Good afternoon. Welcome to WidePoint's Third Quarter 2022 Earnings Conference Call. My name is Matthew, and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang; Chief Revenue Officer, Jason Holloway; and Chief Financial Officer, Robert George. Following their remarks, we will open the call for questions from WidePoint's publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact WidePoint's Investor Relations team at wyy@gatewayir.com. Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with [Audio gap] via a link on the Investor Relations section of the company's website at www.widepoint.com. Now, I'd like to turn the call over to WidePoint's President and CEO Mr. Jin Kang. Sir, please proceed.

Thank you, operator, and good afternoon, to everyone. Thank you for joining us today to review the financial results for the third quarter ended September 30, 2022. Overall, we had a strong quarter that is not only reflected across our financial results, but also qualitatively in our business, as there were several contract wins, encouraging growth within our sales pipeline, continued investments being made back into our business, and synergies from the internal realignment that, I spoke about on our last call. From a financial standpoint, we recognized sequential quarterly growth in revenue and EBITDA, which we attribute to the strategic decisions that have been made from the past several quarters, coming to fruition. From an EBITDA perspective, we foresee this trend carrying over to the fourth quarter and into 2023. The primary catalyst for EBITDA improvement will stem from the realignment, we've made as discussed last quarter. Bob will provide a detailed financial performance in his prepared remarks later on in the call. But first, I'm obliged to talk about the macroeconomic effects such as the status of the labor market, supply chain disruptions, impasse of the federal government budget, and interest rate hikes all impacting our business. As I'm sure you're aware, many technology companies even the titans in our space like Microsoft, Google, Meta are all announcing layoffs given the status of the economy. That said, WidePoint too has been somewhat impacted by the headwinds facing the rest of corporate America. But we continue to remain resilient and operationally efficient, with our existing workforce. One example of this is represented in our senior management team holding regular meetings, to evaluate our business priorities and effectuate organizational adjustments and realignments accordingly. We have made an absolute core priority to ensure that, we are being prudent with the capital…

Thank you, Jim and good afternoon, everyone. Before I speak on our customer wins, I want to piggyback off Jim's remarks around our organic growth strategy of investing back into our sales and marketing initiatives in a budget-friendly manner. We recognize that right now isn't the best of times within the global economy, which is why we've proceeded with making the necessary moves of cutting our expenses without it affecting our ability to operate optimally. Further to be good stewards of our working capital, after being prudent with our capital investment projects for the past several quarters, I am pleased to share that the expenditure here will be slowing down, as most of the investments already made will ensure the relevance of our products and solutions. For example, we completed our commercial CA that we're using for the bottling industry and K-12 schools. We have completed an internal upgrade to our cybersecurity infrastructure that will scale well into the future. Lastly, we also worked with an existing client to create new functionality to the way we deploy our certificates internally. Next, I'll touch on some of the customer wins I am able to share with you at this time. Our identity and access management solution continues to impress customers and has been a point of entry for us to conduct even more business with prospects as it provides us with an opportunity to land and expand the scope of work with our robust slate of solutions. As you may have already seen in the press release, we issued in late September, we announced that we engaged with several K-12 schools to conduct a pilot implementation for our quantum-resistant multifactor authentication solution or MFA. The number of K-12 schools that are currently included in our pilot stands at 12, representing roughly…

Thank you, Jason. Good afternoon, everyone. I'm pleased to share the details of our third quarter and the year-to-date September 22, financial results. For the third quarter, our revenue was $25.3 million, an increase of $3.1 million or 14% from the $22.2 million recorded for the same period last year. For the nine months ended September 30, our revenue was $70.8 million, an increase of $7.9 million or 13% from the $62.9 million reported for the same period last year. Now I'll provide a further breakdown of revenues. For the third quarter, our carrier services revenue is $14.1 million, an increase of $1 million or 8% from $13.1 million reported for the same period last year. The increase is primarily due to a large federal customer increasing the number of lines of service we manage, by approximately 75%. Otherwise, carrier services revenue remained relatively constant from period to period. For the nine months ended September 30, our carrier services revenue is $39.5 million, an increase of $3 million or 9% from the $36.3 million reported for the same period last year. This is primarily due to the large federal customer increasing the number of lines of service we manage by approximately 75%, and from carrier credits of approximately $1.7 million included in the first quarter of 2021 and that did not occur during the first nine months of 2022. For the third quarter, our managed service revenue is $7.6 million, an increase of $2.2 million or 41% and from the $5.4 million reported for the same quarter last year. This increase is driven by $1.8 million of managed services revenue from our IT Authority subsidiary, which was not included in the same period in 2021 and $400,000 of increased recycling service and accessory sales over the same period in 2021.…

Thank you, Bob and Jason. Now I will take a few minutes to speak about our M&A activities. Similar to what we've previously shared we remain extremely diligent in our plan for profitable growth and the inorganic path will inevitably play a significant role in our expansion strategy. Although, I have no material updates to share right now I can say that our team continues to have dialogue with prospective M&A targets and we'll keep you all posted via the appropriate Reg FD channels. To conclude, as we shared in our earnings release we have decided to maintain our top- line revenue guidance, but have made a slight change to our adjusted EBITDA range which is now between $1 million and $1.2 million. For the first nine months of 2022, we recognized approximately $500,000 adjusted EBITDA and we are confident in our team's ability to hit our fourth quarter goals. The reason for our confidence stems from seeing strong adjusted EBITDA growth at the start of Q4 over the past 1.5 months. We expect this trend to continue as we finish off the calendar year and anticipate falling within our aforementioned adjusted EBITDA range. As always WidePoint remains a stable resilient company with a strong balance sheet and no long-term debt. Our capital projects are ramping up. And with our recently implemented organizational realignment, we are expecting a significant amount of slowdown with our cash burn over the coming quarters. We have a robust sales pipeline that we look forward to converting to top-line results and expect to tap further into the IT Authority's well of synergies. With that said, we are ready to take questions from our analysts and major shareholders. Operator, will you please open the call for questions.

Certainly. Ladies and gentlemen, the floor is now open for questions. [Operator Instructions] I will read the following pre-submitted questions. In your second quarter call, you mentioned you had material sales opportunities in your pipeline. Can you share any new status on those opportunities?

Thank you, operator. The sales opportunities are still in our Q. But as I stated in our prepared remarks, the federal government is on a continuing resolution. And as a result of that the federal government opportunities are pushing to the right. The commercial and say local government opportunities are also there and we should see them come to fruition in 2023. We do have a few opportunities that could close in Q4 and Q1 especially in our higher-margin digital billing and analytics business. So please stay tuned.

Thank you. Your next question, based on your revised guidance, it looks like you'll do $500000 in adjusted EBITDA. How firm is that estimate? And do you see that trend continuing for the quarters in 2023?

The adjusted EBITDA forecast is our best estimate based on what we've seen so far. And as stated in our prepared remarks, we took some steps to realign our organization to reduce cost and we have seen strong EBITDA growth so far in Q4. So we expect to fall EBITDA guidance as stated earlier in our prepared remarks.

Thank you. Your next question, do you have any guidance for 2023 in terms of top line revenue and EBITDA?

We are in the process of forecasting our new budget for 2023. So, our Q4 run rate gives us some level of confidence that we will be cash flow positive in 2023. We will provide guidance for 2023, when we are finished with our forecasting model and when we are able.

Thank you. At this time, this concludes our question-and-answer session. If your question was not taken, please contact WidePoint's IR team at wyy@gatewayir.com. I would now like to turn the call back over to Mr. Jin Kang for his closing remarks.

Thank you, operator. We appreciate everyone taking the time to join us today. As the operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release. Thank you again and have a great evening. Operator Thank you for joining us today for WidePoint's Third Quarter 2022 Conference Call. You may now disconnect.