Financial Data and Key Metrics Changes - The company recorded total revenue of $34.2 million for Q1 2025, remaining consistent compared to the same quarter last year [22] - Gross profit for the first quarter was $4.8 million, representing 14% of revenues, compared to $4.7 million or 14% in the same period last year [24] - The net loss for Q1 was $724,000, or a loss of $0.08 per share, compared to a net loss of $653,000, or a loss of $0.07 per share for the same period last year [26] - Adjusted EBITDA for the first quarter was $92,400, marking the 31st consecutive quarter of positive adjusted EBITDA [26] Business Line Data and Key Metrics Changes - Carrier services revenue was $22.4 million, an increase of $3 million compared to the same period in 2024, driven by growth in the number of lines under management for the DHS customer [23] - Managed services fees were $9.3 million, an increase of $564,000 compared to the same period last year, primarily due to a new federal end customer [23] - Billable services fees were $1.8 million, an increase of $591,000 compared to the same period in 2024 [23] - Reselling and other services revenue decreased to $789,000, down $4.2 million from the same period last year, with $2.7 million of the decrease attributed to an out-of-period adjustment [24] Market Data and Key Metrics Changes - The federal contract backlog as of March 31, 2025, stood at $268 million [24] - The company is experiencing increased activity under the SPIRO-four contract, with two additional task orders awarded this quarter [6][13] Company Strategy and Development Direction - The company aims to deepen relationships with existing partners while building new ones, particularly through its Device as a Service initiative [11] - The company is preparing for the upcoming DHS CWMS three-point-zero recompete, believing it is well-positioned to win the contract again [11] - The company plans to invest strategically, including new hires, to ensure resources are in place to capture opportunities as they arise [9] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the alignment with federal government priorities, particularly in reducing waste and improving efficiency [9] - The company is actively working with key stakeholders to increase awareness of its solutions within the current administration [10] - Despite some government agencies facing budget constraints, others, such as DHS and DoD, have received budget increases, which is seen as a positive sign for the company's offerings [10] Other Important Information - The company recorded a one-time out-of-period accounting adjustment that reduced revenue by approximately $2.7 million and cost of revenue by approximately $2.5 million [5][22] - The company plans to increase capital investments by approximately $500,000 for the year to support strategic priorities, including the Device as a Service program [26][27] Q&A Session Summary Question: Clarification on accounting adjustment impact - The adjustment will require grossing up revenue by $2.7 million and EBITDA by about $200,000 to understand actual performance for the quarter [30] Question: Timeline for CWMS recompete - The recompete is expected to be conducted this year, with an award made prior to the expiration of the current contract in November [34] Question: Details on SPIRO-four contract - SPIRO-four has a total contract value of $2.7 billion, with the company having captured several task orders under this contract [39] Question: Guidance range explanation - The difference in guidance range is primarily due to timing issues related to the sales pipeline and potential wins [49] Question: Commercial opportunities - The company sees significant commercial opportunities, particularly in the Device as a Service program and logistics centers [53]

[Part I. FINANCIAL INFORMATION](index=2&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2025 reflect stable revenues, an increased net loss, a slight decrease in total assets, and a significant increase in cash used in operations [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues remained flat in Q1 2025, while increased operating expenses led to a wider net loss of $724,063 compared to the prior year Condensed Consolidated Statements of Operations (Unaudited) | Financial Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $34,217,739 | $34,207,279 | | **Gross Profit** | $4,778,521 | $4,665,891 | | **Loss from Operations** | ($816,431) | ($651,019) | | **Net Loss** | ($724,063) | ($653,110) | | **Earnings Per Share (Basic and Diluted)** | ($0.08) | ($0.07) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $71.36 million, while total liabilities increased, leading to a decline in stockholders' equity Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total Current Assets** | $55,307,506 | $55,317,773 | | **Total Assets** | $71,363,856 | $71,580,516 | | **Total Current Liabilities** | $53,139,267 | $52,881,953 | | **Total Liabilities** | $58,398,197 | $58,000,547 | | **Total Stockholders' Equity** | $12,965,659 | $13,579,969 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $3.23 million in Q1 2025, resulting in a net decrease in cash and equivalents Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | ($3,227,591) | ($1,556,669) | | **Net Cash (Used in) Provided by Investing Activities** | ($27,632) | $252,631 | | **Net Cash Used in Financing Activities** | ($234,977) | ($356,252) | | **Net Decrease in Cash** | ($3,517,753) | ($1,653,226) | | **Cash, Cash Equivalents, and Restricted Cash, End of Period** | $4,299,642 | $5,267,934 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's TMaaS operations, an out-of-period revenue adjustment, significant U.S. Federal Government concentration, and an unused $4 million revolving credit facility * The company is a leading provider of **Technology Management as a Service (TMaaS)** through its federally compliant Intelligent Technology Management System (ITMS™) platform[20](index=20&type=chunk) * An out-of-period adjustment in Q1 2025 decreased revenues by **$2,695,148** and cost of revenues by **$2,461,832** to correct a revenue recognition error, which was deemed immaterial to prior periods[31](index=31&type=chunk) * The U.S. Federal Government accounts for **85% of revenue** in Q1 2025 and **83% of net accounts receivable** as of March 31, 2025, indicating significant concentration[36](index=36&type=chunk) * The company renewed its **$4 million revolving line of credit facility** with Old Dominion National Bank until February 28, 2026, with no outstanding balance as of March 31, 2025, and covenant compliance[51](index=51&type=chunk)[53](index=53&type=chunk) * The company operates as a **single reportable segment**, providing managed services including Identity Management (IdM), Mobility Managed Services (MMS), and Telecom Lifecycle Management[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses flat Q1 2025 revenues, a shift in service mix improving managed services gross margin, an increased net loss due to G&A, and higher cash used in operations from delayed federal government collections * Key strategic goals for 2025 include winning the DHS CWHS 3.0 re-compete, growing recurring managed services revenues, leveraging FedRAMP authorization, and expanding the commercial customer base[89](index=89&type=chunk) Revenue by Service Type (Q1 2025 vs Q1 2024) | Service Type | Q1 2025 Revenue (USD) | Q1 2024 Revenue (USD) | Dollar Variance (USD) | | :--- | :--- | :--- | :--- | | Carrier Services | $22,401,299 | $19,382,669 | $3,018,630 | | Managed Services | $11,816,440 | $14,824,608 | ($3,008,168) | | **Total Revenues** | **$34,217,739** | **$34,207,279** | **$10,460** | * The decrease in Managed Services revenue was primarily due to a **$4.2 million decline** in reselling and other services, partly caused by a **$2.7 million out-of-period adjustment** and changes in revenue recognition for SaaS agreements[94](index=94&type=chunk) * Gross profit margin for Managed Services (excluding carrier services) improved to **40.4%** in Q1 2025 from **31.5%** in Q1 2024, driven by a lower mix of low-margin reselling revenues[93](index=93&type=chunk)[95](index=95&type=chunk) * Net cash used in operations increased to **$3.2 million** in Q1 2025 from **$1.6 million** in Q1 2024, primarily due to delayed billing and collections of accounts receivables with a federal government customer[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, WidePoint Corporation is exempt from providing these market risk disclosures * Disclosure is not required for smaller reporting companies[114](index=114&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in revenue recognition for government contracts, with remediation ongoing * Disclosure controls and procedures were concluded to be **not effective** as of March 31, 2025[115](index=115&type=chunk) * The ineffectiveness stems from a **material weakness** in internal control over financial reporting related to revenue recognition for government contracts, specifically concerning the estimation of unbilled amounts for a large government agency[115](index=115&type=chunk) * Management is executing a remediation plan, but the material weakness cannot be considered remediated until the new controls have operated effectively for a sufficient period[117](index=117&type=chunk) [Part II. OTHER INFORMATION](index=21&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceeding * The Company is not currently involved in any **material legal proceeding**[119](index=119&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024 * Risk factors have not changed materially from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[120](index=120&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **24,614 shares** of common stock in Q1 2025 at an average price of **$4.68 per share** for employee tax withholding related to stock-based compensation Repurchase of Securities for Tax Withholding - Q1 2025 | Period | Total Number of Shares Purchased | Average Price Paid Per Share (USD) | | :--- | :--- | :--- | | January 2025 | 21,610 | $4.84 | | March 2025 | 3,004 | $3.53 | | **Total** | **24,614** | **$4.68** | [Other Information](index=21&type=section&id=Item%205.%20Other%20Information) No directors or officers modified, adopted, or terminated any Rule 10b5-1 trading plans during Q1 2025 * During Q1 2025, there were no modifications, adoptions, or terminations by directors or officers to any Rule 10b5-1 trading plans[122](index=122&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Interactive Data Files (XBRL)

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Our ...

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Financial Data and Key Metrics Changes - Prologis reported a core FFO of $1.42 per share, including net promotes, and $1.43 per share excluding net promotes, both exceeding forecasts [15] - Occupancy at the end of the quarter was 95.2%, a decrease of 70 basis points from year-end, attributed to strong retention [15] - Net effective rent change during the quarter was 54%, with cash basis at 32%, leading to same-store growth of 5.9% and 6.2% respectively [16][17] - The company raised approximately $400 million in new capital for its flagship open-ended funds, with a similar amount in redemptions, resulting in a near-neutral capital raise [20] Business Line Data and Key Metrics Changes - Prologis leased 58 million square feet, nearing record levels, and broke ground on several build-to-suit developments [10] - The data center business saw an increase of 400 megawatts in power capacity, totaling 2 gigawatts in advanced stages [19] - The company started approximately $650 million in new developments, with nearly 80% in built-to-suits averaging 16-year lease terms [17] Market Data and Key Metrics Changes - The operating environment showed a post-election uptick in leasing, with increased proposal volumes and conversions, particularly in transport, food and beverage, consumer products, and electronics [22] - Net absorption for the quarter was 21 million square feet, with global rents declining by 1.5%, primarily in Southern California [88] Company Strategy and Development Direction - Prologis aims to leverage its global footprint and diversified rent roll to navigate market disruptions and capitalize on emerging opportunities [12][14] - The company plans to reduce development start guidance to $1.5 billion to $2 billion, reflecting uncertainty in the capital markets [33] - The strategy emphasizes investing in markets where goods are consumed rather than produced, aligning with long-term growth prospects [14] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential recession and inflation, noting that decision-making among customers is slowing due to tariff uncertainties [11][12] - The company remains confident in its ability to weather economic fluctuations, citing a fortress balance sheet and contractual revenue streams [13] - Management anticipates increased inventory levels as businesses stockpile, with e-commerce expected to gain market share [30] Other Important Information - Prologis received a credit rating upgrade to A2 from Moody's, making it one of only two public REITs with an A-flat rating from both agencies [21] - The company is advancing towards its goal of one gigawatt of solar and storage capacity, with over 900 megawatts either in operation or under development [20] Q&A Session Summary Question: Insights on customer interactions and demand - Management noted that consumption is closely tied to GDP growth, and while a recession would impact consumption, long-term trends remain positive [44] Question: Clarification on leasing and occupancy - The occupancy drop was attributed to a high volume of leases rolling in the first quarter, with retention at 73% [51] Question: Impact of Amazon's market presence - Prologis has signed significant deals with Amazon, with the e-commerce segment showing strong leasing activity [65] Question: Opportunities in the current environment - Management indicated that it is too early to identify specific opportunities, as the market is currently in a wait-and-see mode [69] Question: Demand for smaller spaces - Smaller spaces typically have lower occupancy due to shorter lease terms, but replacement costs are rising, providing some protection against supply issues [124][126]

Financial Data and Key Metrics Changes - Prologis reported a core FFO of $1.42 per share, including net promotes, and $1.43 per share excluding net promotes, both exceeding forecasts [15] - Occupancy at the end of the quarter was 95.2%, a decrease of 70 basis points from year-end, attributed to strong retention [15] - Net effective rent change during the quarter was 54%, with cash basis at 32%, leading to same-store growth of 5.9% and 6.2% respectively [16] Business Line Data and Key Metrics Changes - The company leased 58 million square feet, nearing record levels, and initiated approximately $650 million in new developments, with 80% in built-to-suit projects [10][17] - In the data center business, 400 megawatts of power moved to advanced stages, totaling 2 gigawatts in this category [19] Market Data and Key Metrics Changes - Global rents declined by 1.5%, primarily driven by Southern California, while other markets remained flat or increased [88] - Net absorption for the quarter was 21 million square feet, down from 27 million a year ago, indicating a seasonal decline [144] Company Strategy and Development Direction - The company aims to leverage its global footprint and diversified rent roll to navigate market disruptions and capitalize on emerging opportunities [12][14] - Prologis is focusing on markets where goods are consumed rather than produced, reinforcing its long-term strategy [14] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential recession and inflation, emphasizing the need for flexible inventory positioning among customers [12][30] - The company anticipates increased inventory levels as businesses stockpile, with e-commerce expected to gain more market share [30] Other Important Information - The company raised approximately $400 million in new capital for its flagship open-ended funds, with a similar amount in redemptions, resulting in a neutral capital raise [20] - Prologis received a credit rating upgrade to A2 from Moody's, making it one of only two public REITs with an A-flat rating from both agencies [21] Q&A Session Summary Question: Insights on customer interactions and demand - Management noted that consumption is closely tied to GDP growth, with a historical relationship of about 70% in the U.S. [44] Question: Clarification on leasing and occupancy - The occupancy drop was attributed to a high volume of leases rolling in the first quarter, with retention at 73% [51] Question: Impact of 3PLs on the Inland Empire West - The U.S. businesses of Asian 3PLs represent just over 1.5% of the rent roll, and these companies are adapting by diversifying their sources and growing domestic footprints [57] Question: Amazon's market presence - Prologis has signed significant deals with Amazon, with the e-commerce segment showing strong leasing activity [65] Question: Opportunities in the current environment - Management indicated that it is too early to identify specific opportunities, as the market is currently in a wait-and-see mode [69] Question: Demand for smaller spaces - Smaller spaces typically have lower occupancy due to shorter lease terms and are more affected by economic downturns [120][124] Question: Expectations for cash same-store NOI - The strong 6.2% cash same-store NOI in Q1 was influenced by occupancy changes and is expected to be volatile throughout the year [129] Question: Timing of lease commitments - New lease commencements can occur rapidly, while renewals may take longer, depending on the lease size [136]

Revenue Growth - Revenues for the year ended December 31, 2024, were $142.6 million, an increase of $36.5 million (or 34%) compared to approximately $106.0 million in 2023[199] - Carrier services revenues increased by $28.5 million to $86.8 million from $58.2 million last year, primarily due to increased contracting activity with federal customers[199] - Managed service fees increased by $4.5 million to $35.8 million from $31.3 million last year, attributed to a new commercial contract for a US government end customer[199] - U.S. Federal Government revenues increased by $34.4 million to $118.9 million in 2024 compared to $84.5 million in 2023[200] - Total revenue for the year ended December 31, 2024, was $142.6 million, representing a 34% increase from $106.0 million in 2023[208] - Sales to federal government customers increased significantly, totaling $20 million in 2024 compared to $1.3 million in 2023[207] Profitability - Gross profit for Carrier services was $86.8 million, a 49% increase from the previous year, while Managed services gross profit was $55.8 million, a 17% increase[205] - Gross profit for 2024 was $19.0 million, or 13% of revenues, down from $15.6 million, or 15% of revenues in 2023[208] - Net loss for 2024 was $1.9 million, or $0.21 loss per share, an improvement from a net loss of $4.0 million, or $0.46 loss per share in 2023[220] Operating Expenses - Cost of revenues for the year ended December 31, 2024, was $123.5 million (or 87% of revenues) compared to $90.4 million (or 85% of revenues) in 2023[203] - General and administrative expenses for 2024 were $17.6 million, or 12% of revenues, compared to $15.9 million, or 15% of revenues in 2023[213] Cash Flow and Financing - Cash provided by operating activities for 2024 was approximately $1.6 million, up from $0.6 million in 2023[224] - Cash used in financing activities for 2024 was approximately $0.9 million, reflecting line of credit advances and payments[230] - The company’s net working capital increased to approximately $2.4 million in 2024 from $1.4 million in 2023[221] - The company sold a total of $2.9 million of receivables for $2.8 million in proceeds net of fees in 2024[234] - The company entered into a $4 million revolving line of credit facility on February 29, 2024, renewed through February 28, 2026[236] Strategic Initiatives - The company aims to grow recurring managed services revenues and leverage its FedRAMP Authorized status to capture government business[176] - The company plans to explore integration of artificial intelligence into its solutions to enhance information security and service delivery[186] - The company completed the integration of acquired assets from ITA and is focused on expanding its customer base and sales pipeline[176] Tax and Valuation - The company recorded a valuation allowance against a portion of domestic deferred tax assets due to the likelihood of not earning sufficient income to realize these assets[196]

Financial Outlook - WidePoint Corporation issued a press release summarizing its unaudited fiscal 2024 financial outlook and operational highlights on February 18, 2025[5]. - The press release is furnished as Exhibit 99.1 to the Current Report on Form 8-K, providing detailed financial information[5]. Strategic Priorities - The company outlined its strategic priorities for fiscal 2025, indicating a focus on growth and operational efficiency[5].

Financial Performance - Revenues for Q3 2024 were $34.6 million, representing a 35% increase compared to $25.7 million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $574,000, a 149% improvement from $230,000 in Q3 2023[5] - Free cash flow for Q3 2024 was $511,000, reflecting a 120% increase from a negative $590,000 in Q3 2023[5] - For the nine months ended September 30, 2024, revenues were $104.9 million, a 35% increase from $77.8 million in the same period last year[6] - Total revenues for the three months ended September 30, 2024, were $34,620,433, an increase from $25,733,657 in the same period of 2023, representing a growth of approximately 34.8%[22] - Gross profit for the nine months ended September 30, 2024, was $14,251,479, compared to $11,614,398 for the same period in 2023, indicating a year-over-year increase of about 22.4%[22] - The net loss for the nine months ended September 30, 2024, was $1,577,873, a decrease from a net loss of $2,714,686 in the same period of 2023, reflecting an improvement of approximately 41.8%[22] Contract Awards and Renewals - The company won $15.2 million in contract awards and renewals during Q3 2024, including $1.4 million in IT as a Service contracts[4] Cash and Assets - As of September 30, 2024, the company had cash of $5.6 million with no bank debt[5] - Cash and cash equivalents at the end of the period were $5,636,057, down from $6,921,160 at the beginning of the period, showing a decrease of about 18.5%[24] - Unbilled accounts receivable increased significantly to $24,784,036 as of September 30, 2024, compared to $16,618,639 at the end of 2023, marking a growth of approximately 49.0%[21] - Total current assets rose to $40,938,795 as of September 30, 2024, up from $32,843,263 at the end of 2023, representing an increase of about 24.6%[21] Operating Expenses and Cash Flow - Operating expenses for the nine months ended September 30, 2024, totaled $15,815,068, compared to $14,062,260 for the same period in 2023, indicating an increase of approximately 12.5%[22] - The company experienced a net cash used in operating activities of $752,978 for the nine months ended September 30, 2024, compared to net cash provided of $1,835,176 in the same period of 2023, showing a significant change in cash flow dynamics[25] Technological Advancements - The company successfully deployed its proprietary MobileAnchor Digital Credential solution into two Federal Agencies, enhancing its technological capabilities[4] Future Outlook - The company is trending towards the higher end of its annual guidance and is optimistic about maintaining growth momentum into 2025[7] Shareholder Information - The weighted-average shares outstanding for the nine months ended September 30, 2024, were 9,263,492, compared to 8,809,644 for the same period in 2023, indicating an increase of approximately 5.1%[22] Interest Income - The company reported interest income of $161,033 for the nine months ended September 30, 2024, compared to $39,122 in the same period of 2023, reflecting a significant increase of about 311.5%[22] Gross Margin - Gross margin for Q3 2024 was 14%, with gross margin excluding carrier services revenue increasing to 38% from 35% in the same period last year[5] Net Loss - Net loss for Q3 2024 improved to $425,200, compared to a net loss of $921,100 in Q3 2023[5]