Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 14, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity File Number | 001-33035 | |
Entity Common Stock, Shares Outstanding | 83,837,289 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUES | $ 39,665,356 | $ 21,916,902 |
COST OF REVENUES (including amortization and depreciation of $159,618 and $232,191, respectively) | 34,700,024 | 17,663,059 |
GROSS PROFIT | 4,965,332 | 4,253,843 |
OPERATING EXPENSES | ||
Sales and marketing | 492,231 | 393,411 |
General and administrative expenses (including share-based compensation of $281,441 and $89,266, respectively) | 3,470,092 | 3,134,709 |
Depreciation and amortization | 263,228 | 240,548 |
Total operating expenses | 4,225,551 | 3,768,668 |
INCOME FROM OPERATIONS | 739,781 | 485,175 |
OTHER (EXPENSE) INCOME | ||
Interest income | 3,093 | 4,462 |
Interest expense | (82,117) | (77,545) |
Other income | 331 | 9 |
Total other expense | (78,693) | (73,074) |
INCOME BEFORE INCOME TAX PROVISION | 661,088 | 412,101 |
INCOME TAX PROVISION | 177,200 | 28,000 |
NET INCOME | $ 483,888 | $ 384,101 |
BASIC EARNINGS PER SHARE | $ .01 | $ .00 |
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING | 83,840,079 | 83,812,448 |
DILUTED EARNINGS PER SHARE | $ 0.01 | $ 0 |
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | 84,428,065 | 83,814,670 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Amortization and depreciation | $ 159,618 | $ 232,191 |
Share-based compensation expense | $ 281,441 | $ 89,266 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 483,888 | $ 384,101 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of tax | (37,330) | (29,282) |
Other comprehensive income (loss) | (37,330) | (29,282) |
COMPREHENSIVE INCOME | $ 446,558 | $ 354,819 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 9,323,673 | $ 6,879,627 |
Accounts receivable, net of allowance for doubtful accounts of $123,097 and $126,235 in 2020 and 2019, respectively | 11,715,126 | 14,580,928 |
Unbilled accounts receivable | 20,982,875 | 13,976,958 |
Other current assets | 814,233 | 1,094,847 |
Total current assets | 42,835,907 | 36,532,360 |
NONCURRENT ASSETS | ||
Property and equipment, net | 594,293 | 681,575 |
Operating lease right of use asset, net | 5,768,669 | 5,932,769 |
Intangibles, net | 2,320,924 | 2,450,770 |
Goodwill | 18,555,578 | 18,555,578 |
Other long-term assets | 463,062 | 140,403 |
Total assets | 70,538,433 | 64,293,455 |
CURRENT LIABILITIES | ||
Accounts payable | 12,218,629 | 13,581,822 |
Accrued expenses | 22,070,191 | 14,947,981 |
Deferred revenue | 2,052,361 | 2,265,067 |
Current portion of operating lease liabilities | 581,389 | 599,619 |
Current portion of other term obligations | 79,298 | 133,777 |
Total current liabilities | 37,001,868 | 31,528,266 |
NONCURRENT LIABILITIES | ||
Operating lease liabilities, net of current portion | 5,466,798 | 5,593,649 |
Other term obligations, net of current portion | 362,567 | 363,560 |
Deferred tax liability | 2,049,896 | 1,868,562 |
Total liabilities | 44,881,129 | 39,354,037 |
Commitments and contingencies | ||
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; 83,837,289 and 83,861,453 shares issued and outstanding, respectively | 83,837 | 83,861 |
Additional paid-in capital | 95,550,466 | 95,279,114 |
Accumulated other comprehensive loss | (279,924) | (242,594) |
Accumulated deficit | (69,697,075) | (70,180,963) |
Total stockholders' equity | 25,657,304 | 24,939,418 |
Total liabilities and stockholders' equity | $ 70,538,433 | $ 64,293,455 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 123,097 | $ 126,235 |
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 | 2,045,714 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 83,837,289 | 83,861,453 |
Common stock, shares outstanding | 83,837,289 | 83,861,453 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 483,888 | $ 384,101 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred income tax expense | 179,544 | 34,652 |
Depreciation expense | 297,190 | 273,923 |
(Recovery) provision for doubtful accounts | (2,954) | 7,610 |
Amortization of intangibles | 125,656 | 198,816 |
Amortization of deferred financing costs | 1,250 | 1,250 |
Share-based compensation expense | 281,441 | 89,266 |
Changes in assets and liabilities: | ||
Accounts receivable and unbilled receivables | (4,144,206) | 1,151,421 |
Inventories | 76,130 | (104,992) |
Prepaid expenses and other current assets | 201,026 | (45,286) |
Other assets | 17,913 | (29,710) |
Accounts payable and accrued expenses | 5,722,287 | 961,804 |
Income tax payable | (9,411) | (8,339) |
Deferred revenue and other liabilities | (202,821) | (486,385) |
Net cash provided by operating activities | 3,026,933 | 2,428,131 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (52,463) | (83,797) |
Software development costs | (340,576) | (58,461) |
Net cash used in investing activities | (393,039) | (142,258) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances on bank line of credit | 1,796,920 | 6,192,656 |
Repayments of bank line of credit advances | (1,796,920) | (6,192,656) |
Principal repayments under capital lease obligations | (143,637) | (122,300) |
Common stock repurchased | (10,113) | 0 |
Net cash used in financing activities | (153,750) | (122,300) |
Net effect of exchange rate on cash and equivalents | (33,265) | (28,297) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,446,879 | 2,135,276 |
CASH AND CASH EQUIVALENTS, beginning of period | 6,879,627 | 2,431,892 |
CASH AND CASH EQUIVALENTS, end of period | 9,323,673 | 4,567,168 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | $ 82,655 | $ 63,309 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated OCI | Accumulated Deficit | Total |
Balance (in shares) at Dec. 31, 2018 | 84,112,446 | ||||
Balance at Dec. 31, 2018 | $ 84,113 | $ 94,926,560 | $ (186,485) | $ (70,407,218) | $ 24,939,418 |
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 | 384,101 | 384,101 | |||
Balance (in shares) at Mar. 31, 2019 | 84,112,446 | ||||
Balance at Mar. 31, 2019 | $ 84,113 | 95,015,826 | (215,767) | (70,023,117) | 24,861,055 |
Balance (in shares) at Dec. 31, 2019 | 83,861,453 | ||||
Balance at Dec. 31, 2019 | $ 83,861 | 95,279,114 | (242,594) | (70,180,963) | 24,939,418 |
Common stock repurchased (in shares) | (24,164) | ||||
Common stock repurchased | $ (24) | (10,089) | (10,113) | ||
Stock compensation expense - restricted | 254,499 | 254,499 | |||
Stock compensation expense - non-qualified stock options | 26,942 | 26,942 | |||
Foreign currency translation - (loss) | (37,330) | (37,330) | |||
Net income | 483,888 | 483,888 | |||
Balance (in shares) at Mar. 31, 2020 | 83,837,289 | ||||
Balance at Mar. 31, 2020 | $ 83,837 | $ 95,550,466 | $ (279,924) | $ (69,697,075) | $ 25,657,304 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2020 | |
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 Fairfax, 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 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 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, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation The unaudited condensed consolidated financial statements as of March 31, 2020 and for each of the three month periods ended March 31, 2020 and 2019, 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, 2019 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, 2019. The results of operations for the three month periods ended March 31, 2020 are not necessarily 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 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 13 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 2020 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 24, 2020. Accounting Standards under Evaluation In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies accounting for income taxes by eliminating some exceptions to the general approach in ASC 740, Income Taxes, related to intraperiod tax allocation, the methodology for calculating income tax in an interim period and the recognition of deferred tax liabilities for outside basis differences. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The amendments in this update should be applied on either a retrospective basis, a modified retrospective basis or prospectively, depending on the provision within the amendment. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Accounts Receivable and Signifi
Accounts Receivable and Significant Concentrations | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 (Unaudited) Government (1) $ 9,421,484 $ 12,604,582 Commercial (2) 2,416,739 2,102,581 Gross accounts receivable 11,838,223 14,707,163 Less: allowances for doubtful accounts (3) 123,097 126,235 Accounts receivable, net $ 11,715,126 $ 14,580,928 (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, 2020, 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 as of the periods presented below: MARCH 31, DECEMBER 31, 2020 2019 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Immigration and Customs Enforcement 11% 9% National Aeronautics and Space Administration 10% 21% U.S. Census Bureau 37% 18% The following table presents customers that represent ten (10) percent or more of consolidated revenues in the current and/or comparative periods: THREE MONTHS ENDED MARCH 31, 2020 2019 As a % of As a % of Customer Name Revenues Revenues (Unaudited) U.S. Immigration and Customs Enforcement 11% 15% U.S. Customs Border Patrol 6% 14% U.S. Census Bureau 37 -- |
Unbilled Accounts Receivable
Unbilled Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
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 as of the periods presented below: MARCH 31, DECEMBER 31, 2020 2019 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Department of Homeland Security Headquarters 11% 9% U.S. Immigration and Customs Enforcement 12% 24% U.S. Census Bureau 50% 23% |
Other Current Assets and Accrue
Other Current Assets and Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 (Unaudited) Inventories $ 137,502 $ 213,713 Prepaid rent, insurance and other assets 676,731 881,134 Total other current assets $ 814,233 $ 1,094,847 Accrued expenses consisted of the following as of the periods presented below: MARCH 31, DECEMBER 31, 2020 2019 (Unaudited) Carrier service costs $ 18,965,100 $ 12,274,440 Salaries and payroll taxes 1,839,868 1,781,628 Inventory purchases, consultants and other costs 1,217,612 834,131 Severance costs 7,612 7,612 U.S. income tax payable 8,850 8,850 Foreign income tax payable 31,150 41,320 Total accrued expenses $ 22,070,192 $ 14,947,981 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 (Unaudited) Computer hardware and software $ 2,076,942 $ 2,041,978 Furniture and fixtures 396,770 399,521 Leasehold improvements 297,369 299,340 Automobiles 54,494 56,800 Gross property and equipment 2,825,575 2,797,639 Less: accumulated depreciation and amortization 2,231,282 2,116,064 Property and equipment, net $ 594,293 $ 681,575 During the three month periods ended March 31, 2020 and 2019, property and equipment depreciation expense was approximately $137,000 and $135,000, respectively. During the three month periods ended March 31, 2020 and 2019, there were no material disposals of owned property and equipment. There were no changes in the estimated useful lives used to depreciate property and equipment during the three month periods ended March 31, 2020 and 2019. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | The Company has recorded goodwill of $18,555,578 as of March 31, 2020. There were no changes in the carrying amount of goodwill during the three month period ended March 31, 2020. Intangible assets consists of the following: MARCH 31, 2020 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 1,980,000 $ (1,980,000 ) $ - Channel Relationships 2,628,080 (1,036,632 ) 1,591,448 Internally Developed Software 1,620,311 (1,066,731 ) 553,580 Trade Name and Trademarks 290,472 (114,576 ) 175,896 $ 6,518,863 $ (4,197,939 ) $ 2,320,924 DECEMBER 31, 2019 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 1,980,000 $ (1,980,000 ) $ - Channel Relationships 2,628,080 (992,830 ) 1,635,250 Internally Developed Software 1,623,122 (988,340 ) 634,782 Trade Name and Trademarks 290,472 (109,734 ) 180,738 $ 6,521,674 $ (4,070,904 ) $ 2,450,770 For the three month period ended March 31, 2020, the Company capitalized $341,00 of internally developed software costs, primarily associated with upgrading our secure identity management technology and network operations center. For the three month periods ended March 31, 2019, the Company capitalized internally developed software costs of approximately $58,500 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, 2020 and 2019. The aggregate amortization expense recorded for the three month periods ended March 31, 2020 and 2019 were approximately $125,700 and $198,800, respectively. The total weighted remaining average life of all purchased intangible assets and internally developed software costs was approximately 5.0 years and 1.0 year, respectively, at March 31, 2020. As of March 31, 2020, estimated annual amortization for our intangible assets for each of the next five years is approximately: Remainder of 2020 $ 328,535 2021 333,714 2022 349,341 2023 194,570 2024 194,570 Thereafter 920,195 Total $ 2,320,924 |
Line of Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Line of Credit | On June 15, 2017, the Company entered into a Loan and Security Agreement with Atlantic Union Bank (formerly known as Access National Bank) (the “Loan Agreement”). The Loan Agreement provides for a $5.0 million working capital revolving line of credit. Effective, April 30, 2020, the Company entered into a fifth modification agreement (“Modification Agreement”) with Atlantic Union Bank to amend the existing Loan Agreement. The Modification Agreement extended the maturity date of the facility from April 30, 2020 through April 30, 2021 and changed the variable interest rate from the Wall Street Journal prime rate plus 0.50% to the Wall Street Journal prime rate plus 0.25%. 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 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, 2020, 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, 2020 | |
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, 2020, 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, 2020 or December 31, 2019. 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, 2020, the Company had approximately $37.5 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 $39.5 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 has 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, 2020 | |
STOCKHOLDERS' EQUITY | |
Stockholders' Equity | Common Stock The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share. As of March 31, 2020, there were 83,837,289 shares issued and outstanding (including 1,897,154 restricted shares not vested). During the three month periods ended March 31, 2020 and 2019, 83,331 and 99,990 shares of common stock vested in accordance with the vesting terms of restricted stock awards (RSA). See Note 11 for additional information regarding RSA activity. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 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 2020 2019 (Unaudited) Restricted stock compensation expense $ 254,499 $ 16,737 Non-qualified option stock compensation expense 26,942 72,529 Total share-based compensation before taxes $ 281,441 $ 89,266 At March 31, 2020, the Company had approximately $548,200 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 1.0 year. |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share (EPS) | The computations of basic and diluted earnings per share were as follows for the periods presented below: THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) Basic Earnings Per Share Computation: Net income $ 483,888 $ 384,101 Weighted average number of common shares 83,840,079 83,812,448 Basic Earnings Per Share $ 0.01 $ 0.00 Diluted Earnings Per Share Computation: Net income $ 483,888 $ 384,101 Weighted average number of common shares 83,840,079 83,812,448 Incremental shares from assumed conversions of stock options 587,986 2,222 Adjusted weighted average number of common shares 84,428,065 83,814,670 Diluted Earnings Per Share $ 0.01 $ 0.00 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [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, 2020 2019 (Unaudited) Carrier Services $ 28,143,269 $ 14,343,011 Managed Services: Managed Service Fees 7,475,440 6,207,960 Billable Service Fees 1,304,541 1,080,617 Reselling and Other Services 2,742,106 285,314 11,522,087 7,573,891 $ 39,665,356 $ 21,916,902 The Company recognized revenues from contracts with customers for the following customer types as set forth below: THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) U.S. Federal Government $ 33,535,685 $ 18,162,498 U.S. State and Local Governments 25,513 115,839 Foreign Governments 6,169 44,544 Commercial Enterprises 6,097,989 3,594,021 $ 39,665,356 $ 21,916,902 The Company recognized revenues from contracts with customers in the following geographic regions: THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) North America $ 38,542,381 $ 20,780,311 Europe 1,122,975 1,136,591 $ 39,665,356 $ 21,916,902 During the three months ended March 31, 2020 and 2019, we recognized approximately $801,690 and $795,420, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements as of March 31, 2020 and for each of the three month periods ended March 31, 2020 and 2019, 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, 2019 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, 2019. The results of operations for the three month periods ended March 31, 2020 are not necessarily 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 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 13 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 2020 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 24, 2020. Accounting Standards under Evaluation In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies accounting for income taxes by eliminating some exceptions to the general approach in ASC 740, Income Taxes, related to intraperiod tax allocation, the methodology for calculating income tax in an interim period and the recognition of deferred tax liabilities for outside basis differences. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The amendments in this update should be applied on either a retrospective basis, a modified retrospective basis or prospectively, depending on the provision within the amendment. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Accounts Receivable and Signi_2
Accounts Receivable and Significant Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of accounts receivable | MARCH 31, DECEMBER 31, 2020 2019 (Unaudited) Government (1) $ 9,421,484 $ 12,604,582 Commercial (2) 2,416,739 2,102,581 Gross accounts receivable 11,838,223 14,707,163 Less: allowances for doubtful accounts (3) 123,097 126,235 Accounts receivable, net $ 11,715,126 $ 14,580,928 (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, 2020, 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. |
Accounts Receivable | |
Schedules of concentration of risk | MARCH 31, DECEMBER 31, 2020 2019 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Immigration and Customs Enforcement 11% 9% National Aeronautics and Space Administration 10% 21% U.S. Census Bureau 37% 18% |
Sales Revenue, Net | |
Schedules of concentration of risk | THREE MONTHS ENDED MARCH 31, 2020 2019 As a % of As a % of Customer Name Revenues Revenues (Unaudited) U.S. Immigration and Customs Enforcement 11% 15% U.S. Customs Border Patrol 6% 14% U.S. Census Bureau 37 -- |
Unbilled Accounts Receivable (T
Unbilled Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of unbilled accounts receivable | MARCH 31, DECEMBER 31, 2020 2019 As a % of As a % of Customer Name Receivables Receivables (Unaudited) U.S. Department of Homeland Security Headquarters 11% 9% U.S. Immigration and Customs Enforcement 12% 24% U.S. Census Bureau 50% 23% |
Other Current Assets and Accr_2
Other Current Assets and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of other current assets | MARCH 31, DECEMBER 31, 2020 2019 (Unaudited) Inventories $ 137,502 $ 213,713 Prepaid rent, insurance and other assets 676,731 881,134 Total other current assets $ 814,233 $ 1,094,847 |
Schedule of accrued expenses | MARCH 31, DECEMBER 31, 2020 2019 (Unaudited) Carrier service costs $ 18,965,100 $ 12,274,440 Salaries and payroll taxes 1,839,868 1,781,628 Inventory purchases, consultants and other costs 1,217,612 834,131 Severance costs 7,612 7,612 U.S. income tax payable 8,850 8,850 Foreign income tax payable 31,150 41,320 Total accrued expenses $ 22,070,192 $ 14,947,981 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | MARCH 31, DECEMBER 31, 2020 2019 (Unaudited) Computer hardware and software $ 2,076,942 $ 2,041,978 Furniture and fixtures 396,770 399,521 Leasehold improvements 297,369 299,340 Automobiles 54,494 56,800 Gross property and equipment 2,825,575 2,797,639 Less: accumulated depreciation and amortization 2,231,282 2,116,064 Property and equipment, net $ 594,293 $ 681,575 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | MARCH 31, 2020 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 1,980,000 $ (1,980,000 ) $ - Channel Relationships 2,628,080 (1,036,632 ) 1,591,448 Internally Developed Software 1,620,311 (1,066,731 ) 553,580 Trade Name and Trademarks 290,472 (114,576 ) 175,896 $ 6,518,863 $ (4,197,939 ) $ 2,320,924 DECEMBER 31, 2019 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 1,980,000 $ (1,980,000 ) $ - Channel Relationships 2,628,080 (992,830 ) 1,635,250 Internally Developed Software 1,623,122 (988,340 ) 634,782 Trade Name and Trademarks 290,472 (109,734 ) 180,738 $ 6,521,674 $ (4,070,904 ) $ 2,450,770 |
Schedule of finite-lived intangible assets, future amortization expense | Remainder of 2020 $ 328,535 2021 333,714 2022 349,341 2023 194,570 2024 194,570 Thereafter 920,195 Total $ 2,320,924 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation | THREE MONTHS ENDED MARCH 31 2020 2019 (Unaudited) Restricted stock compensation expense $ 254,499 $ 16,737 Non-qualified option stock compensation expense 26,942 72,529 Total share-based compensation before taxes $ 281,441 $ 89,266 |
Earnings Per Common Share (EP_2
Earnings Per Common Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) Basic Earnings Per Share Computation: Net income $ 483,888 $ 384,101 Weighted average number of common shares 83,840,079 83,812,448 Basic Earnings Per Share $ 0.01 $ 0.00 Diluted Earnings Per Share Computation: Net income $ 483,888 $ 384,101 Weighted average number of common shares 83,840,079 83,812,448 Incremental shares from assumed conversions of stock options 587,986 2,222 Adjusted weighted average number of common shares 84,428,065 83,814,670 Diluted Earnings Per Share $ 0.01 $ 0.00 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues by service | THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) Carrier Services $ 28,143,269 $ 14,343,011 Managed Services: Managed Service Fees 7,475,440 6,207,960 Billable Service Fees 1,304,541 1,080,617 Reselling and Other Services 2,742,106 285,314 11,522,087 7,573,891 $ 39,665,356 $ 21,916,902 |
Schedule of revenues by service customer type | THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) U.S. Federal Government $ 33,535,685 $ 18,162,498 U.S. State and Local Governments 25,513 115,839 Foreign Governments 6,169 44,544 Commercial Enterprises 6,097,989 3,594,021 $ 39,665,356 $ 21,916,902 |
Schedule of revenue from customers by geographic area | THREE MONTHS ENDED MARCH 31, 2020 2019 (Unaudited) North America $ 38,542,381 $ 20,780,311 Europe 1,122,975 1,136,591 $ 39,665,356 $ 21,916,902 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
State of incorporation | DE |
Date of incorporation | May 30, 1997 |
Accounts Receivable and Signi_3
Accounts Receivable and Significant Concentrations (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable, gross | $ 11,838,223 | $ 14,707,163 | |
Less: allowances for doubtful accounts | [1] | 123,097 | 126,235 |
Accounts receivable, net | 11,715,126 | 14,580,928 | |
Government | |||
Accounts receivable, gross | [2] | 9,421,484 | 12,604,582 |
Commercial | |||
Accounts receivable, gross | [3] | $ 2,416,739 | $ 2,102,581 |
[1] | For the three months ended March 31, 2020, 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. | ||
[2] | 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. | ||
[3] | 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. |
Accounts Receivable and Signi_4
Accounts Receivable and Significant Concentrations (Details 1) - Accounts Receivable | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
U.S. Immigration and Customs Enforcement | ||
Concentration risk | 11.00% | 9.00% |
National Aeronautics and Space Administration | ||
Concentration risk | 10.00% | 21.00% |
U.S. Census Bureau | ||
Concentration risk | 37.00% | 18.00% |
Accounts Receivable and Signi_5
Accounts Receivable and Significant Concentrations (Details 2) - Sales Revenue, Net | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
U.S. Immigration and Customs Enforcement | ||
Concentration risk | 11.00% | 15.00% |
U.S. Customs Boarder Patrol | ||
Concentration risk | 6.00% | 14.00% |
U.S. Census Bureau | ||
Concentration risk | 37.00% | 0.00% |
Unbilled Accounts Receivable (D
Unbilled Accounts Receivable (Details) - Unbilled Accounts Receivable | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
U.S. Department of Homeland Security Headquarters | ||
Concentration risk | 11.00% | 9.00% |
U.S. Immigration and Customs Enforcement | ||
Concentration risk | 12.00% | 24.00% |
U.S. Census Bureau | ||
Concentration risk | 50.00% | 23.00% |
Other Current Assets and Accr_3
Other Current Assets and Accrued Expenses (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Inventories | $ 137,502 | $ 213,713 |
Prepaid rent, insurance and other assets | 676,731 | 881,134 |
Total other current assets | $ 814,233 | $ 1,094,847 |
Other Current Assets and Accr_4
Other Current Assets and Accrued Expenses (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Carrier service costs | $ 18,965,100 | $ 12,274,440 |
Salaries and payroll taxes | 1,839,868 | 1,781,628 |
Inventory purchases, consultants and other costs | 1,217,612 | 834,131 |
Severance costs | 7,612 | 7,612 |
U.S. income tax payable | 8,850 | 8,850 |
Foreign income tax payable | 31,150 | 41,320 |
Total accrued expenses | $ 22,070,191 | $ 14,947,981 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property and equipment, gross | $ 2,825,575 | $ 2,797,639 |
Less: accumulated depreciation and amortization | 2,231,282 | 2,116,064 |
Property and equipment, net | 594,293 | 681,575 |
Computer Hardware Software | ||
Property and equipment, gross | 2,076,942 | 2,041,978 |
Furniture and Fixtures | ||
Property and equipment, gross | 396,770 | 399,521 |
Leaseholds and Leasehold Improvements | ||
Property and equipment, gross | 297,369 | 299,340 |
Automobiles | ||
Property and equipment, gross | $ 54,494 | $ 56,800 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 297,190 | $ 273,923 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Gross carrying amount | $ 6,518,863 | $ 6,521,674 |
Accumulated amortization | (4,197,939) | (4,070,904) |
Net book value | 2,320,924 | 2,450,770 |
Trademarks and Trade Names | ||
Gross carrying amount | 290,472 | 290,472 |
Accumulated amortization | (114,576) | (109,734) |
Net book value | 175,896 | 180,738 |
Customer Relationships | ||
Gross carrying amount | 1,980,000 | 1,980,000 |
Accumulated amortization | (1,980,000) | (1,980,000) |
Net book value | 0 | 0 |
Channel Relationships | ||
Gross carrying amount | 2,628,080 | 2,628,080 |
Accumulated amortization | (1,036,632) | (992,830) |
Net book value | 1,591,448 | 1,635,250 |
Internally Developed Software | ||
Gross carrying amount | 1,620,311 | 1,623,122 |
Accumulated amortization | (1,066,731) | (988,340) |
Net book value | $ 553,580 | $ 634,782 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 328,535 | |
2021 | 333,714 | |
2022 | 349,341 | |
2023 | 194,570 | |
2024 | 194,570 | |
Thereafter | 920,195 | |
Total | $ 2,320,924 | $ 2,450,770 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill | $ 18,555,578 | $ 18,555,578 | |
Capitalized software cost | 341,000 | $ 58,500 | |
Aggregate amortization expense | $ 125,656 | $ 198,816 | |
Purchased Intangible Assets | |||
Weighted average remaining life | 5 years | ||
Internally Developed Software | |||
Weighted average remaining life | 1 year |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) | Mar. 31, 2020USD ($) |
Line of Credit Facility [Abstract] | |
Line of credit borrowing capacity | $ 4,900,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Mar. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carry forwards | $ 37,500,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 83,837,289 | 83,861,453 |
Common stock, shares outstanding | 83,837,289 | 83,861,453 |
Share-based Compensation (Detai
Share-based Compensation (Details 3) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Restricted stock compensation expense | $ 254,499 | $ 16,737 |
Non-qualified option stock compensation expense | 26,942 | 72,529 |
Total share-based compensation before taxes | $ 281,441 | $ 89,266 |
Share-based Compensation (Det_2
Share-based Compensation (Details Narrative) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Unamortized share-based compensation expense | $ 548,200 |
Unamortized share-based compensation expense, recognition period | 1 year |
Earnings Per Common Share (EP_3
Earnings Per Common Share (EPS) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic Earnings Per Share Computation: | ||
Net income | $ 483,888 | $ 384,101 |
Basic weighted-average shares outstanding | 83,840,079 | 83,812,448 |
Basic earnings per share | $ .01 | $ .00 |
Diluted Earnings Per Share Computation: | ||
Net income | $ 483,888 | $ 384,101 |
Diluted Weighted-average Shares Outstanding | 83,840,079 | 83,812,448 |
Incremental shares from assumed conversions of stock options | 587,986 | 2,222 |
Adjusted weighted average number of common shares | 84,428,065 | 83,814,670 |
Diluted earnings per share | $ 0.01 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 39,665,356 | $ 21,916,902 |
Carrier Services | ||
Revenues | 28,143,269 | 14,343,011 |
Managed Service Fees | ||
Revenues | 7,475,440 | 620,796 |
Billable Service Fees | ||
Revenues | 1,304,541 | 1,080,617 |
Reselling and Other Services | ||
Revenues | 2,742,106 | 285,314 |
Managed Services | ||
Revenues | $ 11,522,087 | $ 7,573,891 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 39,665,356 | $ 21,916,902 |
U.S. Federal Government | ||
Revenues | 33,535,685 | 18,162,498 |
U.S. State and Local Governments | ||
Revenues | 25,513 | 115,839 |
Foreign Governments | ||
Revenues | 6,169 | 44,544 |
Commercial Enterprises | ||
Revenues | $ 6,097,989 | $ 3,594,021 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 39,665,356 | $ 21,916,902 |
North America | ||
Revenues | 38,542,381 | 20,780,311 |
Europe | ||
Revenues | $ 1,122,978 | $ 1,136,591 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, revenue recognized | $ 801,690 | $ 795,420 |