Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.24.1.1.u2
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of segment reporting 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 platform. 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 services, data transport, internet access, and SD-WAN solutions focused on business continuity for today’s modern business environment. 
Schedule of financial information related to reportable segments
                               
  As of March 31, 2024
 
   

CloudFirst Technologies

   Nexxis Inc.   Corporate   Total
                 
Accounts receivable   $ 4,388,536     $ 49,130       —     $ 4,437,666  
Prepaid expenses and other current assets     459,130       29,498       178,329       666,957  
Net property and equipment     2,860,215       2,694       2,450       2,865,359  
Intangible assets, net     1,628,937       —       —       1,628,937  
Goodwill     4,238,671       —       —       4,238,671  
Operating lease right-of-use assets     36,160       —       —       36,160  
All other assets     —       —       11,950,743       11,950,743  
Total assets   $ 13,611,649     $ 81,322     $ 12,131,522     $ 25,824,493  
                                 
Accounts payable and accrued expenses   $ 4,483,430     $ 75,203     $ 277,235     $ 4,835,868  
Deferred revenue     310,123       —       —       310,123  
Finance leases payable     214,961       —       —       214,961  
Finance leases payable related party     155,164       —       —       155,164  
Operating lease liabilities     36,733       —       —       36,733  
Total liabilities   $ 5,200,411     $ 75,203     $ 277,235     $ 5,552,849  

 

                                 
  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 three months ended March 31, 2024
 
    CloudFirst Technologies   Nexxis Inc.   Corporate   Total
Sales   $ 7,954,958     $ 280,789     $ —     $ 8,235,747  
Cost of sales     5,102,635       166,640       —       5,269,275  
Gross profit     2,852,323       114,149       —       2,966,472  
                                 
Selling, general and administrative     1,631,897       176,879       648,703       2,457,479  
Depreciation and amortization     294,794       211       193       295,198  
Total operating expenses     1,926,691       177,090       648,896       2,752,677  
                                 
Income (loss) from operations     925,632       (62,941 )     (648,896 )     213,795  
                                 
Interest income     —       —       143,369       143,369  
Interest expense     (11,260 )     —       —       (11,260 )
Total other income (expense)     (11,260 )     —       143,369       132,109  
                                 
Income (Loss) before provision for income taxes   $ 914,372     $ (62,941 )   $ (505,527 )   $ 345,904  

 

                                 
  For the three months ended March 31, 2023
 
    CloudFirst Technologies    Nexxis Inc.    Corporate   Total
Sales   $ 6,614,927     $ 264,796     $ —     $ 6,879,723  
Cost of sales     4,611,857       178,121       —       4,789,978  
Gross profit     2,003,070       86,675       —       2,089,745  
                                 
Selling, general and administrative     1,146,779       124,750       570,520       1,842,049  
Depreciation and amortization     288,525       71       114       288,710  
Total operating expenses     1,435,304       124,821       570,634       2,130,759  
                                 
Income (loss) from operations     567,766       (38,146 )     (570,634 )     (41,014 )
                                 
Interest income             —       103,423       103,423  
Interest expense     (27,346 )     —       —       (27,346 )
Total Other Income (Expense)     (27,346 )     —       103,423       76,077  
                                 
Income (loss) before provision for income taxes   $ 540,420     $ (38,146 )   $ (467,211 )   $ 35,063