composition of revenues based on broad service descriptions:

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
MMS Service Mix	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Carrier Services	$	4,301,378	$	4,232,388	$	8,253,070	$	8,330,729
Management Services		4,604,498		4,829,980		8,400,497		10,000,200
Resale and Other Services		3,488,145		2,281,594		5,343,233		4,981,139
	$	12,394,021	$	11,343,962	$	21,996,800	$	23,312,068

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Basis of Presentation and Accounting Policies

6 Months Ended

Jun. 30, 2014

Basis of Presentation and Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Basis of Presentation and Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements as of June 30, 2014 and for each of the three and six month periods ended June 30, 2014 and 2013, respectively, included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to such regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. It is the opinion of management that all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results are reflected in the financial statements for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2013 was derived from the audited condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three and six month periods ended June 30, 2014 are not indicative of the operating results for the full year.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and acquired entities since their respective dates of acquisition. All significant inter-company amounts were eliminated in consolidation.

Foreign Currency

Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each reporting period. The resulting translation adjustments, along with any related tax effects, are included in accumulated other comprehensive (loss) income, a component of stockholders’ equity. Translation adjustments are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. dollar, are reported net in the Company’s Consolidated Statements of Operations, depending on the nature of the activity.

Reclassifications

The Company reclassified amounts representing short term insurance financing arrangements previously included in the caption “principal repayments of short-term notes payable” within the caption “accounts payable and accrued expenses” on the condensed consolidated statement of cash flows presentation to conform to the current year presentation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring use of estimates and judgment relate to revenue recognition, accounts receivable valuation reserves, ability to realize intangible assets and goodwill, ability to realize deferred income tax assets, fair value of assets and liabilities acquired in connection with a business combination, fair value of certain financial instruments and the evaluation of contingencies and litigation. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Significant Accounting Policies

There have been no significant changes in the Company’s significant accounting policies during the first six months of 2014 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014.

Segment Reporting

The Company’s MMS offering is a portfolio of enterprise-wide information technology-based services which comprise a single MMS business from which the Company earns revenues and incurs costs. Currently the Company’s MMS offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its MMS business as a single segment. See Note 14 for detailed information regarding the composition of MMS services.

Accounting Standards Update

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The Company is evaluating the effect that ASU 2014-09 may have on our consolidated financial statements and related disclosures. The Company has neither selected a transition method nor determined the effect of the standard on its ongoing financial reporting.

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Business Combinations (Details) (Soft-ex Communications Limited [Member], USD $)	1 Months Ended
	May 01, 2014
Soft-ex Communications Limited [Member]
Business Combination Segment Allocation [Line Items]
Cash consideration	$ 5,000,000	[1]
Contingent subordinated unsecured loan note payable consideration	1,000,000	[2]
Net working capital escrow adjustment to consideration paid	0	[3]
Fair value of consideration paid	$ 6,000,000

[1] The Company used operating cash on hand of $5.0 million, of which $4.35 million was released to the seller upon closing of the transaction and the remainder was delivered into escrow. Under the terms of the escrow agreement, the funds shall be released (subject to satisfaction of the terms of the escrow agreement) in two amounts with the first release of $0.15 million on or about May 1, 2015 and the second release of $0.5 million on or about August 1, 2015. The release of funds held in escrow may be subject to adjustment based on final net working capital as described in (3) below.

[2] The Company issued a subordinated unsecured loan Note in the principal amount of $1.0 million to satisfy the remainder of the purchase price. This is a US dollar denominated obligation. The Note accrues interest at the annual rate of 3% and provides for a lump sum payment of principal and interest on May 31, 2015; provided however that in the event that SCL fails to generate gross revenue for the three (3) months ending April 30, 2015 that is at least equal to 75% of the gross revenue generated by SCL for the three (3) months immediately preceding the acquisition of SCL, then the full face value of the Note shall be abrogated and all obligations of WGS under the Note shall be cancelled and waived. The principal amount may be subject to adjustment based on final net working capital as described in (3) below.

[3] Purchase consideration may be adjusted further upon determination of final net working capital as of May 1, 2014. Upon receipt of final net working capital the Company will determine the adjustment, if any, to purchase consideration. Under the terms of the Agreement there is a minimum required net working capital of €0.5 million ($0.7 million). The closing balance sheet shall be prepared in accordance with Irish GAAP within a reasonable period of time after the transaction close. To the extent the final closing net working capital results in a short fall of $50,000 (€36,150) or less, this shortfall shall be released to the Company from the second release tranche. If the net working capital shortfall is greater than $50,000 (€36,150), the Company shall offset this amount against the subordinated unsecured loan note as described in (2) above. To the extent the final closing net working capital results in a surplus of $50,000 (€36,150) or less, this surplus shall be paid into escrow by the Company into the second release tranche. If the net working capital surplus is greater than $50,000 (€36,150), the Company shall increase the subordinated unsecured loan note by the amount of the surplus.

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Property and Equipment (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 3,834,309	$ 3,319,269
Less: accumulated depreciation and amortization	(1,997,444)	(1,773,318)
Property and equipment, net	1,836,865	1,545,951
Computer Hardware Software [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	2,338,898	2,052,280
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	289,370	218,939
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	160,391	2,400
Leaseholds and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	368,596	368,596
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 677,054	$ 677,054

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Details of Consolidated Revenue (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Carrier Services	$ 4,301,378	$ 4,232,388	$ 8,253,070	$ 8,330,729
Management Services	4,604,498	4,829,980	8,400,497	10,000,200
Resale and Other Services	3,488,145	2,281,594	5,343,233	4,981,139
Revenues, net	$ 12,394,021	$ 11,343,962	$ 21,996,800	$ 23,312,068

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 4,103,311	$ 0
Accounts receivable, net of allowance for doubtful accounts of $29,794 and $30,038 in 2014 and 2013, respectively	6,177,272	7,612,400
Unbilled accounts receivable	2,860,011	1,561,030
Inventories	35,871	61,338
Prepaid expenses and other assets	549,789	533,944
Income taxes receivable	0	763
Total current assets	13,726,254	9,769,475
NONCURRENT ASSETS
Property and equipment, net	1,836,865	1,545,951
Intangibles, net	4,080,957	3,613,271
Goodwill	20,838,927	16,618,467
Deferred income tax asset, net of current	5,498,201	4,407,630
Deposits and other assets	118,228	120,046
TOTAL ASSETS	46,099,432	36,074,840
CURRENT LIABILITIES
Line of credit advance	0	916,663
Short term note payable	34,529	119,336
Accounts payable	3,550,495	3,228,586
Accrued expenses	4,221,829	4,407,286
Deferred revenue	829,257	40,911
Income taxes payable	21,121	217,982
Deferred income taxes	700,743	700,743
Current portion of long-term debt	2,164,185	1,150,455
Current portion of deferred rent	71,547	78,525
Current portion of capital lease obligations	75,835	45,125
Total current liabilities	11,669,541	10,905,612
NONCURRENT LIABILITIES
Long-term debt, net of current portion	1,759,501	2,509,492
Capital lease obligation, net of current portion	70,592	57,119
Deferred rent, net of current portion	18,395	2,421
Deferred revenue	68,672	82,494
Deposits and other liabilities	1,964	1,964
Total liabilities	13,588,665	13,559,102
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding	0	0
Common stock, $0.001 par value; 110,000,000 shares authorized; 73,040,329 and 63,907,357 shares issued and outstanding, respectively	73,040	63,907
Additional paid-in capital	81,484,180	69,867,491
Accumulated other comprehensive (loss) income	(34,856)	0
Accumulated deficit	(49,011,597)	(47,415,660)
Total stockholders' equity	32,510,767	22,515,738
Total liabilities and stockholders' equity	$ 46,099,432	$ 36,074,840

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Line of Credit and Long Term Debt (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Debt Instrument [Line Items]
Proceeds from line of credit	$ 4,266,689	$ 481,018
contingent subordinated unsecured loan note payable dated May 1, 2014 [Member]
Debt Instrument [Line Items]
Debt instrument, term	1 year
Debt instrument, maturity date	May 01, 2015
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Cardinal Bank Commercial Loan Agreement Facility [Member]
Debt Instrument [Line Items]
Line Of Credit Facility, Maximum Borrowing Capacity	8,000,000
Line of credit, borrowing capacity based on percentage of federal receivables	90.00%
Line of credit, borrowing capacity based on percentage of commercial receivables	80.00%
Termination date of credit agreement	Aug. 31, 2014
Proceeds from line of credit	4,300,000
Repayments of line of credit	5,200,000
Minimum net worth contract requirement	4,500,000
Debt service ratio	1.2
Current ratio	1.1
Cardinal Bank Commercial Loan Agreement Facility [Member] | Cardinal Bank Mortgage Dated December 17, 2010 [Member]
Debt Instrument [Line Items]
Long-term Purchase Commitment, Amount	677,000
Debt instrument, face amount	528,000
Debt instrument, term	10 years
Debt instrument, maturity date	Dec. 17, 2020
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Debt Instrument, Periodic Payment	3,800
Cardinal Bank Commercial Loan Agreement Facility [Member] | Cardinal Bank Term Note Dated December 31, 2011 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	4,000,000
Debt instrument, term	5 years
Debt instrument, maturity date	Dec. 30, 2016
Debt Instrument, Interest Rate, Stated Percentage	4.50%
Debt Instrument, Periodic Payment	74,694
Cardinal Bank Commercial Loan Agreement Facility [Member] | Non-contingent subordinated unsecured promissory note dated December 31, 2011 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	1,000,000
Debt instrument, term	3 years
Debt instrument, maturity date	Apr. 15, 2015
Fair value of estimated annual principal payments in 2015	$ 333,334
Debt Instrument, Interest Rate, Stated Percentage	3.00%

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (1,595,937)	$ 104,082
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax benefit	(1,098,027)	(248,225)
Depreciation expense	224,128	188,705
Provision for doubtful accounts	(244)	57,403
Amortization of intangibles	655,441	688,742
Amortization of deferred financing costs	4,728	5,819
Share-based compensation expense	166,704	112,268
Gain on change in fair value of contingent obligation	0	(589,000)
Loss on disposal of equipment	4,510	0
Changes in assets and liabilities:
Accounts receivable and unbilled receivables	1,459,732	3,330,619
Inventories	76,051	27,927
Prepaid expenses and other current assets	141,598	118,204
Other assets excluding deferred financing costs	(2,910)	(3,637)
Accounts payable and accrued expenses	(1,006,496)	(2,509,034)
Income tax (payable) receivable	(184,780)	214,135
Deferred revenue	(112,747)	59,902
Net cash (used in) provided by operating activities	(1,268,249)	1,557,910
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(176,543)	(235,375)
Software development costs	(138,781)	0
Business combination, net of cash acquired	(4,079,628)	0
Net cash used in investing activities	(4,394,952)	(235,375)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit	4,266,689	481,018
Repayments of bank line of credit advances	(5,183,352)	(481,018)
Principal repayments of long term debt	(736,261)	(655,059)
Principal repayments under capital lease obligations	(22,922)	(21,036)
Proceeds from public stock offering, net of offering costs	11,425,118	0
Proceeds from exercise of stock options	34,000	0
Net cash provided by (used in) financing activities	9,783,272	(676,095)
Net effect of exchange rate on cash and equivalents	(16,760)	0
NET INCREASE IN CASH	4,103,311	646,440
CASH, beginning of period	0	1,857,614
CASH, end of period	4,103,311	2,504,054
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	99,677	93,632
Cash paid for income taxes	91,527	0
NONCASH INVESTING AND FINANCING ACTIVITIES
Insurance policies financed by short term notes payable	$ 0	$ 50,662

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Business Combinations (Details Textual)	3 Months Ended		6 Months Ended		1 Months Ended		3 Months Ended		6 Months Ended			1 Months Ended
	Jun. 30, 2014 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2013 USD ($)	May 01, 2014 Soft-ex Communications Limited [Member] USD ($)		Jun. 30, 2014 Soft-ex Communications Limited [Member] USD ($)	Jun. 30, 2013 Soft-ex Communications Limited [Member]	Jun. 30, 2014 Soft-ex Communications Limited [Member] USD ($)	Jun. 30, 2013 Soft-ex Communications Limited [Member]	May 01, 2014 Soft-ex Communications Limited [Member] EUR (€)	May 01, 2014 Chief Executive Officer of SCL [Member] Soft-ex Communications Limited [Member] USD ($)	May 01, 2014 Chief Executive Officer of SCL [Member] Soft-ex Communications Limited [Member] EUR (€)	May 01, 2014 Released to Seller upon Close [Member] Soft-ex Communications Limited [Member] USD ($)	May 01, 2014 Escrow Agreement, Payable on or about May 1, 2015 [Member] Soft-ex Communications Limited [Member] USD ($)	May 01, 2014 Escrow Agreement, Payable on or about August 1, 2015 [Member] Soft-ex Communications Limited [Member] USD ($)
Business Acquisition [Line Items]
Minimum Required, Net Working Capital					$ 700,000						€ 500,000
Minimum Required, Net Working Capital, Benchmark Amount					50,000						36,150
Annual Base Salary, Employment Agreement, Amount												241,500	175,000
Bonus Compensation, Employment Agreement, Maximum Percentage												50.00%	50.00%
Annual Automobile Allowance, Employment Agreement, Amount												22,800	16,500
Pension Contributions, Employment Agreement, Amount												20,700	15,000
Payments to Acquire Businesses, Gross					5,000,000	[1]								4,350,000	150,000	500,000
Debt Instrument, Face Amount					1,000,000
Debt Instrument, Interest Rate, Stated Percentage					3.00%
Business Combination, Acquisition Related Costs							180,000		250,300
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross												200,000	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period												7 years	7 years
Subordinated Debt					1,000,000
Interest Expense	$ 46,332	$ 55,937	$ 92,558	$ 115,519			$ 7,500		$ 15,000
Debt Instrument, Maturity Date					May 31, 2015
Debt Instrument, Payment Terms					in the event that SCL fails to generate gross revenue for the three (3) months ending April 30, 2015 that is at least equal to 75% of the gross revenue generated by SCL for the three (3) months immediately preceding the acquisition of SCL, then the full face value of the Note shall be abrogated and all obligations of WGS under the Note shall be cancelled and waived
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights												with the option to vest in full on the fifth anniversary of the grant date of the option.	with the option to vest in full on the fifth anniversary of the grant date of the option.
Foreign Currency Exchange Rate, Translation, Average Rate							1.3715	1.3056	1.3709	1.3130

[1] The Company used operating cash on hand of $5.0 million, of which $4.35 million was released to the seller upon closing of the transaction and the remainder was delivered into escrow. Under the terms of the escrow agreement, the funds shall be released (subject to satisfaction of the terms of the escrow agreement) in two amounts with the first release of $0.15 million on or about May 1, 2015 and the second release of $0.5 million on or about August 1, 2015. The release of funds held in escrow may be subject to adjustment based on final net working capital as described in (3) below.

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Basis of Presentation and Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Basis of Presentation and Accounting Policies [Abstract]

Basis Of Accounting Policy [Policy Text Block]

Basis of Presentation

The unaudited condensed consolidated financial statements as of June 30, 2014 and for each of the three and six month periods ended June 30, 2014 and 2013, respectively, included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to such regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted. It is the opinion of management that all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results are reflected in the financial statements for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2013 was derived from the audited condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three and six month periods ended June 30, 2014 are not indicative of the operating results for the full year.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and acquired entities since their respective dates of acquisition. All significant inter-company amounts were eliminated in consolidation.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each reporting period. The resulting translation adjustments, along with any related tax effects, are included in accumulated other comprehensive (loss) income, a component of stockholders’ equity. Translation adjustments are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. dollar, are reported net in the Company’s Consolidated Statements of Operations, depending on the nature of the activity.

Reclassification, Policy [Policy Text Block]

Reclassifications

The Company reclassified amounts representing short term insurance financing arrangements previously included in the caption “principal repayments of short-term notes payable” within the caption “accounts payable and accrued expenses” on the condensed consolidated statement of cash flows presentation to conform to the current year presentation.

Use Of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring use of estimates and judgment relate to revenue recognition, accounts receivable valuation reserves, ability to realize intangible assets and goodwill, ability to realize deferred income tax assets, fair value of assets and liabilities acquired in connection with a business combination, fair value of certain financial instruments and the evaluation of contingencies and litigation. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Significant Accounting Policies [Policy Text Block]

Significant Accounting Policies

There have been no significant changes in the Company’s significant accounting policies during the first six months of 2014 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 31, 2014.

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

The Company’s MMS offering is a portfolio of enterprise-wide information technology-based services which comprise a single MMS business from which the Company earns revenues and incurs costs. Currently the Company’s MMS offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its MMS business as a single segment. See Note 14 for detailed information regarding the composition of MMS services.

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Accounting Standards Update

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The Company is evaluating the effect that ASU 2014-09 may have on our consolidated financial statements and related disclosures. The Company has neither selected a transition method nor determined the effect of the standard on its ongoing financial reporting.

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Accounts Receivable and Unbilled Accounts Receivable (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 6,207,066	$ 7,642,438
Less: allowances for doubtful accounts	(29,794)	(30,038)
Accounts receivable, net	6,177,272	7,612,400
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	3,421,872	2,782,179
Government [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 2,785,194	$ 4,860,259

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Accounts Receivable and Unbilled Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2014

Accounts Receivable and Unbilled Accounts Receivable [Abstract]

Schedule Of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Commercial	$	3,421,872	$	2,782,179
Government		2,785,194		4,860,259
Gross accounts receivable		6,207,066		7,642,438
Less: allowances for doubtful accounts		(29,794)		(30,038)
Accounts receivable, net	$	6,177,272	$	7,612,400

Schedule Of Unbilled Accounts Receivable [Table Text Block]

Unbilled accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Commercial	$	452,672	$	435,230
Government		2,407,339		1,125,800
Unbilled accounts receivable	$	2,860,011	$	1,561,030

Schedule Of Quarterly Financial Information [Table Text Block]

Customers representing ten percent or more of consolidated revenues are set forth in the table below for each of the periods presented:

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	As a % of			As a % of			As a % of			As a % of
Customer Name	Revenues			Revenues			Revenues			Revenues
	(Unaudited)						(Unaudited)
Transportation Security Administration		17	%		20	%		20	%		19	%
Department of Homeland Security		19	%		18	%		19	%		18	%
Lockheed Martin		—			—			—			11	%

Schedule Of Segment Reporting Trade Unbilled Accounts Receivable [Table Text Block]

Customers representing ten percent or more of consolidated trade accounts receivable are set forth in the table below for each of the periods presented:

	JUNE 30,			DECEMBER 31,
	2014			2013
	As a % of			As a % of
Customer Name	Receivables			Receivables
	(Unaudited)
Transportation Security Administration (“TSA”)		11	%		19	%
Department of Homeland Security (“DHS”)		11	%		8	%
US Airforce		—			14	%

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Organization and Nature of Operations

6 Months Ended

Jun. 30, 2014

Organization and Nature of Operations [Abstract]

Organization, Consolidation and Presentation Of Financial Statements Disclosure [Text Block]

1. Organization and Nature of Operations

Organization

WidePoint Corporation (“WidePoint” or the “Company”) was incorporated in Delaware on May 30, 1997. The Company is a global provider of information technology (IT) based products, services, and solutions. The Company offers secure, cloud-based, enterprise-wide information technology-based solutions that enable commercial markets, and federal and state government organizations, to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. The Company has sales and operational offices strategically located throughout the continental United States, Ireland, the Netherlands and the United Kingdom. The Company’s principal executive and administrative headquarters is located in McLean, Virginia.  See Note 3 for additional discussion regarding a recent business acquisition during the second quarter of 2014.

Nature of Operations

The Company has grown through the targeted acquisition of specialized IT companies that now provide a complementary suite of products and services for its Managed Mobility Solutions (MMS) offering. The Company’s MMS offers a portfolio of information technology based services and products with a set of streamlined mobile communications management, identity management, telecommunications data intelligence and consulting solutions that provide its customers with the ability to manage and protect their valuable communications assets and deploy compliant identity management solutions that provide secured virtual and physical access to restricted environments. Many of the Company’s solutions are accessible on-demand through cloud computing and provide customers with the ability to remotely manage their workforce mobility and identity management requirements in accordance with internal policies, the marketplace and the demands of its customers. The Company may authorize the use of discretionary operating capital to fund the development of MMS offerings, functionality and/or streamline the operation of its proprietary applications.

The Company’s operating results may vary significantly from quarter-to-quarter, due to revenues earned on contracts, the number of billable days in a quarter, the timing of the pass-through of other direct costs, the commencement and completion of contracts during any particular quarter, the schedule of the government agencies for awarding contracts, the term of each contract awarded and general economic conditions. A significant portion of the Company’s expenses, such as personnel and facilities costs, are fixed in the short term, successful contract performance and variation in the volume of activity as well as in the number of contracts commenced or completed during any quarter may cause significant variations in operating results from quarter to quarter.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]
Allowance for doubtful accounts receivable (in dollars)	$ 29,794	$ 30,038
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	2,045,714	2,045,714
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	73,040,329	63,907,357
Common stock, shares outstanding	73,040,329	63,907,357

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Stock Options and Award Programs

6 Months Ended

Jun. 30, 2014

Stock Options and Award Programs [Abstract]

Disclosure Of Compensation Related Costs, Share-Based Payments [Text Block]

11. Stock Options and Award Programs

The Company’s stock incentive plan is administered by the Compensation Committee and authorizes the grant or award of incentive stock options, non-qualified stock options, restricted stock awards, stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited are added back to the number of shares that underlie stock options to be granted under the stock incentive plan. The Company has issued restricted stock awards and non-qualified stock option awards as described below.

Restricted Stock Awards

On November 18, 2010, the Company’s Compensation Committee granted Steve L. Komar and James T. McCubbin each an award of 250,000 shares of restricted stock of the Company, the vesting of which is based on achievement of future performance goals of the Company. There were no changes in vesting requirements or activity related to restricted stock awards (RSA) during the three or six month periods ended June 30, 2014. At June 30, 2014, the Company had approximately $294,800 of total unamortized RSA compensation expense.

Stock Option Awards

For each of the three and six month periods ended June 30, 2014, the Company granted stock options of 310,000 and 360,000 (of which 50,000 was granted to a non-employee consultant), respectively. The fair value of each this option award was estimated on the date of grant using a Black-Scholes option pricing model (“Black-Scholes model”), which uses the assumptions of no dividend yield, risk free interest rate of 0.35% to 2.21% and expected life in years of approximately 7 years (or 2 years for non-employee consultants). Expected volatilities used in determining the fair value of options granted based on historical volatility of our common stock of approximately 73.7% to 85.9%. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. Stock option awards reflected in the tables below cover the period from 1999 through June 30, 2014. A summary of the stock option award activity under our plans during the six months ended June 30, 2014 is set forth below (unaudited):

			Weighted		Weighted
			Average Grant		Average
	# of		Date Fair Value		Remaining
NON-VESTED OPTIONS	Shares		per Share		Option Life
	(Unaudited)
Non-vested balances, January 1, 2014		1,900,000	$	0.36
Granted		360,000	$	1.03
Vested		(594,162)	$	0.30
Non-vested balances, June 30, 2014		1,665,838	$	0.53		2.3

			Weighted		Weighted
			Average		Average
	# of		Exercise Price		Remaining
OUTSTANDING AND EXERCISABLE	Shares		per Share		Option Life
	(Unaudited)
Options outstanding, January 1, 2014		3,336,500	$	0.72
Granted		360,000	$	1.45
Exercised		(75,000)	$	0.45
Options outstanding, June 30, 2014		3,621,500	$	0.79		3.7
Options outstanding and exercisable, June 30, 2014		1,955,662	$	0.73		2.5

Aggregate intrinsic value represents total pretax intrinsic value (the difference between the Company’s closing stock price on June 30, 2014, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2014. The intrinsic value will change based on the fair market value of the Company’s stock. The total intrinsic values of all options that were outstanding and the portion of those outstanding that were exercisable as of June 30, 2014, were $3.5 million and $2.0 million, respectively.

Share-based compensation (including restricted stock awards) represents both stock options based expense and stock grant expense. For the three and six month periods ended June 30, 2014 and 2013, the Company recognized share-based compensation expense of approximately $84,000, $58,300, $166,700 and $112,300, respectively. During the six month period ended June 30, 2014 there were no fully vested stock options that expired unexercised and/or were cancelled as a result of employment terminations.

At June 30, 2014, the Company had approximately $604,300 of total unamortized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 2.3 years. 

See Note 9 for discussion about the tax benefit associated with the exercise of stock options.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document Information [Line Items]
Entity Registrant Name	WIDEPOINT CORP
Entity Central Index Key	0001034760
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	WYY
Entity Common Stock, Shares Outstanding		73,130,328
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2014

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Accumulated Other Comprehensive Income (Loss) (AOCI)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity [Abstract]

Comprehensive Income (Loss) Note [Text Block]

12. Accumulated Other Comprehensive Income (Loss) (AOCI)

AOCI is a balance sheet item in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company’s acquisition of SCL on May 1, 2014 resulted in the recognition of net foreign currency translation adjustments due to translation of SCL’s Euro-currency financial statements into the Company’s reporting currency. Changes in AOCI were as follows during the three month period ended June 30, 2014 (unaudited):

Balances, May 1, 2014	$	-
Net foreign currency translation (loss)		(34,856)
Balances, June 30, 2014	$	(34,856)

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUES	$ 12,394,021	$ 11,343,962	$ 21,996,800	$ 23,312,068
COST OF REVENUES (including amortization and depreciation of $391,899, $363,609, $666,840, and $737,928, respectively)	8,780,226	7,816,920	15,915,767	16,510,574
GROSS PROFIT	3,613,795	3,527,042	6,081,033	6,801,494
OPERATING EXPENSES
Sales and Marketing	1,038,059	880,303	1,883,171	1,686,120
General and Administrative Expenses (including share-based compensation of $83,988, $58,281, $166,704, and $112,268, respectively, and gain on change in fair value of contingent obligation of $0, $369,000, $0, and $589,000, respectively)	3,666,282	2,386,801	6,722,120	4,913,616
Depreciation and Amortization	143,219	73,241	212,729	139,519
Total Operating Expenses	4,847,560	3,340,345	8,818,020	6,739,255
(LOSS) INCOME FROM OPERATIONS	(1,233,765)	186,697	(2,736,987)	62,239
OTHER INCOME (EXPENSE)
Interest Income	4,594	2,612	5,324	3,461
Interest (Expense)	(46,332)	(55,937)	(92,558)	(115,519)
Other Income (Expense)	5,924	4,134	11,799	8,505
Total Other Income (Expense)	(35,814)	(49,191)	(75,435)	(103,553)
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES	(1,269,579)	137,506	(2,812,422)	(41,314)
INCOME TAX BENEFIT	(600,340)	(1,845)	(1,216,485)	(145,396)
NET (LOSS) INCOME	$ (669,239)	$ 139,351	$ (1,595,937)	$ 104,082
BASIC EARNINGS PER SHARE	$ (0.009)	$ 0.002	$ (0.023)	$ 0.002
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING	72,998,461	63,751,857	69,929,300	63,751,857
DILUTED EARNINGS PER SHARE	$ (0.009)	$ 0.002	$ (0.023)	$ 0.002
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING	72,998,461	63,936,607	69,929,300	63,908,752

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Property and Equipment

6 Months Ended

Jun. 30, 2014

Property and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. Property and Equipment

Major classes of property and equipment consisted of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Land and building	$	677,054	$	677,054
Computer hardware and software		2,338,898		2,052,280
Furniture and fixtures		289,370		218,939
Leasehold improvements		368,596		368,596
Automobile		160,391		2,400
Gross property and equipment		3,834,309		3,319,269
Less: accumulated depreciation and amortization		(1,997,444)		(1,773,318)
Property and equipment, net	$	1,836,865	$	1,545,951

There were no changes in the estimated useful life used to depreciate property and equipment during the three and six month periods ended June 30, 2014 and 2013. For each of the three month periods ended June 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $125,000 and $99,700, respectively. For each of the six month periods ended June 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $224,000 and $188,780, respectively. For each of the three and six month periods ended June 30, 2014 and 2013, there were no material sales or disposals of owned property and equipment.

Included in property and equipment are certain equipment purchases acquired under capital lease arrangements. See Note 7 for additional information about historical capital lease obligations. In conjunction with the Company’s acquisition of SCL on May 1, 2014, the company assumed capital lease assets with a net book value of approximately $70,700. Total capitalized cost of equipment under capital leases at June 30, 2014 and December 31, 2013 was approximately $553,600 and $477,500, respectively. For each of the three and six month periods ended June 30, 2014 and 2013, the Company did not enter into any capital lease arrangements.

For the three month periods ended June 30, 2014 and 2013 depreciation expense for leased equipment was approximately $18,000 and $14,700, respectively. For the six month periods ended June 30, 2014 and 2013, depreciation expense for leased equipment was approximately $32,700 and $29,400, respectively. Accumulated depreciation for leased equipment at June 30, 2014 and December 31, 2013 was approximately $448,100 and $408,900, respectively. For the three month periods ended June 30, 2014, there were no disposals of leased equipment. Total net book value of assets under capital leases at June 30, 2014 and December 31, 2013 was approximately $105,500 and $68,600, respectively.

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Accounts Receivable and Unbilled Accounts Receivable

6 Months Ended

Jun. 30, 2014

Accounts Receivable and Unbilled Accounts Receivable [Abstract]

Accounts Receivable and Unbilled Account Receivables [Text Block]

5. Accounts Receivable and Unbilled Accounts Receivable

Accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Commercial	$	3,421,872	$	2,782,179
Government		2,785,194		4,860,259
Gross accounts receivable		6,207,066		7,642,438
Less: allowances for doubtful accounts		(29,794)		(30,038)
Accounts receivable, net	$	6,177,272	$	7,612,400

Unbilled accounts receivable consist of the following for each of the periods presented below:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Commercial	$	452,672	$	435,230
Government		2,407,339		1,125,800
Unbilled accounts receivable	$	2,860,011	$	1,561,030

Customers representing ten percent or more of consolidated revenues are set forth in the table below for each of the periods presented:

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	As a % of			As a % of			As a % of			As a % of
Customer Name	Revenues			Revenues			Revenues			Revenues
	(Unaudited)						(Unaudited)
Transportation Security Administration		17	%		20	%		20	%		19	%
Department of Homeland Security		19	%		18	%		19	%		18	%
Lockheed Martin		—			—			—			11	%

Customers representing ten percent or more of consolidated trade accounts receivable are set forth in the table below for each of the periods presented:

	JUNE 30,			DECEMBER 31,
	2014			2013
	As a % of			As a % of
Customer Name	Receivables			Receivables
	(Unaudited)
Transportation Security Administration (“TSA”)		11	%		19	%
Department of Homeland Security (“DHS”)		11	%		8	%
US Airforce		—			14	%

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Business Acquisition Cost Of Acquired Entity Purchase Price [Table Text Block]

The following table sets forth the provisional fair value of consideration paid in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Cash consideration	$	5,000,000	(1)
Contingent subordinated unsecured loan note payable consideration		1,000,000	(2)
Net working capital escrow adjustment to consideration paid		-	(3)
Fair value of consideration paid	$	6,000,000

(1) The Company used operating cash on hand of $5.0 million, of which $4.35 million was released to the seller upon closing of the transaction and the remainder was delivered into escrow. Under the terms of the escrow agreement, the funds shall be released (subject to satisfaction of the terms of the escrow agreement) in two amounts with the first release of $0.15 million on or about May 1, 2015 and the second release of $0.5 million on or about August 1, 2015. The release of funds held in escrow may be subject to adjustment based on final net working capital as described in (3) below.

(2) The Company issued a subordinated unsecured loan Note in the principal amount of $1.0 million to satisfy the remainder of the purchase price. This is a US dollar denominated obligation. The Note accrues interest at the annual rate of 3% and provides for a lump sum payment of principal and interest on May 31, 2015; provided however that in the event that SCL fails to generate gross revenue for the three (3) months ending April 30, 2015 that is at least equal to 75% of the gross revenue generated by SCL for the three (3) months immediately preceding the acquisition of SCL, then the full face value of the Note shall be abrogated and all obligations of WGS under the Note shall be cancelled and waived. The principal amount may be subject to adjustment based on final net working capital as described in (3) below.

(3) Purchase consideration may be adjusted further upon determination of final net working capital as of May 1, 2014. Upon receipt of final net working capital the Company will determine the adjustment, if any, to purchase consideration. Under the terms of the Agreement there is a minimum required net working capital of €0.5 million ($0.7 million). The closing balance sheet shall be prepared in accordance with Irish GAAP within a reasonable period of time after the transaction close. To the extent the final closing net working capital results in a short fall of $50,000 (€36,150) or less, this shortfall shall be released to the Company from the second release tranche. If the net working capital shortfall is greater than $50,000 (€36,150), the Company shall offset this amount against the subordinated unsecured loan note as described in (2) above. To the extent the final closing net working capital results in a surplus of $50,000 (€36,150) or less, this surplus shall be paid into escrow by the Company into the second release tranche. If the net working capital surplus is greater than $50,000 (€36,150), the Company shall increase the subordinated unsecured loan note by the amount of the surplus.

Schedule of Purchase Price Allocation [Table Text Block]

The following table summarizes the provisional fair values of the assets acquired and liabilities assumed in connection with acquisition of SCL as of May 1, 2014 (unaudited):

Fair value of identifiable assets acquired and liabilities assumed:
Cash	$	920,372
Trade receivables		1,294,573
Other current assets		248,026
Property and equipment		333,650
Intangibles		984,923
Other assets		2,437
Accounts payable and accrued expenses		(1,937,627)
Capital lease obligation		(66,814)
Total identifiable net assets acquired	$	1,779,540
Goodwill		4,220,460
Total purchase price	$	6,000,000

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma condensed consolidated statements of operations of WidePoint for each of the three and six month periods ended June 30, 2014 and 2013 have been prepared as if the acquisition of SCL had occurred at January 1, 2013 (unaudited):

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2014			2013			2014			2013
	(a)			(a)			(a)			(a)
	(Unaudited)
Revenues, net	$	12,871,000		$	12,866,000		$	23,930,000		$	26,111,000
Net (loss) income	$	(943,000)	(b)	$	353,000	(b)	$	(1,741,000)	(b)	$	275,000	(b)
Basic (loss) earnings per share	$	(0.013)		$	0.006		$	(0.025)		$	0.004
Diluted (loss) earnings per share	$	(0.013)		$	0.006		$	(0.025)		$	0.004

(a) To reflect on a pro forma basis unaudited consolidated financial information for the three and six month periods ended June 30, 2014 and 2013 for WidePoint. SCL’s most recently completed fiscal year end was April 30, 2014 which differs from WidePoint’s December 31 year end. The unaudited financial information presented herein were derived from historical internally prepared financial statements for SCL and WidePoint’s Form 10-Q quarterly unaudited financial statements. SCL’s financial statements are prepared in accordance with Irish GAAP, as such additional adjustments were made to convert SCL Irish GAAP presentation to a US GAAP presentation to align with WidePoint’s accounting policies. SCL’s reporting currency unit is the Euro. SCL’s US GAAP unaudited historical statement of operations for the three and six month periods ended June 30, 2014 and 2013 were translated into WidePoint’s reporting currency using an average USD/EURO rate of $1.3715, $1.3709, $1.3056 and $1.3130, respectively.

(b) As more fully described above under “purchase consideration”, in conjunction with the share sale and purchase agreement with SCL, WidePoint issued a subordinated unsecured loan Note in the principal amount of $1.0 million. Pro forma interest expense was calculated for this Note under the assumption that the probability of failing to generate adequate gross revenues is considered remote at this time based on projection available at the time of the transaction. Pro forma interest expense adjustments included for each of the three and six month periods ended June 30, 2014 and 2013 was approximately $7,500 and $15,000, respectively.

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Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2014

Earnings Per Common Share (EPS) [Abstract]

Earnings Per Share [Text Block]

13. Earnings Per Common Share (EPS)

The computations of basic and diluted EPS were as follows for the periods presented below:

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Basic EPS Computation:
Net (loss) income	$	(669,239)	$	139,351	$	(1,595,937)	$	104,082
Weighted average number of common shares		72,998,461		63,751,857		69,929,300		63,751,857
Basic EPS	$	(0.009)	$	0.002	$	(0.023)	$	0.002
Basic EPS Computation:
Net (loss) income	$	(669,239)	$	139,351	$	(1,595,937)	$	104,082
Weighted average number of common shares		72,998,461		63,751,857		69,929,300		63,751,857
Incremental shares from assumed conversions of stock options		-		184,750		-		156,895
Adjusted weighted average number of common shares		72,998,461		63,936,607		69,929,300		63,908,752
Diluted EPS	$	(0.009)	$	0.002	$	(0.023)	$	0.002

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

9. Income Taxes

The Company files U.S. federal income tax returns with the Internal Revenue Service (“IRS”) as well as income tax returns in various states and certain foreign countries. The Company may be subject to examination by the IRS for tax years 2003 and forward. The Company may be subject to examinations by various state taxing jurisdictions for tax years 2003 and forward. The Company may be subject to examination by various foreign countries for tax years 2014 forward. As of June 30, 2014, the Company is currently not under examination by the IRS, any state or foreign tax jurisdiction.

The Company did not have any unrecognized tax benefits at either June 30, 2014 or December 31, 2013. In the future, any interest and penalties related to uncertain tax positions will be recognized in income tax expense.

As of June 30, 2014, the Company had recorded a deferred tax asset of approximately $5.5 million reflecting the benefit of approximately $17.1 million in net operating loss (NOL) carry forwards available to offset future taxable income for federal income tax purposes, net of the potential Section 382 limitations. These federal NOL carry forwards expire between 2017 and 2032. Included in the recorded deferred tax asset, the Company had a benefit of approximately $14.5 million available to offset future taxable income for state income tax purposes. These state NOL carry forwards expire between 2024 and 2032. Realization of this deferred tax asset is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the recorded deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. During the first quarter of 2014, the Company received new task orders under the DHS blanket purchase order award. This award is an individually significant factor in supporting the realization of its net operating loss carry forward deferred tax asset. In the event this award is delayed or cancelled the Company may have to reassess the necessity for a valuation allowance against this deferred tax asset.

No tax benefit has been associated with the exercise of stock options for the three and six month periods ended June 30, 2014 and 2013, respectively, because of the existence of NOL carryforwards. There will be no credit to additional paid in capital for such until the associated benefit is realized through a reduction of income taxes payable. The tax benefit associated with the exercise of stock options included in NOL’s that will be credited to additional paid-in capital when the NOL’s are used to reduce taxes currently payable is approximately $4.1 million. As of June 30, 2014, there were no changes in the valuation allowance as there were no events that occurred which would indicate utilization of net operating loss deductions would be further limited.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets [Abstract]

Goodwill Disclosure [Text Block]

7. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill were as follows for the six months ended:

	JUNE 30,
	2014		2013
	(unaudited)
Beginning balances, January 1,	$	16,618,467	$	16,618,467
Additions:
Acquisition of Soft-ex Communications Ltd.		4,220,460		-
Ending balances, June 30,	$	20,838,927	$	16,618,467

The Company considered whether there were indicators of impairment during the six month period ended June 30, 2014 and determined that there were no quantitative or qualitative factors that would indicate impairment exists.

The Company’s intangible assets are comprised of purchased intangibles consisting of customer relationships, channel relationships, telecommunications software, trade names and trademarks and non-compete agreements. The Company’s intangible assets also include internally developed software used in the sales and delivery of its MMS offering. The Company has intangible assets with a net carrying value of $4,080,957 as of June 30, 2014. The aggregate intangible asset amortization expense recorded for the three and six month periods ended June 30, 2014 and 2013 was approximately $353,000, $336,900, $655,400 and $688,700, respectively. The total weighted average life of purchased and internally developed intangible assets is approximately 4.0 years at June 30, 2014.

During the three months ended June 30, 2014, the Company completed the acquisition of SCL (as more fully described in Note 3 above) and included the carrying value of intangible assets on a preliminary basis until a detailed fair value calculation is prepared. As the final fair value calculations are being prepared, increases or decreases in the fair value of relevant balance sheet amounts will result in adjustments, which may create material differences in preliminary provisional goodwill and intangible balances and weighted average intangible asset amortization life presented herein.

For the three month period ended June 30, 2014 there were no additions of internally developed (cybersecurity software) intangible assets. For the six month period ended June 30, 2014 there were additions of internally developed (cybersecurity software) intangible assets of approximately $138,800. There were no disposals of intangible assets for the three and six month periods ended June 30, 2014. There were no material additions or dispositions of intangible assets for the three and six month periods ended June 30, 2013.

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Line of Credit and Long Term Debt

6 Months Ended

Jun. 30, 2014

Line of Credit and Long Term Debt [Abstract]

Debt Disclosure [Text Block]

8. Line of Credit and Long Term Debt

Commercial Loan Agreement Facility

The Company has an $8,000,000 working capital line of credit facility with Cardinal Bank. The amount available varies from month to month depending upon the amount of qualified customer accounts receivable which currently consists of up to 90% of qualified federal receivables and up to 80% of qualified commercial receivables, less any amounts outstanding on the Cardinal Bank term note. The line of credit facility was extended on June 27, 2014 by Cardinal Bank to September 30, 2014 to permit the Company time to incorporate its recent acquisition of SCL on May 1, 2014. The Company was advanced approximately $4.3 million and repaid approximately $5.2 million during the six month period ended June 30, 2014. There was no outstanding balance on the credit facility at June 30, 2014.

Long-Term Debt

Long-term debt consisted of the following:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Cardinal Bank mortgage dated December 17, 2010 (1)	$	476,432	$	484,532
Cardinal Bank term note dated December 31, 2011 (2)		2,113,920		2,508,748
Non-contingent subordinated unsecured promissory note dated December 31, 2011 (3)		333,334		666,667
Contingent subordinated unsecured loan note payable dated May 1, 2014 (4)		1,000,000		-
Total		3,923,686		3,659,947
Less: current portion		(2,164,185)		(1,150,455)
Long-term debt, net of current portion	$	1,759,501	$	2,509,492

(1) On December 17, 2010, the Company entered into a real estate purchase agreement to acquire an operations and call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement, the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.

(2) On December 31, 2011, the Company entered into a $4.0 million 5-year term note with Cardinal Bank (“Cardinal Bank Term Note”) to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. (“AGS”) dated December 30, 2011. The term note bears interest at 4.5% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.

(3) On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note (“term note”) with AGS to fund a portion of the purchase price paid in connection with the asset purchase agreement with AGS dated December 30, 2011. The term note bears interest at 3.0% with estimated remaining annual principal payments of $333,334 payable on April 15, 2015. The note matures on April 15, 2015. The Company paid the second installment due on April 15, 2014. The term note is subordinated to the Cardinal Bank Term Note.

(4) On May 1, 2014, the Company entered into a $1.0 million 1-year term contingent subordinated unsecured loan note with SCL to fund a portion of the purchase price paid in connection with the Share Sale and Purchase Agreement with SHL dated May 1, 2014. The term note bears interest at 3.0% with an estimated lump-sum principal payment of $1.0 million payable on May 1, 2015. The term note is subordinated to the Cardinal Bank Term Note.

Financial Covenant Compliance

The credit facility with Cardinal Bank requires the Company to maintain certain financial covenants, including maintaining (i) a debt service ratio of at least 1.2:1.0, (ii) a tangible net worth of at least $4.5 million and (iii) a current ratio of at least 1.1:1.0. On March 3, 2014, the Company completed a public offering of common stock which immediately brought the Company into compliance with its tangible net worth and current ratio financial covenants. As of June 30, 2014, the Company was not in compliance with its debt service ratio. The Company previously obtained a waiver from its financial institution as of December 31, 2013 through December 31, 2014 for compliance with such covenants. The Company is in the process of renewing its credit facility with Cardinal Bank and believes that it is more likely than not that the credit facility will be renewed and covenant compliance matters remediated. The Company believes the presentation of its debt obligations as long term remains appropriate at June 30, 2014.

Capital Lease Obligations

The Company has leased certain equipment under capital lease arrangements which expire in 2016. Except for the assumption of certain capital lease arrangements in connection with the acquisition of SCL, there were no changes to existing lease arrangements during the three or six month periods ended June 30, 2014.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity [Abstract]

Stockholders Equity Note Disclosure [Text Block]

10. Stockholders’ Equity

Preferred Stock

There were no issuances of preferred stock during the three or six month periods ended June 30, 2014 and 2013.

Common Stock

The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share. As of June 30, 2014, there were 73,040,329 shares of common stock outstanding.

Public Offering

On February 26, 2014, the Company entered into an underwriting agreement with B. Riley & Co., LLC (the “Underwriter”) relating to an underwritten public offering of 7,876,497 shares of the Company’s common stock, par value $0.001 per share. On February 27, 2014, the Company received notice from the Underwriter that it had fully-exercised its over-allotment option to purchase an additional 1,181,475 shares of common stock. On March 3, 2014, the Company completed the public offering of 9,057,972 shares of its common stock at a purchase price of $1.38 per share, which includes the full exercise of the over-allotment option granted to the underwriters. The gross proceeds to the Company from this offering were approximately $12.5 million, before deducting underwriting discounts and other estimated offering expenses incurred by the Underwriter. The Company received net proceeds of approximately $11.4 million after paying offering expenses of approximately $0.3 million incurred by the Company to complete the public offering.

Employee Stock Option Exercises

Shares of common stock issued as a result of stock option exercises for the three and six month periods ended June 30, 2014 were 75,000. The Company realized gross proceeds of $34,000 from the exercise of stock options. See Note 11 for additional information regarding stock option plans.

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Business Combinations (Details 2) (Soft-ex Communications Limited [Member], USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Soft-ex Communications Limited [Member]
Business Combination Segment Allocation [Line Items]
Revenues, net	$ 12,871,000	[1]	$ 12,866,000	[1]	$ 23,930,000	[1]	$ 26,111,000	[1]
Net (loss) income	$ (943,000)	[1],[2]	$ 353,000	[1],[2]	$ (1,741,000)	[1],[2]	$ 275,000	[1],[2]
Basic (loss) earnings per share	$ (0.013)	[1]	$ 0.006	[1]	$ (0.025)	[1]	$ 0.004	[1]
Diluted (loss) earnings per share	$ (0.013)	[1]	$ 0.006	[1]	$ (0.025)	[1]	$ 0.004	[1]

[1] To reflect on a pro forma basis unaudited consolidated financial information for the three and six month periods ended June 30, 2014 and 2013 for WidePoint. SCL’s most recently completed fiscal year end was April 30, 2014 which differs from WidePoint’s December 31 year end. The unaudited financial information presented herein were derived from historical internally prepared financial statements for SCL and WidePoint’s Form 10-Q quarterly unaudited financial statements. SCL’s financial statements are prepared in accordance with Irish GAAP, as such additional adjustments were made to convert SCL Irish GAAP presentation to a US GAAP presentation to align with WidePoint’s accounting policies. SCL’s reporting currency unit is the Euro. SCL’s US GAAP unaudited historical statement of operations for the three and six month periods ended June 30, 2014 and 2013 were translated into WidePoint’s reporting currency using an average USD/EURO rate of $1.3715, $1.3709, $1.3056 and $1.3130, respectively.

[2] As more fully described above under “purchase consideration”, in conjunction with the share sale and purchase agreement with SCL, WidePoint issued a subordinated unsecured loan Note in the principal amount of $1.0 million. Pro forma interest expense was calculated for this Note under the assumption that the probability of failing to generate adequate gross revenues is considered remote at this time based on projection available at the time of the transaction. Pro forma interest expense adjustments included for each of the three and six month periods ended June 30, 2014 and 2013 was approximately $7,500 and $15,000, respectively.

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Accumulated Other Comprehensive Income (Loss) (AOCI) (Details) (USD $)	3 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) (AOCI), Balances begning of the period	$ 0	$ 0
Net foreign currency translation (loss)	(34,856)
Accumulated Other Comprehensive Income (Loss) (AOCI), Balances ending of the period	$ (34,856)	$ 0

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

15. Commitments and Contingencies

Operating Lease Commitments

Except for the assumption of certain lease arrangements in connection with the acquisition of SCL, there were no changes to existing lease arrangements during the three or six month periods ended June 30, 2014.

Employment Agreements

The Company has employment agreements with certain executives that set forth compensation levels and provide for severance payments in certain instances. On February 18, 2014, the Company entered into an amendment to the Company’s employment agreements with Steve L. Komar, Chief Executive Officer, and James T. McCubbin, Executive Vice President and Chief Financial Officer, to extend the term of their original employment through March 31, 2016 at a salary of $260,000 and no change to the benefit levels then in effect. The Company has the option to terminate Messer’s Komar and McCubbin’s employment agreements as of March 31, 2015 by giving written notice on or before January 31, 2015. The Company has an employment agreement with certain members of SCL management as more fully described in Note 3 to the condensed consolidated financial statements.

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets [Abstract]

Schedule of Goodwill [Table Text Block]

Changes in the carrying amount of goodwill were as follows for the six months ended:

	JUNE 30,
	2014		2013
	(unaudited)
Beginning balances, January 1,	$	16,618,467	$	16,618,467
Additions:
Acquisition of Soft-ex Communications Ltd.		4,220,460		-
Ending balances, June 30,	$	20,838,927	$	16,618,467

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Stock Options and Award Programs (Details 1) (Employee Stock Option [Member], USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, outstanding and exercisable, Options outstanding, January 1, 2014		3,336,500
Number of Shares, Granted	310,000	360,000
Number of Shares, Exercised	(75,000)	(75,000)
Number of Shares, outstanding and exercisable, Options outstanding, June 30, 2014	3,621,500	3,621,500
Number of Shares, Options outstanding and exercisable, June 30, 2014	1,955,662	1,955,662
Weighted Average Exercise Price per Share, outstanding and exercisable, Options outstanding, January 1, 2014		$ 0.72
Weighted Average Exercise Price per Share, Granted		$ 1.45
Weighted Average Exercise Price per Share, Exercised		$ 0.45
Weighted Average Exercise Price per Share, outstanding and exercisable, Options outstanding, June 30, 2014	$ 0.79	$ 0.79
Weighted Average Exercise Price per Share, Options outstanding and exercisable, June 30, 2014	$ 0.73	$ 0.73
Weighted Average Remaining Option Life (in years)		3 years 8 months 12 days
Weighted Average Remaining Option Life, Options outstanding and exercisable (in years)		2 years 6 months

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Property and Equipment (Details Textual) (USD $)	6 Months Ended				3 Months Ended		6 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	May 01, 2014	Dec. 31, 2013	Jun. 30, 2014 Leased Equipment [Member]	Jun. 30, 2013 Leased Equipment [Member]	Jun. 30, 2014 Leased Equipment [Member]	Jun. 30, 2013 Leased Equipment [Member]	Jun. 30, 2014 Capital Lease Obligations [Member]	Dec. 31, 2013 Capital Lease Obligations [Member]	Jun. 30, 2014 Equipment One [Member]	Jun. 30, 2013 Equipment One [Member]	Jun. 30, 2014 Equipment One [Member]	Jun. 30, 2013 Equipment One [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 224,128	$ 188,705			$ 18,000	$ 14,700	$ 32,700	$ 29,400			$ 125,000	$ 99,700	$ 224,000	$ 188,780
Capital lease assets, net									105,500	68,600
Capital Leased Assets, Gross									553,600	477,500
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	448,100			408,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Asset			$ 70,700

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Amortization and depreciation	$ 391,899	$ 363,609	$ 666,840	$ 737,928
Share-based compensation expense	83,988	58,281	166,704	112,268
Change In Fair Value Of Contingent Promissory Note	$ 0	$ 369,000	$ 0	$ 589,000

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

4. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

Level 1 - Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

§ Quoted prices for similar assets or liabilities in active markets,

§ Quoted prices for identical or similar assets or liabilities in markets that are not active,

§ Inputs other than quoted prices that are observable for the asset or liability, and

§ Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Inputs that are unobservable and reflect the Company’s own assumptions about the assumptions market participants would likely use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows).

The Company monitors applicable market conditions and evaluates the fair value hierarchy levels as they pertain to the Company at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, the Company elects to disclose the fair value measurement at the beginning of the reporting period during which the transfer occurred. There were no transfers into or out of Level 3 for the three or six month periods ended June 30, 2014 or 2013. At June 30, 2014, all of the Company’s assets and liabilities are classified as Level 1.

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Line of Credit and Long Term Debt (Tables)

6 Months Ended

Jun. 30, 2014

Line of Credit and Long Term Debt [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Long-term debt consisted of the following:

	JUNE 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Cardinal Bank mortgage dated December 17, 2010 (1)	$	476,432	$	484,532
Cardinal Bank term note dated December 31, 2011 (2)		2,113,920		2,508,748
Non-contingent subordinated unsecured promissory note dated December 31, 2011 (3)		333,334		666,667
Contingent subordinated unsecured loan note payable dated May 1, 2014 (4)		1,000,000		-
Total		3,923,686		3,659,947
Less: current portion		(2,164,185)		(1,150,455)
Long-term debt, net of current portion	$	1,759,501	$	2,509,492

(1) On December 17, 2010, the Company entered into a real estate purchase agreement to acquire an operations and call center facility in Columbus, Ohio for approximately $677,000. In connection with the real estate purchase agreement, the Company entered into a $528,000 ten-year mortgage with Cardinal Bank to fund the unpaid portion of the purchase price. The mortgage loan bears interest at 6.0% with monthly principal and interest payments of approximately $3,800, and matures on December 17, 2020. The mortgage loan principal and interest payments are based on a twenty-year amortization with the unpaid balance due at maturity. The mortgage loan is secured by the real estate.

(2) On December 31, 2011, the Company entered into a $4.0 million 5-year term note with Cardinal Bank (“Cardinal Bank Term Note”) to fund a portion of the purchase price paid in connection with the asset purchase agreement with Avalon Global Solutions, Inc. (“AGS”) dated December 30, 2011. The term note bears interest at 4.5% with monthly principal and interest payments of approximately $74,694, and matures on December 30, 2016. The term note is secured under a corporate security agreement.

(3) On December 31, 2011, the Company entered into a $1.0 million subordinated 3-year term non-contingent note (“term note”) with AGS to fund a portion of the purchase price paid in connection with the asset purchase agreement with AGS dated December 30, 2011. The term note bears interest at 3.0% with estimated remaining annual principal payments of $333,334 payable on April 15, 2015. The note matures on April 15, 2015. The Company paid the second installment due on April 15, 2014. The term note is subordinated to the Cardinal Bank Term Note.

(4) On May 1, 2014, the Company entered into a $1.0 million 1-year term contingent subordinated unsecured loan note with SCL to fund a portion of the purchase price paid in connection with the Share Sale and Purchase Agreement with SHL dated May 1, 2014. The term note bears interest at 3.0% with an estimated lump-sum principal payment of $1.0 million payable on May 1, 2015. The term note is subordinated to the Cardinal Bank Term Note.

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Accounts Receivable and Unbilled Accounts Receivable (Details 2) (Revenues [Member], Customer Concentration Risk [Member])	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Transportation Security Administration [Member]
Concentration Risk [Line Items]
As a % of Revenues	17.00%	20.00%	20.00%	19.00%
Department Of Homeland Security [Member]
Concentration Risk [Line Items]
As a % of Revenues	19.00%	18.00%	19.00%	18.00%
Lockheed Martin [Member]
Concentration Risk [Line Items]
As a % of Revenues	0.00%	0.00%	0.00%	11.00%

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Details of Consolidated Revenue

6 Months Ended

Jun. 30, 2014

Details of Consolidated Revenue [Abstract]

Consolidated Revenues [Text Block]

14. Details of Consolidated Revenue

As further described in Note 2 above, the Company’s principal business is MMS. The following table was prepared to provide additional information about the composition of revenues based on broad service descriptions:

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
MMS Service Mix	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Carrier Services	$	4,301,378	$	4,232,388	$	8,253,070	$	8,330,729
Management Services		4,604,498		4,829,980		8,400,497		10,000,200
Resale and Other Services		3,488,145		2,281,594		5,343,233		4,981,139
	$	12,394,021	$	11,343,962	$	21,996,800	$	23,312,068