WidePoint(WYY) - 2023 Q4 - Annual Report

Revenue Performance - Revenues for the year ended December 31, 2023, were $106.0 million, an increase of$11.9 million (or 13%) compared to approximately $94.1 million in 2022[209]. - Revenues for the year ended December 31, 2023, were$106.0 million, an increase of $11.9 million (or 12.6$94.1 million in 2022[211]. - Carrier Services revenue increased to $58.2 million in 2023 from$53.3 million in 2022, a variance of $4.9 million[210]. - Total Managed Services revenue rose to$47.8 million in 2023, up from $40.8 million in 2022, reflecting an increase of$7.0 million[210]. - Sales to U.S. Federal Government increased by $10.1 million to$84.5 million, while sales to foreign governments decreased by $67.0 thousand to$79.6 thousand[211][218]. Financial Metrics - Cost of revenues for 2023 was $90.4 million, representing 85$15.6 million, maintaining a gross profit margin of 15%[219]. - General and administrative expenses for 2023 were approximately $15.9 million (15$14.7 million (16% of revenues) in 2022[224]. - Net loss for the year ended December 31, 2023, was $4.0 million, or negative$0.46 per share, compared to a net loss of $23.6 million, or negative$2.70 per share in 2022[233]. - Cash provided by operating activities for 2023 was approximately $0.6 million, down from$6.1 million in 2022[239]. - Cash used in investing activities for 2023 was approximately $0.6 million, primarily for computer hardware and software purchases[241]. - The company’s net working capital decreased to approximately$1.4 million at December 31, 2023, from 1.8 million at December 31, 2022[234]. Strategic Initiatives - The company aims to attain full FedRAMP certification in 2024 to enhance its service offerings[178]. - The company plans to grow recurring high-margin managed services revenues and expand its solution offerings into the commercial space[178]. - The company is focused on executing cross-sell opportunities identified from the ITA acquisition, including Identity Management and Digital Billing & Analytics solutions[177]. - The company is exploring the integration of artificial intelligence into its solutions to improve information security and service delivery[189]. - The company is committed to expanding its customer base organically and leveraging strategic partnerships to capture additional market share[176]. Impairment and Financial Assessment - The company recorded a 16.3 million non-cash goodwill impairment charge for the three-month period ended June 30, 2022[198]. - The company performed its annual impairment assessment as of December 31, 2023, which did not result in any additional impairment of goodwill[200]. Financing Activities - The company entered into a new $4 million revolving line of credit facility with Old Dominion National Bank, maturing on February 28, 2025[250][251].