Good day and welcome to the iAccess Alpha virtual best ideas winter investment conference 2025. The next Good day and welcome to the iAccess Alpha virtual best ideas winter investment conference 2025. The next presenting company is WidePoint Corporation. If you'd like to ask a question during the webcast, you may do so at any point during the presentation by clicking the ask question button on the left side of your screen. Type your question into the box and hit send to submit. I'd now like to turn the floor over to today's hosts, Jin Kang, Chief Executive Officer, and Jason Holloway, Chief Revenue Officer at WidePoint Corporation. Gentlemen, the floor is yours. Great. Thank you, Operator. Thank you and good morning to everyone. Thank you very much for your time today. Many thanks to iAccess Alpha for hosting this virtual conference and for giving us the opportunity to showcase our company. Today, I'll be telling you a little bit about WidePoint Corporation, who we are, what we do, and why we are unique. But first, an administrative item. This is our Safe Harbor Statement. I know that you have seen this before and that you're all accredited investors, but if you do need to see the full statement, it is located on our website at widepoint.com under Investor Relations. Now that that's out of the way, let me give you a quick snapshot of WidePoint Corporation. We are a mobility-as-a-service company founded in 1997, and we have been growing through organic and inorganic means for nearly 30 years. And I think that we can all agree that cybersecurity is a critical element of our IT world today, especially in a mobile world and with the advancement of AI. And this is a huge challenge for our clients, and it also presents a pain point for them. And we offer the solutions and services to address the cybersecurity concerns of our customers in this mobile world. We provide the solutions to secure, manage, and monitor our clients' mobile technology assets, all delivered using a SaaS business model. We empower our customers to work securely from everywhere and anywhere. Current management team has been in place since the second half of 2017. We have stabilized a floundering company and positioned it for growth and profitability. A company with 95% recurring revenues, $269 million in contract backlog, zero bank debt, very clean cap table, $36 billion in addressable market, $12.1 million in cash at the end of Q3 2025, 32 consecutive quarters of Adjusted EBITDA positive. More notably, we have been free cash flow positive for now eight consecutive quarters, and we see that continuing. We closed 2024 with $142.6 million in revenue, which was a 30% increase compared to 2023, roughly $68 million in market cap as of today, and I believe that there is a disconnect between our valuation and our performance, especially considering several material events that we have on our horizon, and also, insiders own approximately 18% of outstanding shares, so the objectives of the management team and the board are aligned with our investors. As I stated, our adjustable market size is approximately $36 billion and growing, and that includes federal, state, and local governments and commercial enterprises, large organizations for whom security and compliance is key. Organizations like the military, healthcare, finance, transportation, consumer products, energy sectors, etc. This market is continuing to grow due to cybersecurity threats and the post-pandemic environment that has us working from remote locations. Because we are remotely working from everywhere, the number of endpoints are continuing to increase, and the budget to secure and manage those endpoints are also increasing. And this provides tailwinds for our business. Even in our post-DOGE environment, enterprises are not cutting back on cybersecurity and mobility solutions. Next slide. And this is where our core competencies come in. This slide gives you a high-level view of our capability and differentiators. As I stated earlier, we provide the solutions to secure, manage, and monitor our clients' mobile technology assets, all delivered using a SaaS business model. Our integrated solution set is made up of three main components: identity and access management, managed mobility, data analytics. The first component of our solutions, identity management, we have the most secure multi-factor authentication solution that is available on the market today, one that has never been hacked, one that has been implemented at all of the federal government agencies, including the Department of Defense, one that has universal application, one that is quantum computing and AI resistant. It is estimated that it would take 140 years to breach our solution using the current computing power and AI technology, and now we are bringing that level of security to the commercial market on a new form factor, the smartphone. The second component of our solution, managed mobility, a solution that was built from the ground up to securely manage our clients' mobile technology assets, a comprehensive management platform that supports the full lifecycle management needs for those assets, a solution that is now FedRAMP authorized. More on this later in my presentation. The third component of our solution is our data analytics that provide full visibility of our customers' technology assets. Our solutions are at the confluence of cybersecurity and mobility management, and we secure our customers' cyber interaction in a mobile world. We own all of the IP for each of our solutions, and we have accreditations and certifications that are sought after by our clients and our strategic partners. We have authorization to operate or ATOs from various government agencies, and now we have achieved FedRAMP authorized status, which is a huge differentiator when you're competing for business in the federal government and these large corporations. Let me take a few minutes now to discuss our FedRAMP authorized status and what it means for WidePoint and as we compete for businesses, as we compete for customers in the federal and large commercial clients. Our solution delivery platform, our Intelligent Technology Management System, or ITMS for short, achieved FedRAMP authorized status in February of this year. That's after working with the General Services Administration for nearly three years. What this status means is that we meet all of the federal government standards and requirements for cybersecurity. We have passed a rigorous security assessment and are officially approved to store, process, and transmit federal government data in the cloud. None of our competitors can claim this level of certification, and a lot of the federal government acquisitions require a FedRAMP authorized status. So this will give us a big competitive advantage as we compete for contracts with federal government as well as large private sector enterprises. It will unlock opportunities that were previously beyond our reach. Now, let me delve a little bit deeper into our solution offerings. We are continuously enhancing our solution sets. Here are some of the notable technical developments. Mobile Anchor is our next-generation identity and access management solution. We have successfully developed, tested, and deployed the most secure multi-factor authentication solution on smartphones now, one that, as I said, is quantum computing resistant and has never been hacked. So be on the lookout for additional press releases on this front for new contract awards. M365 Analyzer solution is our enhancement of our unified communication solution to help manage and monitor inventory of software licenses. We have successfully developed, tested, and deployed this capability to help our customer manage costs and find savings. We also recently put out a press release about our strategic partnership with Ingram Micro to open up additional sales opportunities, and our solution is now available through the Microsoft Marketplace. Our IT as a service was recognized by Channel E2E for our comprehensive solution sets. This suite of solutions allows our clients to outsource all of their IT needs, allowing them to concentrate on their core business. So now let me delve a little bit deeper into our cybersecurity solution and what we do to help our customers secure their endpoints. As I stated earlier, we provide the most secure multi-factor authentication solution available on the market today. This solution is now available on the smartphones, a solution we call Mobile Anchor. This solution brings all of the high-security measures that our federal government uses now on your smartphone. Your smartphone is your security token for all of your cyber interactions. This same solution is relied upon by more than 18,000 enterprises worldwide. It provides the most secure physical and logical access controls. It eliminates the need for multiple user ID and password combinations, and we have been providing this solution since 1995 to the U.S. government, and in all that time, this solution has never been hacked. We were the first company to be certified by the U.S. Department of Defense and currently only one of two certified by the U.S. government to issue these credentials that serve as the foundation for their zero-trust security architecture. Now we have brought this DoD-grade multi-factor authentication solution to the commercial sector now on the smartphone form factor. We are also excited about our new business model that we call the Device as a Service, or DaaS, D-A-A-S. This solution delivers a full range of mobility management solutions, and our customers pay a predictable monthly or annual fee that bundles hardware, software, and services for their mobility needs. Some advantages for our clients of this DaaS model are reduced capital costs, auto tech refresh cycles, improved IT and security management, easily scalable, and ease of budgeting. As you may remember, we used this model on the largest mobility project called the 2020 Decennial Census along with our partner, CDW. This project involved around 700,000 devices and enumerators, and we escalated up and performed flawlessly without losing a single device or having a single device compromised, all during COVID. Also, our partner, CDW, recently announced that they are now an official supporter of the LA '28 Olympics and Paralympics. We look forward to supporting CDW and this LA '28 event. A little more about Mobile Anchor. This slide goes into some details on our new Mobile Anchor solution for smartphones. Suffice it to say, this provides the same level of identity and access management and security that we have been providing to the federal government. It is a technological leap forward, and as of now, it is a capability that is unmatched by our competitors. We see significant opportunities as our customers begin to migrate from the traditional smart card form factor to the smartphones. Now, all of our capabilities and solutions have enabled us to capture and pursue some significant contracts. We recently announced our SaaS contract award with one of the big three mobile carriers in the U.S., some $40-$45 million of SaaS contracts. We are currently in the implementation phase. Our customer, in this case, needed a FedRAMP authorized platform for managing their customer's data. This project will be transformational and materially improve our profitability. So stay tuned. We captured the Navy Spiral 4 contract with a contract value of $2.7 billion, that's with a B, and have recently been awarded eight new task orders with an approximate value of $25 million over the next 10 years. We are looking forward to capturing additional task orders under this contract vehicle. We also captured the $500 million DHS 2.0 contract. We also were the incumbents on the CWMS 1.0 contract and its predecessor contracts. All told, we have been performing on this contract for DHS for nearly 20 years, spanning five presidential administrations, proving that cybersecurity and mobility management is a nonpartisan issue. We recently have been awarded an additional $254 million in contract ceiling increases due to the successes of the CWMS 2.0 contract. We are pursuing the NASA SEWP VI and the Alliant 4 contracts with multi-billion dollar contract ceilings. We're also re-competing on the CWMS 3.0, which is a 10-year contract with a contract value of $3 billion. Here, we are the incumbent contractor where we believe we are the leading contender. We are punching way above our weight, and we have been very successful at it so far, and we plan to continue to be more successful in the coming 2026. This slide shows a sampling of our strategic partners, and we will continue to add to this list as our strategic partners form the core part of our growth strategy. We will continue to expand our relationship with large and trend systems integrators as well as other strategic partners. We are becoming their vendor of choice for mobility as a service solutions and Device as a Service. Our core competencies and our certification and accreditation represent key components in large IT contracts, and as such, we are sought after by our strategic partners, and we have had great successes in the past and more successes to come, especially now that we have our FedRAMP authorized status. Now for our financials. As you can see, we are a stable company with improving financials. Our top line has experienced double-digit percentage growth since the new management team took the helm in 2017, nearly 35% in 2024, and we look forward to continuing this trend over 2025 and 2026. We ended Q3 with $12.1 million in cash, and we're continuing to add to that. We have been Adjusted EBITDA positive now for 32 consecutive quarters and counting. We ended 2024 with $142.6 million in top line revenue, $2.6 million in Adjusted EBITDA, $2.5 million in free cash flow positive, all exceeding our guidance. Some solid numbers for an annual cap, and with a market cap of $68 million, I believe there is a disconnect between our valuation and our performance. And I think as we continue to perform, our market cap will reflect our true value. In terms of our growth strategy, we have a multi-pronged strategy for accomplishing our task. We will enhance our competitive edge by investing in our solution sets such as FedRAMP authorized status achieved, Microsoft Independent Software Vendor verification certification also achieved, further integration with industry-standard applications such as MDM, MAM, mobile device management, mobile application management, ServiceNow, etc. We will improve leverage by pursuing higher margin SaaS and DaaS contracts and expanding into the commercial markets. We will continue to expand our customer base by investing in our direct sales and marketing staff and efforts, and teaming with large and trend systems integrators and strategic partners to leverage our significant sales and marketing resources as well as our substantial customer relationships. And we will also develop new solution offerings and new teaming relationships to pursue opportunities that we cannot capture alone. And although inorganic growth is on our hold the line while we get the speaker back. One moment, please. I can jump in while we're trying to get Jin back. This is Jason Holloway, the Chief Revenue Officer. So as Jin was saying on the last slide here in terms of growth strategies, we are going to continue to focus on enhancing our competitive edge, improving our leverage, and expanding our customer base while also continuing to pursue strategic partnerships, which has always been very important to us. The reason why that we have such good relationships with our strategic partners is simply because with all of the accreditations and certifications that we have inside of WidePoint, we check a number of boxes that other companies just do not have the same capability of checking. So when Jin spoke about winning the Census project earlier with CDW, we were very strategic in assisting CDW in winning that contract because, again, of our accreditations and certifications. So we're just going to continue to pursue this path. It is currently working, and that's the way we're going to go. So I think we can move into Q&A, but I'd like to wait and see if we can get Jin back real quick. Hang on. Hello? Yep, we're here, Jin. Okay. When did we lose audio? I finished the last slide for you, so we are in Q&A with everyone now, Jin. Okay. All right. I don't know what happened there, so apologies to everyone. We have a couple of three questions here. The first one is from Peter Selsberg. What has changed in the last 6 to 12 months in terms of signed orders, and how has this been reflected in your financial performance? We have signed some material contracts, and one of the ones that we mentioned was the contract with our SaaS contract with one of the big three mobile carriers in the U.S.. That should be reflected. We are in the implementation stage, so that contract should reflect financial performance, and it'll have a material positive impact on our financial performance, probably starting in second quarter, depending on how fast our implementation goes and how fast our customer can provide us the necessary information and data to do the implementation. At what level of sales would you expect post-GAAP net income? This is also a question from Peter Selsberg. I think we're very close. I think any new additional contracts that we sign from this point forward is just going to add to our potential GAAP net earnings. As I said, as we complete the implementation of this carrier mobile contract with this mobile carrier, we should see net earnings on the GAAP basis, so I hope that answers your question. Jason, did you have anything to add to that? No, I'm good on that one, Jin. Thank you. Okay. The second question is, how confident are you of picking up CWMS 3.0 contract, and what do you believe WidePoint's market cap should be if you were successful? That question comes from Harry Davies, and so our confidence level is pretty high based upon the requirements that came out in the final RFP. There are fairly high hurdles for our competitors to meet, one of them being FedRAMP authorized or FedRAMP in process. They also ask for facility security clearance at the top secret level. They also state that only the prime contractor past performance can be used. They also state that the contractor must be less than 1,100 employees, including all of their affiliates. So we feel pretty good about our chances of winning, but we are not resting on our laurels, and we are not drinking the Kool-Aid yet. Our confidence is very high. What would our market cap be? I think one time our non-carrier services revenue would be a fair value. As it stands today, with this new contract under our belts, we're probably looking at just that contract alone would be $60 million in non-carrier services revenue based upon the current mix of business that we have with DHS. Anything to add to that, Jason? No, I would like to address the question submitted by JD Avatar in terms of enhancing our sales efforts and in the attempt to grow revenues faster. That is we've really relied upon strategic partnerships and obviously growing our internal sales group, which we still continue to do today. It's very important to us. I think now as we really continue to focus on commercial clients like Device as a Service, one of the things that I did want to say is that when we discuss our robust pipeline, that pipeline is all commercial, all very high margin, zero carrier pass-through like we experience on the DHS contract. So I want to let everybody know and specifically answer JD's question in terms of that's where we're going to be able to grow revenues at a much quicker pace. Software as a Service and Device as a Service is definitely, along with Mobile Anchor, going to be that we are bullish that it's going to be a game changer. So I did want to add that, Jin. Thank you, Jason. And so I think you just touched upon the next question, and this is from Christopher Meredith, Meredith Capital Group. How should we think about growth in higher margin SaaS and DaaS revenue as it becomes a larger mix of the business? The SaaS and DaaS business is a licensing model, so we're looking at gross margins of 70% plus. And our current managed services is approximately somewhere in the mid-30s to the high 30s. And so with the addition of SaaS and DaaS revenue, our goal of reaching the 50% gross margins becomes a reality. And so as you look at our performance in Q1 and Q2 of next year, you'll see a marked increase in our gross margins. Okay. Apologies. There was a comment about, "Please do not mention investor's name," asking questions, so I will not do that. Apologies. What are the key drivers behind backlog growth, and how much of it do you expect to convert to revenue over the next 12 months? The contract backlog is a contract that we already have signed, and so we should convert the contract backlog, every dollar of it, over the next three to four years. Over the next 12 months, we should see approximately about a quarter of that being converted to revenues over the next 18 months. Why are we so far away from positive EPS so far this year? The reason for us being away from positive EPS, there were some extenuating circumstances, especially with the federal government shutdown and slowing of the contract awards. We forecast that our contract with a carrier was going to be earlier in the year, actually towards the end of last year and beginning of this year, but it ended up being the end of this year, and so that was a big driver on that. The next question is, "Can you update us on the FedRAMP authorized platform, whether it's accelerating discussions with large federal enterprises?", and the answer is absolutely yes. It is a requirement in the CWMS 3.0, and more and more government agencies are requiring that. Jason, any last words? We got one minute left. Yeah, last word is yep, yep, yep. The last word is that pertaining to that question, FedRAMP absolutely is the game changer. The recent contract announcement with the very large carrier, we're going to be the system of record because, again, we are the only FedRAMP certified game in town when it comes to secure managed mobility services. So this is the reason why that we have an incredibly robust pipeline on the Device as a Service, and it's certainly driving all of software as a service. So 1,000% yes. Thank you, Jason. I think we answered all of the questions. I believe we're right at noon. So, Operator, any last remarks? No last remarks from me. Any final remarks before I close the call? Other than thank you very much for joining the call today. I appreciate all of your time, and please follow us. There's a lot of news on the horizon. Thank you. Thank you. That does conclude WidePoint Corporation's presentations. You may now disconnect. Please consult the conference agenda for the next presenting company.