WidePoint (WYY) 10-Q 15 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 15, 2024
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	Mar. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		9,311,761
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
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
REVENUES	$ 34,207,279	$ 25,273,681
COST OF REVENUES (including amortization and depreciation of $576,905 and $502,560, respectively)	29,541,388	21,463,741
GROSS PROFIT	4,665,891	3,809,940
OPERATING EXPENSES
Sales and marketing	611,893	521,678
General and administrative expenses (including share-based compensation of $417,783 and $140,116, respectively)	4,448,483	3,910,820
Depreciation and amortization	256,534	265,843
Total operating expenses	5,316,910	4,698,341
LOSS FROM OPERATIONS	(651,019)	(888,401)
OTHER (EXPENSE) INCOME
Interest income	49,426	2,196
Interest expense	(58,737)	(58,778)
Other (expense) income, net	(34,871)	(194)
Total other (expense) income, net	(44,182)	(56,776)
LOSS BEFORE INCOME TAX (BENEFIT) PROVISION	(695,201)	(945,177)
INCOME TAX (BENEFIT) PROVISION	(42,091)	6,302
NET LOSS	$ (653,110)	$ (951,479)
EARNINGS PER SHARE, BASIC AND DILUTED	$ (0.07)	$ (0.11)
WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED	8,897,819	8,739,317

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Depreciation and amortization on cost of revenue	$ 576,905	$ 502,560
Share-Based Compensation Expense	$ 417,783	$ 140,116

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
NET LOSS	$ (653,110)	$ (951,479)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(22,220)	37,248
Other comprehensive income (loss):	(22,220)	37,248
COMPREHENSIVE LOSS	$ (675,330)	$ (914,231)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash	$ 5,267,934	$ 6,921,160
Accounts receivable, net of allowance for credit losses of $79,698 and $81,359, respectively	6,804,519	8,219,793
Unbilled accounts receivable	23,072,400	16,618,639
Other current assets	1,624,712	1,083,671
Total current assets	36,769,565	32,843,263
NONCURRENT ASSETS
Property and equipment, net	695,268	780,800
Lease right of use asset	3,876,013	4,045,222
Intangible assets, net	6,751,932	7,336,348
Goodwill	5,811,578	5,811,578
Other long-term assets	489,700	483,288
Total assets	54,394,056	51,300,499
CURRENT LIABILITIES
Accounts payable	12,061,252	12,633,658
Accrued expenses	20,594,212	16,175,702
Current portion of deferred revenue	1,850,537	2,009,343
Current portion of lease liabilities	619,708	638,258
Total current liabilities	35,125,709	31,456,961
NONCURRENT LIABILITIES
Lease liabilities, net of current portion	3,995,834	4,114,516
Contingent consideration	6,900	6,900
Deferred revenue, net of current portion	999,761	1,027,770
Deferred tax liabilities, net	64,753	16,923
Total liabilities	40,192,957	36,623,070
Commitments and contingencies (Note 14)	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; 9,311,761 and 8,893,220 shares issued and outstanding, respectively	9,313	8,894
Additional paid-in capital	102,349,962	102,151,381
Accumulated other comprehensive loss	(357,119)	(334,899)
Accumulated deficit	(87,801,057)	(87,147,947)
Total stockholders' equity	14,201,099	14,677,429
Total liabilities and stockholders' equity	$ 54,394,056	$ 51,300,499

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts receivable	$ 79,698	$ 81,359
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	9,311,761	8,893,220
Common stock, shares outstanding	9,311,761	8,893,220

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (653,110)	$ (951,479)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax expense	45,200	0
Depreciation expense	260,302	267,309
Provision for credit losses	7,566	35,858
Amortization of intangibles	573,137	501,094
Share-based compensation expense	417,783	140,116
Changes in assets and liabilities:
Accounts receivable and unbilled receivables	(5,317,052)	(2,528,761)
Inventories	(291,356)	(17,294)
Other current assets	(251,778)	15,790
Other assets	(6,412)	0
Accounts payable and accrued expenses	3,909,794	113,869
Income tax payable	(72,015)	55,703
Deferred revenue and other liabilities	(178,728)	(121,253)
Other liabilities	0	0
Net cash used in operating activities	(1,556,669)	(2,489,048)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(6,494)	(96,721)
Capitalized hardware and software development costs	0	(262,549)
Proceeds from beneficial interest in sold receivables	259,125	0
Net cash provided by (used in) investing activities	252,631	(359,270)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit	1,000,000	4,313,007
Repayments of bank line of credit advances	(1,000,000)	(4,313,007)
Principal repayments under finance lease obligations	(137,469)	(125,568)
Withholding taxes paid on behalf of employees on net settled restricted stock awards	(218,783)	(3,628)
Net cash used in financing activities	(356,252)	(129,196)
Net effect of exchange rate on cash	7,064	24,613
NET DECREASE IN CASH	(1,653,226)	(2,952,901)
CASH, beginning of period	6,921,160	7,530,864
CASH, end of period	5,267,934	4,577,963
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	51,940	55,979
NONCASH INVESTING AND FINANCING ACTIVITIES
Capitalized hardware and software development costs in accounts payable	$ 0	$ 190,773

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)	Total	Additional Paid-In Capital	Accumulated OCI	Accumulated Deficit	Common Stock
Balance, shares at Dec. 31, 2022					8,725,476
Balance, amount at Dec. 31, 2022	$ 17,751,203	$ 101,194,185	$ (350,234)	$ (83,101,474)	$ 8,726
Net income loss	(951,479)	0	0	(951,479)
Foreign currency translation - gain (loss)	37,248		37,248
Stock compensation expense - restricted	140,116	140,116	0	0
Issuance of common stock - restricted, amount	(3,628)	(3,642)	0	0	$ 14
Issuance of common stock - restricted, shares					13,841
Balance, amount at Mar. 31, 2023	16,973,460	101,330,659	(312,986)	(84,052,953)	$ 8,740
Balance, shares at Mar. 31, 2023					8,739,317
Balance, shares at Dec. 31, 2023					8,893,220
Balance, amount at Dec. 31, 2023	14,677,429	102,151,381	(334,899)	(87,147,947)	$ 8,894
Net income loss	(653,110)	0	0	(653,110)	0
Foreign currency translation - gain (loss)	(22,220)		(22,220)
Stock compensation expense - restricted	389,393	389,393	0	0
Issuance of common stock - restricted, amount	(218,783)	(219,202)	0	0	$ 419
Issuance of common stock - restricted, shares					418,541
Stock compensation expense - non-qualified stock options	28,390	28,390	0
Balance, amount at Mar. 31, 2024	$ 14,201,099	$ 102,349,962	$ (357,119)	$ (87,801,057)	$ 9,313
Balance, shares at Mar. 31, 2024					9,311,761

Organization and Nature of Oper

Organization and Nature of Operations	3 Months Ended
	Mar. 31, 2024
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	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and for each of the three month periods ended March 31, 2024 and 2023, 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, 2023 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, 2023. The results of operations for the three month period ended March 31, 2024 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 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 2024 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 26, 2024. Recently Adopted Accounting Standards On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

Accounts Receivable and Signifi

Accounts Receivable and Significant Concentrations	3 Months Ended
	Mar. 31, 2024
Accounts Receivable and Significant Concentrations
Accounts Receivable and Significant Concentrations	3. 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: MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) U.S. Federal, State, and Local Government (1) $ 4,410,463 $ 6,402,922 Commercial (2) 2,473,754 1,898,230 Gross accounts receivable 6,884,217 8,301,152 Less: allowances for credit losses (3) 79,698 81,359 Accounts receivable, net $ 6,804,519 $ 8,219,793 (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 three month period ended March 31, 2024, 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: MARCH 31, DECEMBER 31, 2024 2023 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 64 % 77 % The following table presents revenue by customer for each of the periods presented: THREE MONTHS ENDED MARCH 31, Customer Type As a % of Revenue 2024 As a % of Revenue 2023 U.S. Federal Government (1) 82 % 80 % (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 March 31, 2024, the Company had deposits in excess of FDIC limits of approximately $3.8 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 March 31, 2024, the Company had foreign bank deposits in excess of insured limits of approximately €328,900.

Unbilled Accounts Receivable

Unbilled Accounts Receivable	3 Months Ended
	Mar. 31, 2024
Unbilled Accounts Receivable
Unbilled Accounts Receivable	4. 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: MARCH 31, DECEMBER 31, 2024 2023 As a % of As a % of Customer Type Unbilled Receivables Unbilled Receivables (Unaudited) U.S. Federal Government 98 % 97 %

Other Current Assets and Accrue

Other Current Assets and Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Other Current Assets and Accrued Expenses
Other Current Assets and Accrued Expenses	5. Other Current Assets and Accrued Expenses Other current assets consisted of the following as of the dates presented below: MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Inventories $ 657,326 $ 366,126 Prepaid insurance and other assets 967,386 717,545 Total other current assets $ 1,624,712 $ 1,083,671 Accrued expenses consisted of the following as of the dates presented below: MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Carrier service costs $ 17,309,510 $ 12,959,350 Salaries and payroll taxes 2,010,890 1,681,160 Inventory purchases, consultants and other costs 1,273,812 1,463,102 Other - 72,090 $ 20,594,212 $ 16,175,702

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2024
Property and Equipment
Property and Equipment	6. Property and Equipment Major classes of property and equipment consisted of the following as of the dates presented below: MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Computer hardware and software $ 3,343,801 $ 3,355,488 Furniture and fixtures 501,098 503,913 Leasehold improvements 323,847 330,040 Automobiles 128,187 128,994 Gross property and equipment 4,296,933 4,318,435 Less: accumulated depreciation and amortization 3,601,665 3,537,635 Property and equipment, net $ 695,268 $ 780,800 During the three month periods ended March 31, 2024 and 2023 property and equipment depreciation expense was approximately $91,100 and $116,400, respectively. During the three month periods ended March 31, 2024 and 2023, 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, 2024 and 2023.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets
Goodwill and Intangible Assets	7. Goodwill and Intangible Assets The Company has recorded goodwill of $5,811,578 as of March 31, 2024 and December 31, 2023. There were no changes in the carrying amount of goodwill during the three month period ended March 31, 2024. Intangible assets consists of the following: MARCH 31, 2024 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (598,000 ) $ 1,794,000 Channel Relationships 2,628,080 (1,737,453 ) 890,627 Internally Developed Software 7,871,341 (4,769,140 ) 3,102,201 Trade Name and Trademarks 1,330,472 (365,368 ) 965,104 $ 14,221,893 $ (7,469,961 ) $ 6,751,932 DECEMBER 31, 2023 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (538,200 ) $ 1,853,800 Channel Relationships 2,628,080 (1,693,652 ) 934,428 Internally Developed Software 7,892,045 (4,331,203 ) 3,560,842 Trade Name and Trademarks 1,330,472 (343,194 ) 987,278 $ 14,242,597 $ (6,906,249 ) $ 7,336,348 The Company did not capitalize any internally developed software costs for the three month period ended March 31, 2024. For the three month period ended March 31, 2023, the Company capitalized $453,300 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 $280,220 was transferred from capital work in progress to internally developed software during the period. Capital work in progress is included in other long-term assets in the consolidated balance sheet. There were no disposals of intangible assets during the three month period ended March 31, 2024 and 2023. The aggregate amortization expense recorded for the three month periods ended March 31, 2024 and 2023 were approximately $573,100 and $501,100 respectively. As of March 31, 2024, estimated annual amortization for our intangible assets is approximately: Remainder of 2024 $ 1,776,442 2025 1,731,939 2026 922,517 2027 557,950 2028 503,106 Thereafter 1,259,978 Total $ 6,751,932

Credit Agreements

Credit Agreements	3 Months Ended
	Mar. 31, 2024
Credit Agreements
Credit Agreements	8. Credit Agreements From June 15, 2017 to June 2023, the Company had a Loan and Security Agreement with Atlantic Union Bank that 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 contained 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 period ended March 31, 2024, the Company sold a total of $2.9 million of receivables for $2.8 million in proceeds net of fees. As of March 31, 2024, there is no outstanding residual payment balance under the Purchase Agreement and it expired in April of 2024. On February 29, 2024, the Company entered into a Loan and Security Agreement (the “Loan”) and Promissory Note (the “Note,” and, together with the Loan, the “Agreements”) with Old Dominion National Bank. The Agreements provide for a new $4,000,000 revolving line of credit facility (the “Credit Facility”). Advances under the Credit Facility are subject to a borrowing base equal to the lesser of (i) $4,000,000 or (ii) 80% of billed accounts receivable less than 90 days outstanding. Interest accrues on the outstanding principal balance of the Credit Facility at an annual rate equal to the Prime Rate published in The Wall Street Journal, subject to a floor rate of 7.25%. Outstanding interest on the amount borrowed is payable monthly and all outstanding interest and principal is due on the maturity date of February 28, 2025. The Credit Facility includes customary covenants and events of default, including the following items that are measured annually commencing December 31, 2024: (i) a minimum tangible net worth of $2.0 million; (ii) a minimum annual EBITDA of $1.0 million and (iii) a ratio of current assets to current liabilities of not less than 1.0 to 1.0. The terms of new Credit Facility prohibit the use of our Factoring Arrangement. The Company did not have an outstanding balance on its Credit Facility as of March 31, 2024.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes
Income Taxes	9. Income Taxes The Company’s effective tax rate was 6.1% and (0.7)% for the three month periods ended March 31, 2024 and 2023, 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	3 Months Ended
	Mar. 31, 2024
Stockholders Equity
Stockholders' Equity	10. 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 March 31, 2024, there were 9,311,761 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). During the three month period ended March 31, 2024, there were 503,313 shares of common stock vested in accordance with the vesting terms of RSAs. Six employees received less than the shares vested because they elected to have a total of 84,772 shares withheld in satisfaction of the employees corresponding tax liability of approximately $218,800. The Company’s payment of this tax liability was recorded as a cash flow from financing activity on the consolidated statement of cash flows. During the three month period ended March 31, 2023, there were 15,837 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 stock option exercises during the three month periods ended March 31, 2024 and 2023. 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). 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.

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 31, 2024
Share-based Compensation
Share-based Compensation	11. 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 MARCH 31, 2024 2023 (Unaudited) Restricted share-based compensation expense $ 389,393 $ 140,116 Non-qualified option share-based compensation expense 28,390 - Total share-based compensation before taxes $ 417,783 $ 140,116 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. There were no restricted stock share awards granted during the three month periods ended March 31, 2024 and 2023. 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 no stock option awards granted during the three month periods ended March 31, 2024 and 2023. At March 31, 2024, the Company had approximately $0.2 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 1.4 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 formally approved by the Board of Directors in 2024. The LTIP has two components of equity-based compensation. The first is 250,000 Restricted Stock Awards (RSAs) that were granted to members of management on April 2, 2024 and vested 33% on the date of grant with the remainder to vest on January 1, 2025 and 2026, subject to continued service. The estimated fair value of these RSAs of $640,500 will be recorded over the service period. The second is 250,000 Performance- based Restricted Stock Units (PSRUs) that would vest upon meeting, certain revenue or, adjusted EBITDA performance targets through December 31, 2025, subject to continued service. The estimated fair value of these PRSUs of $640,500 will be recorded if and when the Company concludes that it is probable that either performance condition will be achieved.

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)	3 Months Ended
	Mar. 31, 2024
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS)	12. 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, 2024 2023 (Unaudited) Basic and Diluted Earnings Per Share Computation: Net loss $ (653,110 ) $ (951,479 ) Weighted average number of common shares 8,897,819 8,739,317 Basic and Diluted Loss Per Share $ (0.07 ) $ (0.11 ) For the three month period ended March 31, 2024, the Company had unexercised stock options of 288,570, RSAs of 112,679 and warrants to purchase 150,000 shares of common stock, outstanding, that were anti-dilutive. For the three month period ended March 31, 2023, the Company had unexercised stock options of 7,500, RSAs of 173,069 and warrants to purchase 150,000 shares of common stock, outstanding, that were anti-dilutive.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2024
Revenue from Contracts with Customers
Revenue from Contracts with Customers	13. 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, 2024 2023 (Unaudited) Carrier Services $ 19,342,789 $ 13,597,701 Managed Services 14,864,490 11,675,980 $ 34,207,279 $ 25,273,681 The Company recognized revenues from contracts with customers for the following customer types as set forth below: THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) U.S. Federal Government $ 28,067,572 $ 20,230,576 U.S. State and Local Governments 96,679 91,023 Foreign Governments 10,392 16,557 Commercial Enterprises 6,032,636 4,935,525 $ 34,207,279 $ 25,273,681 The Company recognized revenues from contracts with customers in the following geographic regions: THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) United States $ 33,250,246 $ 24,209,410 Europe 957,033 1,064,271 $ 34,207,279 $ 25,273,681 During the three months ended March 31, 2024 and 2023, the Company recognized approximately $908,900 and $709,400, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2023 and 2022, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies
Commitments and Contingencies	14. 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.

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Basis of Presentation and Accounting Policies
Basis of Presentation	The unaudited condensed consolidated financial statements as of March 31, 2024 and for each of the three month periods ended March 31, 2024 and 2023, 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, 2023 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, 2023. The results of operations for the three month period ended March 31, 2024 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.
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 13 for detailed information regarding the composition of revenues.
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.
Significant Accounting Policies	There were no significant changes in the Company’s significant accounting policies during the first three months of 2024 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 26, 2024.
Recently Adopted Accounting Standards	On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

Accounts Receivable and Signi_2

Accounts Receivable and Significant Concentrations (Tables)	3 Months Ended
	Mar. 31, 2024
Accounts Receivable and Significant Concentrations
Schedule of accounts receivable	MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) U.S. Federal, State, and Local Government (1) $ 4,410,463 $ 6,402,922 Commercial (2) 2,473,754 1,898,230 Gross accounts receivable 6,884,217 8,301,152 Less: allowances for credit losses (3) 79,698 81,359 Accounts receivable, net $ 6,804,519 $ 8,219,793
Schedule of concentration of risk	MARCH 31, DECEMBER 31, 2024 2023 As a % of As a % of Customer Type Receivables Receivables (Unaudited) U.S. Federal Government 64 % 77 % THREE MONTHS ENDED MARCH 31, Customer Type As a % of Revenue 2024 As a % of Revenue 2023 U.S. Federal Government (1) 82 % 80 %

Unbilled Accounts Receivable (T

Unbilled Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2024
Unbilled Accounts Receivable
Schedule of Concentration of risk	MARCH 31, DECEMBER 31, 2024 2023 As a % of As a % of Customer Type Unbilled Receivables Unbilled Receivables (Unaudited) U.S. Federal Government 98 % 97 %

Other Current Assets and Accr_2

Other Current Assets and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Other Current Assets and Accrued Expenses
Schedule of accrued liabilities	MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Carrier service costs $ 17,309,510 $ 12,959,350 Salaries and payroll taxes 2,010,890 1,681,160 Inventory purchases, consultants and other costs 1,273,812 1,463,102 Other - 72,090 $ 20,594,212 $ 16,175,702
Schedule of Other current assets	MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Inventories $ 657,326 $ 366,126 Prepaid insurance and other assets 967,386 717,545 Total other current assets $ 1,624,712 $ 1,083,671

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property and Equipment
Property, plant and equipment	MARCH 31, DECEMBER 31, 2024 2023 (Unaudited) Computer hardware and software $ 3,343,801 $ 3,355,488 Furniture and fixtures 501,098 503,913 Leasehold improvements 323,847 330,040 Automobiles 128,187 128,994 Gross property and equipment 4,296,933 4,318,435 Less: accumulated depreciation and amortization 3,601,665 3,537,635 Property and equipment, net $ 695,268 $ 780,800

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets
Schedule of finite-lived intangible assets	MARCH 31, 2024 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (598,000 ) $ 1,794,000 Channel Relationships 2,628,080 (1,737,453 ) 890,627 Internally Developed Software 7,871,341 (4,769,140 ) 3,102,201 Trade Name and Trademarks 1,330,472 (365,368 ) 965,104 $ 14,221,893 $ (7,469,961 ) $ 6,751,932 DECEMBER 31, 2023 Gross Carrying Accumulated Net Book Amount Amortization Value Customer Relationships $ 2,392,000 $ (538,200 ) $ 1,853,800 Channel Relationships 2,628,080 (1,693,652 ) 934,428 Internally Developed Software 7,892,045 (4,331,203 ) 3,560,842 Trade Name and Trademarks 1,330,472 (343,194 ) 987,278 $ 14,242,597 $ (6,906,249 ) $ 7,336,348
Schedule of finite-lived intangible assets, future amortization expense	Remainder of 2024 $ 1,776,442 2025 1,731,939 2026 922,517 2027 557,950 2028 503,106 Thereafter 1,259,978 Total $ 6,751,932

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-based Compensation
Schedule of share-based compensation expense	THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) Restricted share-based compensation expense $ 389,393 $ 140,116 Non-qualified option share-based compensation expense 28,390 - Total share-based compensation before taxes $ 417,783 $ 140,116

Earnings Per Common Share (EP_2

Earnings Per Common Share (EPS) (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Common Share (EPS)
Schedule of earnings per share, basic and diluted	THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) Basic and Diluted Earnings Per Share Computation: Net loss $ (653,110 ) $ (951,479 ) Weighted average number of common shares 8,897,819 8,739,317 Basic and Diluted Loss Per Share $ (0.07 ) $ (0.11 )

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contracts with Customers
Schedule of revenues from different type services	THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) Carrier Services $ 19,342,789 $ 13,597,701 Managed Services 14,864,490 11,675,980 $ 34,207,279 $ 25,273,681
Revenue from external customers by customers type	THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) U.S. Federal Government $ 28,067,572 $ 20,230,576 U.S. State and Local Governments 96,679 91,023 Foreign Governments 10,392 16,557 Commercial Enterprises 6,032,636 4,935,525 $ 34,207,279 $ 25,273,681
Revenue from external customers by geographic areas	THREE MONTHS ENDED MARCH 31, 2024 2023 (Unaudited) United States $ 33,250,246 $ 24,209,410 Europe 957,033 1,064,271 $ 34,207,279 $ 25,273,681

Accounts Receivable and Signi_3

Accounts Receivable and Significant Concentrations (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounts Receivable Gross	$ 6,884,217	$ 8,301,152
Less: allowances for doubtful accounts	79,698	81,359
Accounts receivable, net	6,804,519	8,219,793
Government
Accounts Receivable Gross	4,410,463	6,402,922
Commercial
Accounts Receivable Gross	$ 2,473,754	$ 1,898,230

Accounts Receivable and Signi_4

Accounts Receivable and Significant Concentrations (Details 1) - U.S Federal Government	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Concentration risk % of trade accounts receivable	64%		77%
Concentration risk % of revenue	82%	80%

Accounts Receivable and Signi_5

Accounts Receivable and Significant Concentrations (Details Narrative) - Mar. 31, 2024 $ in Millions	USD ($)	EUR (€)
Cash, FDIC Insured Amount | $	$ 3.8
Foreign
Cash, FDIC Insured Amount		€ 328,900
Ireland
Cash, FDIC Insured Amount		€ 100,000

Unbilled Accounts Receivable (D

Unbilled Accounts Receivable (Details)	Mar. 31, 2024	Dec. 31, 2023
U.S Federal Government
Concentration Risk of receivable	98%	97%

Other Current Assets and Accr_3

Other Current Assets and Accrued Expenses (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Other Current Assets
Inventories	$ 657,326	$ 366,126
Prepaid insurance and other assets	967,386	717,545
Total other current assets	$ 1,624,712	$ 1,083,671

Other Current Assets and Accr_4

Other Current Assets and Accrued Expenses (Details 1) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Other	$ 0	$ 72,090
Accrued expenses	20,594,212	16,175,702
Carrier service costs
Accrued expenses	17,309,510	12,959,350
Salaries and payroll taxes
Accrued expenses	2,010,890	1,681,160
Inventory purchases, consultants and other costs
Accrued expenses	$ 1,273,812	$ 1,463,102

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Gross property and equipment	$ 4,296,933	$ 4,318,435
Less: accumulated depreciation and amortization	3,601,665	3,537,635
Property and equipment, net	695,268	780,800
Furniture and Fixtures
Gross property and equipment	501,098	503,913
Computer Hardware Software
Gross property and equipment	3,343,801	3,355,488
Leasehold Improvements
Gross property and equipment	323,847	330,040
Automobiles
Gross property and equipment	$ 128,187	$ 128,994

Property and Equipment (Detai_2

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property and Equipment
Property and equipment depreciation expense	$ 91,100	$ 116,400

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Gross carrying amount	$ 14,221,893	$ 14,242,597
Accumulated amortization	(7,469,961)	(6,906,249)
Net book value	6,751,932	7,336,348
Trademarks and Trade Names
Gross carrying amount	1,330,472	1,330,472
Accumulated amortization	(365,368)	(343,194)
Net book value	965,104	987,278
Customer Relationships
Gross carrying amount	2,392,000	2,392,000
Accumulated amortization	(598,000)	(538,200)
Net book value	1,794,000	1,853,800
Channel Relationships
Gross carrying amount	2,628,080	2,628,080
Accumulated amortization	(1,737,453)	(1,693,652)
Net book value	890,627	934,428
Internally Developed Software
Gross carrying amount	7,871,341	7,892,045
Accumulated amortization	(4,769,140)	(4,331,203)
Net book value	$ 3,102,201	$ 3,560,842

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Details 1) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets
2024	$ 1,776,442
2025	1,731,939
2026	922,517
2027	557,950
2028	503,106
Thereafter	1,259,978
Total	$ 6,751,932	$ 7,336,348

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Aggregate amortization expense	$ 573,100	$ 501,100
Goodwill	5,811,578		$ 5,811,578
Internally Developed Software
Capital work in progress	280,220
Capitalized Software Development Costs	$ 453,300

Credit Agreements (Details Narr

Credit Agreements (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Feb. 29, 2024	Apr. 28, 2023	Mar. 31, 2024
Receivable sold during period			$ 2,900,000
Proceeds net of fees			$ 2,800,000
Loan Agreement
Line of credit borrowing capacity	$ 4,000,000
Borrowing base amount	4,000,000
Working capital revolving line of credit	$ 1,000,000
Description of Borrowing term	a ratio of current assets to current liabilities of not less than 1.0 to 1.0
Description of date of maturity extention	Outstanding interest on the amount borrowed is payable monthly and all outstanding interest and principal is due on the maturity date of February 28, 2025
Quarterly minimum tangible net worth	$ 2,000,000
Percentage of unpaid balance of eligible accounts receivable	7.25%
Maximum | Purchase Agreement
Outstanding Purchased Receivables		$ 4,000,000
Increase in receivable		$ 14,000,000
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
	Mar. 31, 2024	Mar. 31, 2023
Income Taxes
Income tax rate	6.10%	(0.70%)

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Common stock, shares authorized		30,000,000		30,000,000
Common stock, par value		$ 0.001		$ 0.001
Common stock, shares issued		9,311,761		8,893,220
Common stock, shares outstanding		9,311,761		8,893,220
Warrants
Issued warrants to purchase	75,000
Strike price	$ 5.33
Warrants Term	four-year contractual term
Exercise price		$ 5.33
Restricted Stock Units (RSUs)
Common stock vested sharaes		503,313	15,837
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation		$ 218,800	$ 3,600
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation, shares		84,772	1,993

Share-based Compensation (Detai

Share-based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation
Restricted stock compensation expense	$ 389,393	$ 140,116
Non-qualified option share-based compensation expense	28,390	0
Total share-based compensation before taxes	$ 417,783	$ 140,116

Share-based Compensation (Det_2

Share-based Compensation (Details Narrative) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) shares
Estimated fair value	$ 640,500
Unrecognized share-based compensation expense	$ 0.2
Weighted average remaining	1 year 4 months 24 days
Restricted Stock Units (RSUs)
Restricted stock awards granted | shares	250,000
Descripton of equity-based compensation	The first is 250,000 Restricted Stock Awards (RSAs) that were granted to members of management on April 2, 2024 and vested 33% on the date of grant with the remainder to vest on January 1, 2025 and 2026, subject to continued service. The estimated fair value of these RSAs of $640,500 will be recorded over the service period. The second is 250,000 Performance- based Restricted Stock Units (PSRUs) that would vest upon meeting, certain revenue or, adjusted EBITDA performance targets through December 31, 2025,

Earnings Per Common Share (EP_3

Earnings Per Common Share (EPS) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Basic and Diluted EPS Computation:
Net income loss	$ (653,110)	$ (951,479)
Weighted average number of common shares	8,897,819	8,739,317
Basic and Diluted Loss Per Share	$ (0.07)	$ (0.11)

Earnings Per Common Share (EP_4

Earnings Per Common Share (EPS) (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Common Share (EPS)
Unexercised stock options	288,570	7,500
RSAs shares	112,679	173,069
Warrants to purchase	150,000	150,000

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue, net	$ 34,207,279	$ 25,273,681
Carrier Services
Revenue, net	19,342,789	13,597,701
Managed Services
Revenue, net	$ 14,864,490	$ 11,675,980

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue, net	$ 34,207,279	$ 25,273,681
U.S. State and Local Governments
Revenue, net	96,679	91,023
Foreign Governments
Revenue, net	10,392	16,557
Commercial Enterprises
Revenue, net	6,032,636	4,935,525
U.S Federal Government
Revenue, net	$ 28,067,572	$ 20,230,576

Revenue from Contracts with C_5

Revenue from Contracts with Customers (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue, net	$ 34,207,279	$ 25,273,681
United States
Revenue, net	33,250,246	24,209,410
Europe
Revenue, net	$ 957,033	$ 1,064,271

Revenue from Contracts with C_6

Revenue from Contracts with Customers (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from Contracts with Customers
Revenue Related Approximately	$ 908,900	$ 709,400