WidePoint(US:WYY)2021-03-23 20:00Financial Performance - Revenues for the year ended December 31, 2020 were approximately $180.3 million, an increase of approximately $78.6 million (or 77%) compared to $101.7 million in 2019[200]. - Gross profit for the year ended December 31, 2020 was approximately $20.4 million (or 11% of revenues), compared to approximately $17.4 million (or 17% of revenues) in 2019[206]. - Net income for the year ended December 31, 2020 increased to approximately $10.3 million, compared to a net income of approximately $0.2 million in 2019[216]. - Net working capital at December 31, 2020 was approximately $13.0 million, up from $5.0 million at December 31, 2019, driven by increased revenue and proceeds from the ATM sales program[219]. - Cash provided by operating activities for the year ended December 31, 2020 was approximately $6.4 million, driven by increased accounts receivable and temporary payable timing differences[224]. - Cash used in investing activities for the year ended December 31, 2020 was approximately $1.2 million, primarily for computer hardware and software purchases and capitalized internally developed software costs[226]. - Cash used in financing activities for the year ended December 31, 2020 was approximately $3.7 million, consisting of lease principal repayments and proceeds from the ATM sales program[229]. Revenue Recognition and Accounting - The company recognizes revenue from managed services upon completion of monthly service delivery based on user or device counts[177]. - The company’s revenue recognition policies for managed services are sensitive to significant changes in per user or device counts, which form the basis for monthly charges[177]. - The company has a single reporting unit for the purpose of goodwill impairment testing, which is assessed annually[180]. - The company reported approximately $18.5 million in goodwill as of December 31, 2020, with no impairment identified[184]. - The company recorded net provisions for bad debt expense totaling approximately $1,000 related to commercial contracts during the year ended December 31, 2020[188]. Strategic Initiatives - The company aims to expand its customer base and sales pipeline while leveraging strategic relationships with key system integrators and partners to capture additional market share[165]. - The company plans to pursue additional opportunities with key systems integrators and strategic partners to enhance its market position[167]. - The company is focused on improving its proprietary platform and products, including pursuing FedRAMP certification for ITMS™[167]. - The company’s strategic focus includes selling high-margin managed services and developing innovative new offerings to enhance its TM2 offering[167]. - The company intends to transition its data center and support infrastructure into a more cost-effective and federally approved cloud environment[167]. Capital and Financing - The company established an ATM equity sales program allowing the sale of up to $24.0 million of common stock, with remaining capacity of $20.0 million as of December 31, 2020[220]. - The company may need to raise additional capital to fund major growth initiatives and/or acquisitions, with no assurance that additional capital will be available on acceptable terms[219]. - The Company has no existing off-balance sheet arrangements as defined under SEC regulations[238]. - Not required for smaller reporting companies to disclose quantitative and qualitative disclosures about market risk[239]. Revenue Sources - Carrier services revenue increased primarily due to the U.S. Department of Commerce contract supporting the 2020 Census, accounting for approximately 61% of total carrier services revenue in 2020[201].