WIDEPOINT CORP Segments Disclosure
20. Segment Information
Segments are defined by authoritative guidance as components of a company in which separate financial information is available and is evaluated by the chief operating decision maker (CODM), or a decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our chief executive officer and is responsible for reviewing segment performance and making decisions regarding resource allocation.
We operate as one segment based on the consolidated information used by our CODM in evaluating the financial performance of our business and allocation resources. This single segment represents our Company’s business, WidePoint, which is providing managed services for government and commercial clients that include Identity Management (IdM), secure Mobility Managed Services (MMS), Telecom Lifecycle Management, Digital Billing & Analytics and IT as a service (ITaaS). We present a single segment for purposes of financial reporting and prepared consolidated financial statements upon that basis.
The CODM assesses performance for the reporting segment and decides how to allocate resources based on consolidated revenue, gross profit and net income (loss), which also is reported on the Consolidated Statement of Operations, in addition to other key financial indicators, including gross margin, guiding strategic decisions to align with company-wide goals. The CODM uses the performance measures and key financial indicators in managing the business, allocating resources, making operating decisions, assessing financial performance, deciding investment decisions such as acquisitions.
The measure of segment assets is reported on the balance sheet as total consolidated assets. In addition, substantially all of the Company's revenues and long-lived assets are attributable to operations is in the United States for all periods presented.
The following table reflects certain financial data for our reportable segment:
|
| YEARS ENDED |
| |||||
|
| DECEMBER 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
|
|
|
|
| ||||
REVENUES |
| $ | 150,545,364 |
|
| $ | 142,571,749 |
|
Carrier services cost |
|
| (91,847,849 | ) |
|
| (86,786,718 | ) |
Managed service costs |
|
| (35,926,562 | ) |
|
| (34,512,939 | ) |
Depreciation and amortization |
|
| (3,093,444 | ) |
|
| (3,268,820 | ) |
Stock based compensation |
|
| (770,219 | ) |
|
| (1,211,247 | ) |
Other segment items (1) |
|
| (21,692,030 | ) |
|
| (18,672,407 | ) |
Interest expense |
|
| (202,391 | ) |
|
| (242,835 | ) |
Interest income |
|
| 333,063 |
|
|
| 214,587 |
|
Other income (expense) |
|
| 647 |
|
|
| (29,408 | ) |
Income tax (provision) benefit |
|
| (97,691 | ) |
|
| 3,759 |
|
|
|
|
|
|
|
|
|
|
NET LOSS FOR THE PERIOD: |
| $ | (2,751,112 | ) |
| $ | (1,934,279 | ) |
(1) Other segment items include sales and marketing costs, general, administration and overhead costs, and provision for credit losses.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.