WidePoint (WYY) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	WIDEPOINT CORP
Entity Central Index Key	0001034760
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Trading Symbol	WYY
Entity Common Stock, Shares Outstanding		84,351,018

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
REVENUES	$ 21,916,902	$ 20,079,619
COST OF REVENUES (including amortization and depreciation of $232,191, and $295,979, respectively)	17,663,059	16,527,612
GROSS PROFIT	4,253,843	3,552,007
OPERATING EXPENSES
Sales and marketing	393,411	534,637
General and administrative expenses (including share-based compensation of $89,266, and $124,404, respectively)	3,134,709	3,353,341
Depreciation and amortization	240,548	97,386
Total operating expenses	3,768,668	3,985,364
INCOME (LOSS) FROM OPERATIONS	485,175	(433,357)
OTHER (EXPENSE) INCOME
Interest income	4,462	3,326
Interest expense	(77,545)	(25,950)
Other income (expense)	9	(2)
Total other expense	(73,074)	(22,626)
INCOME (LOSS) BEFORE INCOME TAX PROVISION	412,101	(455,983)
INCOME TAX PROVISION	28,000	6,190
NET INCOME (LOSS)	$ 384,101	$ (462,173)
BASIC LOSS PER SHARE	$ 0	$ (0.01)
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING	83,812,448	83,041,597
DILUTED LOSS PER SHARE	$ 0	$ (0.01)
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING	83,814,670	83,041,597

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Amortization and depreciation	$ 232,191	$ 295,979
Share-based compensation expense	$ 89,266	$ 124,404

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 384,101	$ (462,173)
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(29,282)	2,938
Other comprehensive (loss) income	(29,282)	2,938
COMPREHENSIVE INCOME (LOSS)	$ 354,819	$ (459,235)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 4,567,168	$ 2,431,892
Accounts receivable, net of allowance for doubtful accounts of $96,846 and $107,618 in 2018 and 2017, respectively	11,220,420	11,089,315
Unbilled accounts receivable	8,232,585	9,566,170
Other current assets	1,200,056	1,086,686
Total current assets	25,220,229	24,174,063
NONCURRENT ASSETS
Property and equipment, net	737,766	1,012,684
Operating lease right of use asset, net	5,969,894	0
Intangibles, net	2,959,442	3,103,753
Goodwill	18,555,578	18,555,578
Other long-term assets	233,073	209,099
Total assets	53,675,982	47,055,177
CURRENT LIABILITIES
Accounts payable	9,374,095	7,363,621
Accrued expenses	9,676,357	10,716,438
Deferred revenue	1,690,592	2,072,344
Current portion of capital leases	481,562	107,325
Current portion of other term obligations	88,226	192,263
Total current liabilities	21,310,832	20,451,991
NONCURRENT LIABILITIES
Capital leases, net of current portion	5,594,671	122,040
Other term obligations, net of current portion	0	73,952
Deferred revenue	351,262	466,714
Deferred tax liability	1,558,162	1,523,510
Total liabilities	28,814,927	22,638,207
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding	0	0
Common stock, $0.001 par value; 110,000,000 shares authorized; 84,112,446 and 84,112,446 shares issued and oustanding, respectively	84,113	84,113
Additional paid-in capital	95,015,826	94,926,560
Accumulated other comprehensive loss	(215,767)	(186,485)
Accumulated deficit	(70,023,117)	(70,407,218)
Total stockholders' equity	24,861,055	24,416,970
Total liabilities and stockholders' equity	$ 53,675,982	$ 47,055,177

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 112,754	$ 106,733
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	2,045,714	0
Preferred stock, shares outstanding	2,045,714	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	84,112,446	84,112,446
Common stock, shares outstanding	84,112,446	84,112,446

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 384,101	$ (462,173)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred income tax expense	34,652	0
Depreciation expense	273,923	131,065
Provision for doubtful accounts	7,610	(5,766)
Amortization of intangibles	198,816	262,300
Amortization of deferred financing costs	1,250	7,819
Share-based compensation expense	89,266	124,404
Changes in assets and liabilities:
Accounts receivable and unbilled receivables	1,151,421	1,494,740
Inventories	(104,992)	(170,185)
Prepaid expenses and other current assets	(45,286)	(124,058)
Other assets	(29,710)	(84,815)
Accounts payable and accrued expenses	961,804	1,166,610
Income tax payable	(8,339)	(5,240)
Deferred revenue and other liabilities	(486,385)	(82,833)
Net cash used in operating activities	2,428,131	2,251,868
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(83,797)	(13,918)
Software development costs	(58,461)	(70,674)
Net cash used in investing activities	(142,258)	(84,592)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit	6,192,656	8,362,503
Repayments of bank line of credit advances	(6,192,656)	(8,362,503)
Principal repayments under capital lease obligations	(122,300)	(26,050)
Proceeds from exercise of stock options	0	22,000
Net cash used in financing activities	(122,300)	(4,050)
Net effect of exchange rate on cash and equivalents	(28,297)	10,039
NET INCREASE IN CASH	2,135,276	2,173,265
CASH AND CASH EQUIVALENTS, beginning of period	2,431,892	5,272,457
CASH AND CASH EQUIVALENTS, end of period	4,567,168	7,445,722
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	63,309	18,130
Cash paid for income taxes	$ 0	$ 11,429

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 83,032	$ 94,200,237	$ (122,461)	$ (68,950,742)	$ 25,210,066
Balance (in shares) at Dec. 31, 2017	83,031,595
Issuance of common stock options exercises	$ 50	21,950			22,000
Issuance of common stock options exercises (in shares)	50,000
Issuance of common stock restricted	$ 981	(981)			0
Issuance of common stock restricted (in shares)	980,851
Stock compensation expense restricted		49,884			49,884
Stock compensation expense non-qualified stock options		74,520			74,520
Foreign currency translation - (loss)			2,938		2,938
Net income (loss)				(462,173)	(462,173)
Balance at Mar. 31, 2018	$ 84,063	94,345,610	(119,523)	(69,412,915)	24,897,235
Balance (in shares) at Mar. 31, 2018	84,062,446
Balance at Dec. 31, 2018	$ 84,113	94,926,560	(186,485)	(70,407,218)	24,416,970
Balance (in shares) at Dec. 31, 2018	84,112,446
Stock compensation expense restricted		16,737			16,737
Stock compensation expense non-qualified stock options		72,529			72,529
Foreign currency translation - (loss)			(29,282)		(29,282)
Net income (loss)				384,101	384,101
Balance at Mar. 31, 2019	$ 84,113	$ 95,015,826	$ (215,767)	$ (70,023,117)	$ 24,861,055
Balance (in shares) at Mar. 31, 2019	84,112,446

Organization and Nature of Oper

Organization and Nature of Operations	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	Organization WidePoint Corporation (“WidePoint” or the “Company”) was incorporated in Delaware on May 30, 1997 and conducts operations through its wholly-owned operating subsidiaries throughout the continental United States, Ireland, the Netherlands and the United Kingdom. The Company’s principal executive and administrative headquarters is located in Fairax, Virginia. Nature of Operations The Company is a leading provider of trusted mobility management (TM2). The Company’s TM2 platform and service solutions enable its customers to efficiently secure, manage and analyze the entire lifecycle of their mobile communications assets through its federally compliant platform Intelligent Telecommunications Management System (ITMS™). The Company’s ITMS™ platform is SSAE 18 compliant and was granted an Authority to Operate by the U.S. Department of Homeland Security. Additionally, the Company was granted an Authority to Operate by the General Services Administration with regard to its identity credentialing component of its TM2 platform. The Company’s TM2 platform is internally hosted and accessible on-demand through a secure customer portal that is specially configured for each customer. The Company can deliver these solutions in a number of configurations ranging from utilizing the platform as a service to a full-service solution that includes full lifecycle support for all end users and the organization. The Company derives a significant amount of its revenues from contracts funded by federal government agencies for which WidePoint’s subsidiaries act in the capacity as the prime contractor, or as a subcontractor. The Company believes that contracts with federal government agencies; will be the primary source of revenues for the foreseeable future. External factors outside of the Company’s control such as delays and/or a change in government administrations, budgets and other political matters that may impact the timing and commencement of such work and could result in variations in operating results and directly affect the Company’s financial performance. Successful contract performance and variation in the volume of activity as well as in the number of contracts commenced or completed during any quarter may cause significant variations in operating results from quarter to quarter. A significant portion of the Company’s expenses, such as personnel and facilities costs, are fixed in the short term and may be not be easily modified to manage through changes in the Company’s market place that may create pressure on pricing and/or costs to deliver its services. The Company has periodic capital expense requirements to maintain and upgrade its internal technology infrastructure tied to its hosted solutions and other such costs may be significant when incurred in any given quarter.

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Accounting Policies	Basis of Presentation The unaudited condensed consolidated financial statements as of March 31, 2019 and for each of the three month periods ended March 31, 2019 and 2018, respectively, included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to such regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. It is the opinion of management that all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results are reflected in the financial statements for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the three month period ended March 31, 2019 are not indicative of the operating results for the full year. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and acquired entities since their respective dates of acquisition. All significant inter-company amounts were eliminated in consolidation. Foreign Currency Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each reporting period. The resulting translation adjustments, along with any related tax effects, are included in accumulated other comprehensive (loss) income, a component of stockholders’ equity. Translation adjustments are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. dollar, are reported net in the Company’s condensed consolidated statements of operations, depending on the nature of the activity. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring use of estimates and judgment relate to revenue recognition, accounts receivable valuation reserves, ability to realize intangible assets and goodwill, ability to realize deferred income tax assets, fair value of certain financial instruments and the evaluation of contingencies and litigation. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. There were no significant changes in accounting estimates used by management during the quarter. Segment Reporting Our TM2 solution offerings comprise an overall single business from which the Company earns revenues and incurs costs. The Company’s TM2 solution offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 14 for detailed information regarding the composition of revenues. Significant Accounting Policies There were no significant changes in the Company’s significant accounting policies during the first three months of 2019 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 22, 2019, except as further described below. Recently Adopted Accounting Standards In February 2016, the FASB issued new accounting guidance on leases. Effective January 1, 2019, the Company adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. The Company elected the modified retrospective transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. The Company also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. In addition, the Company did not reassess whether any contracts entered into prior to adoption are leases. Upon adoption of the standard, the Company recorded approximately $6.1 million of right of use assets and finance lease-related liabilities, respectively. The adoption of this standards update had a material impact on the Company’s Consolidated Balance Sheets and related disclosures. The adoption of this standards update did not have a material impact on the Company’s results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: As Reported As Previously under Reported Topic 842 DECEMBER 31, Adoption JANUARY 1, 2018 Adjustment 2019 Operating lease right of use asset, net $ - $ 6,061,566 $ 6,061,566 Property and equipment, net 1,012,684 (170,000 ) 842,684 Other current assets 1,086,686 (38,015 ) 1,048,671 Current portion of finance leases 122,040 268,711 390,751 Current portion of other term obligations 192,263 (40,859 ) 151,404 Finance leases, net of current portion 122,040 5,699,651 5,821,691 Other term obligations, net of current portion 73,952 (73,952 ) - In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting. Effective January 1, 2019, the Company adopted ASU 2018-07. The new guidance simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share-based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting, which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. The Company has not historically issued a material amount of share-based payments to non-employees. There was no material effect on the Company’s consolidated financial statements upon adoption. Accounting Standards under Evaluation In January 2017, ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment” was issued. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity should apply this ASU on a prospective basis and for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is continuing to evaluate the effect this guidance will have on the consolidated financial statements and related disclosures.

Accounts Receivable and Signifi

Accounts Receivable and Significant Concentrations	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Accounts Receivable And Significant Concentration	A significant portion of the Company’s receivables are billed under firm fixed price contracts with agencies of the U.S. federal government and similar pricing structures with several corporations. Accounts receivable consist of the following by customer type in the table below as of the periods presented: MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Government (1) $ 8,689,290 $ 7,332,338 Commercial (2) 2,643,884 3,863,710 Gross accounts receivable 11,333,174 11,196,048 Less: allowances for doubtful accounts (3) 112,754 106,733 Accounts receivable, net $ 11,220,420 $ 11,089,315 (1) Government contracts are generally firm fixed price not to exceed arrangements with a term of five (5) years, which consists of a base year and four (4) annual option year renewals. Government receivables are billed under a single consolidated monthly invoice and are billed approximately thirty (30) to sixty (60) days in arrears from the date of service and payment is generally due within thirty (30) days of the invoice date. Government accounts receivable payments could be delayed due to administrative processing delays by the government agency, continuing budget resolutions that may delay availability of contract funding, and/or administrative only invoice correction requests by contracting officers that may delay payment processing by our government customer. (2) Commercial contracts are generally fixed price arrangements with contract terms ranging from two (2) to three (3) years. Commercial accounts receivables are billed based on the underlying contract terms and conditions which generally have repayment terms that range from thirty (30) to ninety (90) days. Commercial receivables are stated at amounts due from customers net of an allowance for doubtful accounts if deemed necessary. (3) For the three months ended March 31, 2019, the Company did not recognize any material provisions for bad debt, write-offs or recoveries of existing provisions for bad debt. The Company has not historically maintained a bad debt reserve for its government customers as it has not experienced material or recurring bad debt charges and the nature and size of the contracts has not necessitated the Company’s establishment of such a bad debt reserve. Significant Concentrations The following table presents customers that represent ten (10) percent or more of consolidated trade accounts receivable in the current and/or comparative period: MARCH 31, DECEMBER 31, 2019 2018 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Customs Border Patrol 12% 14% U.S. Department of Homeland Security HQ 11% -- U.S. Coast Guard 13% 13% Iron Bow Technologies -- 15% The following table presents customers that represent ten (10) percent or more of consolidated revenues in the current and/or comparative period: THREE MONTHS ENDED MARCH 31, 2019 2018 As a % of As a % of Customer Name Revenues Revenues (Unaudited) U.S. Immigration and Customs Enforcement 15% 16% U.S. Customs Border Patrol 14% -- U.S. Federal Air Marshall Service -- 11%

Unbilled Accounts Receivable

Unbilled Accounts Receivable	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Unbilled Accounts Receivables	Unbilled accounts receivable represent revenues earned but not invoiced to the customer at the balance sheet date due to either timing of invoice processing or delays due to fixed contractual billing schedules. A significant portion of our unbilled accounts receivable consist of carrier services and hardware and software products delivered but not invoiced at the end of the reporting period. The following table presents customers that represent ten (10) percent or more of consolidated unbilled accounts receivable in the current and/or comparative period: MARCH 31, DECEMBER 31, 2019 2018 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Department of Homeland Security Headquarters 13% 11% U.S. Immigration and Customs Enforcement 28% 37% U.S. Coast Guard 13% 11% U.S. Transportation Safety Administration 12% 10%

Other Current Assets and Accrue

Other Current Assets and Accrued Expenses	3 Months Ended
	Mar. 31, 2019
Other Assets [Abstract]
Other Current Assets and Accrued Expenses	Other current assets consisted of the following as of the periods presented below: MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Inventories $ 288,842 $ 183,900 Prepaid rent, insurance and other assets 911,214 902,786 Total other current assets $ 1,200,056 $ 1,086,686 Accrued expenses consisted of the following as of the periods presented below: MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Carrier service costs $ 7,410,640 $ 8,476,110 Salaries and payroll taxes 1,249,276 1,308,726 Inventory purchases, consultants and other costs 1,006,307 913,038 Severance costs 1,634 1,634 U.S. income tax payable 5,900 8,550 Foreign income tax payable 2,600 8,380 Total accrued expenses $ 9,676,357 $ 10,716,438

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	Major classes of property and equipment consisted of the following as of the periods presented below: MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Computer hardware and software $ 1,883,645 $ 1,820,075 Furniture and fixtures 338,141 333,539 Leasehold improvements 263,996 268,561 Automobiles 83,689 82,997 Gross property and equipment 2,569,471 2,505,172 Less: accumulated depreciation and amortization 1,831,705 1,738,357 Property and equipment, net $ 737,766 $ 766,815 During the three month period ended March 31, 2019 and 2018, property and equipment depreciation expense was approximately $135,000 and $131,100, respectively. During the three month period ended March 31, 2019 there were no material disposals of owned property and equipment. During the three month period ended March 31, 2018 there were other disposals of fully depreciated owned property and equipment with related cost and accumulated depreciation of approximately $129,600. There were no changes in the estimated useful lives used to depreciate property and equipment during the three month periods ended March 31, 2019 and 2018.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	The Company entered into operating leases for corporate and operational facilities (“real estate leases”), computer hardware for datacenters and automobiles (“all other leases”). Real estate leases. All other leases. The components of lease expense were as follows: THREE MONTHS ENDED MARCH 31, 2019 (Unaudited) Operating lease expense $ 59,000 Finance lease expense: Amortization of right of use assets $ 139,035 Interest on finance lease liabilities 69,735 Total finance lease expense $ 208,770 Operating lease expense is included in general and administrative expenses in the condensed consolidated statement of operations. Amortization of right of use assets is included in depreciation and amortization in the condensed consolidated statement of operations. Supplemental cash flow information related to leases was as follows: THREE MONTHS ENDED MARCH 31, 2019 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,573 Operating cash flows from finance leases 69,735 Financing cash flows from finance leases 122,300 Supplemental balance sheet information related to leases was as follows: MARCH 31, 2019 (Unaudited) Operating lease right of use assets, net $ 5,969,894 Current portion of finance leases 481,562 Finance leases, net of current portion 5,594,671 Weighted average remaining lease term Operating leases 12.3 Finance leases 1.8 Weighted average discount rate Operating leases 5 % Finance leases 5 % Maturities of lease liabilities as of March 31, 2019, were as follows: Operating Leases Finance Leases 2019 $ 681,960 $ 97,417 2020 650,944 121,934 2021 694,063 - 2022 680,233 - 2023 665,728 - Thereafter 4,605,847 - Total undiscounted operating lease payments 7,978,775 171,710 Less: Imputed interest 2,106,613 15,280 Total finance lease liability $ 5,872,162 $ 204,071 During the three month period ended March 31, 2019, there were no new material operating leases or modifications to existing operating leases.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	The Company has recorded goodwill of $18,555,578 as of March 31, 2019. There were no changes in the carrying amount of goodwill during the three month period ended March 31, 2019. There were no indicators of impairment during the three month period ended March 31, 2019. The Company has recorded net intangible assets of $2,959,442, consisting of purchased intangibles and internally developed software used to deliver managed service solutions offered by the Company. For the three month periods ended March 31, 2019 and 2018, the Company capitalized internally developed software costs of approximately $58,500 and $70,700, respectively, related to costs associated with our next generation TDI Optimiser™ application. There were no disposals of intangible assets during the three month periods ended March 31, 2019 and 2018. The aggregate amortization expense recorded for the three month periods ended March 31, 2019 and 2018 were approximately $198,800 and $262,300, respectively. The total weighted remaining average life of all purchased intangible assets and internally developed software costs was approximately 5.2 years and 1.2 years, respectively, at March 31, 2019.

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Line of Credit and Long Term Debt	On June 15, 2017, the Company entered into a Loan and Security Agreement with Access National Bank (the “Loan Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit. Effective April 30, 2018, the Company entered into a second modification agreement with Access National Bank that extended the maturity date of the facility through April 30, 2019, increased the interest rate to the Wall Street Journal prime rate plus 1.0%, and added an additional financial covenant requiring the Company to maintain consolidated minimum adjusted earnings before interest, taxes, depreciation and amortization, plus share-based compensation, plus non-cash charges (EBITDA) (as defined in the second modification) of at least two times interest expense (excluding interest reported under recently adopted lease accounting standards) to be measured as of the last day of each quarterly period. Effective, April 30, 2019, the Company entered into a fourth modification agreement (“Modification Agreement”) with Access National Bank to amend the existing Loan Agreement expiring on April 30, 2019. The Modification Agreement extended the maturity date of the facility through April 30, 2020 and changed the variable interest rate to the Wall Street Journal prime rate plus 0.50%. The Loan Agreement requires that the Company meet the following financial covenants on a quarterly basis: (i) maintain a minimum adjusted tangible net worth of at least $2.0 million, (ii) maintain minimum consolidated adjusted EBITDA of at least two times interest expense and (iii) maintain a current ratio of 1.10:1 (excluding finance lease liabilities reported under recently adopted lease accounting standards). The available amount under the working capital line of credit is subject to a borrowing base, which is equal to the lesser of (i) $5.0 million or (ii) 70% of the net unpaid balance of the Company’s eligible accounts receivable. The facility is secured by a first lien security interest on all of the Company’s personal property, including its accounts receivable, general intangibles, inventory and equipment maintained in the United States. As of March 31, 2019, the Company was eligible to borrow up to $4.9 million under the borrowing base formula.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	The Company files U.S. federal income tax returns with the Internal Revenue Service (“IRS”) as well as income tax returns in various states and certain foreign countries. The Company may be subject to examination by the IRS or various state taxing jurisdictions for tax years 2003 and forward. The Company may be subject to examination by various foreign countries for tax years 2014 forward. As of March 31, 2019, the Company was not under examination by the IRS, any state or foreign tax jurisdiction. The Company did not have any unrecognized tax benefits at either March 31, 2019 or December 31, 2018. In the future if applicable, any interest and penalties related to uncertain tax positions will be recognized in income tax expense. As of March 31, 2019, the Company had approximately $38.5 million in net operating loss (NOL) carry forwards available to offset future taxable income for federal income tax purposes, net of the potential Section 382 limitations. These federal NOL carry forwards expire between 2020 and 2037. Included in the recorded deferred tax asset, the Company had a benefit of approximately $39.8 million available to offset future taxable income for state income tax purposes. These state NOL carry forwards expire between 2024 and 2036. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of our domestic NOL may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Under existing income tax accounting standards such objective evidence is more heavily weighted in comparison to other subjective evidence such as our projections for future growth, tax planning and other tax strategies. A significant piece of objective negative evidence considered in management’s evaluation of the realizability of its deferred tax assets was the existence of cumulative losses over the latest three-year period. Management forecast future taxable income, but concluded that there may not be enough of a recovery before the end of the fiscal year to overcome the negative objective evidence of three years of cumulative losses. On the basis of this evaluation, management recorded a valuation allowance against all deferred tax assets. If management’s assumptions change and we determine we will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction of income tax expense.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Preferred Stock There were no issuances of preferred stock during the three month periods ended March 31, 2019 and 2018 . Common Stock The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share. As of March 31, 2019, there were 84,112,446 shares issued and outstanding (including 200,010 restricted shares not vested). There were no shares of common stock issued as a result of the vesting of restricted stock awards (RSA) or stock option exercises during the three month periods ended March 31, 2019 and 2018. See Note 12 for additional information regarding RSA activity. There were no shares of common stock issued as a result of stock option exercises during the three month period ended March 31, 2019. Shares of common stock issued as a result of stock option exercises and realized gross proceeds during the three month period ended March 31, 2018 were 50,000 and $22,000, respectively. See Note 12 for additional information regarding the stock incentive plans.

Stock Award Programs

Stock Award Programs	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Award Programs	The Company’s stock incentive plan is administered by the Compensation Committee and authorizes the grant or award of incentive stock options, non-qualified stock options (NQSO), restricted stock awards (RSA), stock appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The Company issues new shares of common stock upon the exercise of stock options. Any shares associated with options forfeited are added back to the number of shares that underlie stock options to be granted under the stock incentive plan. The Company has issued restricted stock awards and non-qualified stock option awards as described below. Valuation of Stock Awards Restricted Stock. Non-Qualified Stock Options. Restricted Stock Award Activity A summary of RSA activity as of March 31, 2019 and 2018, and changes during the three month periods ended March 31, 2019 and 2018 are set forth below: 2019 2018 NON-VESTED AWARDS (Unaudited) Non-vested awards outstanding, January 1, 300,000 - Granted (+) - 980,851 (2 ) Vested (-) 99,990 (1 ) - Non-vested awards outstanding, March 31, 200,010 (3 ) 980,851 (3 ) Weighted-average remaining contractual life (in years) 1.76 1.3 Unamortized RSA compensation expense $ 119,573 $ 474,116 Aggregate intrinsic value of RSAs non-vested, March 31 $ 84,004 $ 568,894 Aggregate intrinsic value of RSAs vested, March 31 $ - $ - (1) During the three month period ended March 31, 2019, 99,990 RSAs vested during the period. (2) During the three month period ended March 31, 2018, the Company granted 980,851 RSAs, of which i) 300,000 of RSAs were awarded as part of additional compensation plan to align key employees with the Company’s long term financial goals, and ii) 680,851 were awarded to members of the Company’s board of directors as part of their annual board retainer fee and vested during the period. (3) There were no RSAs that were cancelled or expired during the three month periods ended March 31, 2019 and 2018, respectively. Non-Qualified Stock Option Award Activity A summary of stock option activity as of March 31, 2019 and 2018, and changes during the three month periods ended March 31, 2019 and 2018 are set forth below: 2019 2018 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value NON-VESTED AWARDS (Unaudited) Non-vested balances, January 1, 2,067,503 $ 0.36 2,685,004 $ 0.35 Granted (+) 25,000 (1) $ 0.15 -(1) $ 0.00 Non-vested balances, March 31, 2,092,503 $ 0.35 2,685,004 $ 0.35 2019 2018 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price OUTSTANDING AND EXERCISABLE AWARDS (Unaudited) Awards outstanding, January 1, 4,013,334 $ 0.58 4,173,334 $ 0.60 Granted (+) 25,000 (1) $ 0.41 - (1) $ 0.00 Exercised (-) - $ 0.00 50,000 (2) $ 0.44 Awards outstanding, March 31, 4,038,334 $ 0.58 4,123,334 $ 0.00 Awards vested and expected to vest, March 31, 3,447,184 $ 0.58 3,527,089 $ 0.60 Awards outstanding and exercisable, March 31, 1,945,831 $ 0.56 1,438,330 $ 0.62 (1) During the three month period ended March 31, 2019, there were NQSO grants of 25,000 granted to a non-employee as compensation for investor relations services. This stock award grant was valued using a Black-Scholes model that assumed a 1-year vesting period, 2-year option term, a risk free rate of 2.5%, volatility of 64.6%, no assumed dividend yield, and a forfeiture rate estimate of 1.2%. During the three month period ended March 31, 2018, there were no grants of non-qualified stock options. (2) The total intrinsic value of stock options exercised during the three month ended March 31, 2018 was approximately $5,500. The weighted-average remaining contractual life of the non-qualified stock options outstanding, exercisable, and vested and expected to vest as of March 31, 2019 were 2.9 years, 2.7 years and 2.7 years, respectively. The aggregate intrinsic value associated with options outstanding, vested and expected to vest, and exercisable as of March 31, 2019 was approximately $7,250, $6,209 and $3,625, respectively. Aggregate intrinsic value represents total pretax intrinsic value (the difference between WidePoint’s closing stock price on March 31, 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2019. The intrinsic value will change based on the fair market value of WidePoint’s stock. Share-Based Compensation Expense Share-based compensation (including restricted stock awards) represents both stock options based expense and stock grant expense. The following table sets forth the composition of stock compensation expense included in general and administrative expense for the periods then ended: THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) Restricted stock compensation expense $ 16,737 $ 49,884 Non-qualified option stock compensation expense 72,529 74,520 Total share-based compensation before taxes $ 89,266 $ 124,404 At March 31, 2019, the Company had approximately $394,600 of total unamortized share-based compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average remaining period of 1.1 years.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share (EPS)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Basic Earnings (Loss) Per Share	The computations of basic and diluted earnings per share were as follows for the periods presented below: THREE MONTHS ENDED MARCH 31, 2019 2018 Basic Earnings (Loss) Per Share Computation: (Unaudited) Net income (loss) $ 384,101 $ (462,173 ) Weighted average number of common shares 83,812,448 83,041,597 Basic Earnings (Loss) Per Share $ 0.00 $ (0.01 ) Diluted Earnings (Loss) Per Share Computation: Net income (loss) $ 384,101 $ (462,173 ) Weighted average number of common shares 83,812,448 83,041,597 Incremental shares from assumed conversions of stock options 2,222 - Adjusted weighted average number of common shares 83,814,670 83,041,597 Diluted Earnings (Loss) Per Share $ 0.00 $ (0.01 ) The dilutive effect of unexercised stock options and restricted stock awards excludes 4,313,334 of options from the computation of loss per share for the three month periods ended March 31, 2018, respectively, because inclusion of the options would have been anti-dilutive.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2019
Revenues [Abstract]
Revenue from Contracts with Customers	The following table was prepared to provide additional information about the composition of revenues from contracts with customers for the periods presented: THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) Carrier Services $ 14,343,010 $ 11,812,144 Managed Services 7,573,892 8,267,475 $ 21,916,902 $ 20,079,619 The Company recognized revenues from contracts with customers for the following customer types as set forth below: THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) U.S. Federal Government $ 18,162,498 $ 14,274,046 U.S. State and Local Governments 115,839 107,002 Foreign Governments 44,544 26,544 Commercial Enterprises 3,594,021 5,672,027 $ 21,916,902 $ 20,079,619 The Company recognized revenues from contracts with customers in the following geographic regions: THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) North America $ 20,780,311 $ 18,743,650 Europe 1,136,591 1,335,969 $ 21,916,902 $ 20,079,619

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company has employment agreements with certain senior executives that set forth compensation levels and provide for severance payments in certain instances.

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	The unaudited condensed consolidated financial statements as of March 31, 2019 and for each of the three month periods ended March 31, 2019 and 2018, respectively, included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to such regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. It is the opinion of management that all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results are reflected in the financial statements for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the three month period ended March 31, 2019 are not indicative of the operating results for the full year.
Principles of Consolidation	The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and acquired entities since their respective dates of acquisition. All significant inter-company amounts were eliminated in consolidation.
Foreign Currency	Assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon exchange rates prevailing at the end of each reporting period. The resulting translation adjustments, along with any related tax effects, are included in accumulated other comprehensive (loss) income, a component of stockholders’ equity. Translation adjustments are reclassified to earnings upon the sale or substantial liquidation of investments in foreign operations. Revenues and expenses are translated at the average month-end exchange rates during the year. Gains and losses related to transactions in a currency other than the functional currency, including operations outside the U.S. where the functional currency is the U.S. dollar, are reported net in the Company’s condensed consolidated statements of operations, depending on the nature of the activity.
Use of Estimates	The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring use of estimates and judgment relate to revenue recognition, accounts receivable valuation reserves, ability to realize intangible assets and goodwill, ability to realize deferred income tax assets, fair value of certain financial instruments and the evaluation of contingencies and litigation. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. There were no significant changes in accounting estimates used by management during the quarter.
Significant Accounting Policies	There were no significant changes in the Company’s significant accounting policies during the first three months of 2019 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 22, 2019, except as further described below.
Segment Reporting	Our TM2 solution offerings comprise an overall single business from which the Company earns revenues and incurs costs. The Company’s TM2 solution offerings are centrally managed and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 14 for detailed information regarding the composition of revenues.
New Accounting Pronouncements	In February 2016, the FASB issued new accounting guidance on leases. Effective January 1, 2019, the Company adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. The Company elected the modified retrospective transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. The Company also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. In addition, the Company did not reassess whether any contracts entered into prior to adoption are leases. Upon adoption of the standard, the Company recorded approximately $6.1 million of right of use assets and finance lease-related liabilities, respectively. The adoption of this standards update had a material impact on the Company’s Consolidated Balance Sheets and related disclosures. The adoption of this standards update did not have a material impact on the Company’s results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: As Reported As Previously under Reported Topic 842 DECEMBER 31, Adoption JANUARY 1, 2018 Adjustment 2019 Operating lease right of use asset, net $ - $ 6,061,566 $ 6,061,566 Property and equipment, net 1,012,684 (170,000 ) 842,684 Other current assets 1,086,686 (38,015 ) 1,048,671 Current portion of finance leases 122,040 268,711 390,751 Current portion of other term obligations 192,263 (40,859 ) 151,404 Finance leases, net of current portion 122,040 5,699,651 5,821,691 Other term obligations, net of current portion 73,952 (73,952 ) - In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting. Effective January 1, 2019, the Company adopted ASU 2018-07. The new guidance simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share-based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting, which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. The Company has not historically issued a material amount of share-based payments to non-employees. There was no material effect on the Company’s consolidated financial statements upon adoption. Accounting Standards under Evaluation In January 2017, ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment” was issued. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity should apply this ASU on a prospective basis and for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is continuing to evaluate the effect this guidance will have on the consolidated financial statements and related disclosures.

Basis of Presentation and Acc_3

Basis of Presentation and Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Basis Of Presentation And Accounting Policies
Effect of change in accounting	As Reported As Previously under Reported Topic 842 DECEMBER 31, Adoption JANUARY 1, 2018 Adjustment 2019 Operating lease right of use asset, net $ - $ 6,061,566 $ 6,061,566 Property and equipment, net 1,012,684 (170,000 ) 842,684 Other current assets 1,086,686 (38,015 ) 1,048,671 Current portion of finance leases 122,040 268,711 390,751 Current portion of other term obligations 192,263 (40,859 ) 151,404 Finance leases, net of current portion 122,040 5,699,651 5,821,691 Other term obligations, net of current portion 73,952 (73,952 ) -

Accounts Receivable and Signi_2

Accounts Receivable and Significant Concentrations (Tables)	3 Months Ended
	Mar. 31, 2019
Schedule of accounts receivable	MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Government (1) $ 8,689,290 $ 7,332,338 Commercial (2) 2,643,884 3,863,710 Gross accounts receivable 11,333,174 11,196,048 Less: allowances for doubtful accounts (3) 112,754 106,733 Accounts receivable, net $ 11,220,420 $ 11,089,315
Accounts Receivable [Member]
Schedules of concentration of risk	MARCH 31, DECEMBER 31, 2019 2018 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Customs Border Patrol 12% 14% U.S. Department of Homeland Security HQ 11% -- U.S. Coast Guard 13% 13% Iron Bow Technologies -- 15%
Sales Revenue, Net [Member]
Schedules of concentration of risk	THREE MONTHS ENDED MARCH 31, 2019 2018 As a % of As a % of Customer Name Revenues Revenues (Unaudited) U.S. Immigration and Customs Enforcement 15% 16% U.S. Customs Border Patrol 14% -- U.S. Federal Air Marshall Service -- 11%

Unbilled Accounts Receivable (T

Unbilled Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Schedule of unbilled accounts receivable	MARCH 31, DECEMBER 31, 2019 2018 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Department of Homeland Security Headquarters 13% 11% U.S. Immigration and Customs Enforcement 28% 37% U.S. Coast Guard 13% 11% U.S. Transportation Safety Administration 12% 10%

Other Current Assets and Accr_2

Other Current Assets and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2019
Other Assets [Abstract]
Schedule of other current assets	MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Inventories $ 288,842 $ 183,900 Prepaid rent, insurance and other assets 911,214 902,786 Total other current assets $ 1,200,056 $ 1,086,686
Schedule of accrued expenses	MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Carrier service costs $ 7,410,640 $ 8,476,110 Salaries and payroll taxes 1,249,276 1,308,726 Inventory purchases, consultants and other costs 1,006,307 913,038 Severance costs 1,634 1,634 U.S. income tax payable 5,900 8,550 Foreign income tax payable 2,600 8,380 Total accrued expenses $ 9,676,357 $ 10,716,438

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	MARCH 31, DECEMBER 31, 2019 2018 (Unaudited) Computer hardware and software $ 1,883,645 $ 1,820,075 Furniture and fixtures 338,141 333,539 Leasehold improvements 263,996 268,561 Automobiles 83,689 82,997 Gross property and equipment 2,569,471 2,505,172 Less: accumulated depreciation and amortization 1,831,705 1,738,357 Property and equipment, net $ 737,766 $ 766,815

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases Tables Abstract
Lease cost	THREE MONTHS ENDED MARCH 31, 2019 (Unaudited) Operating lease expense $ 59,000 Finance lease expense: Amortization of right of use assets $ 139,035 Interest on finance lease liabilities 69,735 Total finance lease expense $ 208,770
Supplemental information related to leases	Supplemental cash flow information related to leases was as follows: THREE MONTHS ENDED MARCH 31, 2019 (Unaudited) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,573 Operating cash flows from finance leases 69,735 Financing cash flows from finance leases 122,300 Supplemental balance sheet information related to leases was as follows: MARCH 31, 2019 (Unaudited) Operating lease right of use assets, net $ 5,969,894 Current portion of finance leases 481,562 Finance leases, net of current portion 5,594,671 Weighted average remaining lease term Operating leases 12.3 Finance leases 1.8 Weighted average discount rate Operating leases 5 % Finance leases 5 %
Maturities of lease liabilities	Operating Leases Finance Leases 2019 $ 681,960 $ 97,417 2020 650,944 121,934 2021 694,063 - 2022 680,233 - 2023 665,728 - Thereafter 4,605,847 - Total undiscounted operating lease payments 7,978,775 171,710 Less: Imputed interest 2,106,613 15,280 Total finance lease liability $ 5,872,162 $ 204,071

Stock Award Programs (Tables)

Stock Award Programs (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of nonvested restricted stock shares activity	2019 2018 NON-VESTED AWARDS (Unaudited) Non-vested awards outstanding, January 1, 300,000 - Granted (+) - 980,851 (2 ) Vested (-) 99,990 (1 ) - Non-vested awards outstanding, March 31, 200,010 (3 ) 980,851 (3 ) Weighted-average remaining contractual life (in years) 1.76 1.3 Unamortized RSA compensation expense $ 119,573 $ 474,116 Aggregate intrinsic value of RSAs non-vested, March 31 $ 84,004 $ 568,894 Aggregate intrinsic value of RSAs vested, March 31 $ - $ -
Schedule of nonvested share activity	2019 2018 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value NON-VESTED AWARDS (Unaudited) Non-vested balances, January 1, 2,067,503 $ 0.36 2,685,004 $ 0.35 Granted (+) 25,000 (1) $ 0.15 -(1) $ 0.00 Non-vested balances, March 31, 2,092,503 $ 0.35 2,685,004 $ 0.35
Schedule of outstanding and exercercisable share activity	2019 2018 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price OUTSTANDING AND EXERCISABLE AWARDS (Unaudited) Awards outstanding, January 1, 4,013,334 $ 0.58 4,173,334 $ 0.60 Granted (+) 25,000 (1) $ 0.41 - (1) $ 0.00 Exercised (-) - $ 0.00 50,000 (2) $ 0.44 Awards outstanding, March 31, 4,038,334 $ 0.58 4,123,334 $ 0.00 Awards vested and expected to vest, March 31, 3,447,184 $ 0.58 3,527,089 $ 0.60 Awards outstanding and exercisable, March 31, 1,945,831 $ 0.56 1,438,330 $ 0.62
Schedule of share-based compensation	THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) Restricted stock compensation expense $ 16,737 $ 49,884 Non-qualified option stock compensation expense 72,529 74,520 Total share-based compensation before taxes $ 89,266 $ 124,404

Earnings (Loss) Per Common Sh_2

Earnings (Loss) Per Common Share (EPS) (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of earnings (loss) per share	THREE MONTHS ENDED MARCH 31, 2019 2018 Basic Earnings (Loss) Per Share Computation: (Unaudited) Net income (loss) $ 384,101 $ (462,173 ) Weighted average number of common shares 83,812,448 83,041,597 Basic Earnings (Loss) Per Share $ 0.00 $ (0.01 ) Diluted Earnings (Loss) Per Share Computation: Net income (loss) $ 384,101 $ (462,173 ) Weighted average number of common shares 83,812,448 83,041,597 Incremental shares from assumed conversions of stock options 2,222 - Adjusted weighted average number of common shares 83,814,670 83,041,597 Diluted Earnings (Loss) Per Share $ 0.00 $ (0.01 )

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2019
Revenues [Abstract]
Schedule of revenues by service	THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) Carrier Services $ 14,343,010 $ 11,812,144 Managed Services 7,573,892 8,267,475 $ 21,916,902 $ 20,079,619
Schedule of revenues by service customer type	THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) U.S. Federal Government $ 18,162,498 $ 14,274,046 U.S. State and Local Governments 115,839 107,002 Foreign Governments 44,544 26,544 Commercial Enterprises 3,594,021 5,672,027 $ 21,916,902 $ 20,079,619
Schedule of revenue from customers by geographic area	THREE MONTHS ENDED MARCH 31, 2019 2018 (Unaudited) North America $ 20,780,311 $ 18,743,650 Europe 1,136,591 1,335,969 $ 21,916,902 $ 20,079,619

Organization and Nature of Op_2

Organization and Nature of Operations (Details Narrative)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
State of incorporation	Delaware
Date of incorporation	May 30, 1997

Basis of Presentation and Acc_4

Basis of Presentation and Accounting Policies (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Operating lease right of use asset, net	$ 5,969,894	$ 0
Property and equipment, net	737,766	1,012,684
Other current assets	1,200,056	1,086,686
Current portion of finance leases	481,562	107,325
Current portion of other term obligations	88,226	192,263
Finance leases, net of current portion	5,594,671	122,040
Other term obligations, net of current portion	$ 0	73,952
Adoption Adjustment [Member]
Operating lease right of use asset, net		6,061,566
Property and equipment, net		(170,000)
Other current assets		(38,015)
Current portion of finance leases		268,711
Current portion of other term obligations		(40,859)
Finance leases, net of current portion		5,699,651
Other term obligations, net of current portion		(73,952)
As Reported [Member]
Operating lease right of use asset, net		6,061,566
Property and equipment, net		842,684
Other current assets		1,048,671
Current portion of finance leases		390,751
Current portion of other term obligations		151,404
Finance leases, net of current portion		5,821,691
Other term obligations, net of current portion		$ 0

Accounts Receivable and Signi_3

Accounts Receivable and Significant Concentrations (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable, gross	$ 11,333,174	$ 11,196,048
Less: allowances for doubtful accounts	112,754	106,733
Accounts receivable, net	11,220,420	11,089,315
Government [Member]
Accounts receivable, gross	8,689,290	7,332,338
Commercial [Member]
Accounts receivable, gross	$ 2,643,884	$ 3,863,710

Accounts Receivable and Signi_4

Accounts Receivable and Significant Concentrations (Details 1) - Accounts Receivable [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
U.S. Customs Border Patrol [Member]
As a % of eeceivables	12.00%	14.00%
U.S. Department of Homeland Security HQ [Member]
As a % of eeceivables	11.00%	0.00%
U.S. Coast Guard [Member]
As a % of eeceivables	13.00%	13.00%
Iron Bow Technologies [Member]
As a % of eeceivables	0.00%	15.00%

Accounts Receivable and Signi_5

Accounts Receivable and Significant Concentrations (Details 2) - Sales Revenue, Net [Member]	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
U.S. Immigration and Customs Enforcement [Member]
As a % of revenue	15.00%
U.S. Customs Border Patrol [Member]
As a % of revenue	14.00%	0.00%
U.S. Federal Air Marshall Service [Member]
As a % of revenue	0.00%	11.00%
U.S. Citizenship and Immigration Services [Member]
As a % of revenue		16.00%

Unbilled Accounts Receivable (D

Unbilled Accounts Receivable (Details) - Unbilled Accounts Receivable [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
U.S. Department of Homeland Security HQ [Member]
As a % of unbilled receivables	13.00%	11.00%
U.S. Immigration and Customs Enforcement [Member]
As a % of unbilled receivables	28.00%	37.00%
U.S. Coast Guard [Member]
As a % of unbilled receivables	13.00%	11.00%
U.S. Transportation Safety Administration [Member]
As a % of unbilled receivables	12.00%	10.00%

Other Current Assets and Accr_3

Other Current Assets and Accrued Expenses (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Inventories	$ 288,842	$ 183,900
Prepaid rent, insurance and other assets	911,214	902,786
Total other current assets	$ 1,200,056	$ 1,086,686

Other Current Assets and Accr_4

Other Current Assets and Accrued Expenses (Details 1) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Carrier service costs	$ 7,410,640	$ 8,476,110
Salaries and payroll taxes	1,249,276	1,308,726
Inventory purchases, consultants and other costs	1,006,307	913,038
Severance costs	1,634	1,634
U.S. income tax payable	5,900	8,550
Foreign income tax payable (receivable)	2,600	8,380
Total accrued expenses	$ 9,676,357	$ 10,716,438

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property and equipment, gross	$ 2,569,471	$ 2,505,172
Less: accumulated depreciation and amortization	1,831,705	1,738,357
Property and equipment, net	737,766	1,012,684
Computer Hardware Software [Member]
Property and equipment, gross	1,883,645	1,820,075
Furniture and Fixtures [Member]
Property and equipment, gross	338,141	333,539
Leaseholds and Leasehold Improvements [Member]
Property and equipment, gross	263,996	268,561
Automobiles [Member]
Property and equipment, gross	$ 83,689	$ 82,997

Leases (Details)

Leases (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Leases Details Abstract
Operating lease expense	$ 59,000
Amortization of right of use assets	139,035
Interest on finance lease liabilities	69,735
Total finance lease expense	$ 208,770

Leases (Details 1)

Leases (Details 1)	3 Months Ended
	Mar. 31, 2019USD ($)
Leases Details 1Abstract
Operating cash flows from operating leases	$ 47,573
Operating cash flows from finance leases	69,735
Financing cash flows from finance leases	$ 122,300

Leases (Details 2)

Leases (Details 2) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Leases Details 2Abstract
Operating lease right of use assets, net	$ 5,969,894	$ 0
Current portion of finance leases	481,562	107,325
Finance leases, net of current portion	$ 5,594,671	$ 122,040
Weighted average remaining lease term Operating leases (in years)	12 years 3 months 18 days
Weighted average remaining lease term Finance leases (in years)	1 year 9 months 18 days
Weighted average discount rate Operating leases	5.00%
Weighted average discount rate Finance leases	5.00%

Leases (Details 3)

Leases (Details 3)	Mar. 31, 2019USD ($)
Leases Details 3Abstract
2019	$ 681,960
2020	650,944
2021	694,063
2022	680,233
2023	665,728
Thereafter	4,605,847
Total undiscounted operating lease payments	7,978,775
Less: Imputed interest	2,106,613
Total operating lease liability	5,872,162
2019	97,417
2020	121,934
2021	0
2022	0
2023	0
Thereafter	0
Undiscounted finance lease payments	171,710
Less: Imputed interest	15,280
Total finance lease liability	$ 204,071

Line of Credit (Details Narrati

Line of Credit (Details Narrative)	Mar. 31, 2019USD ($)
Debt Disclosure [Abstract]
Line of credit borrowing capacity	$ 5,000,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Mar. 31, 2019USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carry forwards	$ 38,500,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	84,112,446	84,112,446
Common stock, shares outstanding	84,112,446	84,112,446

Stock Award Programs (Details)

Stock Award Programs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Unamortized RSA compensation expense		$ 0
Restricted Stock [Member]
Non-vested awards outstanding	300,000	0
Granted	0	980,851
Vested	99,990	0
Non-vested awards outstanding	200,010	980,851
Weighted-average remaining contractual life (in years)	1 year 9 months 4 days	1 year 3 months 18 days
Unamortized RSA compensation expense	$ 119,573	$ 474,116
Aggregate intrinsic value of RSAs non-vested	84,004	568,894
Aggregate intrinsic value of RSAs vested	$ 0	$ 0
Employee Stock Option [Member]
Non-vested awards outstanding	2,067,503	2,685,004
Granted	25,000	(1)
Non-vested awards outstanding	2,092,503	2,685,004
Weighted average grant date fair value per share, non-vested beginning balance	$ 0.36	$ 0.35
Weighted average grant date fair value per share, granted	0.15	0
Weighted average grant date fair value per share, non-vested ending balance	$ 0.35	$ 0.35

Stock Award Programs (Details 1

Stock Award Programs (Details 1) - Employee Stock Option [Member] - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of shares, outstanding and exercisable, options outstanding, beginning balance	4,013,334	4,173,334
Number of shares, granted	25,000	(1)
Number of shares, exercised	0	50,000
Number of shares, outstanding and exercisable, options outstanding, ending balance	4,038,334	4,123,334
Number of shares, options vested and expected to vest, ending balance	3,447,184	3,527,089
Number of shares, options outstanding and exercisable, ending balance	1,945,831	1,438,330
Weighted average exercise price per share, outstanding and exercisable, options outstanding, beginning balance	$ 0.58	$ 0.60
Weighted average exercise price per share, granted	0.41	0
Weighted average exercise price per share, exercised	0	0.44
Weighted average exercise price per share, outstanding and exercisable, options outstanding, ending balance	0.58	0
Number of shares, vested and expected to vest, outstanding, weighted average exercise price, ending balance	0.58	0.60
Weighted average exercise price per share, options outstanding and exercisable, ending balance	$ 0.56	$ 0.62

Stock Award Programs (Details 2

Stock Award Programs (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Restricted stock compensation expense	$ 16,737	$ 49,884
Non-qualified option stock compensation expense	72,529	74,520
Total share-based compensation before taxes	$ 89,266	$ 124,404

Stock Award Programs (Details N

Stock Award Programs (Details Narrative)	3 Months Ended
	Mar. 31, 2019USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unamortized share-based compensation expense	$ 394,600
Unamortized share-based compensation expense, recognition period	1 year 1 month 6 days

Earnings (Loss) Per Common Sh_3

Earnings (Loss) Per Common Share (EPS) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic Loss Per Share Computation:
Net income (loss)	$ 384,101	$ (462,173)
Weighted average number of common shares	83,812,448	83,041,597
Basic Earnings (Loss) Per Share	$ 0	$ (0.01)
Diluted Loss Per Share Computation:
Net income (loss)	$ 384,101	$ (462,173)
Weighted average number of common shares	83,812,448	83,041,597
Incremental shares from assumed conversions of stock options	2,222	0
Adjusted weighted average number of common shares	83,814,670	83,041,597
Diluted Earnings (Loss) Per Share	$ 0	$ (0.01)

Earnings (Loss) Per Common Sh_4

Earnings (Loss) Per Common Share (EPS) (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	4,313,334	4,313,334

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues, net	$ 21,916,902	$ 20,079,619
Carrier Services [Member]
Revenues, net	14,343,010	11,812,144
Management Services [Member]
Revenues, net	$ 7,573,892	$ 8,267,475

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue, net	$ 21,916,902	$ 20,079,619
U.S. Federal Government [Member]
Revenue, net	18,162,498	14,274,046
U.S. State and Local Governments [Member]
Revenue, net	115,839	107,002
Foreign Governments [Member]
Revenue, net	44,544	26,544
Commercial Enterprises [Member]
Revenue, net	$ 3,594,021	$ 5,672,027

Revenue from Contracts with C_5

Revenue from Contracts with Customers (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue, net	$ 21,916,902	$ 20,079,619
North America [Member]
Revenue, net	20,780,311	18,743,650
Europe [Member]
Revenue, net	$ 1,136,591	$ 1,335,969