NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Unaudited)
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 trusted mobility management (TM2).
The Company’s TM2 platform and service solutions enable its
customers to efficiently secure, manage and analyze the entire
lifecycle of their mobile communications assets through its
federally compliant platform Intelligent Telecommunications
Management System (ITMS™). The Company’s
ITMS™ platform is SSAE 18 compliant and was granted an
Authority to Operate by the U.S. Department of Homeland Security
and the U.S. Department of Commerce. Additionally, the Company was
granted an Authority to Operate by the General Services
Administration with regard to its identity credentialing component
of its TM2 platform. The Company’s TM2 platform is internally
hosted and accessible on-demand through a secure customer portal
that is specially configured for each customer. The Company can
deliver these solutions in a number of configurations ranging from
utilizing the platform as a service to a full-service solution that
includes full lifecycle support for all end users and the
organization.
The
Company derives a significant amount of its revenues from contracts
funded by federal government agencies for which WidePoint’s
subsidiaries act in the capacity as the prime contractor, or as a
subcontractor. The Company believes that contracts with federal
government agencies will be the primary source of revenues for the
foreseeable future. External factors outside of the Company’s
control such as delays and/or a change in government
administrations, budgets and other political matters that may
impact the timing and commencement of such work could result in
variations in operating results and directly affect the
Company’s financial performance. Successful contract
performance and variation in the volume of activity as well as in
the number of contracts commenced or completed during any quarter
may cause significant variations in operating results from quarter
to quarter.
A
significant portion of the Company’s expenses, such as
personnel and facilities costs, are fixed in the short term and may
not be easily modified to manage through changes in the
Company’s market place that may create pressure on pricing
and/or costs to deliver its services.
The
Company has periodic capital expense requirements to maintain and
upgrade its internal technology infrastructure tied to its hosted
solutions and other such costs may be significant when incurred in
any given quarter.
COVID-19
The
coronavirus (“COVID-19”) pandemic has created
significant macroeconomic uncertainty, volatility and disruption.
The assessment of how COVID-19 will impact our business is on-going
and encompasses all aspects of our business, including how COVID-19
will impact our customers, employees, subcontractors, business
partners and the capital markets. Although the Company did not
experience significant disruptions during the nine months ended
September 30, 2020, we are unable to fully predict the impact the
COVID-19 pandemic will have on our future financial position,
results of operations, or cash flows.
Additionally, changes in
spending policies, budget priorities and funding levels are a key
factor influencing the purchasing levels of government customers.
With the current COVID-19 pandemic, future budget priorities and
funding levels for these customers may be adversely
affected.
2.
Basis
of Presentation and Accounting Policies
Basis of Presentation
The
unaudited condensed consolidated financial statements as of
September 30, 2020 and for each of the three and nine month periods
ended September 30, 2020 and 2019, respectively, included herein
have been prepared by the Company pursuant to the rules and
regulations of the Securities and Exchange Commission (the
“SEC”). Pursuant to such regulations, certain
information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles
generally accepted in the United States (“U.S. GAAP”)
have been condensed or omitted. It is the opinion of management
that all adjustments (which include normal recurring adjustments)
necessary for a fair statement of financial results are reflected
in the financial statements for the interim periods presented. The
condensed consolidated balance sheet as of December 31, 2019 was
derived from the audited consolidated financial statements included
in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2019. The results of operations for the three
and nine month periods ended September 30, 2020 are not necessarily
indicative of the operating results for the full year.
Principles of Consolidation
The
accompanying condensed consolidated financial statements include
the accounts of the Company, its wholly owned subsidiaries and
acquired entities since their respective dates of acquisition. All
significant inter-company amounts were eliminated in
consolidation.
Common Stock Reverse Split
On
October 23, 2020, the Company filed a Certificate of Amendment to
its Amended and Restated Certificate of Incorporation with the
Secretary of Delaware to effect a one-for-ten reverse stock split
of the shares of the Company’s common stock, effective as of
5:00 pm Eastern Time on November 6, 2020. The Certificate of
Amendment also decreased the number of authorized shares of the
Company’s common stock from 110,000,000 to 30,000,000. All
share, restricted stock awards (“RSA”) and per share
information has been retroactively adjusted to reflect the reverse
stock split.
Foreign Currency
Assets
and liabilities denominated in foreign currencies are translated
into U.S. dollars based upon exchange rates prevailing at the end
of each reporting period. The resulting translation adjustments,
along with any related tax effects, are included in accumulated
other comprehensive income, a component of stockholders’
equity. Translation adjustments are reclassified to earnings upon
the sale or substantial liquidation of investments in foreign
operations. Revenues and expenses are translated at the average
month-end exchange rates during the year. Gains and losses related
to transactions in a currency other than the functional currency,
including operations outside the U.S. where the functional currency
is the U.S. dollar, are reported net in the Company’s
condensed consolidated statements of operations, depending on the
nature of the activity.
Use of Estimates
The
preparation of condensed consolidated financial statements in
conformity with accounting principles generally accepted in the
U.S. requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. The more significant areas
requiring use of estimates and judgment relate to revenue
recognition, accounts receivable valuation reserves, ability to
realize intangible assets and goodwill, ability to realize deferred
income tax assets, fair value of certain financial instruments and
the evaluation of contingencies and litigation. Management bases
its estimates on historical experience and on various other
assumptions that are believed to be reasonable under the
circumstances. Actual results could differ from those estimates.
There were no significant changes in accounting estimates used by
management during the quarter.
Segment Reporting
Our TM2
solution offerings comprise an overall single business from which
the Company earns revenues and incurs costs. The Company’s
TM2 solution offerings are centrally managed and reported on that
basis to its Chief Operating Decision Maker who evaluates its
business as a single segment. See Note 14 for detailed information
regarding the composition of revenues.
Significant Accounting Policies
There
were no significant changes in the Company’s significant
accounting policies during the first nine months of 2020 from those
disclosed in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2019 filed with the SEC on March 24,
2020.
Accounting Standards under Evaluation
In June 2016, the FASB issued ASU No. 2016-13,
“Financial Instruments - Credit Losses (Topic
326): Measurement of Credit Losses
on Financial Instruments”
(“Topic 326”). Topic 326 amends guidance on reporting
credit losses for assets held at amortized cost basis and available
for sale debt securities. For assets held at amortized cost basis,
Topic 326 eliminates the probable initial recognition threshold in
current GAAP and, instead, requires an entity to reflect its
current estimate of all expected credit losses. The allowance for
credit losses is a valuation account that is deducted from the
amortized cost basis of the financial assets to present the net
amount expected to be collected. For available for sale debt
securities, credit losses should be measured in a manner similar to
current GAAP, however Topic 326 will require that credit losses be
presented as an allowance rather than as a write-down. This ASU
update affects entities holding financial assets and net investment
in leases that are not accounted for at fair value through net
income. This update is effective for the company for fiscal years
beginning after December 15, 2022, including interim periods within
those fiscal years. The Company is currently evaluating the impact
of the pending adoption of this new standard on its consolidated
financial statements.
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:
|
|
|
|
|
|
|
|
|
|
|
|
Government
(1)
|
$29,569,252
|
$12,604,582
|
|
Commercial
(2)
|
2,019,530
|
2,102,581
|
|
Gross accounts
receivable
|
31,588,782
|
14,707,163
|
|
Less: allowances
for doubtful
|
|
|
|
accounts
(3)
|
119,248
|
126,235
|
|
|
|
|
|
Accounts
receivable, net
|
$31,469,534
|
$14,580,928
|
(1)
Government contracts are generally firm fixed price not to exceed
arrangements with a term of five (5) years, which consists of a
base year and four (4) annual option year renewals. Government
receivables are billed under a single consolidated monthly invoice
and are billed approximately thirty (30) to sixty (60) days in
arrears from the date of service and payment is generally due
within thirty (30) days of the invoice date. Government accounts
receivable payments could be delayed due to administrative
processing delays by the government agency, continuing budget
resolutions that may delay availability of contract funding, and/or
administrative only invoice correction requests by contracting
officers that may delay payment processing by our government
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
doubtful accounts if deemed necessary.
(3) For
the nine months ended September 30, 2020, the Company did not recognize any material provisions for bad
debt, write-offs or recoveries of existing provisions for bad
debt. The Company has not historically maintained a bad debt
reserve for its government customers as it has not experienced
material or recurring bad debt charges and the nature and size of
the contracts has not necessitated the Company’s
establishment of such a bad debt reserve.
Significant Concentrations
The
following table presents customers that represent ten (10) percent
or more of consolidated trade accounts receivable as of the dates
presented below:
|
|
SEPTEMBER 30,
|
|
|
|
|
|
|
|
|
|
|
Customer
Name
|
|
|
|
|
|
|
National
Aeronautics and Space Administration
|
--
|
21%
|
|
U.S. Census
Bureau
|
68%
|
18%
|
The
following table presents customers that represent ten (10) percent
or more of consolidated revenues in the current and/or comparative
periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer Name
|
|
|
|
|
|
|
|
|
U.S. Immigration
and Customs Enforcement
|
--
|
12%
|
--
|
14%
|
|
U.S. Customs Border
Patrol
|
--
|
14%
|
--
|
12%
|
|
U.S. Transportation
Safety Administration
|
10%
|
--
|
--
|
--
|
|
U.S. Census
Bureau
|
61%
|
16%
|
54%
|
--
|
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:
|
|
SEPTEMBER 30,
|
|
|
|
|
|
|
|
|
|
|
Customer
Name
|
|
|
|
|
|
|
U.S.
Immigration and Customs Enforcement
|
18%
|
24%
|
|
U.S. Census
Bureau
|
--
|
23%
|
5.
Other
Current Assets and Accrued Expenses
Other
current assets consisted of the following as of the dates presented
below:
|
|
SEPTEMBER 30,
|
|
|
|
|
|
|
|
|
|
Inventories
|
$216,058
|
$213,713
|
|
Prepaid rent,
insurance and other assets
|
883,715
|
881,134
|
|
|
|
|
|
Total other current
assets
|
$1,099,773
|
$1,094,847
|
Accrued
expenses consisted of the following as of the dates presented
below:
|
|
SEPTEMBER 30,
|
|
|
|
|
|
|
|
|
|
Carrier service
costs
|
$13,596,460
|
$12,274,440
|
|
Salaries and
payroll taxes
|
2,728,088
|
1,781,628
|
|
Inventory
purchases, consultants and other costs
|
1,006,107
|
834,131
|
|
Severance
costs
|
7,612
|
7,612
|
|
U.S. income tax
payable
|
3,670
|
8,850
|
|
Foreign income tax
payable
|
6,110
|
41,320
|
|
|
|
|
|
Total accrued
expenses
|
$17,348,047
|
$14,947,981
|
6.
Property
and Equipment
Major
classes of property and equipment consisted of the following as of
the dates presented below:
|
|
SEPTEMBER 30,
|
|
|
|
|
|
|
|
|
|
Computer hardware
and software
|
$2,216,824
|
$2,041,978
|
|
Furniture and
fixtures
|
452,117
|
399,521
|
|
Leasehold
improvements
|
298,080
|
299,340
|
|
Automobiles
|
30,063
|
56,800
|
|
Gross property and
equipment
|
2,997,084
|
2,797,639
|
|
Less: accumulated
depreciation and
|
|
|
|
amortization
|
2,377,311
|
2,116,064
|
|
|
|
|
|
Property and
equipment, net
|
$619,773
|
$681,575
|
During
the three and nine month periods ended September 30, 2020, property
and equipment depreciation expense was approximately $117,000 and
$328,300, respectively, as compared to $142,600 and $417,400,
respectively, for the three and nine month periods ended September
30, 2019.
During
the nine month periods ended September 30, 2020 and 2019, there
were no material disposals of owned property and
equipment.
There
were no changes in the estimated useful lives used to depreciate
property and equipment during the three and nine month periods
ended September 30, 2020 and 2019.
7.
Goodwill
and Intangible Assets
The
Company has recorded goodwill of $18,555,578 as of September 30,
2020. There were no changes in the carrying amount of goodwill
during the nine month period ended September 30, 2020.
Intangible assets
consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
Relationships
|
$1,980,000
|
$(1,980,000)
|
$-
|
|
Channel
Relationships
|
2,628,080
|
(1,124,234)
|
1,503,846
|
|
Internally
Developed Software
|
1,629,772
|
(1,223,512)
|
406,260
|
|
Trade
Name and Trademarks
|
290,472
|
(124,258)
|
166,214
|
|
|
|
|
|
|
|
$6,528,324
|
$(4,452,004)
|
$2,076,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
Relationships
|
$1,980,000
|
$(1,980,000)
|
$-
|
|
Channel
Relationships
|
2,628,080
|
(992,830)
|
1,635,250
|
|
Internally
Developed Software
|
1,623,122
|
(988,340)
|
634,782
|
|
Trade
Name and Trademarks
|
290,472
|
(109,734)
|
180,738
|
|
|
|
|
|
|
|
$6,521,674
|
$(4,070,904)
|
$2,450,770
|
For the
three and nine month periods ended September 30, 2020, the Company
capitalized $234,000 and $753,000, respectively, of internally
developed software costs, primarily associated with upgrading our
ITMS™ (Intelligent Telecommunications Management
System), secure identity management technology and network
operations center. For the three and nine month periods ended
September 30, 2019, the Company capitalized internally developed
software costs of approximately $21,000 and $146,800, respectively,
related to costs associated with our next generation TDI
Optimiser™ application. There were no disposals of intangible
assets during the three month periods ended September 30, 2020 and
2019.
The
aggregate amortization expense recorded for the three month periods
ended September 30, 2020 and 2019 were approximately $125,700 and
$198,800, respectively. The aggregate amortization expense recorded
for the nine month periods ended September 30, 2020 and 2019 were
approximately $377,00 and $596,500, respectively The total weighted
remaining average life of all purchased intangible assets and
internally developed software costs was approximately 4.3 years and
1.0 year, respectively, at September 30, 2020.
As of
September 30, 2020, estimated annual amortization for our
intangible assets for each of the next five years is
approximately:
|
Remainder
of 2020
|
$77,270
|
|
2021
|
333,714
|
|
2022
|
202,021
|
|
2023
|
194,570
|
|
2024
|
194,570
|
|
Thereafter
|
1,074,175
|
|
Total
|
$2,076,320
|
The
Company entered into a lease amendment, effective July 24, 2020,
for additional office space and a one year extension of the
original lease term. The Company accounted for the lease amendment
under the lease modification guidance in ASC 842, Leases. As a result, the Company
re-measured its lease liability and recognized an additional lease
liability and corresponding right-of-use asset of $943,290. The
lease liability was discounted using the Company’s
incremental borrowing rate of 3.5%.
On June
15, 2017, the Company entered into a Loan and Security Agreement
with Atlantic Union Bank (formerly known as Access National Bank)
(the “Loan Agreement”). The Loan Agreement provides for
a $5.0 million working capital revolving line of
credit.
Effective, April
30, 2020, the Company entered into a fifth modification agreement
(“Modification Agreement”) with Atlantic Union Bank to
amend the existing Loan Agreement. The Modification Agreement
extended the maturity date of the facility from April 30, 2020
through April 30, 2021 and changed the variable interest rate from
the Wall Street Journal prime rate plus 0.50% to the Wall Street
Journal prime rate plus 0.25%.
The
Loan Agreement requires that the Company meet the following
financial covenants on a quarterly basis: (i) maintain a minimum
adjusted tangible net worth of at least $2.0 million, (ii) maintain
minimum consolidated EBITDA of at least two times interest expense
and (iii) maintain a current ratio of 1.10:1.
The
available amount under the working capital line of credit is
subject to a borrowing base, which is equal to the lesser of (i)
$5.0 million or (ii) 70% of the net unpaid balance of the
Company’s eligible accounts receivable. The facility is
secured by a first lien security interest on all of the
Company’s personal property, including its accounts
receivable, general intangibles, inventory and equipment maintained
in the United States. As of September 30, 2020, the Company was
eligible to borrow up to $4.9 million under the borrowing base
formula.
The
Company files U.S. federal income tax returns with the Internal
Revenue Service (“IRS”) as well as income tax returns
in various states and certain foreign countries. The Company may be
subject to examination by the IRS or various state taxing
jurisdictions for tax years 2003 and forward. The Company may be
subject to examination by various foreign countries for tax years
2014 forward. As of September 30, 2020, the Company was not under
examination by the IRS, any state or foreign tax jurisdiction. The
Company did not have any unrecognized tax benefits at either
September 30, 2020 or December 31, 2019. In the future if
applicable, any interest and penalties related to uncertain tax
positions will be recognized in income tax expense.
As of
September 30, 2020, the Company had approximately $37.5 million in
net operating loss (NOL) carry forwards available to offset future
taxable income for federal income tax purposes, net of the
potential Section 382 limitations. These federal NOL carry forwards
expire between 2020 and 2037. Included in the recorded deferred tax
asset, the Company had a benefit of approximately $39.5 million
available to offset future taxable income for state income tax
purposes. These state NOL carry forwards expire between 2024 and
2036. Because of the change of ownership provisions of the Tax
Reform Act of 1986, use of a portion of our domestic NOL may be
limited in future periods. Further, a portion of the carryforwards
may expire before being applied to reduce future income tax
liabilities.
Management assesses
the available positive and negative evidence to estimate if
sufficient future taxable income will be generated to use the
existing deferred tax assets. Under existing income tax accounting
standards such objective evidence is more heavily weighted in
comparison to other subjective evidence such as our projections for
future growth, tax planning and other tax strategies. A significant
piece of objective negative evidence considered in
management’s evaluation of the realizability of its deferred
tax assets was the existence of cumulative losses over the latest
three-year period. Management forecast future taxable income, but
concluded that there may not be enough of a recovery before the end
of the fiscal year to overcome the negative objective evidence of
three years of cumulative losses. On the basis of this evaluation,
management has recorded a valuation allowance against all deferred
tax assets. If management’s assumptions change and we
determine we will be able to realize these deferred tax assets, the
tax benefits relating to any reversal of the valuation allowance on
deferred tax assets will be accounted for as a reduction of income
tax expense.
Common Stock
The
Company is authorized to issue 30,000,000 shares of common stock,
$.001 par value per share. As of September 30, 2020, there were
8,458,734 shares issued and outstanding. During the nine month period ended September 30,
2020, the Company granted 231,868 restricted stock awards (RSAs),
of which 173,745 remain unvested. During the three and nine month periods ended
September 30, 2019, 18,333 shares and 40,524 shares, respectively,
of common stock vested in accordance with the vesting terms of
RSAs.
During the nine months ended September 30, 2020, 75,000 stock
options were exercised on a cashless basis for an aggregate
issuance of 16,882 shares of the Company’s common
stock.
At The Market Offering Agreement
On
August 18, 2020, the Company entered into an
At-The-Market Issuance Sales Agreement (the “Sales
Agreement”) with B. Riley Securities, Inc. (“B. Riley
FBR”), The Benchmark Company, LLC (“Benchmark”)
and Spartan Capital Securities, LLC (“Spartan”, and
together with B. Riley FBR and Benchmark, the “Sales
Agents”) which establishes an at-the-market equity
program pursuant to which the Company may offer and sell shares of
our common stock, par value $0.001 per share, from time to time as
set forth in the Sales Agreement. The Sales
Agreement provides for the sale of shares of the
Company’s common stock (“Shares”) having an
aggregate offering price of up to $24,000,000.
The
Sales Agreement will terminate upon the earlier of
sale of all of the Shares under the Sales
Agreement or termination of the Sales Agreement as permitted.
During the nine months ended September 30, 2020, the Company has
incurred $131,436 of offering costs.
The
Company has no obligation to sell any of the Shares,
and, at any time, we may suspend offers
under the Sales Agreement or
terminate the Sales Agreement. The Company sold no shares
during the three months ended September 30, 2020 and has capacity
of $24.0 million under the Sales Agreement as of September 30,
2020.
12.
Share-based
Compensation
Share-based
compensation (including restricted stock awards) represents both
stock options based expense and stock grant expense. The following
table sets forth the composition of stock compensation expense
included in general and administrative expense for the periods then
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock
compensation expense
|
$133,266
|
$91,826
|
$570,693
|
$289,426
|
|
Non-qualified
option stock compensation expense
|
26,790
|
71,625
|
80,231
|
247,402
|
|
|
|
|
|
|
|
Total share-based
compensation before taxes
|
$160,056
|
$163,451
|
$650,924
|
$536,828
|
At
September 30, 2020, the Company had approximately $584,082 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
year.
13.
Earnings
Per Common Share (EPS)
The
computations of basic and diluted earnings per share were as
follows for the periods presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings Per Share Computation:
|
|
|
|
|
|
Net
income
|
$1,066,963
|
$183,710
|
$2,039,478
|
$260,050
|
|
Weighted average
number of common shares
|
8,450,843
|
8,423,435
|
8,409,114
|
8,401,405
|
|
Basic Earnings Per
Share
|
$0.13
|
$0.02
|
$0.24
|
$0.03
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share Computation:
|
|
|
|
|
|
Net
income
|
$1,066,963
|
$183,710
|
$2,039,478
|
$260,050
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
8,450,843
|
8,423,435
|
8,409,114
|
8,401,405
|
|
Incremental shares
from assumed conversions
|
|
|
|
|
|
of dilutive
securities
|
76,466
|
3,747
|
54,447
|
3,747
|
|
Adjusted weighted
average number of
|
|
|
|
|
|
common
shares
|
8,527,309
|
8,427,183
|
8,463,561
|
8,405,152
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
$0.13
|
$0.02
|
$0.24
|
$0.03
|
14.
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier
Services
|
$45,029,563
|
$20,576,193
|
$118,116,987
|
$48,943,134
|
|
Managed
Services
|
12,476,998
|
9,040,747
|
33,838,720
|
24,683,861
|
|
|
|
|
|
|
|
|
$57,506,561
|
$29,616,940
|
$151,955,707
|
$73,626,995
|
The
Company recognized revenues from contracts with customers for the
following customer types as set forth below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Federal Government
|
$54,067,651
|
$25,734,891
|
$138,942,101
|
$62,339,060
|
|
U.S.
State and Local Governments
|
24,969
|
112,108
|
76,255
|
354,289
|
|
Foreign
Governments
|
40,906
|
15,334
|
106,812
|
84,231
|
|
Commercial
Enterprises
|
3,373,035
|
3,754,607
|
12,830,539
|
10,849,415
|
|
|
|
|
|
|
|
|
$57,506,561
|
$29,616,940
|
$151,955,707
|
$73,626,995
|
The
Company recognized revenues from contracts with customers in the
following geographic regions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$56,407,094
|
$28,563,085
|
$148,655,842
|
$70,294,212
|
|
Europe
|
1,099,467
|
1,053,855
|
3,299,865
|
3,332,783
|
|
|
|
|
|
|
|
|
$57,506,561
|
$29,616,940
|
$151,955,707
|
$73,626,995
|
During the three
months ended September 30, 2020 and 2019, we recognized
approximately $350,400 and $312,500, respectively, of revenue related
to amounts that were included in deferred revenue as of December
31, 2019 and 2018, respectively.
During the nine months ended September 30,
2020 and 2019, we recognized approximately $1.6
million and $1.6 million, respectively, of revenue related to
amounts that were included in deferred revenue as of December
31, 2019 and 2018, respectively.
15.
Commitments
and Contingencies
The
Company has employment agreements with certain senior executives
that set forth compensation levels and provide for severance
payments in certain instances.