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]