Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 11 – 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’s 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’s 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 March 31, 2025
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                     
Accounts receivable   $ 5,297,149     $ 1,914       42,808     $ 71,411     $ 5,413,282  
Prepaid expenses and other current assets     627,189       40,628       38,856       151,817       858,490  
Net Property and Equipment     2,655,790       566,335       1,847       4,853       3,228,825  
Intangible assets, net     1,360,220       —       —       —       1,360,220  
Goodwill     4,238,671       —       —       —       4,238,671  
Operating lease right-of-use assets     550,653       —       —       —       550,653  
All other assets     —       —       —       11,280,589       11,280,589  
Total Assets   $ 14,729,672     $ 608,877     $ 83,511     $ 11,508,670     $ 26,930,730  
                                         
Accounts payable and accrued expenses   $ 4,081,570       95,976       73,161       299,817       4,550,524  
Deferred revenue     290,827       —       —       —       290,827  
Deferred tax liability     —       —       —       39,031       39,031  
Total Finance leases payable     —       —       —       —       —  
Total Finance leases payable related party     —       —       —       —       —  
Total Operating lease liabilities     598,937       —       —       —       598,937  
Total Liabilities   $ 4,971,334     $ 95,976     $ 73,161     $ 338,848     $ 5,479,319  

 

                     
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  

 

 

 

                                         
For the three months ended March 31, 2025
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Revenue   $ 7,771,012     $ —     $ 312,744     $ —     $ 8,083,756  
Cost of sales     4,966,737       85,156       171,967       —       5,223,860  
Gross Profit     2,804,275       (85,156 )     140,777       —       2,859,896  
                                         
Selling, general and administrative     1,391,061       341,580       147,810       708,575       2,589,026  
Depreciation and amortization     333,614       29,235       210       320       363,379  
Total operating expenses     1,724,675       370,815       148,020       708,895       2,952,405  
                                         
Income (Loss) from Operations     1,079,600       (455,971 )     (7,243 )     (708,895 )     (92,509 )
                                         
Interest income     —       —       —       120,906       120,906  
Interest expense     (2,009 )     —       —       —       (2,009 )
Loss on disposal of equipment     —       —       —       —       —  
Total Other Income (Expense)     (2,009 )     —       —       120,906       118,897  
                                         
Income (Loss) before provision for income taxes   $ 1,077,591     $ (455,971 )   $ (7,243 )   $ (587,989 )   $ 26,388  

  

                                         
For the three months ended March 31, 2024
                     
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Revenue   $ 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