WidePoint (WYY) 10-Q 14 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 14, 2023
Cover [Abstract]
Entity Registrant Name	WidePoint Corporation
Entity Central Index Key	0001034760
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		8,843,673
Document Quarterly Report	true
Entity File Number	001-33035
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	52-2040275
Entity Address Address Line 1	11250 Waples Mill Road
Entity Address Address Line 2	South Tower 210
Entity Address City Or Town	Fairfax
Entity Address State Or Province	VA
Entity Address Postal Zip Code	22030
City Area Code	703
Local Phone Number	349-2577
Security 12b Title	Common Stock, $0.001 par value per share
Trading Symbol	WYY
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes
Document Transition Report	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
REVENUES	$ 25,733,657	$ 25,271,572	$ 77,770,195	$ 70,765,353
COST OF REVENUES (including amortization and depreciation of $528,298, $366,885, $1,538,883, and $961,341, respectively)	21,838,836	21,472,120	66,155,797	59,749,532
GROSS PROFIT	3,894,821	3,799,452	11,614,398	11,015,821
OPERATING EXPENSES
Sales and marketing	490,037	527,726	1,553,887	1,665,518
General and administrative expenses (including share-based compensation of $276,570, $115,141, $235,570 and $269,126, respectively	3,977,709	3,595,145	11,719,042	11,157,690
Goodiwll impairment	0			16,277,000
Depreciation and amortization	259,804	272,203	789,331	810,652
Total operating expenses	4,727,550	4,395,074	14,062,260	29,910,860
LOSS FROM OPERATIONS	(832,729)	(595,622)	(2,447,862)	(18,895,039)
OTHER INCOME (EXPENSE)
Interest income	27,681	6,398	39,122	17,126
Interest expense	(69,095)	(62,841)	(184,783)	(189,188)
Other (expense) income, net	(33,663)	(6,999)	(52,721)	964,004
Total other income (expense), net	(75,077)	(63,442)	(198,382)	791,942
LOSS BEFORE INCOME TAX PROVISION (BENEFIT)	(907,806)	(659,064)	(2,646,244)	(18,103,097)
INCOME TAX PROVISION (BENEFIT)	13,308	(118,181)	68,422	(3,410,108)
NET LOSS	$ (921,114)	$ (540,883)	$ (2,714,666)	$ (14,692,989)
EARNINGS PER SHARE, BASIC AND DILUTED	$ (0.10)	$ (0.06)	$ (0.31)	$ (1.68)
WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED	8,893,220	8,725,476	8,809,644	8,734,471

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
COST OF REVENUES , Depreciation and Amortization	$ 528,298	$ 366,885	$ 1,538,883	$ 961,341
Share-Based Compensation Expense	$ 276,570	$ 115,141	$ 235,570	$ 269,126

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
NET LOSS	$ (921,114)	$ (540,883)	$ (2,714,666)	$ (14,692,989)
Other comprehensive incomes (loss):
Foreign currency translation adjustments, net of tax	(77,162)	(118,524)	(7,510)	(258,213)
Other comprehensive income (loss):	(77,162)	(118,524)	(7,510)	(258,213)
COMPREHENSIVE LOSS	$ (998,276)	$ (659,407)	$ (2,722,176)	$ (14,951,202)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash	$ 8,458,048	$ 7,530,864
Accounts receivable, net of allowance for credit losses of $72,398 and $51,666, respectively	8,911,875	9,277,109
Unbilled accounts receivable	9,956,194	10,244,101
Other current assets	1,402,845	935,978
Total current assets	28,728,962	27,988,052
NONCURRENT ASSETS
Property and equipment, net	857,867	978,218
Lease right of use asset, net	4,215,558	4,723,899
Intangible assets, net	7,133,845	7,398,160
Goodwill	5,811,578	5,811,578
Deferred tax assets, net	85,888	86,909
Other long-term assets	1,556,995	2,025,845
Total assets	48,390,693	49,012,661
CURRENT LIABILITIES
Accounts payable	13,855,297	12,515,081
Accrued expenses	10,624,832	11,327,269
Current portion of deferred revenue	2,209,524	1,704,933
Current portion of lease liabilities	626,955	596,529
Total current liabilities	27,316,608	26,143,812
NONCURRENT LIABILITIES
Lease liabilities, net of current portion	4,298,076	4,745,909
Contingent consideration	6,900	6,900
Deferred revenue, net of current portion	1,208,293	364,837
Total liabilities	32,829,877	31,261,458
Commitments and contingencies (Note 16)	0	0
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; 30,000,000 shares authorized; 8,893,220 and 8,725,476 shares issued and outstanding, respectively	8,894	8,726
Additional paid-in capital	101,725,806	101,194,185
Accumulated other comprehensive loss	(357,744)	(350,234)
Accumulated deficit	(85,816,140)	(83,101,474)
Total stockholders' equity	15,560,816	17,751,203
Total liabilities and stockholders' equity	$ 48,390,693	$ 49,012,661

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts receivable	$ 72,398	$ 51,666
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	30,000,000	30,000,000
Common stock, shares issued	8,893,220	8,725,476
Common stock, shares outstanding	8,893,220	8,725,476

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,714,666)	$ (14,692,989)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred income tax benefit	0	(3,176,568)
Depreciation expense	794,344	813,624
Goodwill impairment charge	0	16,277,000
Provision for credit losses	39,979	244
Amortization of intangibles	1,533,870	958,369
Share-based compensation expense	535,417	384,267
Warrants expense	0	108,000
Change in fair value of contingent consideration	0	(960,000)
Loss on disposal of fixed assets	3,211	0
Changes in assets and liabilities:
Accounts receivable and unbilled receivables	1,208,899	2,804,675
Inventories	(271,869)	47,618
Other current assets	(198,992)	209,399
Other assets	27,161	27,966
Accounts payable and accrued expenses	(504,739)	1,080,368
Income tax payable	29,780	7,600
Deferred revenue and other liabilities	1,352,781	(314,226)
Other liabilities	0	(358,000)
Net cash provided by operating activities	1,835,176	3,217,347
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(166,210)	(239,233)
Capitalized hardware and software development costs	(810,219)	(2,823,887)
Proceeds from beneficial interest in sold receivables	469,104	0
Net cash used in investing activities	(507,325)	(3,063,120)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit	6,493,284	4,455,523
Repayments of bank line of credit advances	(6,493,284)	(4,455,523)
Principal repayments under finance lease obligations	(420,139)	(446,691)
Withholding taxes paid on behalf of employees on net settled restricted stock awards	(3,628)	(49,224)
Common stock repurchased	0	(818,211)
Net cash used in financing activities	(423,767)	(1,314,126)
Net effect of exchange rate on cash	23,100	(258,761)
NET INCREASE (DECREASE) IN CASH	927,184	(1,418,660)
CASH, beginning of period	7,530,864	6,479,980
CASH, end of period	8,458,048	5,061,320
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	168,083	141,924
Cash paid for income taxes	0	27,559
NONCASH INVESTING AND FINANCING ACTIVITIES
Capitalized hardware and software development costs in accounts payable	22,198	90,854
Leased assets and lease liabilities terminated	$ 0	$ 876,281

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive loss	Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2021		8,842,026
Balance, amount at Dec. 31, 2021	$ 41,675,995	$ 8,842	$ 101,424,922	$ (241,586)	$ (59,516,183)
Common stock repurchased shares		(196,586)
Common stock repurchased amount	(818,211)	$ (197)	(818,014)	0	0
Issuance of common stock - restricted shares		50,345
Issuance of common stock - restricted amount	(49,224)	$ 51	(49,275)
Issuance of warrants in acquisition of IT Authorities, Inc.	108,000	0	108,000
Stock compensation expense -restricted	179,741	0	179,741
Foreign currency translation -(loss)	(4,835)	0		(4,835)
Net Income (Loss)	(392,897)	$ 0	0	0	(392,897)
Balance, shares at Mar. 31, 2022		8,695,785
Balance, amount at Mar. 31, 2022	40,698,569	$ 8,696	100,845,374	(246,421)	(59,909,080)
Balance, shares at Dec. 31, 2021		8,842,026
Balance, amount at Dec. 31, 2021	41,675,995	$ 8,842	101,424,922	(241,586)	(59,516,183)
Net Income (Loss)	(14,692,989)
Balance, shares at Sep. 30, 2022		8,725,476
Balance, amount at Sep. 30, 2022	26,349,625	$ 8,726	101,049,870	(499,799)	(74,209,172)
Balance, shares at Mar. 31, 2022		8,695,785
Balance, amount at Mar. 31, 2022	40,698,569	$ 8,696	$ 100,845,374	(246,421)	(59,909,080)
Issuance of common stock - restricted shares		30	(30)
Issuance of common stock - restricted amount		$ 29,691
Foreign currency translation -(loss)	(134,854)	0		(134,854)
Net Income (Loss)	(13,759,209)	0	$ 0	0	(13,759,209)
Stock compensation expense -restricted	89,385	$ 0	89,385
Balance, shares at Jun. 30, 2022		8,725,476
Balance, amount at Jun. 30, 2022	26,893,891	$ 8,726	100,934,729	(381,275)	(73,668,289)
Foreign currency translation -(loss)	(118,524)	0		(118,524)
Net Income (Loss)	(540,883)	0	0	0	(540,883)
Stock compensation expense -restricted	115,141	$ 0	115,141
Balance, shares at Sep. 30, 2022		8,725,476
Balance, amount at Sep. 30, 2022	26,349,625	$ 8,726	101,049,870	(499,799)	(74,209,172)
Balance, shares at Dec. 31, 2022		8,725,476
Balance, amount at Dec. 31, 2022	17,751,203	$ 8,726	101,194,185	(350,234)	(83,101,474)
Issuance of common stock - restricted shares		13,841
Issuance of common stock - restricted amount	(3,628)	$ 14	(3,642)
Foreign currency translation -(loss)	37,248	0		37,248
Net Income (Loss)	(951,479)	0	0	0	(951,479)
Stock compensation expense -restricted	140,116	$ 0	140,116
Balance, shares at Mar. 31, 2023		8,739,317
Balance, amount at Mar. 31, 2023	16,973,460	$ 8,740	101,330,659	(312,986)	(84,052,953)
Balance, shares at Dec. 31, 2022		8,725,476
Balance, amount at Dec. 31, 2022	17,751,203	$ 8,726	101,194,185	(350,234)	(83,101,474)
Net Income (Loss)	(2,714,666)
Balance, shares at Sep. 30, 2023		8,893,220
Balance, amount at Sep. 30, 2023	15,560,816	$ 8,894	101,725,806	(357,744)	(85,816,140)
Balance, shares at Mar. 31, 2023		8,739,317
Balance, amount at Mar. 31, 2023	16,973,460	$ 8,740	101,330,659	(312,986)	(84,052,953)
Issuance of common stock - restricted shares		153,903
Issuance of common stock - restricted amount		$ 154	(154)
Foreign currency translation -(loss)	32,404	0		32,404
Net Income (Loss)	(842,073)	0	0	0	(842,073)
Stock compensation expense -restricted	95,454	$ 0	95,454
Balance, shares at Jun. 30, 2023		8,893,220
Balance, amount at Jun. 30, 2023	16,259,245	$ 8,894	101,425,959	(280,582)	(84,895,026)
Foreign currency translation -(loss)	(77,162)	0		(77,162)
Net Income (Loss)	(921,114)				(921,114)
Stock compensation expense -restricted	276,570	0	276,570
Stock compensation expense - non-qualified stock options	23,277	$ 0	23,277
Balance, shares at Sep. 30, 2023		8,893,220
Balance, amount at Sep. 30, 2023	$ 15,560,816	$ 8,894	$ 101,725,806	$ (357,744)	$ (85,816,140)

Organization and Nature of Oper

Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2023
Organization and Nature of Operations
Organization and Nature of Operations	1. 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 Technology Management as a Service (TMaaS). The Company’s TMaaS 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 Technology 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 TMaaS platform. The Company’s TMaaS 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. 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	9 Months Ended
	Sep. 30, 2023
Basis of Presentation and Accounting Policies
Basis of Presentation and Accounting Policies	2. Basis of Presentation and Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements as of September 30, 2023 and for each of the three and nine month periods ended September 30, 2023 and 2022, 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, 2022 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, 2022. The results of operations for the three and nine month periods ended September 30, 2023 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, allowance for credit losses, 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 The Company’s TMaaS offerings are substantially managed service driven solutions that use our proprietary technology platform to deliver our services and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 15 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 nine months of 2023 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements The following tables present information about the Company’s liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets: Quoted Prices in Significant Other SEPTEMBER 30, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: (Unaudited) Contingent consideration - cash settled $ 6,500 - - $ 6,500 Contingent consideration - warrants 400 - - 400 Total liabilities measured and recorded at fair value $ 6,900 $ - $ - $ 6,900 Quoted Prices in Significant Other DECEMBER 31, Active Markets Observable Inputs Unobservable Inputs Description 2022 (Level 1) (Level 2) (Level 3) Liabilities: Contingent consideration - cash settled $ 6,500 - - $ 6,500 Contingent consideration - warrants 400 - - 400 Total liabilities measured and recorded at fair value $ 6,900 $ - $ - $ 6,900 The Company’s contingent consideration is categorized as Level 3 within the fair value hierarchy. The contingent consideration has been recorded at their fair value using a Monte Carlo simulation model. This model incorporates probability of achievement of certain milestones, risk-free rates and volatility. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. Management estimates the fair value of the contingent consideration liability based on financial projections of IT Authorities, Inc.’s (ITA) business and forecasted results, including revenue growth rates, costs and expenses, volatility, and discount rates. The Company evaluates, on a routine, periodic basis, the estimated fair value of the contingent consideration and quarterly changes in estimated fair value are reflected in other income in the consolidated statements of operations. Changes in the fair value of contingent consideration obligations may result from changes in changes of any of the key assumptions that are used. Changes in the estimated fair value of contingent consideration liability may have a material impact on the Company’s operating results. There was no change in fair value of contingent consideration for the three and nine month periods ended September 30, 2023.

Accounts Receivable and Signifi

Accounts Receivable and Significant Concentrations	9 Months Ended
	Sep. 30, 2023
Accounts Receivable and Significant Concentrations
Accounts Receivable and Significant Concentrations	4. Accounts Receivable and Significant Concentrations 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: SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) U.S. Federal, State, and Local Government (1) $ 6,740,135 $ 7,272,993 Commercial (2) 2,244,138 2,055,782 Gross accounts receivable 8,984,273 9,328,775 Less: allowances for credit losses (3) 72,398 51,666 Accounts receivable, net $ 8,911,875 $ 9,277,109 (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 or a government shutdown 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 customers. (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 credit losses if deemed necessary. (3) For the nine month period ended September 30, 2023, the Company did not recognize any material provisions of recoveries of existing provision for credit losses. The Company has not historically maintained an allowance for credit losses for its government customers as it has not experienced material or recurring credit losses and the nature and size of the contracts has not necessitated the Company’s establishment of such an allowance for credit losses. Significant Concentrations The following table presents consolidated trade accounts receivable by customer as of the periods presented below: SEPTEMBER 30, DECEMBER 31, 2023 2022 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 73 % 78 % The following table presents revenue by customer for each of the periods presented: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, Customer Type 2023 2022 2023 2022 (Unaudited) U.S. Federal Government (1) 78.8 % 78.5 % 79.9 % 78.9 % (1) Sales to the U.S. federal government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash on deposit with financial institutions, the balances of which frequently exceed federally insured limits. If the financial institution with whom we do business were to be placed into receivership, we may be unable to access to the cash we have on deposit with such institutions. If we are unable to access our cash and cash equivalents as needed, our financial position and ability to operate our business could be adversely affected. At September 30, 2023, the Company had deposits in excess of FDIC limits of approximately $7.1 million. The Company also maintains deposits with a financial institution in Ireland that are insured by the Central Bank of Ireland up to a maximum of €100,000 per financial institution. At September 30, 2023, the Company had foreign bank deposits in excess of insured limits of approximately €560,000.

Unbilled Accounts Receivable

Unbilled Accounts Receivable	9 Months Ended
	Sep. 30, 2023
Accounts Receivable and Significant Concentrations
Unbilled Accounts Receivable	5. Unbilled Accounts Receivable 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 dates presented below: SEPTEMBER 30, DECEMBER 31, 2023 2022 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 96 % 97 %

Other Current Assets and Accrue

Other Current Assets and Accrued Expenses	9 Months Ended
	Sep. 30, 2023
Other Current Assets and Accrued Expenses
Other Current Assets and Other Long Term Assets	6. Other Current Assets and Accrued Expenses Other current assets consisted of the following as of the dates presented below: SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Inventories $ 494,101 $ 222,279 Prepaid insurance and other assets 908,744 713,699 Total other current assets $ 1,402,845 $ 935,978 Accrued expenses consisted of the following as of the dates presented below: SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Carrier service costs $ 7,845,150 $ 8,402,770 Salaries and payroll taxes 1,665,088 1,637,628 Inventory purchases, consultants and other costs 1,004,362 1,205,209 Severance costs 7,612 7,612 U.S. income tax payable 46,720 61,490 Foreign income tax payable 55,900 12,560 Total accrued expenses $ 10,624,832 $ 11,327,269

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2023
Property and Equipment
Property and Equipment	7. Property and Equipment Major classes of property and equipment consisted of the following as of the dates presented below: SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Computer hardware and software $ 3,277,478 $ 3,158,428 Furniture and fixtures 498,461 502,391 Leasehold improvements 318,320 284,321 Automobiles 124,214 122,524 Gross property and equipment 4,218,473 4,067,664 Less: accumulated depreciation and amortization 3,360,606 3,089,446 Property and equipment, net $ 857,867 $ 978,218 During the three and nine month periods ended September 30, 2023, property and equipment depreciation expense was approximately $91,900 and $281,900, respectively. During the three and nine month periods ended September 30, 2022, property and equipment depreciation expense was approximately $102,000 and $305,100, respectively. During the three and nine month periods ended September 30, 2023 and 2022, 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 and nine month periods ended September 30, 2023 and 2022.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases
Leases	8. Leases On January 1, 2022, the Company entered into an amendment to its lease agreement for its Tampa office to amend the term and the extension option. The amendment updated the term of the lease from sixty (60) calendar months ending December 31, 2026 to the Company’s ability to terminate the lease on June 30, 2022. As a result of the amendment, the Company removed the lease right of use asset and lease liability for its Tampa office from its condensed consolidated balance sheet. The Company accounted for the lease as month to month and recorded the monthly rent expense in its condensed consolidated statement of operations.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets The Company has recorded goodwill of $5,811,578 as of September 30, 2023 and December 31, 2022. There were no changes in the carrying amount of goodwill during the nine month period ended September 30, 2023. Intangible assets consists of the following: SEPTEMBER 30, 2023 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 2,392,000 $ (478,400 ) $ 1,913,600 Channel Relationships 2,628,080 (1,649,850 ) 978,230 Internally Developed Software 6,929,439 (3,696,876 ) 3,232,563 Trade Name and Trademarks 1,330,472 (321,020 ) 1,009,452 $ 13,279,991 $ (6,146,146 ) $ 7,133,845 DECEMBER 31, 2022 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (299,000 ) $ 2,093,000 Channel Relationships 2,628,080 (1,518,446 ) 1,109,634 Internally Developed Software 5,665,957 (2,546,407 ) 3,119,550 Trade Name and Trademarks 1,330,472 (254,496 ) 1,075,976 $ 12,016,509 $ (4,618,349 ) $ 7,398,160 For the three and nine month periods ended September 30, 2023, the Company capitalized $139,600 and $832,400, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Technology Management System), secure identity management technology and secure network operations center of which $509,700 was transferred from capital work in progress to internally developed software during the nine month period. Capital work in progress is included in other long-term assets in the consolidated balance sheet. For the three and nine month periods ended September 30, 2022, the Company capitalized $1.1 million and $2.9 million, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Technology Management System), next generation TDI TM There were no disposals of intangible assets during the three and nine month period ended September 30, 2023. The aggregate amortization expense recorded for the three month periods ended September 30, 2023 and 2022 were approximately $526,300 and $365,800, respectively. The aggregate amortization expense recorded for the nine month periods ended September 30, 2023 and 2022 were approximately $1,533,900 and $958,400, respectively As of September 30, 2023, estimated annual amortization for our intangible assets is approximately: Remainder of 2023 $ 566,031 2024 2,123,820 2025 1,450,258 2026 727,570 2027 503,106 Thereafter 1,763,060 Total $ 7,133,845

Line of Credit and Factoring Ag

Line of Credit and Factoring Agreement	9 Months Ended
	Sep. 30, 2023
Line of Credit and Factoring Agreement
Line of Credit and Factoring Agreement	10. Line of Credit and Factoring Agreement From June 15, 2017 to June 2023, the Company had a Loan and Security Agreement with Atlantic Union Bank (the “Loan Agreement”). The available amount under the working capital line of credit was subject to a borrowing base, which was equal to the lesser of (i) $7.0 million or (ii) sum of 90% of the net unpaid balance of the Company’s eligible government accounts receivable and 80% of the net unpaid balance of the Company’s eligible commercial accounts receivable. The facility was secured by a first lien security interest on all of the Company’s assets in the United States. The Loan Agreement with Atlantic Union Bank matured in June 2023 and was not renewed. On April 28, 2023, the Company entered into an Accounts Receivable Purchase Agreement (the “Purchase Agreement”) with Republic Capital Access, LLC (the “Buyer”) for the non-recourse sale of eligible accounts receivable relating to U.S. Government prime contracts or subcontracts of the Company (collectively, the “Purchased Receivables”) to replace the Company’s matured Loan and Security Agreement with Atlantic Union Bank. Upon purchase, Buyer becomes the absolute owner of any such Purchased Receivables, which are payable directly to the Buyer. The total amount of Purchased Receivables is subject to a maximum limit of $4 million outstanding Purchased Receivables at any time, with an available increase to $14 million, subject to adequate receivables. The Purchase Agreement contains customary fees, covenants and representations. Pursuant to the Purchase Agreement, the Company may from time to time offer and sell eligible accounts receivable to the Buyer. The Buyer pays the sales proceed of the purchase of the receivable invoices in two installments; first installment is Initial Purchase Price, which is 90% if the debtor is an agency of the U.S. Government, and 85% if the debtor is not an agency of the U.S. Government, of the invoice amount. The second and final installment is the residual purchase price that is the invoice amount less the initial purchase price less applicable discount factor and fees. During the three month and nine month periods ended September 30, 2023, the Company sold a total of $3.6 million and $5.2 million, respectively, of receivables for proceeds net of fees of $3.5 million and $5.1 million, respectively. As of September 30, 2023, there is no outstanding residual payment balance and availability under the Purchase Agreement of $4 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Taxes
Income Taxes	11. Income Taxes The Company’s effective tax rate was (1.5)% and (2.6)% for the three and nine month periods ended September 30, 2023, respectively. The Company’s effective tax rate was 18% and 19% for the three and nine month periods ended September 30, 2022, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets and state minimum taxes in the United States. The effective tax rate is calculated by dividing the Provision (benefit) for income taxes by the loss before provision (benefit) for income taxes.

Stockholders Equity

Stockholders Equity	9 Months Ended
	Sep. 30, 2023
Stockholders Equity
Stockholders' Equity	12. Stockholders’ Equity Common Stock The Company is authorized to issue 30,000,000 shares of common stock, $0.001 par value per share. As of September 30, 2023, there were 8,893,220 shares issued and outstanding. On June 22, 2023, the stockholders of the Company approved an amendment and restatement of the 2017 WidePoint Omnibus Incentive Plan (the “Plan”) to increase the number of shares authorized for issuance by one million three hundred thousand shares (1,300,000). There were no shares of common stock vested under the vesting terms of the RSAs during the three month period ended September 30, 2023. During the nine month period ended September 30, 2023, there were 169,737 shares of common stock vested in accordance with the vesting terms of the RSAs. Two employees received less than the shares vested because they elected to have a total of 1,993 shares withheld in satisfaction of the employees corresponding tax liability of approximately $3,600. The Company’s payment of this tax liability was recorded as a cash flow from financing activity on the consolidated statement of cash flows. There were no shares of common stock vested under the vesting terms of the RSAs during the three month period ended September 30, 2022. During the nine month period ended September 30, 2022, there were 83,728 shares of common stock vested in accordance with the vesting terms of the RSAs. Three employees received less than the shares vested because they elected to have a total of 11,280 shares withheld in satisfaction of the employees corresponding tax liability of approximately $49,300. The Company’s payment of this tax liability was recorded as a cash flow from financing activity on the consolidated statement of cash flows. There were no stock option exercises during the three and nine month periods ended September 30, 2023 and 2022. Contingent Warrants Liability-classified warrants consist of warrants to acquire common stock at an exercise price of $5.33 per share as part of the consideration for the acquisition of ITA in 2021, during the earn-out period from 2021 to 2024. Based on our consideration of the ASC 815-40 guidance, we account for these contingent warrants as a liability. The estimated fair value of outstanding contingent warrants accounted for as liabilities is determined at each balance sheet date. Any decrease or increase in the estimated fair value of the warrant liability since the most recent balance sheet date is recorded in the consolidated statement of operations as other income (expense). Refer to Note 3 for more information about the warrants. Warrants Issued On March 31, 2022, the Company issued a warrant to purchase 75,000 shares of common stock as part of the contingent consideration earned by ITA for 2021 EBITDA achievement. The warrant contains a strike price of $5.33 and has a four-year contractual term. The warrant is classified within stockholders’ equity at its fair value. The fair value of the warrant was determined to be $108,000 utilizing the Black-Scholes-Merton option-pricing model at the time of issuance. Following such issuance, the Company has outstanding warrants to acquire 150,000 shares of common stock at a strike price of $5.33 that expire on October 1, 2025. Stock Repurchase Program On October 7, 2019, the Company announced that its Board of Directors approved a stock repurchase plan (the “Repurchase Plan”) to purchase up to $2.5 million of the Company’s common stock. Any repurchases will be made in compliance with the SEC’s Rule 10b-18 if applicable, and may be made in the open market or in privately negotiated transactions, including the entry into derivatives transactions. During November 2021, the Board increased the size of the Repurchase Plan to up to $5.0 million of the Company’s common stock, increasing the amount available for future purchases under the Repurchase Plan to $4.6 million. During the three-month period ended March 31, 2022, we repurchased 196,586 shares of our common stock for a total of $818,200 and subsequently in March of 2022, the Board suspended the repurchase plan in order to use the company’s excess funds to invest into the business. The Company retired all common stock it repurchased. At The Market Offering Agreement On August 18, 2020, the Company entered into an At-The-Market Issuance Sales Agreement (the “Sales Agreement”). Effective March 27, 2023, the Company provided notice to the sales agents under its At the Market Sales Agreement that it was terminating the agreement. Accordingly, no additional sales of shares of common stock will be made pursuant to such agreement.

Sharebased Compensation

Sharebased Compensation	9 Months Ended
	Sep. 30, 2023
Sharebased Compensation
Share-based Compensation	13. Share-based Compensation Share-based compensation (including restricted stock awards) represents both stock option-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 NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Restricted share-based compensation expense $ 276,570 $ 115,141 $ 512,140 $ 384,267 Non-qualified option share-based compensation expense 23,277 - 23,277 - Total share-based compensation before taxes $ 299,847 $ 115,141 $ 535,417 $ 384,267 The Company’s stock incentive plan is administered by the Compensation Committee of the Board of Directors and authorizes the grant or award of incentive stock options (ISO), nonqualified stock options (NQSO), restricted stock awards (RSA), restricted stock units, 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. Restricted Stock The Company records the fair value of all restricted stock shares based on the grant date fair value and amortizes stock compensation on a straight-line basis over the vesting period. Restricted stock shares are issued when vested and included in the total number of common shares issued and outstanding. During the three and nine month period ended September 30, 2023, the Company granted 628,572 restricted stock shares. During the three and nine month periods ended September 30, 2022, the Company granted 153,903 RSAs. Stock Options The Company estimates the fair value of nonqualified stock awards using a Black-Scholes Option Pricing model (“Black-Scholes model”). The fair value of each stock award is estimated on the date of grant using the Black-Scholes model, which requires an assumption of dividend yield, risk free interest rates, volatility, and expected option life. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. Expected volatilities are based on the historical volatility of our common stock over the expected option term. The expected term of options granted is calculated using the simplified method. The Company recognizes forfeitures as they occur. There were 288,570 stock option awards granted during the three and nine month period ended September 30, 2023. There were no stock option awards granted during the three and nine month period September 30, 2022. Option pricing model assumptions for NQSO awards granted were valued using the following assumptions for the years then ended as set forth below: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 Stock options granted 288,570 -- 288,570 -- Expected dividend yield 0 % -- 0 % -- Expected volatility 61.6%-62.2 % -- 61.6%-62.2% -- Risk-free interest rate 4.1 % -- 4.1 % -- Term 4 years -- 4years -- At September 30, 2023, the Company had approximately $1.2 million of total unrecognized share-based compensation expense, net of estimated forfeitures, related to share-based compensation that will be recognized over the weighted average remaining period of 1.0 years. Long-Term Incentive Plan The Company maintains a long-term incentive plan (LTIP) that covers the period of January 1, 2023 through January 1, 2026. The plan was approved by the Board of Directors in August 2023. The LTIP has two components of equity-based compensation. The first is 250,000 RSUs that will be awarded to management, of which 83,333 will be issued on January 1 of the years 2024, 2025, and 2026. The second is 250,000 performance based restricted stock units (PSRUs) that would vest upon meeting, by January 1, 2026, certain revenue and adjusted EBITDA performance targets. As of September 30, 2023, the Company has not awarded the RSUs or PRSUs under this plan.

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)	9 Months Ended
	Sep. 30, 2023
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS)	14. 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 NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Basic and Diluted Earnings Per Share Computation: Net loss $ (921,114 ) $ (540,883 ) $ (2,714,666 ) $ (14,692,989 ) Weighted average number of common shares 8,893,220 8,725,476 8,809,644 8,734,471 Basic and Diluted Loss Per Share $ (0.10 ) $ (0.06 ) $ (0.31 ) $ (1.68 ) For the three month ended September 30, 2023 and 2022, the Company had unexercised stock options and RSAs of 55,117 and 43,058, respectively, and warrants to purchase 150,000 and 150,000, respectively, shares of common stock, outstanding, that were anti-dilutive. For the nine month ended September 30, 2023 and 2022, the Company had unexercised stock options and RSAs of 43,103 and 64,012, respectively, and warrants to purchase 150,000 and 150,000, respectively, shares of common stock, outstanding, that were anti-dilutive.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2023
Revenue from Contracts with Customers
Revenue from Contracts with Customers	15. 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 NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Carrier Services $ 14,648,545 $ 14,062,700 $ 42,487,301 $ 39,495,108 Managed Services 11,085,112 11,208,872 35,282,894 31,270,245 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353 The Company recognized revenues from contracts with customers for the following customer types as set forth below: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) U.S. Federal Government $ 20,285,569 $ 19,840,322 $ 62,160,270 $ 55,846,663 U.S. State and Local Governments 113,814 86,091 318,528 313,112 Foreign Governments 22,364 17,787 61,942 74,253 Commercial Enterprises 5,311,910 5,327,372 15,229,455 14,531,325 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353 The Company recognized revenues from contracts with customers in the following geographic regions: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) North America $ 24,817,014 $ 24,552,201 $ 74,712,967 $ 68,222,879 Europe 916,643 719,371 3,057,228 2,542,474 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353 During the three months ended September 30, 2023 and 2022, the Company recognized approximately $352,100 and $485,400, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2022 and 2021, respectively. During the nine months ended September 30, 2023 and 2022, the Company recognized approximately $1.6 million and $2.1 million, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2022 and 2021, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	16. Commitments and Contingencies Employment Agreements The Company has employment agreements with certain executives that set forth compensation levels and provide for severance payments in certain instances. Litigation The Company is not involved in any material legal proceedings.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Basis of Presentation and Accounting Policies
Basis of Presentation	The unaudited condensed consolidated financial statements as of September 30, 2023 and for each of the three and nine month periods ended September 30, 2023 and 2022, 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, 2022 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, 2022. The results of operations for the three and nine month periods ended September 30, 2023 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, allowance for credit losses, 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	The Company’s TMaaS offerings are substantially managed service driven solutions that use our proprietary technology platform to deliver our services and reported on that basis to its Chief Operating Decision Maker who evaluates its business as a single segment. See Note 15 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 nine months of 2023 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023.
Recently Adopted Accounting Standards	In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Measurements
Schedule of liabilities measured at fair value on a recurring basis	Quoted Prices in Significant Other SEPTEMBER 30, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: (Unaudited) Contingent consideration - cash settled $ 6,500 - - $ 6,500 Contingent consideration - warrants 400 - - 400 Total liabilities measured and recorded at fair value $ 6,900 $ - $ - $ 6,900 Quoted Prices in Significant Other DECEMBER 31, Active Markets Observable Inputs Unobservable Inputs Description 2022 (Level 1) (Level 2) (Level 3) Liabilities: Contingent consideration - cash settled $ 6,500 - - $ 6,500 Contingent consideration - warrants 400 - - 400 Total liabilities measured and recorded at fair value $ 6,900 $ - $ - $ 6,900

Accounts Receivable and Signi_2

Accounts Receivable and Significant Concentrations (Tables)	9 Months Ended
	Sep. 30, 2023
Accounts Receivable and Significant Concentrations
Schedule of accounts receivable	SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) U.S. Federal, State, and Local Government (1) $ 6,740,135 $ 7,272,993 Commercial (2) 2,244,138 2,055,782 Gross accounts receivable 8,984,273 9,328,775 Less: allowances for credit losses (3) 72,398 51,666 Accounts receivable, net $ 8,911,875 $ 9,277,109
Schedule of presents revenue by customer	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, Customer Type 2023 2022 2023 2022 (Unaudited) U.S. Federal Government (1) 78.8 % 78.5 % 79.9 % 78.9 %
Schedule of accounts receivable by customer	SEPTEMBER 30, DECEMBER 31, 2023 2022 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 73 % 78 %

Unbilled Accounts Receivable (T

Unbilled Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2023
Accounts Receivable and Significant Concentrations
Schedule of concentration of risk	SEPTEMBER 30, DECEMBER 31, 2023 2022 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 96 % 97 %

Other Current Assets and Accr_2

Other Current Assets and Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2023
Other Current Assets and Accrued Expenses
Schedule of Other current assets	SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Inventories $ 494,101 $ 222,279 Prepaid insurance and other assets 908,744 713,699 Total other current assets $ 1,402,845 $ 935,978
Schedule of Accrued Expenses	SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Carrier service costs $ 7,845,150 $ 8,402,770 Salaries and payroll taxes 1,665,088 1,637,628 Inventory purchases, consultants and other costs 1,004,362 1,205,209 Severance costs 7,612 7,612 U.S. income tax payable 46,720 61,490 Foreign income tax payable 55,900 12,560 Total accrued expenses $ 10,624,832 $ 11,327,269

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property and Equipment
Property, plant and equipment	SEPTEMBER 30, DECEMBER 31, 2023 2022 (Unaudited) Computer hardware and software $ 3,277,478 $ 3,158,428 Furniture and fixtures 498,461 502,391 Leasehold improvements 318,320 284,321 Automobiles 124,214 122,524 Gross property and equipment 4,218,473 4,067,664 Less: accumulated depreciation and amortization 3,360,606 3,089,446 Property and equipment, net $ 857,867 $ 978,218

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets
Schedule of Intangible assets	SEPTEMBER 30, 2023 Gross Carrying Accumulated Net Book Amount Amortization Value (Unaudited) Customer Relationships $ 2,392,000 $ (478,400 ) $ 1,913,600 Channel Relationships 2,628,080 (1,649,850 ) 978,230 Internally Developed Software 6,929,439 (3,696,876 ) 3,232,563 Trade Name and Trademarks 1,330,472 (321,020 ) 1,009,452 $ 13,279,991 $ (6,146,146 ) $ 7,133,845 DECEMBER 31, 2022 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (299,000 ) $ 2,093,000 Channel Relationships 2,628,080 (1,518,446 ) 1,109,634 Internally Developed Software 5,665,957 (2,546,407 ) 3,119,550 Trade Name and Trademarks 1,330,472 (254,496 ) 1,075,976 $ 12,016,509 $ (4,618,349 ) $ 7,398,160
Schedule of Estimated annual amortization of Intangible assets	Remainder of 2023 $ 566,031 2024 2,123,820 2025 1,450,258 2026 727,570 2027 503,106 Thereafter 1,763,060 Total $ 7,133,845

Sharebased Compensation (Tables

Sharebased Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Sharebased Compensation
Share-based Compensation	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Restricted share-based compensation expense $ 276,570 $ 115,141 $ 512,140 $ 384,267 Non-qualified option share-based compensation expense 23,277 - 23,277 - Total share-based compensation before taxes $ 299,847 $ 115,141 $ 535,417 $ 384,267
Schedule Of option pricing model	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 Stock options granted 288,570 -- 288,570 -- Expected dividend yield 0 % -- 0 % -- Expected volatility 61.6%-62.2 % -- 61.6%-62.2% -- Risk-free interest rate 4.1 % -- 4.1 % -- Term 4 years -- 4years --

Earnings Per Common Share (EP_2

Earnings Per Common Share (EPS) (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Common Share (EPS)
Schedule of earnings per share, basic and diluted	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Basic and Diluted Earnings Per Share Computation: Net loss $ (921,114 ) $ (540,883 ) $ (2,714,666 ) $ (14,692,989 ) Weighted average number of common shares 8,893,220 8,725,476 8,809,644 8,734,471 Basic and Diluted Loss Per Share $ (0.10 ) $ (0.06 ) $ (0.31 ) $ (1.68 )

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contracts with Customers
Schedule of composition of revenues from contracts with customers	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) Carrier Services $ 14,648,545 $ 14,062,700 $ 42,487,301 $ 39,495,108 Managed Services 11,085,112 11,208,872 35,282,894 31,270,245 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353
Revenue from external customers by customers type	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) U.S. Federal Government $ 20,285,569 $ 19,840,322 $ 62,160,270 $ 55,846,663 U.S. State and Local Governments 113,814 86,091 318,528 313,112 Foreign Governments 22,364 17,787 61,942 74,253 Commercial Enterprises 5,311,910 5,327,372 15,229,455 14,531,325 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353
Revenue from external customers by geographic areas	THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2023 2022 2023 2022 (Unaudited) North America $ 24,817,014 $ 24,552,201 $ 74,712,967 $ 68,222,879 Europe 916,643 719,371 3,057,228 2,542,474 $ 25,733,657 $ 25,271,572 $ 77,770,195 $ 70,765,353

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Contingent consideration - cash settled	$ 6,500	$ 6,500
Contingent consideration - warrants	400	400
Total liabilities measured and recorded at fair value	6,900	6,900
Fair Value, Inputs, Level 3 [Member]
Contingent consideration - cash settled	6,500	6,500
Contingent consideration - warrants	400	400
Total liabilities measured and recorded at fair value	6,900	6,900
Fair Value, Inputs, Level 2 [Member]
Contingent consideration - cash settled	0	0
Contingent consideration - warrants	0	0
Total liabilities measured and recorded at fair value	0	0
Fair Value, Inputs, Level 1 [Member]
Contingent consideration - cash settled	0	0
Contingent consideration - warrants	0	0
Total liabilities measured and recorded at fair value	$ 0	$ 0

Accounts Receivable and Signi_3

Accounts Receivable and Significant Concentrations (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Accounts Receivable Gross	$ 8,984,273	$ 9,328,775
Less: allowances for doubtful accounts	72,398	51,666
Accounts receivable, net	8,911,875	9,277,109
Government
Accounts Receivable Gross	6,740,135	7,272,993
Commercial
Accounts Receivable Gross	$ 2,244,138	$ 2,055,782

Accounts Receivable and Signi_4

Accounts Receivable and Significant Concentrations (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Trade Accounts Receivables Member
Concentration risk			73%	78%
U.S Federal Government
Concentration risk	78.80%	78.50%	79.90%	78.90%

Accounts Receivable and Signi_5

Accounts Receivable and Significant Concentrations (Details Narrative)	Sep. 30, 2023 USD ($)
Accounts Receivable and Significant Concentrations
Deposits in excess of FDIC limit	$ 7,100,000
Foreign bank deposits	$ 560,000

Unbilled Accounts Receivable (D

Unbilled Accounts Receivable (Details)	Sep. 30, 2023	Dec. 31, 2022
U.S Federal Government
Concentration Risk of receivable	96%	97%

Other Current Assets and Accr_3

Other Current Assets and Accrued Expenses (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Other Current Assets
Inventories	$ 494,101	$ 222,279
Prepaid insurance and other assets	908,744	713,699
Total other current assets	$ 1,402,845	$ 935,978

Other Current Assets and Accr_4

Other Current Assets and Accrued Expenses (Details 1) - USD ($)	Sep. 30, 2023	Mar. 31, 2022
Other Current Assets and Accrued Expenses
Carrier service costs	$ 7,845,150	$ 8,402,770
Salaries and payroll taxes	1,665,088	1,637,628
Inventory purchases, consultants and other costs	1,004,362	1,205,209
Severance costs	7,612	7,612
U.S. income tax payable	46,720	61,490
Foreign income tax payable	55,900	12,560
Accrued expenses	$ 10,624,832	$ 11,327,269

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Gross property and equipment	$ 4,218,473	$ 4,067,664
Less: accumulated depreciation and amortization	3,360,606	3,089,446
Property and equipment, net	857,867	978,218
Computer Hardware Software
Gross property and equipment	3,277,478	3,158,428
Furniture and Fixtures
Gross property and equipment	498,461	502,391
Leasehold Improvements
Gross property and equipment	318,320	284,321
Automobiles
Gross property and equipment	$ 124,214	$ 122,524

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property and Equipment
Property and equipment depreciation expense	$ 91,900	$ 102,000	$ 281,900	$ 305,100

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Gross carrying amount	$ 13,279,991	$ 12,016,509
Accumulated amortization	(6,146,146)	4,618,349
Net book value	7,133,845	7,398,160
Trademarks and Trade Names
Gross carrying amount	1,330,472	1,330,472
Accumulated amortization	(321,020)	254,496
Net book value	1,009,452	1,075,976
Customer Relationships
Gross carrying amount	2,392,000	2,392,000
Accumulated amortization	(478,400)	299,000
Net book value	1,913,600	2,093,000
Channel Relationships
Gross carrying amount	2,628,080	2,628,080
Accumulated amortization	(1,649,850)	1,518,446
Net book value	978,230	1,109,634
Internally Developed Software
Gross carrying amount	6,929,439	5,665,957
Accumulated amortization	(3,696,876)	2,546,407
Net book value	$ 3,232,563	$ 3,119,550

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details 1) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets
Remainder of 2023	$ 566,031
2024	2,123,820
2025	1,450,258
2026	727,570
2027	503,106
Thereafter	1,763,060
Total	$ 7,133,845	$ 7,398,160

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Aggregate amortization expense	$ 526,300	$ 365,800	$ 1,533,900	$ 958,400
Goodwill	5,811,578		5,811,578		$ 5,811,578
Capitalized Software Development Costs	$ 139,600	$ 1,100,000	832,400	2,900,000
Property, Plant and Equipment [Member]
Capitalized Software Development Costs				316,900
Internally Developed Software
Capitalized Software Development Costs			$ 509,700	$ 1,300,000

Line of Credit and Factoring _2

Line of Credit and Factoring Agreement (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 28, 2023	Sep. 30, 2023	Sep. 30, 2023
Net paid percentage			90%
Receivable sold during period		$ 36	$ 52
Proceeds net of fees		35	51
Outstanding residual payment balance		4,000	4,000
Loan Agreement
Line of credit borrowing capacity		$ 7,000	$ 7,000
Percentage of unpaid balance of eligible accounts receivable			80%
Maximum | Purchase Agreement
Outstanding Purchased Receivables	$ 4,000
Increase in receivable	$ 14,000
Receivable description	which is 90% if the debtor is an agency of the U.S. Government, and 85% if the debtor is not an agency of the U.S. Government

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023
Income Taxes
Income tax rate	(1.50%)	18%	19%	(2.60%)

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
	Oct. 07, 2019	Nov. 30, 2021	Sep. 30, 2023	Sep. 30, 2022	Jun. 22, 2023	Dec. 31, 2022
Common stock, shares authorized			30,000,000			30,000,000
Common stock, par value			$ 0.001			$ 0.001
Repuchase share	250,000
Common stock, shares issued			8,893,220			8,725,476
Strike price			$ 5.33
Common stock, shares outstanding			8,893,220			8,725,476
WidePoint Omnibus Incentive Plan
Common stock, shares authorized					1,300,000
Repurchase Plan
Share repurchase description		the Board increased the size of the Repurchase Plan to up to $5.0 million of the Company’s common stock, increasing the amount available for future purchases under the Repurchase Plan to $4.6 million
Stock repurchase shares			196,586
Stock repurchase Amount			$ 818,200
Warrants
Issued warrants to purchase			75,000
Strike price			$ 5.33
Warrants Fair Value			$ 108,000
Outstanding warrants			150,000
Restricted Stock Units (RSUs) [Member]
common stock vested sharaes			169,737	83,728
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation			$ 3,600	$ 49,300
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation			1,993	11,280

Sharebased Compensation (Detail

Sharebased Compensation (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Restricted stock compensation expense			$ 179,741
Total share-based compensation before taxes	$ 299,847	$ 115,141		$ 535,417	$ 384,267
Employee Stock Option
Non-qualified option share-based compensation expense	23,277			23,277
Restricted stock compensation expense	$ 276,570	$ 115,141		$ 512,140	$ 384,267

Sharebased Compensation (Deta_2

Sharebased Compensation (Details1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Risk-free interest rate	4.10%	0%	4.10%	0%
Expected dividend yield	0%	0%		0%
Stock options granted	$ 288,570	$ 0	$ 288,570	$ 0
Term	4 years		4 years
Minimum [Member]
Expected volatility	61.60%	0%	61.60%	0%
Maximum [Member]
Expected volatility	62.20%	0%	62.20%	0%

Sharebased Compensation (Deta_3

Sharebased Compensation (Details Narrative) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restricted stock awards granted	628,572	153,903	628,572	153,903
Stock option awards granted	288,570		288,570
Unrecognized share-based compensation expense	$ 1.2		$ 1.2
Weighted average remaining			1 year
Restricted Stock Units (RSUs) [Member]
Descripton of equity-based compensation			The first is 250,000 RSUs that will be awarded to management, of which 83,333 will be issued on January 1 of the years 2024, 2025, and 2026. The second is 250,000 performance based restricted stock units (PSRUs) that would vest upon meeting, by January 1, 2026

Earnings Per Common Share (EP_3

Earnings Per Common Share (EPS) (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Common Share (EPS)
Weighted average number of common shares	8,893,220			8,725,476			8,809,644	8,734,471
Basic and Diluted Loss Per Share	$ (0.10)			$ (0.06)			$ (0.31)	$ (1.68)
Net Income (Loss)	$ (921,114)	$ (842,073)	$ (951,479)	$ (540,883)	$ (13,759,209)	$ (392,897)	$ (2,714,666)	$ (14,692,989)

Earnings Per Common Share (EP_4

Earnings Per Common Share (EPS) (Details Narrative) - shares	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2022	Sep. 30, 2023
Earnings Per Common Share (EPS)
Unexercised stock options	55,117	43,058	64,012	43,103
Warrants to purchase	150,000	150,000	150,000	150,000

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues, net	$ 25,733,657	$ 25,271,572	$ 77,770,195	$ 70,765,353
Carrier Services [Member]
Revenues, net	14,648,545	14,062,700	42,487,301	39,495,108
Management Services [Member]
Revenues, net	$ 11,085,112	$ 11,208,872	$ 35,282,894	$ 31,270,245

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, net	$ 25,733,657	$ 25,271,572	$ 77,770,195	$ 70,765,353
U.S. State and Local Governments
Revenue, net	113,814	86,091	318,528	313,112
Foreign Governments
Revenue, net	22,364	17,787	61,942	74,253
Commercial Enterprises
Revenue, net	5,311,910	5,327,372	15,229,455	14,531,325
U.S Federal Government
Revenue, net	$ 20,285,569	$ 19,840,322	$ 62,160,270	$ 55,846,663

Revenue from Contracts with C_5

Revenue from Contracts with Customers (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, net	$ 25,733,657	$ 25,271,572	$ 77,770,195	$ 70,765,353
North America
Revenue, net	24,817,014	24,552,201	74,712,967	68,222,879
Europe
Revenue, net	$ 916,643	$ 719,371	$ 3,057,228	$ 2,542,474

Revenue from Contracts with C_6

Revenue from Contracts with Customers (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contracts with Customers
Revenue Related Approximately	$ 352,100	$ 485,400	$ 1,600,000	$ 2,100,000