Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
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’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:

                                       
    June 30, 2025
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                     
Accounts receivable, net   $ 1,633,320     $ 2,030     $ 39,330     $ 52,431     $ 1,727,111  
Prepaid expenses and other current assets     883,601       34,459       40,018       955,016       1,913,094  
Property and equipment, net     2,761,350       570,652       1,637       4,500       3,338,139  
Intangible assets, net     1,293,435       —       —       —       1,293,435  
Goodwill     4,238,671       —       —       —       4,238,671  
Operating lease right-of-use assets     525,416       —       —       —       525,416  
Other assets     —       —       —       11,385,280       11,385,280  
Total assets   $ 11,335,793     $ 607,141     $ 80,985     $ 12,397,227     $ 24,421,146  
                                         
Accounts payable and accrued expenses   $ 364,894     $ 25,276     $ 81,990     $ 1,877,839     $ 2,349,999  
Deferred revenue     227,204       —       —       —       227,204  
Deferred tax liability     —       —       —       39,031       39,031  
Operating lease liabilities     574,182       —       —       —       574,182  
Total liabilities   $ 2,004,632     $ 25,276     $ 81,990     $ 1,078,518     $ 3,190,416  

 

                                         
    December 31, 2024
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                     
Accounts receivable, net   $ 2,166,440     $ —     $ 59,018     $ —     $ 2,225,458  
Prepaid expenses and other current assets     678,123       62,842       25,056       93,481       859,502  
Property and equipment, net     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  
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  
Finance leases payable     17,641       —       —       —       17,641  
Finance leases payable related party     33,879       —       —       —       33,879  
Operating lease liabilities     621,930       —       —       —       621,930  
Total liabilities   $ 3,400,279     $ 80,348     $ 78,654     $ 548,969     $ 4,108,250  

 

                                         
    Three Months Ended June 30, 2025
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Sales   $ 4,815,516     $ —     $ 331,406     $ —     $ 5,146,922  
Cost of sales     2,333,386       87,012       189,770       —       2,610,168  
Gross profit     2,482,130       (87,012 )     141,636       —       2,536,754  
                                         
Selling, general and administrative     1,886,354       357,123       151,818       937,126       3,332,421  
                                         
Income (loss) from operations   $ 595,776     $ (444,135 )   $ (10,182 )   $ (937,126 )   $ (795,667 )
                                         
    Three Months Ended June 30, 2024
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Sales   $ 4,617,445     $ —     $ 293,047     $ —     $ 4,910,492  
Cost of sales     2,345,385       —       157,214       —       2,502,599  
Gross profit     2,272,060       —       135,833       —       2,407,893  
                                         
Selling, general and administrative     1,739,626       —       160,255       896,798       2,796,679  
                                         
Income (loss) from operations   $ 532,434     $ —     $ (24,422 )   $ (896,798 )   $ (388,786 )

 

                                         
    Six Months Ended June 30, 2025
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Sales   $ 12,586,528     $ —     $ 644,150     $ —     $ 13,230,678  
Cost of sales     7,300,123       172,168       361,737       —       7,834,028  
Gross profit     5,286,405       (172,168 )     282,413       —       5,396,650  
                                         
Selling, general and administrative     3,611,029       727,938       299,839       1,646,020       6,284,826  
                                         
Income (loss) from operations   $ 1,675,376     $ (900,106 )   $ (17,426 )   $ (1,646,020 )   $ (888,176 )

 

                                         
    Six Months Ended June 30, 2024
    CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
Sales   $ 12,572,403     $ —     $ 573,836     $ —     $ 13,146,239  
Cost of sales     7,448,020       —       323,854       —       7,771,874  
Gross profit     5,124,383       —       249,982       —       5,374,365  
                                         
Selling, general and administrative     3,666,317       —       337,345       1,545,694       5,549,356  
                                         
Income (loss) from operations   $ 1,458,066     $ —     $ (87,363 )   $ (1,545,694 )   $ (174,991 )