Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 12 – Segment Information  

 

The Company operates in three reportable segments: CloudFirst, CloudFirst Europe and Nexxis. The Company’s segments were determined based on its internal organizational structure, the manner in which its operations are managed, and the criteria used by the Company’s CODM’s which is its Chief Executive Officer and the senior management team, to evaluate performance, which is generally the segment’s operating income or losses.

 

Operations of:    Products and services provided:
     
CloudFirst Technologies Corporation   CloudFirst provides services from CloudFirst technological assets deployed in six Tier 3 data centers throughout the USA and Canada. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst platforms. Services provided to clients are provided on a subscription basis on long term contracts.

 

CloudFirst Europe Ltd.   CloudFirst Europe Ltd. provides services from CloudFirst technological assets deployed in three Tier 3 data centers throughout the United Kingdom. This technology has been developed by CloudFirst. Clients are invoiced for cloud infrastructure and disaster recovery on the CloudFirst UK platforms. Services provided to clients are provided on a subscription basis on long term contracts.

 

Nexxis Inc.  

Nexxis is a single-source solution provider that delivers fully-managed cloud-based voice over internet services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment.

  

The following tables present certain financial information related to the Company’s reportable segments and Corporate:

 

                                       
As of December 31, 2024
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                     
Accounts receivable   $ 2,166,440     $ —       59,018     $ —     $ 2,225,458  
Prepaid expenses and other current assets     678,123       62,842       25,056       93,481       859,502  
Net Property and Equipment     2,858,664       574,919       2,056       4,017       3,439,656  
Intangible assets, net     1,427,006       —       —       —       1,427,006  
Goodwill     4,238,671       —       —       —       4,238,671  
Operating lease right-of-use assets     575,380       —       —       —       575,380  
All other assets     —       —       —       12,514,542       12,514,542  
Total Assets   $ 11,944,284     $ 637,761     $ 86,130     $ 12,612,040     $ 25,280,215  
                                         
Accounts payable and accrued expenses   $ 2,514,439      $ 80,348     $ 78,654     $ 509,938     $ 3,183,379  
Deferred revenue     212,390       —       —       —       212,390  
Deferred tax liability      —       —       —       39,031       39,031  
Total Finance leases payable     17,641       —       —       —       17,641  
Total Finance leases payable related party     33,879       —       —       —       33,879  
Total Operating lease liabilities     621,930       —       —       —       621,930  
Total Liabilities   $ 3,400,279     $ 80,348     $ 78,654     $ 548,969     $ 4,108,250  

  

                                 
As of December 31, 2023
 
    CloudFirst Technologies   Nexxis Inc.   Corporate   Total
                 
Accounts receivable   $ 1,229,820     $ 30,152     $ —     $ 1,259,972  
Prepaid expenses and other current assets     419,254       18,157       75,764       513,175  
Net property and equipment     2,727,225       2,905       2,644       2,732,774  
Intangible assets, net     1,698,084       —       —       1,698,084  
Goodwill     4,238,671       —       —       4,238,671  
Operating lease right-of-use assets     62,981       —       —       62,981  
All other assets     —       —       12,795,362       12,795,362  
Total assets   $ 10,376,035     $ 51,214     $ 12,873,770     $ 23,301,019  
                                 
Accounts payable and accrued expenses   $ 2,020,963     $ 65,161     $ 522,814     $ 2,608,938  
Deferred revenue     336,201       —       —       336,201  
Finance leases payable     281,241       —       —       281,241  
Finance leases payable related party     256,241       —       —       256,241  
Operating lease liabilities     63,983       —       —       63,983  
Total liabilities   $ 2,958,629     $ 65,161     $ 522,814     $ 3,546,604  

 

                                         
For the year ended December 31, 2024
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Revenue   $ 24,152,056     $ —     $ 1,219,247     $ —     $ 25,371,303  
Cost of sales     13,575,937       —       691,999       —       14,267,936  
Gross Profit     10,576,119       —       527,248       —       11,103,367  
                                         
Selling, general and administrative     5,544,276       290,219       619,912       3,218,831       9,673,238  
Depreciation and amortization     1,348,614       —       850       774       1,350,238  
Total operating expenses     6,892,890       290,219       620,762       3,219,605       11,023,476  
                                         
Income (Loss) from Operations     3,683,229       (290,219 )     (93,514 )     (3,219,605 )     79,891  
                                         
Interest income     —       —       —       592,819       592,819  
Interest expense     (119,008 )     —       —       —       (119,008 )
Loss on disposal of equipment     (1,599 )     —       —       —       (1,599 )
Total Other Income (Expense)     (120,607 )     —       —       592,819       472,212  
                                         
Income (Loss) before provision for income taxes   $ 3,562,622     $ (290,219 )   $ (93,514 )   $ (2,626,786 )   $ 552,103  

 

                                         
For the year ended December 31, 2023
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Revenue   $ 23,862,649     $ —     $ 1,096,927     $ —     $ 24,959,576  
Cost of sales     14,749,837       —       633,414       —       15,383,251  
Gross Profit     9,112,812       —       463,513       —       9,576,325  
                                         
Selling, general and administrative     5,112,193       —       692,185       2,638,764       8,443,142  
Depreciation and amortization     1,300,238       —       705       651       1,301,594  
Total operating expenses     6,412,431       —       692,890       2,639,415       9,744,736  
                                         
Income (Loss) from Operations     2,700,381       —       (229,377 )     (2,639,415 )     (168,411 )
                                         
Interest income     —       —       —       542,229       542,229  
Interest expense     (74,502 )     —       —       —       (74,502 )
Total Other Income (Expense)     (74,502 )     —       —       542,229       467,727  
                                         
Income (Loss) before provision for income taxes   $   2,625,879     $ —     $ (229,377 )   $ (2,097,186 )   $ 299,316