All right, hello and welcome to the WidePoint Fireside Chat. My name is Robert Blum, a Managing Partner here at Lytham, and today I'll be moderating a Q&A discussion with Jin Kang, the company's Chief Executive Officer. As a reminder, WidePoint trades under the NYSE American, ticker symbol WYY. Jin, welcome. Thank you, Robert. It's always a pleasure speaking with you. Absolutely. Thank you for your time. Thank you for coming back here. I want to sort of utilize this as an opportunity to give folks not familiar with the story a bit of an overview here on the company. Start off, high-level overview of WidePoint here. Yeah, just very short, WidePoint, you know, we are in the business of helping our customers secure, manage, and, you know, gain visibility into their mobility assets, technology assets that allow our customers, staff, to work from anywhere in the world. You know, especially in this post-pandemic environment, it is a critical function. How have things, the company's got a long history, sort of talk about how things have evolved here and how sort of you've moved into the position that you're at here today. Yeah, so I joined the company back in 2008 when my company that was doing the mobility management piece of this, our managed mobility piece of the work. I sold my company in 2008, joined WidePoint as the Chief Operating Officer. Fast forward to 2017, the company was struggling, and the board wanted to have a management change. They looked around and chose me as the successor. Since taking the helm in 2017, we have been now EBITDA positive for 32 straight consecutive quarters and now seven consecutive quarters of adjusted EBITDA positive. Me, in terms of my background, is I'm a technologist at heart, so I'm all about technical solutions and cybersecurity. Yeah. Let's walk through core product offerings and sort of how they all integrate together to serve the clients. Yeah, so, you know, our integrated solution set includes four main components, which are identity management, managed mobility, data analytics, and IT-as-a-Service, all delivered in a SaaS model. The four main components, number one is our identity management. It provides the most secure multi-factor authentication solution available on the market today, one that has been certified by the U.S. federal government and that has been implemented in all of the federal departments, including the Department of Defense. A solution that is quantum computing resistant and never been hacked, right? The second part of our solution is our managed mobility solution, which provides 360-degree support for our customers' mobile technology assets. From the time that the technology asset is acquired to when it's put into operation, we do invoice auditing to discover cost savings, which is a huge deal under the current DoD environment, all the way to when the asset is processed for end-of-life recycling. We're a full lifecycle support provider that associates with all of the technology assets and their associated ancillary services and plans, right? The third part of our solution is our data analytics that provides full visibility of how that asset is used, location, cost, operating conditions, assigned, who it is assigned to, usage, contracts, invoices, etc., etc. The fourth part of our solution, integrated solution, is our IT-as-a-Service. Our customer completely outsources their management of their IT infrastructure to us, including their cybersecurity requirements. All of our solutions are delivered in a very integrated fashion, and we utilize our proprietary Intelligent Technology Management System, which recently received the Federal Risk and Authorization Management Program, or FedRAMP, which means that we meet all of the federal requirements for cybersecurity. We deliver a very integrated set of solutions for mobility technology asset management for our customers. All right, very good. Let's talk about the business model a little bit, how revenue is generated, and maybe lead into visibility and backlog. Yeah, so our business model, as I said, is a Software-as-a-Service model. All of our solutions are delivered through our ITMS platform. In terms of all of our, I think, let me see, let me understand, I forgot this question. You asked, how is our revenue? The business model. Let's walk through the business model. How do you build clients? How is revenue generated? Maybe lead into the backlog and the visibility you have into contracts. Yeah, as I stated earlier, our business model is delivered through a SaaS model, right? Our delivery platform is ITMS. We license that to our customer. A few of our customers operate their own instances of ITMS. However, in most cases, we utilize the licenses to operate the systems on our customer's behalf. Does that make sense? We are also moving forward with a new model called Device-as-a-Service, or DaaS, where our customers will essentially pay a fixed monthly fee for all of their mobile management needs, including equipment, cybersecurity services, accessories, backup, recovery, all of that. Essentially, they will pay a fixed monthly fee. We recently announced our first such project with the Federal Agency for Health, and it's going well so far. In terms of how we generate revenue, we generate revenue based upon the number of devices managed for our customer. We have a fairly large set of customers both in the public and private sectors. Talk about sort of the predictability that you have into revenues then, right? If it's a number of devices, is there, do you sign up for periods of time, multi-year agreements? Walk through that. Yeah, typically on the federal government side, we have a five-year contract. Usually, it's like one base year with four option periods, four one-year option periods. On the commercial side, it's a three-year, you know, engagement usually. The revenue is very predictable in that it's a number of devices that are currently under management for a particular contract. Unless the agency or the customer that we're supporting has a wild swing in terms of staffing levels, the number of devices stays steady and actually it usually experiences a little tick upwards as we continue to perform. You'll see that revenue continue to climb. It's very predictable. All right, very good. Talk about some of the bigger contracts, specifically on the government side that you have, but please sort of address commercial as well. Yeah, so we have a very big contract that is coming up for renewal. This is one of our flagship contracts. It's called the Department of Homeland Security CWMS 3.0. That's a predecessor to the CWMS 2.0, which is a predecessor of the 1.0. There was even a previous contract to that. We've been performing on this particular contract for now, probably going on 20 years. That contract, in the current form, is a $500 million contract, which had been recently modified. They executed a modification to increase the cap on that by $254 million. Now the total spend, maximum you can spend on that contract, is $274 million. That contract is coming to an end at the end of this year, November. DHS has already issued a draft RFP, which we responded to, and a final RFP for the 3.0, the successor to the 2.0, is coming out in November of this year. That contract is slated to be a 10-year contract versus a 5-year contract that we currently have. They're increasing the cap on that contract by, it's going to go from $1.5 billion to $3 billion. They're foreseeing an increase in the size of that contract. DHS, as you know, has been receiving additional mission to help close the southern and the northern borders. They'll be relying on a lot of wireless and cellular technology, satellite technology to implement that in the southern and the northern border. They're foreseeing that this particular contract has to be sized up. Instead of being a $1.5 billion that we thought it was going to be, it's going to be a $3 billion contract. We covered the RFP in some great detail in our Q2 earnings call, so if you go back and go to our site and listen to that a little bit, I'll give you a real quick rundown of it. We feel that we are in the best position to win because of various requirements that they've put into the RFP. One of the ones that they put in is that it needs to be FedRAMP authorized. FedRAMP authorized means we meet all of the federal government cybersecurity requirements. We recently received the FedRAMP authorized status in March of this year. None of our competitors can claim that they are FedRAMP authorized. They have a platform that has been FedRAMP authorized. It is a small business set-aside, meaning the company has to be 1,500 people or less. We meet that criterion, right? The company has to have a federal facility security clearance, which we have, right? We have fantastic past performance. Only the prime contractor's past performance can be used. We look through all of these requirements that are in the RFP, and we meet every one of those requirements, and our competitors will have a hard time hitting those requirements. The other big piece of this contract that I want to talk about is our Spiral 4 contract, which is the $2.7 billion 10-year contract. So far, we have run four task orders underneath that contract, and we see additional contracts coming. We also talked about that in an earnings call. If you look, just listen to or read through the script, you'll see there's a lot of good things happening. We also are engaged in a potential contract with a large carrier, you know, cellular carrier, one of the big three. They're talking about using our ITMS platform to manage all of their mobile devices. We're talking about, on all of their customers' mobile devices, somewhere in the order of 2 million- 2.5 million devices. We also talked about our Device-as-a-Service partner called CDW. They recently announced that they have won the right to be a supporter of the LA28 Olympics and Paralympics. When we partnered with them during the Census Project, they used our platform to manage all of their devices. We have a lot of opportunities, and we have a lot of opportunities that we've won, and we have a lot of opportunities that are just on the cusp. The two opportunities that I talked about, the last two, the Device-as-a-Service, and also the contract with one of the larger cellular carriers, all commercial deals. Decision points on some of these upcoming events are when? Decision points, we're a bit disappointed in the time that it's taken to close some of these Device-as-a-Service deals. We thought some of these things would come in at the beginning of this year in Q1 and Q2. It hasn't. It has slipped, but these opportunities are, you know, we're dotting the I's and crossing the T's. We feel that these things will happen in Q3 and Q4. All right, very good. You sort of talked at the beginning, high level, about what are the factors that are sort of shaping the markets that you serve, right? Maybe just kind of help put a bow on that and help investors understand why the opportunity for what it is that you're providing is unique and has growth opportunity to it. Yeah, I think the thing that's happening is that we are squarely in the trusted mobility management, where we help our customers secure, manage, and gain visibility into their mobile technology assets. We are in this post-pandemic environment, and there's been a lot of talk about back to the office, everybody needs to come back. The reality is that it's going to be mobile workforce. It's going to be a hybrid workforce that's going to be heavily relying on how they can work from anywhere securely. The technology and the solutions that we have help our customers secure, manage, and have visibility into their mobility assets. As they're moving around, doing their work on a day-to-day basis, connecting into their IT infrastructure, we help them secure that connectivity. We help them manage all of the devices, provide the logistics and reverse logistics, configuring those devices, and then providing visibility of how those devices are used. In this pandemic environment, I think the market is moving, you know, definitely towards us. All right, very good. Help people understand when you're submitting the proposals or responding to the RFPs and such, you are going up against the likes of who? We're going up against the likes of, you know, mobility management vendors, identity management vendors. We're going against, you know, data analytics vendors and IT-as-a-Service vendors. They all have a stovepipe of this solution. What we have done is we have now cobbled that together. We have a very integrated solution, you know, so, you know, and our solutions, you know, are battle-tested, right? We are certified by the federal government, and that says that we meet all of their federal government cybersecurity standards, right? We have authorization to operate, ATOs, right? We have recently received our FedRAMP authorized status. Essentially, what that means is that we meet the federal government standards for cybersecurity for not just one agency or one department. We're talking we meet the cybersecurity standards for all of the federal government, right? When we go out and we, you know, bid on these contracts, that gives us a huge leg up on our competitors who don't have a platform that meets that level of security. The cellular, you know, provider that we're talking about is they need a platform to manage all of these devices that they're doing, managing for the federal government. They need a system that is FedRAMP authorized. Who do they go to? Who else has that? That would be us, right? It's a huge, huge deal for us because we meet, you know, all of the cybersecurity standards for the federal government. We have the most comprehensive technology management platform that we built up from the ground up specifically to, you know, help our customers secure, manage, and gain visibility into a mobility asset. In this, you know, post-pandemic environment, I think we're at the right place at the right time with the right solution. Like any good CEO, don't give too much publicity to your competition there. I like that. Right, right. Let's talk. I could give you some names, but we compete with them in these various stovepipes, but you won't see their names two, three years down the line. All right, very good. Let's talk about recent operational highlights. You just mentioned 32 straight profitable EBITDA quarters, cash flow profitable here, most recent. Give people, you reported numbers here, I guess it was last week, but maybe just give people a little bit of an update here on what the second quarter looked like. Yeah, the second quarter, you know, we hit our guidance on top line revenue. We have been investing in, you know, our DaaS infrastructure, sales and marketing, our logistics space so that we could support a lot of the, you know, Device-as-a-Service solutions. We're looking at some large opportunities. While our EBITDA wasn't as strong as we forecasted at the beginning of the year, still positive, still positive of, you know, free cash flow. We have zero bank debt. We're adding cash to our balance sheet. We ended, you know, Q2 with $6.8 million, and should be higher. We have some unbilled issues that we're working down. It should be, you know, our, you know, cash balance should be somewhere around $11 or $12 million. If all of those unbilled were billed, these are legitimate invoices that we're getting out. We're in the process of, you know, negotiating with our contracting officer representative on the government side to get all of those things done. We had 15% CAGR for the last four or five years. Seven consecutive quarters of free cash flow, positive, no bank debt. We're an established, stable, growing, and we're looking to get to profitability here, you know, probably towards the end of this year, beginning next year. I think you probably just hit on my next question there, which is sort of the investment highlights, right? Beyond some of the financial metrics that you just mentioned, maybe talk about sort of the moat that you have, the opportunity you have, the assets beyond just sort of the cash flows, and talk about your customers and everything else that sort of create this moat of an investment opportunity here for investors. Yeah, so we talked about the CWMS 3.0 recompete, which we believe we have the inside track, 10-year, $3 billion contract, right? This is doubling our current size of our current contract, right? Doubling the length as well. Not a five, 10-year. As I said, we discussed that in detail. We are way ahead of our competition on meeting all of those requirements. We recently announced, as I said, the Navy Spiral 4 contract, $2.7 billion contract. We have a growing sales pipeline with huge deals that could dwarf some of the opportunities that we currently already have with some of the federal government agencies. I think we're in a very good situation. We introduced a couple of our new solutions, our M365 Analyzer, which we are now starting to offer in the Microsoft marketplace. We recently announced several wins on our Mobile Anchor solution, which puts the digital certificates, meaning you can use your mobile device as your physical and logical access, as your security token for physical and logical access to access your IT infrastructure. We know that we don't have a, you know, there isn't a competitor in our identity management solution that does that. It is the most secure multi-factor authentication solution available on the market, one that is quantum computing resistant, and now we're putting that onto these mobile devices. A lot of good things happening. We got a good set of product offerings, very integrated solution platform, and it's just a matter of time. I mean, we're going to continue to grow. We're going to continue to grow. Hopefully, it'll be what they call the tiering of small numbers. As we win some of these larger opportunities, we always talk about double-digit percentage growth. Maybe we could even double the size of our managed services revenue with like a single contract. That's how large some of these opportunities are. We know we can size up and scale because we performed under the census, the Decennial Census 2020. To talk about that a little bit, we are already seeing activity in the Census 2030, Decennial Census. The RFI has come out. Of course, President Trump is talking about a mid-decennial census happening like this year. If the Census Bureau has to go out and execute a new census in short order, they would have to rely on vendors that have already done this, and they have already been successful. As you know, in 2020, we managed roughly 700,000 devices, set them all up, acquired all of them, put them all into the database, imaged them all, did the logistics to send them all out, supported 24x 7 help desk. After the census was done, we did the reverse logistics. We put them all back in, wiped all of them, made sure that none of the data was on there so that we could recycle them into inventory or resell them. We did all of that without a single device being lost or compromised, right? We know that we can scale. In terms of our operational highlights, we have a lot of things happening, and we announced several new contracts, Spiral 4 contracts, Mobile Anchor contracts, right? These are all new contracts with our partners, and some of them where we're prime. We should see some of the revenues roll into Q3 because we awarded those task orders at the second quarter. We should see them rolling in in Q3 and Q4. All right, very good. Final question here. I assume the answer is execution and such, but the vision for WidePoint over the next decade, and that's maybe even too long in today's world, but your vision and what you sort of hope to leave behind as CEO of this company is what? Yeah, we're going to continue to grow, we're going to continue our growth trajectory. We're going to continue to execute. We want to grow into a premier player in the mobile technology management for large enterprises, both public and private. As we grow, our gross margins will continue to improve, and we'll move into that EPS positive territory. I think, even though it's still early, I think we can get there pretty quickly here. I think my legacy will be to leave behind a growing and profitable company with a trusted set of solutions that has universal application, right? Growing that, continuing to grow that list of satisfied customers. I think our claim to fame is we always deliver the solution that our customer wants and what we promised, right? We are good at blocking the tackling operations. Of course, winning it is great, but you got to deliver, right? You can market all you want, but when it comes down to it, you have to deliver, and you have to be profitable delivering it. We'll get there in pretty short order. Take care of your customers. You typically take care of your investors as well. Jin, thank you so much for the time today. Greatly appreciate it. Thank you, everybody watching here. If there are any questions, reach out to Jin or the company's investor relations team. I'm sure they'll be able to take care of you. We have additional presentations, fireside chats coming up, so please stick around for more. Again, Jin, thanks so much for your time today. Greatly appreciate it.