Financial Performance - Revenues for the three months ended June 30, 2021 were approximately $20.0 million, a decrease of approximately $34.8 million (or 64%) compared to $54.8 million in 2020[99] - Carrier services revenue decreased to $11.9 million from $44.9 million, a decline of $33.0 million, primarily due to the completion of the U.S. Department of Commerce contract supporting the 2020 Census[99] - For the six months ended June 30, 2021, revenues were approximately $40.6 million, a decrease of approximately $53.8 million (or 57%) compared to $94.4 million in 2020[109] - Net loss for the three months ended June 30, 2021 was approximately $(204,700), compared to net income of approximately $488,600 in the same period last year[107] Profitability and Expenses - Gross profit for the three months ended June 30, 2021 was approximately $3.9 million (or 20% of revenues), compared to $5.1 million (or 9% of revenues) in 2020, driven by higher margin managed services revenue[102] - Cost of revenues for the six months ended June 30, 2021 was approximately $31.9 million (or 79% of revenues), down from $84.4 million (or 89% of revenues) in 2020[112] - Sales and marketing expenses for the three months ended June 30, 2021 were approximately $0.5 million (or 3% of revenues), an increase from $0.4 million (or 1% of revenues) in 2020[104] - General and administrative expenses for the six months ended June 30, 2021 were approximately $6.6 million (or 16% of revenues), down from $7.2 million (or 8% of revenues) in 2020[115] Cash Flow and Capital Management - For the six months ended June 30, 2021, net cash used in operations was approximately $0.4 million, a decrease from approximately $1.6 million net cash provided for the same period in 2020[126] - Cash used in investing activities for the six months ended June 30, 2021, was approximately $1.3 million, primarily for computer hardware and software purchases and capitalized internally developed software costs[128] - Cash provided by financing activities for the six months ended June 30, 2021, was approximately $654,700, reflecting proceeds from the issuance of common stock through ATM sales of $1.1 million[131] - The company sold 100,687 shares under the ATM program during the six months ended June 30, 2021, with a remaining capacity of $18.6 million as of June 30, 2021[122] - 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[121] Foreign Exchange and Inflation - The gradual depreciation of the Euro relative to the US dollar decreased the translated value of the company's foreign cash balances by approximately $42,800 for the six months ended June 30, 2021[133] - Management believes inflation has not materially affected operations to date, but there may be inflationary pressures in the future due to the pandemic[134] Internal Controls - There were no changes in the company's internal control over financial reporting during the three-month period ended June 30, 2021, that materially affected internal controls[139] Strategic Initiatives - The company aims to expand its critical mass to fund investments in technology solutions and introduce new sales and marketing initiatives to improve sustainability and growth[94]
WidePoint(WYY) - 2021 Q2 - Quarterly Report