Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events [Text Block]

17. Subsequent Events

Lease Agreement

In March 2017, the Company entered into 10-year lease agreement for a 14,382 square foot facility to accommodate growth and operational requirements in Columbus, Ohio to replace our Lewis Center Facility that we expect to sell. The Lewis Center Facility is being built out to meet the Company's requirements and is expected to be ready for occupancy by no later than May 2017. The lease agreement includes six (6) months of free rent from May 1, 2017 (assumed commencement date) through October 31, 2017. The lease requires monthly minimum rent of approximately $20,700, of which $10,200 covers base minimum lease payments and $10,500 covers estimated annual operating expenses and real estate taxes. Base minimum lease payments are subject to an annual escalation of approximately 3.5% beginning on October 1, 2018. The term of the lease expires on September 30, 2027, unless the Company elects to use an early termination provision that is available in October 2023. Any early termination election would require an immediate payment of a fixed penalty that may range from $260,000 to $265,000.

 

Executive Management Transition

On January 6, 2017, the Company’s Board of Directors appointed Jeffrey O. Nyweide to succeed Steve Komar as Chief Executive Officer and President of WidePoint Corporation. Mr. Nyweide was also appointed as a member of the Board of Directors. The Company’s former Chief Executive Officer and President Steve Komar will assume the role of Executive Chairman, continuing to serve as a Member of WidePoint’s Board.