☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2020
|
or
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
|
For the transition period from __________________ to
___________________
|
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.)
|
11250 Waples
Mill Road, South Tower 210, Fairfax, Virginia 22030
|
(Address of principal executive offices) (Zip Code)
|
(703) 349-2577
|
(Registrant’s telephone number, including area
code)
|
Title of Each Class
|
Trading Symbol
|
Name of Exchange on Which Registered
|
Common Stock, $0.001 par value per share
|
WYY
|
NYSE
American
|
Large
accelerated filer ☐
|
|
Accelerated
filer ☐
|
Non-accelerated
filer ☐
|
|
Smaller
reporting company ☑
Emerging
growth company ☐
|
Page
No.
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2
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2
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3
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4
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5
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7
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8
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18
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23
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24
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24
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||
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24
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24
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24
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24
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||
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|
25
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||
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|
|
25
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||
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|
|
|
26
|
|
|
|
|
CERTIFICATIONS
|
27
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
REVENUES
|
$54,783,790
|
$22,093,153
|
$94,449,146
|
$44,010,055
|
COST OF REVENUES
(including amortization and depreciation of
|
|
|
|
|
$142,150, $232,968,
$301,768, and $465,159, respectively)
|
49,726,210
|
18,036,409
|
84,426,234
|
35,699,468
|
|
|
|
|
|
GROSS
PROFIT
|
5,057,580
|
4,056,744
|
10,022,912
|
8,310,587
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
marketing
|
439,684
|
415,462
|
931,915
|
808,873
|
General and
administrative expenses (including share-based
|
|
|
|
|
compensation of
$209,427, $284,111, $490,868 and $373,377,
respectively)
|
3,733,516
|
3,563,405
|
7,203,608
|
6,698,114
|
Depreciation and
amortization
|
266,404
|
244,064
|
529,632
|
484,612
|
|
|
|
|
|
Total operating
expenses
|
4,439,604
|
4,222,931
|
8,665,155
|
7,991,599
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
617,976
|
(166,187)
|
1,357,757
|
318,988
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
Interest
income
|
(68)
|
259
|
3,025
|
4,721
|
Interest
expense
|
(76,190)
|
(75,372)
|
(158,307)
|
(152,917)
|
Other
income
|
9
|
(9)
|
340
|
-
|
|
|
|
|
|
Total other
expense
|
(76,249)
|
(75,122)
|
(154,942)
|
(148,196)
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAX PROVISION
|
541,727
|
(241,309)
|
1,202,815
|
170,792
|
INCOME TAX
PROVISION
|
53,100
|
66,452
|
230,300
|
94,452
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$488,627
|
$(307,761)
|
$972,515
|
$76,340
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$0.01
|
$0.00
|
$0.01
|
$0.00
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
83,920,314
|
83,990,722
|
83,880,197
|
83,902,077
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
$0.01
|
$0.00
|
$0.01
|
$0.00
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
84,964,261
|
83,990,722
|
84,664,395
|
83,965,994
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
NET INCOME
(LOSS)
|
$488,627
|
$(307,761)
|
$972,515
|
$76,340
|
|
|
|
|
|
Other
comprehensive income (loss):
|
|
|
|
|
Foreign
currency translation adjustments, net of tax
|
27,599
|
13,995
|
(9,731)
|
(15,287)
|
|
|
|
|
|
Other
comprehensive income (loss)
|
27,599
|
13,995
|
(9,731)
|
(15,287)
|
|
|
|
|
|
COMPREHENSIVE
INCOME (LOSS)
|
$516,226
|
$(293,766)
|
$962,784
|
$61,053
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
(Unaudited)
|
|
ASSETS
|
||
CURRENT
ASSETS
|
|
|
Cash
and cash equivalents
|
$7,520,725
|
$6,879,627
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
of
$116,898 and $126,235 in 2020 and 2019, respectively
|
22,092,308
|
14,580,928
|
Unbilled
accounts receivable
|
26,698,793
|
13,976,958
|
Other
current assets
|
1,397,958
|
1,094,847
|
|
|
|
Total
current assets
|
57,709,784
|
36,532,360
|
|
|
|
NONCURRENT
ASSETS
|
|
|
Property
and equipment, net
|
589,664
|
681,575
|
Operating
lease right of use asset, net
|
5,606,082
|
5,932,769
|
Intangibles,
net
|
2,196,878
|
2,450,770
|
Goodwill
|
18,555,578
|
18,555,578
|
Other
long-term assets
|
641,381
|
140,403
|
|
|
|
Total
assets
|
$85,299,367
|
$64,293,455
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||
|
|
|
CURRENT
LIABILITIES
|
|
|
Accounts
payable
|
$20,107,933
|
$13,581,822
|
Accrued
expenses
|
28,534,306
|
14,947,981
|
Deferred
revenue
|
1,892,243
|
2,265,067
|
Current
portion of operating lease liabilities
|
566,881
|
599,619
|
Current
portion of other term obligations
|
31,887
|
133,777
|
|
|
|
Total
current liabilities
|
51,133,250
|
31,528,266
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
Operating
lease liabilities, net of current portion
|
5,332,139
|
5,593,649
|
Deferred
revenue, net of current portion
|
354,385
|
363,560
|
Deferred
tax liability
|
2,096,636
|
1,868,562
|
|
|
|
Total
liabilities
|
58,916,410
|
39,354,037
|
|
|
|
Commitments
and contingencies
|
-
|
-
|
|
|
|
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;
84,418,523 and 83,861,453 shares
|
|
|
issued
and outstanding, respectively
|
84,418
|
83,861
|
Additional
paid-in capital
|
95,759,312
|
95,279,114
|
Accumulated
other comprehensive loss
|
(252,325)
|
(242,594)
|
Accumulated
deficit
|
(69,208,448)
|
(70,180,963)
|
|
|
|
Total
stockholders’ equity
|
26,382,957
|
24,939,418
|
|
|
|
Total
liabilities and stockholders’ equity
|
$85,299,367
|
$64,293,455
|
|
SIX MONTHS
ENDED
|
|
|
JUNE
30,
|
|
|
2020
|
2019
|
|
(Unaudited)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
Net
income
|
$972,515
|
$76,340
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
(used in) operating
activities:
|
|
|
Deferred income tax
expense
|
228,185
|
58,444
|
Depreciation
expense
|
580,089
|
552,140
|
Provision for
doubtful accounts
|
571
|
11,190
|
Amortization of
intangibles
|
251,311
|
397,631
|
Amortization of
deferred financing costs
|
1,667
|
2,500
|
Share-based
compensation expense
|
490,868
|
373,377
|
Changes in assets
and liabilities:
|
|
|
Accounts receivable
and unbilled receivables
|
(20,204,950)
|
1,457,869
|
Inventories
|
(295,057)
|
(276,256)
|
Prepaid expenses
and other current assets
|
(9,251)
|
77,759
|
Other
assets
|
18,334
|
60,411
|
Accounts payable
and accrued expenses
|
19,998,926
|
810,590
|
Income tax
payable
|
(16,784)
|
(2,442)
|
Deferred revenue
and other liabilities
|
(385,520)
|
(89,365)
|
|
|
|
Net cash provided
by operating activities
|
1,630,904
|
3,510,188
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
Purchases of
property and equipment
|
(165,377)
|
(140,052)
|
Capitalized
software development costs
|
(519,312)
|
(125,725)
|
|
|
|
Net cash used in
investing activities
|
(684,689)
|
(265,777)
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
Advances on bank
line of credit
|
1,895,659
|
6,258,000
|
Repayments of bank
line of credit advances
|
(1,895,659)
|
(6,258,000)
|
Principal
repayments under finance lease obligations
|
(291,315)
|
(238,675)
|
Debt
issuance costs
|
-
|
(5,000)
|
Common stock
repurchased
|
(10,113)
|
-
|
|
|
|
Net cash used in
financing activities
|
(301,428)
|
(243,675)
|
|
|
|
Net
effect of exchange rate on cash and equivalents
|
(3,689)
|
(10,563)
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
641,098
|
2,990,173
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
6,879,627
|
2,431,892
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$7,520,725
|
$5,422,065
|
|
SIX MONTHS
ENDED
|
|
|
JUNE
30,
|
|
|
2020
|
2019
|
|
(Unaudited)
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
Cash paid for
interest
|
$153,609
|
$127,583
|
Cash paid for
income taxes
|
$-
|
$8,904
|
|
|
|
Additional
|
|
|
|
|
Common Stock
|
Paid-In
|
Accumulated
|
Accumulated
|
|
|
|
Issued
|
Amount
|
Capital
|
OCI
|
Deficit
|
Total
|
|
(Unaudited)
|
|||||
Balance, January 1,
2019
|
84,112,446
|
$84,113
|
$94,926,560
|
$(186,485)
|
$(70,407,218)
|
$24,416,970
|
|
|
|
|
|
|
|
Stock compensation expense
—
|
|
|
|
|
|
|
restricted
|
-
|
-
|
16,737
|
-
|
-
|
16,737
|
|
|
|
|
|
|
|
Stock compensation expense
—
|
|
|
|
|
|
|
non-qualified stock
options
|
-
|
-
|
72,529
|
-
|
-
|
72,529
|
|
|
|
|
|
|
|
Foreign currency translation
—
|
|
|
|
|
|
|
(loss)
|
-
|
-
|
-
|
(29,282)
|
-
|
(29,282)
|
|
|
|
|
|
|
|
Net income
|
-
|
-
|
-
|
-
|
384,101
|
384,101
|
|
|
|
|
|
|
|
Balance, March 31,
2019
|
84,112,446
|
$84,113
|
$95,015,826
|
$(215,767)
|
$(70,023,117)
|
$24,861,055
|
Issuance of common stock
—
|
|
|
|
|
|
|
restricted
|
662,740
|
663
|
(663)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Stock compensation expense
—
|
|
|
|
|
|
|
restricted
|
-
|
-
|
180,863
|
-
|
-
|
180,863
|
|
|
|
|
|
|
|
Stock compensation expense
—
|
|
|
|
|
|
|
non-qualified stock
options
|
-
|
-
|
103,248
|
-
|
-
|
103,248
|
|
|
|
|
|
|
|
Foreign currency translation
—
|
|
|
|
|
|
|
gain
|
-
|
-
|
-
|
13,995
|
-
|
13,995
|
|
|
|
|
|
|
|
Net loss
|
-
|
-
|
-
|
-
|
(307,761)
|
(307,761)
|
|
|
|
|
|
|
|
Balance, June 30,
2019
|
84,775,186
|
$84,776
|
$95,299,274
|
$(201,772)
|
$(70,330,878)
|
$24,851,400
|
|
|
|
Additional
|
|
|
|
|
Common
Stock
|
Paid-In
|
Accumulated
|
Accumulated
|
|
|
|
Issued
|
Amount
|
Capital
|
OCI
|
Deficit
|
Total
|
|
(Unaudited)
|
|||||
Balance, January
1, 2020
|
83,861,453
|
$83,861
|
$95,279,114
|
$(242,594)
|
$(70,180,963)
|
$24,939,418
|
|
|
|
|
|
|
|
Common stock repurchased
|
(24,164)
|
(24)
|
(10,089)
|
|
|
(10,113)
|
|
|
|
|
|
|
|
Stock
compensation expense —
|
|
|
|
|
|
|
restricted
|
-
|
-
|
254,499
|
-
|
-
|
254,499
|
|
|
|
|
|
|
|
Stock
compensation expense —
|
|
|
|
|
|
|
non-qualified
stock options
|
-
|
-
|
26,942
|
-
|
-
|
26,942
|
|
|
|
|
|
|
|
Foreign currency
translation —
|
|
|
|
|
|
|
(loss)
|
-
|
-
|
-
|
(37,330)
|
-
|
(37,330)
|
|
|
|
|
|
|
|
Net
income
|
-
|
-
|
-
|
-
|
483,888
|
483,888
|
|
|
|
|
|
|
|
Balance, March
31, 2020
|
83,837,289
|
$83,837
|
$95,550,466
|
$(279,924)
|
$(69,697,075)
|
$25,657,304
|
|
|
|
|
|
|
|
Issuance of
common stock —
|
|
|
|
|
|
|
restricted
|
581,234
|
581
|
(581)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Stock
compensation expense —
|
|
|
|
|
|
|
restricted
|
-
|
|
182,928
|
-
|
-
|
182,928
|
|
|
|
|
|
|
|
Stock
compensation expense —
|
|
|
|
|
|
|
non-qualified
stock options
|
-
|
-
|
26,499
|
-
|
-
|
26,499
|
|
|
|
|
|
|
|
Foreign currency
translation —
|
|
|
|
|
|
|
gain
|
-
|
-
|
-
|
27,599
|
-
|
27,599
|
|
|
|
|
|
|
|
Net
income
|
-
|
-
|
-
|
|
488,627
|
488,627
|
|
|
|
|
|
|
|
Balance, June
30, 2020
|
84,418,523
|
$84,418
|
$95,759,312
|
$(252,325)
|
$(69,208,448)
|
$26,382,957
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
(Unaudited)
|
|
Government
(1)
|
$20,319,761
|
$12,604,582
|
Commercial
(2)
|
1,889,445
|
2,102,581
|
Gross accounts
receivable
|
22,209,206
|
14,707,163
|
Less: allowances
for doubtful
|
|
|
accounts
(3)
|
116,898
|
126,235
|
|
|
|
Accounts
receivable, net
|
$22,092,308
|
$14,580,928
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
As a %
of
|
As a %
of
|
Customer
Name
|
Receivables
|
Receivables
|
|
(Unaudited)
|
|
National
Aeronautics and Space Administration
|
16%
|
21%
|
U.S. Census
Bureau
|
50%
|
18%
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
As a %
of
|
As a %
of
|
As a %
of
|
As a %
of
|
Customer Name
|
Revenues
|
Revenues
|
Revenues
|
Revenues
|
|
(Unaudited)
|
|||
U.S. Immigration
and Customs Enforcement
|
--
|
15%
|
10%
|
15%
|
U.S. Customs Border
Patrol
|
--
|
--
|
--
|
11%
|
U.S. Coast
Guard
|
--
|
11%
|
--
|
10%
|
U.S. Census
Bureau
|
60%
|
--
|
51%
|
--
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
As a %
of
|
As a %
of
|
Customer
Name
|
Receivables
|
Receivables
|
|
(Unaudited)
|
|
U.S.
Immigration and Customs Enforcement
|
19%
|
24%
|
U.S. Census
Bureau
|
61%
|
23%
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
(Unaudited)
|
|
Inventories
|
$508,826
|
$213,713
|
Prepaid rent,
insurance and other assets
|
889,132
|
881,134
|
|
|
|
Total other current
assets
|
$1,397,958
|
$1,094,847
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
(Unaudited)
|
|
Carrier service
costs
|
$25,379,290
|
$12,274,440
|
Salaries and
payroll taxes
|
2,243,588
|
1,781,628
|
Inventory
purchases, consultants and other costs
|
870,606
|
834,131
|
Severance
costs
|
7,612
|
7,612
|
U.S. income tax
payable
|
3,670
|
8,850
|
Foreign income tax
payable
|
29,540
|
41,320
|
|
|
|
Total accrued
expenses
|
$28,534,306
|
$14,947,981
|
|
JUNE 30,
|
DECEMBER
31,
|
|
2020
|
2019
|
|
(Unaudited)
|
|
Computer hardware
and software
|
$2,148,624
|
$2,041,978
|
Furniture and
fixtures
|
420,705
|
399,521
|
Leasehold
improvements
|
285,903
|
299,340
|
Automobiles
|
54,783
|
56,800
|
Gross property and
equipment
|
2,910,015
|
2,797,639
|
Less: accumulated
depreciation and
|
|
|
amortization
|
2,320,351
|
2,116,064
|
|
|
|
Property and
equipment, net
|
$589,664
|
$681,575
|
|
Gross
Carrying
|
Accumulated
|
Net
Book
|
|
Amount
|
Amortization
|
Value
|
|
|
|
|
Customer
Relationships
|
$1,980,000
|
$(1,980,000)
|
$-
|
Channel
Relationships
|
2,628,080
|
(1,080,433)
|
1,547,647
|
Internally
Developed Software
|
1,623,298
|
(1,145,122)
|
478,176
|
Trade
Name and Trademarks
|
290,472
|
(119,417)
|
171,055
|
|
|
|
|
|
$6,521,850
|
$(4,324,972)
|
$2,196,878
|
|
DECEMBER 31,
2019
|
||
|
|
|
|
|
|
|
|
|
Gross
Carrying
|
Accumulated
|
Net
Book
|
|
Amount
|
Amortization
|
Value
|
|
|
|
|
Customer
Relationships
|
$1,980,000
|
$(1,980,000)
|
$-
|
Channel
Relationships
|
2,628,080
|
(992,830)
|
1,635,250
|
Internally
Developed Software
|
1,623,122
|
(988,340)
|
634,782
|
Trade
Name and Trademarks
|
290,472
|
(109,734)
|
180,738
|
|
|
|
|
|
$6,521,674
|
$(4,070,904)
|
$2,450,770
|
Remainder
of 2020
|
$202,924
|
2021
|
333,714
|
2022
|
273,937
|
2023
|
194,570
|
2024
|
194,570
|
Thereafter
|
997,163
|
Total
|
$2,196,878
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30
|
JUNE
30
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
Restricted stock
compensation expense
|
$182,928
|
$180,863
|
$437,427
|
$197,600
|
Non-qualified
option stock compensation expense
|
26,499
|
103,248
|
53,441
|
175,777
|
|
|
|
|
|
Total share-based
compensation before taxes
|
$209,427
|
$284,111
|
$490,868
|
$373,377
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
Basic
Earnings Per Share Computation:
|
|
|
|
|
Net income
(loss)
|
$488,627
|
$(307,761)
|
$972,515
|
$76,340
|
Weighted average
number of common shares
|
83,920,314
|
83,990,722
|
83,880,197
|
83,902,077
|
Basic Earnings Per
Share
|
$0.01
|
$0.00
|
$0.01
|
$0.00
|
|
|
|
|
|
Diluted
Earnings Per Share Computation:
|
|
|
|
|
Net income
(loss)
|
$488,627
|
$(307,761)
|
$972,515
|
$76,340
|
|
|
|
|
|
Weighted average
number of common shares
|
83,920,314
|
83,990,722
|
83,880,197
|
83,902,077
|
Incremental shares
from assumed conversions
|
|
|
|
|
of dilutive
securities
|
1,043,947
|
-
|
784,198
|
63,917
|
Adjusted weighted
average number of
|
|
|
|
|
common
shares
|
84,964,261
|
83,990,722
|
84,664,395
|
83,965,994
|
|
|
|
|
|
Diluted Earnings
Per Share
|
$0.01
|
$0.00
|
$0.01
|
$0.00
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
Carrier
Services
|
$44,944,155
|
$14,023,930
|
$73,087,424
|
$28,366,941
|
Managed
Services
|
9,839,635
|
8,069,223
|
21,361,722
|
15,643,114
|
|
|
|
|
|
|
$54,783,790
|
$22,093,153
|
$94,449,146
|
$44,010,055
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
U.S.
Federal Government
|
$51,338,765
|
$18,441,671
|
$84,874,450
|
$36,604,169
|
U.S.
State and Local Governments
|
25,773
|
126,342
|
51,286
|
242,181
|
Foreign
Governments
|
59,737
|
24,353
|
65,906
|
68,897
|
Commercial
Enterprises
|
3,359,515
|
3,500,787
|
9,457,504
|
7,094,808
|
|
|
|
|
|
|
$54,783,790
|
$22,093,153
|
$94,449,146
|
$44,010,055
|
|
THREE MONTHS
ENDED
|
SIX MONTHS
ENDED
|
||
|
JUNE
30,
|
JUNE
30,
|
||
|
2020
|
2019
|
2020
|
2019
|
|
(Unaudited)
|
|||
North
America
|
$53,706,367
|
$20,950,816
|
$92,248,748
|
$41,731,127
|
Europe
|
1,077,423
|
1,142,337
|
2,200,398
|
2,278,928
|
|
|
|
|
|
|
$54,783,790
|
$22,093,153
|
$94,449,146
|
$44,010,055
|
|
THREE MONTHS
ENDED
|
|
|
|
JUNE
30,
|
Dollar
|
|
|
2020
|
2019
|
Variance
|
|
(Unaudited)
|
|
|
Carrier
Services
|
$44,944,149
|
$14,023,930
|
$30,920,219
|
Managed
Services:
|
|
|
|
Managed
Service Fees
|
7,866,533
|
6,446,268
|
1,420,265
|
Billable
Service Fees
|
1,704,869
|
1,243,098
|
461,771
|
Reselling
and Other Services
|
268,239
|
379,857
|
(111,618)
|
|
9,839,641
|
8,069,223
|
1,770,418
|
|
|
|
|
|
$54,783,790
|
$22,093,153
|
$32,690,637
|
|
SIX MONTHS
ENDED
|
|
|
|
JUNE
30,
|
Dollar
|
|
|
2020
|
2019
|
Variance
|
|
(Unaudited)
|
|
|
Carrier
Services
|
$73,087,419
|
$28,366,941
|
$44,720,478
|
Managed
Services:
|
|
|
|
Managed
Service Fees
|
15,341,665
|
12,654,227
|
2,687,438
|
Billable
Service Fees
|
3,009,717
|
2,323,716
|
686,001
|
Reselling
and Other Services
|
3,010,345
|
665,171
|
2,345,174
|
|
21,361,727
|
15,643,114
|
5,718,613
|
|
|
|
|
|
$94,449,146
|
$44,010,055
|
$50,439,091
|
EXHIBIT NO.
|
|
Certification of
Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 (Filed herewith).
|
|
Certification of
Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 (Filed herewith).
|
|
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
|
|
WIDEPOINT
CORPORATION
|
|
|
|
|
|
|
Date:
August
13, 2020
|
By:
|
/s/
Jin H.
Kang
|
|
|
|
Jin H. Kang
|
|
|
|
President and Chief
Executive Officer
|
|
|
|
|
|
Date:
August
13, 2020
|
By:
|
/s/ Kellie H.
Kim
|
|
|
|
Kellie H. Kim
|
|
|
|
Chief Financial
Officer
|
|
|
|
|
|
|
|
|
|
Date: August 13,
2020
|
|
/s/ Jin H. Kang
|
|
|
|
Jin H. Kang
|
|
|
|
Chief Executive
Officer
|
|
|
|
||
|
|
|
|
Date: August 13,
2020
|
|
/s/ Kellie H.
Kim
|
|
|
|
Kellie H. Kim
|
|
|
|
Chief Financial
Officer
|
|
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Aug. 13, 2020 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | WIDEPOINT CORP | |
Entity Central Index Key | 0001034760 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Is Entity's Reporting Status Current? | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity File Number | 001-33035 | |
Entity Common Stock, Shares Outstanding | 86,155,968 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Statement [Abstract] | ||||
REVENUES | $ 54,783,790 | $ 22,093,153 | $ 94,449,146 | $ 44,010,055 |
COST OF REVENUES (including amortization and depreciation of $142,150, $232,968, $301,768, and $465,159, respectively) | 49,726,210 | 18,036,409 | 84,426,234 | 35,699,468 |
GROSS PROFIT | 5,057,580 | 4,056,744 | 10,022,912 | 8,310,587 |
OPERATING EXPENSES | ||||
Sales and marketing | 439,684 | 415,462 | 931,915 | 808,873 |
General and administrative expenses (including share-based compensation of $209,427, $284,111, $490,868 and $373,377, respectively) | 3,733,516 | 3,563,405 | 7,203,608 | 6,698,114 |
Depreciation and amortization | 266,404 | 244,064 | 529,632 | 484,612 |
Total operating expenses | 4,439,604 | 4,222,931 | 8,665,155 | 7,991,599 |
INCOME (LOSS) FROM OPERATIONS | 617,976 | (166,187) | 1,357,757 | 318,988 |
OTHER (EXPENSE) INCOME | ||||
Interest income | (68) | 259 | 3,025 | 4,721 |
Interest expense | (76,190) | (75,372) | (158,307) | (152,917) |
Other income | 9 | (9) | 340 | 0 |
Total other expense | (76,249) | (75,122) | (154,942) | (148,196) |
INCOME (LOSS) BEFORE INCOME TAX PROVISION | 541,727 | (241,309) | 1,202,815 | 170,792 |
INCOME TAX PROVISION | 53,100 | 66,452 | 230,300 | 94,452 |
NET INCOME (LOSS) | $ 488,627 | $ (307,761) | $ 972,515 | $ 76,340 |
BASIC EARNINGS PER SHARE | $ 0.01 | $ .00 | $ 0.01 | $ .00 |
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING | 83,920,314 | 83,990,722 | 83,880,197 | 83,902,077 |
DILUTED EARNINGS PER SHARE | $ 0.01 | $ .00 | $ 0.01 | $ .00 |
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | 84,964,261 | 83,990,722 | 84,664,395 | 83,965,994 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Statement [Abstract] | ||||
Amortization and depreciation | $ 142,150 | $ 232,968 | $ 301,768 | $ 465,159 |
Share-based compensation expense | $ 209,427 | $ 284,111 | $ 490,868 | $ 373,377 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 488,627 | $ (307,761) | $ 972,515 | $ 76,340 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of tax | 27,599 | 13,995 | (9,731) | (15,287) |
Other comprehensive income (loss) | 27,599 | 13,995 | (9,731) | (15,287) |
COMPREHENSIVE INCOME (LOSS) | $ 516,226 | $ (293,766) | $ 962,784 | $ 61,053 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 116,898 | $ 126,235 |
Preferred stock, par value | $ 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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 84,418,523 | 83,861,453 |
Common stock, shares outstanding | 84,418,523 | 83,861,453 |
Organization and Nature of Operations |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization
WidePoint Corporation (“WidePoint” or the “Company”) was incorporated in Delaware on May 30, 1997 and conducts operations through its wholly-owned operating subsidiaries throughout the continental United States, Ireland, the Netherlands and the United Kingdom. The Company’s principal executive and administrative headquarters is located in Fairfax, Virginia.
Nature of Operations
The Company is a leading provider of trusted mobility management (TM2). The Company’s TM2 platform and service solutions enable its customers to efficiently secure, manage and analyze the entire lifecycle of their mobile communications assets through its federally compliant platform Intelligent Telecommunications Management System (ITMS™). The Company’s ITMS™ platform is SSAE 18 compliant and was granted an Authority to Operate by the U.S. Department of Homeland Security. Additionally, the Company was granted an Authority to Operate by the General Services Administration with regard to its identity credentialing component of its TM2 platform. The Company’s TM2 platform is internally hosted and accessible on-demand through a secure customer portal that is specially configured for each customer. The Company can deliver these solutions in a number of configurations ranging from utilizing the platform as a service to a full-service solution that includes full lifecycle support for all end users and the organization.
The Company derives a significant amount of its revenues from contracts funded by federal government agencies for which WidePoint’s subsidiaries act in the capacity as the prime contractor, or as a subcontractor. The Company believes that contracts with federal government agencies will be the primary source of revenues for the foreseeable future. External factors outside of the Company’s control such as delays and/or a change in government administrations, budgets and other political matters that may impact the timing and commencement of such work could result in variations in operating results and directly affect the Company’s financial performance. 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.
A significant portion of the Company’s expenses, such as personnel and facilities costs, are fixed in the short term and may not be easily modified to manage through changes in the Company’s market place that may create pressure on pricing and/or costs to deliver its services.
The Company has periodic capital expense requirements to maintain and upgrade its internal technology infrastructure tied to its hosted solutions and other such costs may be significant when incurred in any given quarter.
The coronavirus (“COVID-19”) pandemic has created significant macroeconomic uncertainty, volatility and disruption. The assessment of how COVID-19 will impact our business is on-going and encompasses all aspects of our business, including how COVID-19 will impact our customers, employees, subcontractors, business partners and the capital markets. Although the Company did not experience significant disruptions during the three and six months ended June 30, 2020, we are unable to fully predict the impact the COVID-19 pandemic will have on our future financial position, results of operations, or cash flows.
Additionally, changes in spending policies, budget priorities and funding levels are a key factor influencing the purchasing levels of government customers. With the current COVID-19 pandemic, future budget priorities and funding levels for these customers may be adversely affected.
|
Basis of Presentation and Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation
The unaudited condensed consolidated financial statements as of June 30, 2020 and for each of the three and six month periods ended June 30, 2020 and 2019, 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 accounting principles generally accepted in the United States (“U.S. 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, 2019 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily 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 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 condensed consolidated statements of operations, depending on the nature of the activity.
Use of Estimates
The preparation of condensed 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 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. There were no significant changes in accounting estimates used by management during the quarter.
Segment Reporting
Our TM2 solution offerings comprise an overall single business from which the Company earns revenues and incurs costs. The Company’s TM2 solution offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 13 for detailed information regarding the composition of revenues.
Significant Accounting Policies
There were no significant changes in the Company’s significant accounting policies during the first six months of 2020 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 24, 2020.
Accounting Standards under Evaluation
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“Topic 326”). Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This ASU update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for the company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.
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Accounts Receivable and Significant Concentrations |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable And Significant Concentration | A significant portion of the Company’s receivables are billed under firm fixed price contracts with agencies of the U.S. federal government and similar pricing structures with several corporations. Accounts receivable consist of the following by customer type in the table below as of the periods presented:
(1) Government contracts are generally firm fixed price not to exceed arrangements with a term of five (5) years, which consists of a base year and four (4) annual option year renewals. Government receivables are billed under a single consolidated monthly invoice and are billed approximately thirty (30) to sixty (60) days in arrears from the date of service and payment is generally due within thirty (30) days of the invoice date. Government accounts receivable payments could be delayed due to administrative processing delays by the government agency, continuing budget resolutions that may delay availability of contract funding, and/or administrative only invoice correction requests by contracting officers that may delay payment processing by our government customer.
(2) Commercial contracts are generally fixed price arrangements with contract terms ranging from two (2) to three (3) years. Commercial accounts receivables are billed based on the underlying contract terms and conditions which generally have repayment terms that range from thirty (30) to ninety (90) days. Commercial receivables are stated at amounts due from customers net of an allowance for doubtful accounts if deemed necessary.
(3) For the six months ended June 30, 2020, the Company did not recognize any material provisions for bad debt, write-offs or recoveries of existing provisions for bad debt. The Company has not historically maintained a bad debt reserve for its government customers as it has not experienced material or recurring bad debt charges and the nature and size of the contracts has not necessitated the Company’s establishment of such a bad debt reserve.
Significant Concentrations
The following table presents customers that represent ten (10) percent or more of consolidated trade accounts receivable as of the periods presented below:
The following table presents customers that represent ten (10) percent or more of consolidated revenues in the current and/or comparative periods:
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Unbilled Accounts Receivable |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unbilled Accounts Receivables | Unbilled accounts receivable represent revenues earned but not invoiced to the customer at the balance sheet date due to either timing of invoice processing or delays due to fixed contractual billing schedules. A significant portion of our unbilled accounts receivable consist of carrier services and hardware and software products delivered but not invoiced at the end of the reporting period.
The following table presents customers that represent ten (10) percent or more of consolidated unbilled accounts receivable as of the periods presented below:
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Other Current Assets and Accrued Expenses |
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Other Current Assets and Accrued Expenses | Other current assets consisted of the following as of the periods presented below:
Accrued expenses consisted of the following as of the periods presented below:
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Property and Equipment |
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Property and Equipment | Major classes of property and equipment consisted of the following as of the periods presented below:
During the three and six month periods ended June 30, 2020, property and equipment depreciation expense was approximately $130,000 and $216,200, respectively, as compared to $140,000 and $275,000, respectively, for the three and six month periods ended June 30, 2019.
During the six month periods ended June 30, 2020 and 2019, there were no material disposals of owned property and equipment.
There were no changes in the estimated useful lives used to depreciate property and equipment during the three and six month periods ended June 30, 2020 and 2019.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | The Company has recorded goodwill of $18,555,578 as of June 30, 2020. There were no changes in the carrying amount of goodwill during the six month period ended June 30, 2020.
Intangible assets consists of the following:
For the three and six month periods ended June 30, 2020, the Company capitalized $178,000 and $519,00, respectively, of internally developed software costs, primarily associated with upgrading our secure identity management technology and network operations center. For the three and six month periods ended June 30, 2019, the Company capitalized internally developed software costs of approximately $67,225 and $125,725, respectively, related to costs associated with our next generation TDI Optimiser™ application. There were no disposals of intangible assets during the three month periods ended June 30, 2020 and 2019.
The aggregate amortization expense recorded for the three month periods ended June 30, 2020 and 2019 were approximately $125,700 and $198,800, respectively. The aggregate amortization expense recorded for the six month periods ended June 30, 2020 and 2019 were approximately $251,300 and $397,600, respectively The total weighted remaining average life of all purchased intangible assets and internally developed software costs was approximately 4.5 years and 2.5 years, respectively, at June 30, 2020.
As of June 30, 2020, estimated annual amortization for our intangible assets for each of the next five years is approximately:
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Line of Credit |
6 Months Ended |
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Jun. 30, 2020 | |
Line of Credit Facility [Abstract] | |
Line of Credit | On June 15, 2017, the Company entered into a Loan and Security Agreement with Atlantic Union Bank (formerly known as Access National Bank) (the “Loan Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit.
Effective, April 30, 2020, the Company entered into a fifth modification agreement (“Modification Agreement”) with Atlantic Union Bank to amend the existing Loan Agreement. The Modification Agreement extended the maturity date of the facility from April 30, 2020 through April 30, 2021 and changed the variable interest rate from the Wall Street Journal prime rate plus 0.50% to the Wall Street Journal prime rate plus 0.25%.
The Loan Agreement requires that the Company meet the following financial covenants on a quarterly basis: (i) maintain a minimum adjusted tangible net worth of at least $2.0 million, (ii) maintain minimum consolidated EBITDA of at least two times interest expense and (iii) maintain a current ratio of 1.10:1 (excluding finance lease liabilities reported under recently adopted lease accounting standards).
The available amount under the working capital line of credit is subject to a borrowing base, which is equal to the lesser of (i) $5.0 million or (ii) 70% of the net unpaid balance of the Company’s eligible accounts receivable. The facility is secured by a first lien security interest on all of the Company’s personal property, including its accounts receivable, general intangibles, inventory and equipment maintained in the United States. As of June 30, 2020, the Company was eligible to borrow up to $4.9 million under the borrowing base formula.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
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 or 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, 2020, the Company was 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, 2020 or December 31, 2019. In the future if applicable, any interest and penalties related to uncertain tax positions will be recognized in income tax expense.
As of June 30, 2020, the Company had approximately $37.5 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 2020 and 2037. Included in the recorded deferred tax asset, the Company had a benefit of approximately $39.5 million available to offset future taxable income for state income tax purposes. These state NOL carry forwards expire between 2024 and 2036. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of our domestic NOL may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities.
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Under existing income tax accounting standards such objective evidence is more heavily weighted in comparison to other subjective evidence such as our projections for future growth, tax planning and other tax strategies. A significant piece of objective negative evidence considered in management’s evaluation of the realizability of its deferred tax assets was the existence of cumulative losses over the latest three-year period. Management forecast future taxable income, but concluded that there may not be enough of a recovery before the end of the fiscal year to overcome the negative objective evidence of three years of cumulative losses. On the basis of this evaluation, management has recorded a valuation allowance against all deferred tax assets. If management’s assumptions change and we determine we will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction of income tax expense.
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Stockholders' Equity |
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Jun. 30, 2020 | |
STOCKHOLDERS' EQUITY | |
Stockholders' Equity | Common Stock
The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share. As of June 30, 2020, there were 86,155,968 shares issued and outstanding (including 1,737,445 restricted shares not vested). During the three month period ended June 30, 2020, the Company issued 1,088,733 shares of common stock as a result of the vesting portion of restricted stock awards (RSA). The Company issued 238,572 shares of common stock as a result of the vesting portion of RSAs during the three month period ended June 30, 2019.
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Share-based Compensation |
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Share-based Compensation | Share-based compensation (including restricted stock awards) represents both stock options based expense and stock grant expense. The following table sets forth the composition of stock compensation expense included in general and administrative expense for the periods then ended:
At June 30, 2020, the Company had approximately $772,498 of total unamortized share-based compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 1.0 year.
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Earnings Per Common Share (EPS) |
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Earnings Per Common Share (EPS) | The computations of basic and diluted earnings per share were as follows for the periods presented below:
Unexercised stock options and restricted stock awards of 4,632,501 for the three month period ended June 30, 2019 have been excluded from the computation of loss per share because inclusion of these securities would have been anti-dilutive.
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Revenue from Contracts with Customers |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | The following table was prepared to provide additional information about the composition of revenues from contracts with customers for the periods presented:
The Company recognized revenues from contracts with customers for the following customer types as set forth below:
The Company recognized revenues from contracts with customers in the following geographic regions:
During the three months ended June 30, 2020 and 2019, we recognized approximately $492,600 and $391,612, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2019 and 2018, respectively.
During the six months ended June 30, 2020 and 2019, we recognized approximately $1.3 million and $996,639, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2019 and 2018, respectively.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company has employment agreements with certain senior executives that set forth compensation levels and provide for severance payments in certain instances.
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Basis of Presentation and Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements as of June 30, 2020 and for each of the three and six month periods ended June 30, 2020 and 2019, 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 accounting principles generally accepted in the United States (“U.S. 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, 2019 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily indicative of the operating results for the full year.
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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.
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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 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 condensed consolidated statements of operations, depending on the nature of the activity.
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Use of Estimates | The preparation of condensed 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 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. There were no significant changes in accounting estimates used by management during the quarter.
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Segment Reporting | Our TM2 solution offerings comprise an overall single business from which the Company earns revenues and incurs costs. The Company’s TM2 solution offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 13 for detailed information regarding the composition of revenues.
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Significant Accounting Policies | There were no significant changes in the Company’s significant accounting policies during the first six months of 2020 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 24, 2020.
Accounting Standards under Evaluation
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“Topic 326”). Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This ASU update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. This update is effective for the company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.
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Accounts Receivable and Significant Concentrations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable |
(1) Government contracts are generally firm fixed price not to exceed arrangements with a term of five (5) years, which consists of a base year and four (4) annual option year renewals. Government receivables are billed under a single consolidated monthly invoice and are billed approximately thirty (30) to sixty (60) days in arrears from the date of service and payment is generally due within thirty (30) days of the invoice date. Government accounts receivable payments could be delayed due to administrative processing delays by the government agency, continuing budget resolutions that may delay availability of contract funding, and/or administrative only invoice correction requests by contracting officers that may delay payment processing by our government customer.
(2) Commercial contracts are generally fixed price arrangements with contract terms ranging from two (2) to three (3) years. Commercial accounts receivables are billed based on the underlying contract terms and conditions which generally have repayment terms that range from thirty (30) to ninety (90) days. Commercial receivables are stated at amounts due from customers net of an allowance for doubtful accounts if deemed necessary.
(3) For the six months ended June 30, 2020, the Company did not recognize any material provisions for bad debt, write-offs or recoveries of existing provisions for bad debt. The Company has not historically maintained a bad debt reserve for its government customers as it has not experienced material or recurring bad debt charges and the nature and size of the contracts has not necessitated the Company’s establishment of such a bad debt reserve.
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Accounts Receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of concentration of risk |
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Sales Revenue, Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of concentration of risk |
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Unbilled Accounts Receivable (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of unbilled accounts receivable |
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Other Current Assets and Accrued Expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other current assets |
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Schedule of accrued expenses |
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Property and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment |
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of finite-lived intangible assets |
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Schedule of finite-lived intangible assets, future amortization expense |
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Share-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share-based compensation |
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Earnings Per Common Share (EPS) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per common share |
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenues by service |
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Schedule of revenues by service customer type |
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Schedule of revenue from customers by geographic area |
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Organization and Nature of Operations (Details Narrative) |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
State of incorporation | DE |
Date of incorporation | May 30, 1997 |
Accounts Receivable and Significant Concentrations (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
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---|---|---|---|---|---|---|---|---|
Accounts receivable, gross | $ 22,209,206 | $ 14,707,163 | ||||||
Less: allowances for doubtful accounts | [1] | 116,898 | 126,235 | |||||
Accounts receivable, net | 22,092,308 | 14,580,928 | ||||||
Government | ||||||||
Accounts receivable, gross | [2] | 20,319,761 | 12,604,582 | |||||
Commercial | ||||||||
Accounts receivable, gross | [3] | $ 1,889,445 | $ 2,102,581 | |||||
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Accounts Receivable and Significant Concentrations (Details 1) - Accounts Receivable |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
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National Aeronautics and Space Administration | ||
Concentration risk | 16.00% | 21.00% |
U.S. Census Bureau | ||
Concentration risk | 50.00% | 18.00% |
Accounts Receivable and Significant Concentrations (Details 2) - Sales Revenue, Net |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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U.S. Immigration and Customs Enforcement | ||||
Concentration risk | 0.00% | 15.00% | 10.00% | 15.00% |
U.S. Customs Boarder Patrol | ||||
Concentration risk | 0.00% | 0.00% | 0.00% | 11.00% |
U.S. Coast Guard | ||||
Concentration risk | 0.00% | 11.00% | 0.00% | 10.00% |
U.S. Census Bureau | ||||
Concentration risk | 60.00% | 0.00% | 51.00% | 0.00% |
Unbilled Accounts Receivable (Details) - Unbilled Accounts Receivable |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
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U.S. Immigration and Customs Enforcement | ||
Concentration risk | 19.00% | 24.00% |
U.S. Census Bureau | ||
Concentration risk | 61.00% | 23.00% |
Other Current Assets and Accrued Expenses (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Other Assets [Abstract] | ||
Inventories | $ 508,826 | $ 213,713 |
Prepaid rent, insurance and other assets | 889,132 | 881,134 |
Total other current assets | $ 1,397,958 | $ 1,094,847 |
Other Current Assets and Accrued Expenses (Details 1) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
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Other Assets [Abstract] | ||
Carrier service costs | $ 25,379,290 | $ 12,274,440 |
Salaries and payroll taxes | 2,243,588 | 1,781,628 |
Inventory purchases, consultants and other costs | 870,606 | 834,131 |
Severance costs | 7,612 | 7,612 |
U.S. income tax payable | 3,670 | 8,850 |
Foreign income tax payable | 29,540 | 41,320 |
Total accrued expenses | $ 28,534,306 | $ 14,947,981 |
Property and Equipment (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Property and equipment, gross | $ 2,910,015 | $ 2,797,639 |
Less: accumulated depreciation and amortization | 2,320,351 | 2,116,064 |
Property and equipment, net | 589,664 | 681,575 |
Computer Hardware and Software | ||
Property and equipment, gross | 2,148,624 | 2,041,978 |
Furniture and Fixtures | ||
Property and equipment, gross | 420,705 | 399,521 |
Leasehold Improvements | ||
Property and equipment, gross | 285,903 | 299,340 |
Automobiles | ||
Property and equipment, gross | $ 54,783 | $ 56,800 |
Property and Equipment (Details Narrative) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 130,000 | $ 140,000 | $ 216,200 | $ 275,000 |
Goodwill and Intangible Assets (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Gross carrying amount | $ 6,521,850 | $ 6,521,674 |
Accumulated amortization | (4,324,972) | (4,070,904) |
Net book value | 2,196,878 | 2,450,770 |
Trade Name and Trademarks | ||
Gross carrying amount | 290,472 | 290,472 |
Accumulated amortization | (119,417) | (109,734) |
Net book value | 171,055 | 180,738 |
Customer Relationships | ||
Gross carrying amount | 1,980,000 | 1,980,000 |
Accumulated amortization | (1,980,000) | (1,980,000) |
Net book value | 0 | 0 |
Channel Relationships | ||
Gross carrying amount | 2,628,080 | 2,628,080 |
Accumulated amortization | (1,080,433) | (992,830) |
Net book value | 1,547,647 | 1,635,250 |
Internally Developed Software | ||
Gross carrying amount | 1,623,298 | 1,623,122 |
Accumulated amortization | (1,145,122) | (988,340) |
Net book value | $ 478,176 | $ 634,782 |
Goodwill and Intangible Assets (Details 1) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 202,924 | |
2021 | 333,714 | |
2022 | 273,937 | |
2023 | 194,570 | |
2024 | 194,570 | |
Thereafter | 997,163 | |
Total | $ 2,196,878 | $ 2,450,770 |
Goodwill and Intangible Assets (Details Narrative) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Goodwill | $ 18,555,578 | $ 18,555,578 | $ 18,555,578 | ||
Capitalized software cost | 178,000 | $ 67,225 | 519,000 | $ 125,725 | |
Aggregate amortization expense | $ 125,700 | $ 198,800 | $ 251,311 | $ 397,631 | |
Purchased Intangible Assets | |||||
Weighted average remaining life | 4 years 6 months | ||||
Internally Developed Software | |||||
Weighted average remaining life | 2 years 6 months |
Line of Credit (Details Narrative) |
Jun. 30, 2020
USD ($)
|
---|---|
Line of Credit Facility [Abstract] | |
Line of credit borrowing capacity | $ 4,900,000 |
Income Taxes (Details Narrative) |
Jun. 30, 2020
USD ($)
|
---|---|
Income Tax Disclosure [Abstract] | |
Net operating loss carry forwards | $ 37,500,000 |
Stockholders' Equity (Details Narrative) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
STOCKHOLDERS' EQUITY | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 84,418,523 | 83,861,453 |
Common stock, shares outstanding | 84,418,523 | 83,861,453 |
Share-based Compensation (Details 3) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Payment Arrangement [Abstract] | ||||
Restricted stock compensation expense | $ 182,928 | $ 180,863 | $ 437,427 | $ 197,600 |
Non-qualified option stock compensation expense | 26,499 | 103,248 | 53,441 | 175,777 |
Total share-based compensation before taxes | $ 209,427 | $ 284,111 | $ 490,868 | $ 373,377 |
Share-based Compensation (Details Narrative) |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Share-based Payment Arrangement [Abstract] | |
Unamortized share-based compensation expense | $ 772,498 |
Unamortized share-based compensation expense, recognition period | 1 year |
Earnings Per Common Share (EPS) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Basic Earnings Per Share Computation: | ||||||
Net income (loss) | $ 488,627 | $ 483,888 | $ (307,761) | $ 384,101 | $ 972,515 | $ 76,340 |
Basic weighted-average shares outstanding | 83,920,314 | 83,990,722 | 83,880,197 | 83,902,077 | ||
Basic earnings per share | $ 0.01 | $ .00 | $ 0.01 | $ .00 | ||
Diluted Earnings Per Share Computation: | ||||||
Net income (loss) | $ 488,627 | $ 483,888 | $ (307,761) | $ 384,101 | $ 972,515 | $ 76,340 |
Diluted weighted-average shares outstanding | 83,920,314 | 83,990,722 | 83,880,197 | 83,902,077 | ||
Incremental shares from assumed conversions of dilutive securities | 1,043,947 | 0 | 784,198 | 63,917 | ||
Adjusted weighted average number of common shares | 84,964,261 | 83,990,722 | 84,664,395 | 83,965,994 | ||
Diluted earnings per share | $ 0.01 | $ .00 | $ 0.01 | $ .00 |
Revenue from Contracts with Customers (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenues | $ 54,783,790 | $ 22,093,153 | $ 94,449,146 | $ 44,010,055 |
Carrier Services | ||||
Revenues | 44,944,155 | 14,023,930 | 73,087,424 | 28,366,941 |
Managed Services | ||||
Revenues | $ 9,839,635 | $ 8,069,223 | $ 21,361,722 | $ 15,643,114 |
Revenue from Contracts with Customers (Details 1) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenues | $ 54,783,790 | $ 22,093,153 | $ 94,449,146 | $ 44,010,055 |
U.S. Federal Government | ||||
Revenues | 51,338,765 | 18,441,671 | 84,874,450 | 36,604,169 |
U.S. State and Local Governments | ||||
Revenues | 25,773 | 126,342 | 51,286 | 242,181 |
Foreign Governments | ||||
Revenues | 59,737 | 24,353 | 65,906 | 68,897 |
Commercial Enterprises | ||||
Revenues | $ 3,359,515 | $ 3,500,787 | $ 9,457,504 | $ 7,094,808 |
Revenue from Contracts with Customers (Details 2) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenues | $ 54,783,790 | $ 22,093,153 | $ 94,449,146 | $ 44,010,055 |
North America | ||||
Revenues | 53,706,367 | 20,950,816 | 92,248,748 | 41,731,127 |
Europe | ||||
Revenues | $ 1,077,423 | $ 1,142,337 | $ 2,200,398 | $ 2,278,928 |
Revenue from Contracts with Customers (Details Narrative) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue, revenue recognized | $ 492,600 | $ 391,612 | $ 1,300,000 | $ 996,639 |
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