wyy_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended September 30, 2025

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from __________________ to ___________________

Commission File Number: 001-33035

WidePoint Corporation

(Exact name of Registrant as specified in its charter)

Delaware		52-2040275
(State or other jurisdiction of		(I.R.S. employer
incorporation or organization)		identification no.)

11250 Waples Mill Road, South Tower 210, Fairfax, Virginia		22030
(Address of principal executive offices)		(Zip Code)

(703) 349-2577

(Registrant’s telephone number, including area code)

Securities Registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, $0.001 par value per share	WYY	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files): Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of November 10, 2025, there were 9,891,002 shares of the registrant’s Common Stock issued and outstanding.

WIDEPOINT CORPORATION

INDEX

		Page No.
Part I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2025 and 2024	3

	Condensed Consolidated Statements of Comprehensive Loss for the three and nine month periods ended September 30, 2025 and 2024	4

	Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024	5

	Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2025 and 2024	6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine month periods ended September 30, 2025 and 2024	8

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

Part II. OTHER INFORMATION

Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Default Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33

SIGNATURES		34

CERTIFICATIONS

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2025			2024			2025			2024
	(Unaudited)
REVENUES	$	36,125,207		$	34,620,433		$	108,223,148		$	104,868,483
COST OF REVENUES (including amortization and depreciation of $424,411, $562,389, $1,402,836, and $1,793,416, respectively)		30,849,895			29,928,067			93,052,073			90,617,004

GROSS PROFIT		5,275,312			4,692,366			15,171,075			14,251,479

OPERATING EXPENSES
Sales and marketing		677,618			530,391			1,986,897			1,702,210
General and administrative expenses (including share-based compensation of $154,111, $202,584, $518,988 and $986,325, respectively)		4,832,422			4,352,980			14,486,853			13,344,232
Depreciation and amortization		225,908			259,980			682,718			768,626

Total operating expenses		5,735,948			5,143,351			17,156,468			15,815,068

LOSS FROM OPERATIONS		(460,636	)		(450,985	)		(1,985,393	)		(1,563,589	)

OTHER INCOME (EXPENSE)
Interest income		83,439			59,882			226,209			161,033
Interest expense		(47,671	)		(52,911	)		(155,126	)		(183,979	)
Other income (expense), net		93			99			590			(36,306	)

Total other income (expense), net		35,861			7,070			71,673			(59,252	)

LOSS BEFORE INCOME TAX PROVISION (BENEFIT)		(424,775	)		(443,915	)		(1,913,720	)		(1,622,841	)
INCOME TAX PROVISION (BENEFIT)		134,410			(18,705	)		(12,013	)		(44,968	)

NET LOSS	$	(559,185	)	$	(425,210	)	$	(1,901,707	)	$	(1,577,873	)

EARNINGS PER SHARE, BASIC AND DILUTED	$	(0.06	)	$	(0.04	)	$	(0.20	)	$	(0.17	)

WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED		9,655,173			9,485,508			9,598,478			9,263,492

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2025			2024			2025			2024
	(Unaudited)
NET LOSS	$	(559,185	)	$	(425,210	)	$	(1,901,707	)	$	(1,577,873	)

Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax		410			49,549			91,361			20,613

Other comprehensive income (loss):		410			49,549			91,361			20,613

COMPREHENSIVE LOSS	$	(558,775	)	$	(375,661	)	$	(1,810,346	)	$	(1,557,260	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	SEPTEMBER 30,			DECEMBER 31,
	2025			2024
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	12,128,422		$	6,775,139
Restricted cash		832,863			1,042,256
Accounts receivable, net of allowance for credit losses of $70,725 and $46,150, respectively		7,117,636			11,930,474
Unbilled accounts receivable		29,888,114			31,798,431
Other current assets		6,066,826			3,771,473

Total current assets		56,033,861			55,317,773

NONCURRENT ASSETS
Property and equipment, net		439,110			544,723
Lease right of use asset		4,114,808			4,183,561
Intangible assets, net		3,678,013			5,063,795
Goodwill		5,811,578			5,811,578
Other long-term assets		497,936			659,086

Total assets	$	70,575,306		$	71,580,516

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	17,637,127		$	16,524,863
Accrued expenses		28,547,750			30,851,255
Current portion of deferred revenue		6,820,156			4,770,683
Current portion of lease liabilities		780,345			735,152

Total current liabilities		53,785,378			52,881,953

NONCURRENT LIABILITIES
Lease liabilities, net of current portion		4,125,894			4,200,019
Deferred revenue, net of current portion		462,053			907,160
Deferred tax liabilities, net		44,115			11,415

Total liabilities		58,417,440			58,000,547

Commitments and contingencies (Note 16)		-			-

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding		-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 9,655,173 and 9,485,508 shares issued and outstanding, respectively		9,656			9,487
Additional paid-in capital		103,491,727			103,103,653
Accumulated other comprehensive loss		(359,584	)		(450,945	)
Accumulated deficit		(90,983,933	)		(89,082,226	)

Total stockholders’ equity		12,157,866			13,579,969

Total liabilities and stockholders’ equity	$	70,575,306		$	71,580,516

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	NINE MONTHS ENDED
	SEPTEMBER 30,
	2025			2024
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,901,707	)	$	(1,577,873	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income tax expense		50,200			103,000
Depreciation expense		699,768			779,972
Provision for credit losses		38,694			21,584
Amortization of intangibles		1,385,786			1,782,070
Share-based compensation expense		518,988			986,325
Non-cash lease expense		164,883			-
Loss on disposal of fixed assets		8,161			-
Changes in assets and liabilities:
Accounts receivable and unbilled receivables		6,784,375			(8,627,232	)
Inventories		(712,121	)		(71,644	)
Other current assets		(1,542,224	)		(864,123	)
Other assets		161,150			(6,412	)
Accounts payable and accrued expenses		(1,124,995	)		6,237,759
Income tax payable		(55,111	)		(68,342	)
Deferred revenue and other liabilities		1,556,822			551,938
Other liabilities		(152,483	)		-
Net cash provided by (used in) operating activities		5,880,186			(752,978	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(140,918	)		(80,702	)
Proceeds from beneficial interest in sold receivables		-			259,125
Net cash (used in) provided by investing activities		(140,918	)		178,423

CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit		2,800,000			4,600,000
Repayments of bank line of credit advances		(2,800,000	)		(4,600,000	)
Principal repayments under finance lease obligations		(412,299	)		(456,825	)
Withholding taxes paid on behalf of employees on net settled restricted stock awards		(130,745	)		(258,382	)
Net cash used in financing activities		(543,044	)		(715,207	)

Net effect of exchange rate on cash		(52,334	)		4,659

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		5,143,890			(1,285,103	)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period		7,817,395			6,921,160

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	12,961,285		$	5,636,057

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH CONSISTED OF THE FOLLOWING:
Cash and cash equivalents	$	12,128,422		$	5,636,057
Restricted cash		832,863			-

	$	12,961,285		$	5,636,057

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

	NINE MONTHS ENDED
	SEPTEMBER 30,
	2025		2024
	(Unaudited)
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for interest	$	121,221	$	163,400
Cash paid for income taxes	$	47,500	$	-

NONCASH INVESTING AND FINANCING ACTIVITIES
ROU asset obtained in exchange for lease liability	$	542,232	$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Additional

Common Stock

Paid-In

Accumulated

Issued

Amount

Capital

OCI

Deficit

Total

(Unaudited)

Balance, January 1, 2024

SEC Form 10-Q filed by WidePoint Corporation