WidePoint Corporation LD Micro 20th Annual Main Event Conference

Welcome. Thank you. Thank you very much.

Thank you. Thank you, everyone, and good afternoon. Hope you're having a great conference so far. Special thanks to LD Micro and Chris Lahiji, who always has the best conferences, and giving us the opportunity to showcase WidePoint. Hopefully, as I said, you're all hearing a lot of good stuff about a lot of great companies to invest in. As Dina said, my name is Jin Kang, and I'm the CEO of WidePoint Corporation. Joining me today is Todd Dzyak, who is our Chief Operating Officer. He will be handling all your questions during the Q&A session at the conclusion of my presentation. Today, I'll be telling you a little bit about WidePoint, who we are, what we do, and what makes us unique. I'll try to keep my prepared remarks short so that we'll have more time for Q&A.

I think that there's going to be a few questions, I sense, that's going to be at the conclusion of my presentation. But first, this is our administrative item. This is our safe harbor statement. I know you've all seen this before, so I won't belabor that. With that out of the way, let me give you a quick snapshot of WidePoint. We are a mobility and cybersecurity solutions company, and we were founded in 1997, and we've been growing through organic and inorganic means over the last 30 years. We're one of the few companies that Chris Lahiji talks about being around for 20 years, and we're finally turning the corner. I think we could all agree that cybersecurity and mobility management are critical elements of our IT environment today, especially with the advancement of AI.

We offer solutions to address the cybersecurity concerns of our customers in this mobile world. We provide 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 anywhere and everywhere. The current management team has been able to stabilize a floundering company and position it for growth and profitability. A company with 95% recurring revenues, $219 million in contract backlog, zero bank debt, $36 billion in addressable market, $10 million in cash at the end of Q2 2026, and we are adding to this balance as we are free cash flow positive. 36 consecutive quarters of adjusted EBITDA positive. More notably, we've been free cash flow positive for 11 straight quarters and EPS positive for two consecutive quarters. So we are turning that corner. We closed 2025 with $151 million in revenue.

In the first 6 months of this year, we were at $79 million in top-line revenue. We are continuing to grow in our double-digit percentage growth. Roughly $60 million in market cap as of today. I believe that there is a disconnect between our valuation and our true worth. An insider owns roughly 12% of the outstanding shares. The objective of the management team and the board are aligned with our investors. As I said, I believe that there is a big disconnect given the near-term catalyst that we have accomplished and those that are pending. First catalyst that has already been accomplished is signing of our ATV contract. It is a contract with one of the big three mobile carriers here in the U.S., AT&T-Mobile, Verizon. I am just not at the liberty to release the names.

I don't think that it is a big deal to know who the carrier is, but we have NDAs in place, so I can't give away the name. This is a SaaS contract with one of these big three carriers. Roughly a $45 million-$50 million 5-year contract that is 70% plus in gross margins. We believe that this will add up to $0.50 EPS once we get fully ramped on a run rate basis, and the current go-live date is set for the end of Q4 this year. We are currently scheduled to fully ramp over the next couple, 3 quarters. We are looking at fully being ramped for this contract at the end of Q2, beginning of Q3 next year. Second catalyst is our $3.1 billion 10-year contract with the Department of Homeland Security. This is on the Cellular Wireless Managed Services 3.0.

We were named the winner of this contract in June, and one of the losing bidders protested the award, which was par for the course for these federal government contract, especially as these contracts get very large. But we were still disappointed, and we did find out on September 25th that the protest was sustained. Now the next step in the process is that we are waiting for DHS to address the issues and implement the GAO's recommendation, and make the final award decisions. We believe that the protest will eventually be settled in our favor. We believe that we are the best-qualified candidate and the best value for the federal government. Even though our prices were 28% higher than our competitors, they felt that we were still best qualified and we were the less riskiest contractor to the work.

We have been involved with Department of Homeland Security for over 20 years. In that time, we had excellent past performance, and so they trust us, and they know us, and they know our capabilities. Again, once that contract is fully ramped, we should see approximately $1.50 EPS on a run rate basis, and we are looking at being fully ramped as we exit 2028 or enter 2029. The third catalyst is our DaaS opportunities with Fortune 500 companies, to provide our system of record platform to our partner CDW to manage their customer's technology assets. Another catalyst is that we have successfully transitioned to an as-a-service business model. All of the things that we do now, software as a service, device as a service, platform as a service, are now as a service increasing our gross margins.

I think we also had a press release on our new contract with NASA. It's the NASA SEWP VI contract, and that contract ceiling is $60 billion. We did win that with a couple of other select companies, I think something like 1,300 other vendors. But we feel pretty good about our chances of winning work underneath the contract because of the various contracts that we have with the federal government. Even though we have won this contract with a lot of different contractors, we have a lot of opportunities here, and potentially bringing customers to this contract vehicle. The catalysts will add a lot of wind in our sails.

As I stated, our addressable market size is $36 billion and growing, and that includes federal, state, local governments, and commercial enterprises for large organizations for whom security and compliance is key, and those large organizations that have large mobile workforce. Organizations like the military, healthcare, finance, transportation, consumer products, energy sector, et cetera. This market is continuing to grow due to the cybersecurity threats and the post-pandemic environment that has us working from remote locations from everywhere. Because we are working remotely from everywhere, the endpoints are continuing to proliferate, and the budget to continue to secure and manage these endpoints continue to grow. Even in this cost-saving environment that we're in, our customers are not cutting back on cybersecurity and mobility management. This market continues to grow, and that bodes well for us. Let me tell you a little bit about our core competencies.

As I stated, we provide our clients with the capability to secure, manage, and provide visibility to their technology assets. We help secure their assets and infrastructure with the most secure multi-factor authentication solution available on the market today. A solution that has never been hacked and has been implemented in all of the federal government agencies, including the Department of Defense and the Department of War. I think they're the same. We help manage our customers' assets with a purpose-built, secure platform to manage the full life cycle of their assets. A system we call Intelligent Technology Management System, or ITMS. ITMS has been FedRAMP certified, and I'll go into a little more detail on the next slide on this, but this certification is the most secure system to manage our customer's asset.

Essentially, our ITMS received the FedRAMP certification, and that means our system meets all of the federal government standards for cybersecurity and data protection. We also provide full visibility of our clients' assets through our ITMS and our digital billing and analytics capability, soon to be AI-enabled. We own all of the intellectual property associated with our delivery platform. A little bit about our FedRAMP authorized status. As I stated, our system is certified by FedRAMP, through the FedRAMP program, and this is a huge accomplishment. FedRAMP stands for Federal Risk Authorization Management Program. What this status means is that we meet all of the stringent federal government security standards and requirements for cybersecurity and data protection. We passed this rigorous security assessment and are fully approved to store, process, and transmit federal government data in the cloud.

Only a handful of companies can claim this certification, especially within our sector. This will be a big competitive advantage as we compete for work, both in federal government and the commercial sector. Even though FedRAMP specifically is for the federal government, data protection and cybersecurity is not specific to the federal government. It applies to all of these large organizations. We are also continuously enhancing our solution sets. Here are some notable technological developments. MobileAnchor is our next-generation identity and access management system and solution. We have successfully developed, tested, and deployed the most secure multi-factor authentication solution now on your smartphones. We used to have a solution. We still do. We have a solution that uses a smart card form factor, but now we're using the smartphones to do that now. We also have the M365 Analyzer solution.