----

----

| Delaware                                 | 52-2040275                        |
|------------------------------------------|-----------------------------------|
| (State or other jurisdiction of          | (IRS Employer Identification No.) |
| incorporation or organization)           |                              |
|                                     |                              |
| 18W100 22nd St., Oakbrook Terrace, IL    | 60181                             |
| (Address of principal executive offices) | (Zip Code)                        |

----

|                                                                                                                                                                         |                                                                                                           |   | Page No. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|----------|
| Part I.                        FINANCIAL INFORMATION |                                                                                                           |   |
|                                                                                                                                                                         |                                                                                                           |   |     |
| Item 1.                                                                                                                                                                      | Condensed Consolidated Financial Statements                                                                    |   |     |
|                                                                                                                                                                         |                                                                                                           |   |     |
|                                                                                                                                                                         | Condensed Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010 (unaudited)       |   | 2        |
|                                                                                                                                                                         |                                                                                                           |   |     |
|                                                                                                                                                                         | Condensed Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010 (unaudited) |   | 3        |
|                                                                                                                                                                         |                                                                                                           |   |     |
|                                                                                                                                                                         | Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited) |   | 4        |
|                                                                                                                                                                         |                                                                                                           |   |     |
|                                                                                                                                                                         | Notes to Condensed Consolidated Financial Statements                                                           |   | 5        |
|                                                                                                                                                                         |                                                                                                           |   |     |
| Item 2.                                                                                                                                                                      | Management's Discussion and Analysis of Financial Condition and Results of Operations                          |   | 17       |
|                                                                                                                                                                         |                                                                                                           |   |     |
| Item 4.                                                                                                                                                                      | Controls and Procedures                                                                                        |   | 22       |
|                                                                                                                                                                         |                                                                                                           |   |     |
| Part II.                      OTHER INFORMATION                |                                                                                                           |   |
|                                                                                                                                                                         |                                                                                                           |   |     |
| Item 6.                                                                                                                                                                      | Exhibits                                                                                                       |   | 23       |
|                                                                                                                                                                         |                                                                                                           |   |     |
| SIGNATURES                                                                                                                                                                   |                                                                                                           | 24     |
|                                                                                                                                                                         |                                                                                                           |   |
| CERTIFICATIONS                                                                                                                                                               |                                                                                                           |   |

----

|                                                                                                                                 |   | March 31,   |        |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|-------------------|--------|
|                                                                                                                                 |   | 2011        |        |   | 2010              |   |
|                                                                                                                                 |   | (unaudited) |        |
| Assets                                                                                                                               |   |        |        |   |              |   |
| Current assets:                                                                                                                      |   |        |        |   |              |   |
| Cash and cash equivalents                                                                                                            |   | $           | 6,207,000   |   |              | $      | 5,816,303 |   |
| Accounts receivable                                                                                                                  |   |        | 5,105,306   |   |              |   | 7,794,913 |   |
| Unbilled accounts receivable                                                                                                         |   |        | 1,456,806   |   |              |   | 3,059,665 |   |
| Prepaid expenses and other assets                                                                                                    |   |        | 565,239     |   |              |   | 473,320 |   |
| Current deferred income tax asset                                                                                                    |   |        | 615,139     |   |              |   | 412,801 |   |
| Total current assets                                                                                                                 |   |        | 13,949,490  |   |              |   | 17,557,002 |   |
| Property and equipment, net                                                                                                          |   |        | 1,295,076   |   |              |   | 1,241,510 |   |
| Goodwill                                                                                                                             |   |        | 11,329,917  |   |              |   | 11,329,917 |   |
| Other Intangibles, net                                                                                                               |   |        | 991,701     |   |              |   | 1,104,551 |   |
| Noncurrent deferred income tax asset                                                                                                 |   |        | 3,116,705   |   |              |   | 3,116,705 |   |
| Other assets                                                                                                                         |   |        | 56,027      |   |              |   | 46,455 |   |
| Total assets                                                                                                                         |   | $           | 30,738,916  |   |              | $      | 34,396,140 |   |
|                                                                                                                                 |   |        |        |   |              |   |   |   |
| Liabilities and stockholders’ equity                                                                                           |   |        |        |   |              |   |   |   |
| Current liabilities:                                                                                                                 |   |        |        |   |              |   |   |   |
| Short term note payable                                                                                                              |   | $           | 51,545      |   |              | $      | 94,809 |   |
| Accounts payable                                                                                                                     |   |        | 5,223,728   |   |              |   | 7,725,727 |   |
| Accrued expenses                                                                                                                     |   |        | 1,770,634   |   |              |   | 2,643,613 |   |
| Income taxes payable                                                                                                                 |   |        | 127,962     |   |              |   | 143,450 |   |
| Deferred revenue                                                                                                                     |   |        | 362,721     |   |              |   | 294,541 |   |
| Current portion of long-term debt                                                                                                    |   |        | 488,251     |   |              |   | 572,943 |   |
| Current portion of deferred rent                                                                                                     |   |        | 27,998      |   |              |   | 20,835 |   |
| Current portion of capital lease obligation                                                                                          |   |        | 41,687      |   |              |   | 44,724 |   |
| Total current liabilities                                                                                                            |   |        | 8,094,526   |   |              |   | 11,540,642 |   |
| Long-term debt, net of current portion                                                                                               |   |        | 510,246     |   |              |   | 564,490 |   |
| Fair value of earnout liability                                                                                                      |   |        | 153,000     |   |              |   | 153,000 |   |
| Deferred rent, net of current portion                                                                                                |   |        | 93,061      |   |              |   | 98,702 |   |
| Capital lease obligation, net of current portion                                                                                     |   |        | 14,455      |   |              |   | 22,908 |   |
| Total liabilities                                                                                                                    |   | $           | 8,865,288   |   |              | $      | 12,379,742 |   |
|                                                                                                                                 |   |        |        |   |              |   |   |   |
| Stockholders’ equity:                                                                                                          |   |        |        |   |              |   |   |   |
| Common stock, $0.001 par value; 110,000,000 shares authorized; 62,810,673 and 62,690,873 shares issued and outstanding, respectively |   |        | 62,811      |   |              |   | 62,691 |   |
| Additional paid-in capital                                                                                                           |   |        | 68,928,823  |   |              |   | 68,754,353 |   |
| Accumulated deficit                                                                                                                  |   |        | (47,118,006 | )      |              |   | (46,800,646 | ) |
| Total stockholders’ equity                                                                                                     |   |        | 21,873,628  |   |              |   | 22,016,398 |   |
|                                                                                                                                 |   |        |        |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                                     |   | $           | 30,738,916  |   |              | $      | 34,396,140 |   |

----

|                                                                                                         |   | Three Months    |       |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|
|                                                                                                         |   | Ended March 31, |       |
|                                                                                                         |   | 2011            |       |   | 2010 |   |
|                                                                                                         |   | (unaudited)     |       |
| Revenues, net                                                                                                |   | $               | 10,529,125 |   |   | $ | 11,163,056 |   |
| Cost of sales (including amortization and depreciation of $183,640 and $226,285, respectively)               |   |            | 8,689,470  |   |   |   | 8,639,221 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Gross profit                                                                                                 |   |            | 1,839,655  |   |   |   | 2,523,835 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Sales and marketing                                                                                          |   |            | 430,183    |   |   |   | 343,007 |   |
| General and administrative (including share-based compensation expense of $28,190 and $29,180, respectively) |   |            | 1,866,806  |   |   |   | 1,831,811 |   |
| Depreciation expense                                                                                         |   |            | 47,594     |   |   |   | 49,734 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| (Loss) income from operations                                                                                |   |            | (504,928   | ) |   |   | 299,283 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Interest income                                                                                              |   |            | 4,192      |   |   |   | 6,614 |   |
| Interest expense                                                                                             |   |            | (20,555    | ) |   |   | (27,377 | ) |
| Other income                                                                                                 |   |            | 1,143      |   |   |   | — |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Net (loss) income before income taxes                                                                        |   |            | (520,148   | ) |   |   | 278,520 |   |
| Income tax (benefit) expense                                                                                 |   |            | (202,788   | ) |   |   | 39,222 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Net (loss) income                                                                                            |   | $               | (317,360   | ) |   | $ | 239,298 |   |
|                                                                                                         |   |            |       |   |   |   |   |   |
| Basic earnings per share                                                                                     |   | $               | (0.01      | ) |   | $ | 0.00 |   |
| Basic weighted-average shares outstanding                                                                    |   |            | 62,797,540 |   |   |   | 61,375,333 |   |
| Diluted earnings per share                                                                                   |   | $               | (0.01      | ) |   | $ | 0.00 |   |
| Diluted weighted-average shares outstanding                                                                  |   |            | 62,797,540 |   |   |   | 62,974,353 |   |

----

|                                                                              |   | Three MonthsEnded March 31, |       |
|-----------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                              |   | 2011                        |       |   | 2010 |   |
|                                                                              |   | (unaudited)                 |       |
| Cash flows from operating activities:                                             |   |                        |       |   |   |   |
| Net (loss) income                                                                 |   | $                           | (317,360   | ) |   | $ | 239,298 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                        |       |   |   |   |   |   |
| Deferred income tax (benefit) expense                                             |   |                        | (202,338   | ) |   |   | 39,222 |   |
| Depreciation expense                                                              |   |                        | 78,854     |   |   |   | 72,978 |   |
| Amortization of intangibles                                                       |   |                        | 152,381    |   |   |   | 203,041 |   |
| Amortization of deferred financing costs                                          |   |                        | 428        |   |   |   | 2,911 |   |
| Share-based compensation expense                                                  |   |                        | 28,190     |   |   |   | 29,180 |   |
| Loss on disposal of equipment                                                     |   |                        | 357        |   |   |   | — |   |
| Changes in assets and liabilities (net of business combinations):                 |   |                        |       |   |   |   |   |   |
| Accounts receivable and unbilled accounts receivable                              |   |                        | 4,292,466  |   |   |   | (159,636 | ) |
| Prepaid expenses and other current assets                                         |   |                        | (91,919    | ) |   |   | 25,379 |   |
| Other assets                                                                      |   |                        | (10,000    | ) |   |   | 7,917 |   |
| Accounts payable and accrued expenses                                             |   |                        | (3,374,376 | ) |   |   | (2,633,815 | ) |
| Income taxes payable                                                              |   |                        | (15,488    | ) |   |   | — |   |
| Deferred revenue                                                                  |   |                        | 68,180     |   |   |   | (118,139 | ) |
| Net cash provided by (used in) operating activities                               |   |                        | 609,375    |   |   |   | (2,291,664 | ) |
|                                                                              |   |                        |       |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |                        |       |   |   |   |   |   |
| Purchase of asset/subsidiary, net of cash acquired                                |   |                        | —    |   |   |   | (370,000 | ) |
| Purchase of property and equipment                                                |   |                        | (133,527   | ) |   |   | (10,904 | ) |
| Software development costs                                                        |   |                        | (39,531    | ) |   |   | (14,324 | ) |
| Proceeds from sale of office equipment                                            |   |                        | 750        |   |   |   | — |   |
| Net cash used in investing activities                                             |   |                        | (172,308   | ) |   |   | (395,228 | ) |
|                                                                              |   |                        |       |   |   |   |   |   |
| Cash flows from financing activities:                                             |   |                        |       |   |   |   |   |   |
|                                                                              |   |                        |       |   |   |   |   |   |
| Principal payments on notes payable                                               |   |                        | (181,280   | ) |   |   | (173,603 | ) |
| Principal payments under capital lease obligation                                 |   |                        | (11,490    | ) |   |   | (28,911 | ) |
| Proceeds from exercise of stock options                                           |   |                        | 146,400    |   |   |   | — |   |
| Net cash used in financing activities                                             |   |                        | (46,370    | ) |   |   | (202,514 | ) |
|                                                                              |   |                        |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                              |   |                        | 390,697    |   |   |   | (2,889,406 | ) |
|                                                                              |   |                        |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                    |   |                        | 5,816,303  |   |   |   | 6,238,788 |   |
| Cash and cash equivalents, end of period                                          |   | $                           | 6,207,000  |   |   | $ | 3,349,382 |   |
|                                                                              |   |                        |       |   |   |   |   |   |
| Supplemental cash flow information:                                               |   |                        |       |   |   |   |   |   |
| Cash paid for income tax                                                          |   | $                           | 15,338     |   |   |   | — |   |
| Cash paid for interest                                                            |   | $                           | 20,944     |   |   | $ | 25,281 |   |

----

| 1. | Organization and Nature of Operations |
|----|---------------------------------------|

|   | § | iSYS, LLC (“iSYS”): iSYS specializes in providing the U.S. government and its agencies mobile telecommunications expense management (MTEM) services and forensic informatics, and information assurance services.  Operates in our Wireless Mobility Management and Consulting Services and Products segments. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Operational Research Consultants, Inc. (“ORC”): ORC specializes in providing the U.S. government and its agencies, as well as  commercial businesses, with compliant information and identity assurance management solutions consisting of identity proofing and credentialing through its internally-developed proprietary Public Key Infrastructure (PKI) technologies. Operates in our Cybersecurity Solutions and Consulting Services and Products segments. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Advanced Research Concepts Corporation (“ARCC”): ARCC was formed in January 2010 and acquired certain assets of Vuance, Inc.. ARCC provides state governments and commercial businesses with secure critical response management solutions designed to improve coordination within emergency services and critical infrastructure agencies. ARCC operates within our Cybersecurity Solutions segment. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | WidePoint IL, Inc. and WP NBIL, Inc.: WPNBIL operates in conjunction with WidePoint IL and provides IT architecture and planning, software implementation and IT outsourcing services to the U.S. government or as a subcontractor through large commercial businesses.  WidePoint IL operates within our Consulting Services and Products segment. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Protexx Technology Corporation d/b/a Protexx: Protexx was formed in July 2008 and acquired certain assets of Protexx Inc. Protexx specializes in identity assurance and mobile and wireless data protection services. Protexx is a development stage company.  Protexx operates as a branded offering within our Cybersecurity Solutions segment. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | Significant Accounting Policies |
|----|---------------------------------|

|                                                       |   | For the Three Months EndedMarch 31, |   |
|------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| Customer Name                                         |   | 2011(%) Revenue                                         |   |   | 2010(%) Revenue |   |
| Transportation Security Administration (“TSA”) |   |                                                         | 22     | % |   |   | 24 | % |
| Department of Homeland Security (“DHS”)        |   |                                                         | 27     | % |   |   | 20 | % |
| Washington Headquarters Services (“WHS”)       |   |                                                         | 3      | % |   |   | 17 | % |
| U.S. Air Force Cryptologic Systems (FSS ESC/HNCK)          |   |                                                         | 11     | % |   |   | 0 | % |

----

----

|   | ● | Wireless Mobility Management includes mobile telecommunications expense management services and device management that are billed under a time and materials contract.  Revenue is recognized when persuasive evidence of an arrangement exists, services have been rendered, the contract price is fixed or determinable and collectability is reasonably assured. The Company has a standard internal process that is used to determine whether all required criteria for revenue recognition have been met.  Revenue is recognized to the extent of billable rates times hours delivered plus material and other reimbursable costs incurred to manage telecommunications carrier air and data services.  The Company also charges a monthly user access and device management fee. The Company acquires telecommunication devices for the customer and recognizes revenue upon receipt of inventory and bills for services at cost plus applicable contractual fees earned.  The Company also offers billing management services, which may subject the Company to credit risk as we are responsible for the payment of multiple billable arrangements by and between our customer and various carriers.  The Company recognizes revenues and related costs on a gross basis as we have discretion in choosing providers, rate plans, and devices in providing the services to our customers.   Certain federal and state governments and their agencies may pay for services and/or devices in advance. These advance payments are recorded as deferred revenue and recognized as services are performed and/or devices delivered. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Cyber Security Solutions consist of Public Key Infrastructure (PKI) identity credentialing software certificates and identity credentialing software certificate consoles and other software.   PKI credentialing is usually controlled by the Company and revenue is recognized upon issuance and there are no undelivered elements.  Pricing for certificates issued by the Company is based on third party evidence of value.  Revenue is recognized from the sales of credentials upon issuance.  For PKI credentialing that is controlled by the customer, revenue is recognized upon delivery of the credentials and/or consoles when there are no other additional deliverables.  These certificates are delivered electronically to the end user.  There is no obligation to provide post contract services in relation to certificates issued and consoles delivered.   Cost of sales include general infrastructure support costs to maintain the continue issuance of credentials.  For other software, which is part of an integrated solution, revenue is recognized using percentage of completion as the individual component parts have no value until the solution has been delivered. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Consulting Services and Products include the purchase and sale of third party hardware/software and maintenance services billed under cost-reimbursable contracts.  Revenue is recognized when persuasive evidence of an arrangement exists, services have been rendered, the contract price is fixed or determinable and collectability is reasonably assured. The Company has a standard internal process that is used to determine whether all required criteria for revenue recognition have been met.  Revenue is recognized for the re-sale of hardware equipment and software support and maintenance upon delivery to the customer, including applicable contractual fees earned.  The Company bears credit risk associated with purchases made on behalf of customers. The Company recognizes revenues and related costs on a gross basis as we have discretion in choosing providers and equipment for our customers.  Further our information technology and assurance consulting services are billed under a time and materials contract.  Revenue is recognized when persuasive evidence of an arrangement exists, services have been rendered, the contract price is fixed or determinable and collectability is reasonably assured. The Company has a standard internal process that is used to determine whether all required criteria for revenue recognition has been met.  Revenue is recognized to the extent of billable rates times hours delivered plus material and other reimbursable costs incurred to provide services.  Hardware elements are separately procured and priced through third party vendors who deal in such equipment.  Our pricing is based on Third Party Evidence of Value (“TPE”) with either handling charges or additional fees included in our General Services Administration (‘GSA”) schedule which is similar to those offered by other hardware vendors for similar products and/or services as well as charges for handling and additional fees.  The hardware elements under this arrangement procured for the solution was purchased through third party vendors.  The hardware elements are recognized at the time of delivery and/or integration into the solutions. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | EstimatedUseful Life |   | March 31,2011 |      |   | December 31,2010 |   |
|-------------------------------------------------------|--------|---------------------------|--------|--------------------|-----------|--------|-----------------------|--------|
| Land and building                                     |   | 20 years                  |   | $                  | 677,054   |   |                  | $      | 677,054 |   |
| Computer hardware and software                        |   | 3 years                   |   |               | 1,378,279 |   |                  |   | 1,355,651 |   |
| Furniture and fixtures                                |   | 3-5 years                 |   |               | 235,281   |   |                  |   | 126,595 |   |
| Gross property and equipment                          |   |                      |   | $                  | 2,290,614 |   |                  | $      | 2,159,300 |   |
| Less– Accumulated depreciation and amortization |   |                      |   |               | (995,538  | )      |                  |   | (917,790 | ) |
|                                                  |   |                      |   | $                  | 1,295,076 |   |                  | $      | 1,241,510 |   |

----

| 3.  | Debt |
|----------|------|

----

| 4. | Goodwill and Intangible Assets |
|----|--------------------------------|

----

|                                                                                                                                  |   | As of March 31, 2011 |      |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                                                                                                  |   | GrossCarryingAmount                      |      |   | AccumulatedAmortization |   |   | WeightedAverageAmortizationPeriod (inyears) |   |
| Purchased Intangible Assets                                                                                                           |   |                                     |      |   |   |   |   |   |   |
| ORC Intangible (Includes customer relationships and PKI business opportunity purchase accounting valuations)                          |   | $                                        | 1,145,523 |   |   | $ | (1,145,523 | ) |   |   | 5 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| iSYS (includes customer relationships, internal use software and trade name)                                                          |   | $                                        | 1,230,000 |   |   | $ | (749,918 | ) |   |   | 5 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| Protexx (Identity Security Software)                                                                                                  |   | $                                        | 506,463   |   |   | $ | (450,190 | ) |   |   | 3 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| Advanced Response Concepts Corporation (includes preliminary values for customer relationships and first responder security software) |   | $                                        | 355,000   |   |   | $ | (82,833 | ) |   |   | 4 |   |
|                                                                                                                                  |   | $                                        | 3,236,986 |   |   | $ | (2,428,464 | ) |   |   | 4 |   |
| Internally Developed Intangible Assets                                                                                                |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-I Intangible (Related to internally generated software)                                                                       |   | $                                        | 334,672   |   |   | $ | (334,672 | ) |   |   | 6 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-II Intangible (Related to internally generated software)                                                                      |   | $                                        | 649,991   |   |   | $ | (645,965 | ) |   |   | 6 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-III Intangible (Related to internally generated software)                                                                     |   | $                                        | 211,680   |   |   | $ | (205,800 | ) |   |   | 3 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-IV Intangible (Related to internally generated software)                                                                      |   | $                                        | 42,182    |   |   | $ | (41,010 | ) |   |   | 3 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-V Intangible (Related to internally generated software)                                                                       |   | $                                        | 147,298   |   |   |   | (53,191 | ) |   |   | 3 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| ORC PKI-VI Intangible (Related to internally generated software)                                                                      |   | $                                        | 77,994    |   |   |   | — |   |   |   | 3 |   |
|                                                                                                                                  |   |                                     | 1,463,817 |   |   | $ | (1,280,638 | ) |   |   | 4 |   |
|                                                                                                                                  |   |                                     |      |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                 |   | $                                        | 4,700,803 |   |   | $ | (3,709,102 | ) |   |   | 4 |   |

| 2011   |   | $      | 311,174 |   |
|--------|--------|--------|---------|--------|
| 2012   |   |   | 333,764 |   |
| 2013   |   |   | 256,847 |   |
| 2014   |   |   | 83,999  |   |
| 2015   |   |   | 5,917   |   |
|   |   |   |    |   |
| Total  |   | $      | 991,701 |   |

| 5. | Income Taxes |
|----|--------------|

----

| 6. | Stockholders’ Equity |
|----|----------------------------|

| 7. | Stock Options and Award Programs |
|----|----------------------------------|

|                          |   | # of Shares |      |   | Weighted averagegrant date fair valueper share |   |
|-------------------------------|--------|-----------------------|-----------|--------|-------------------------------------------------------------------------|--------|
| Non-vested at January 1, 2011 |   |                  | 976,253   |   |                                                                    | $      | 0.44 |   |
|                          |   |                  |      |   |                                                                    |   |   |   |
| Granted                       |   |                  | -         |   |                                                                    |   | - |   |
| Vested                        |   |                  | (138,753  | )      |                                                                    | $      | 0.09 |   |
| Forfeited                     |   |                  | (75,000   | )      |                                                                    |   | - |   |
| Non-vested at March 31, 2011  |   |                  | 762,500   |   |                                                                    | $      | 0.38 |   |
|                          |   |                  |      |   |                                                                    |   |   |   |
| Non-vested at January 1, 2010 |   |                  | 1,215,004 |   |                                                                    | $      | 0.39 |   |
|                          |   |                  |      |   |                                                                    |   |   |   |
| Granted                       |   |                  | 75,000    |   |                                                                    | $      | 0.41 |   |
| Vested                        |   |                  | (120,001  | )      |                                                                    | $      | 0.05 |   |
| Forfeited                     |   |                  | -         |   |                                                                    |   | - |   |
| Non-vested at March 31, 2010  |   |                  | 1,170,003 |   |                                                                    | $      | 0.43 |   |

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|                                 |   | # of Shares |      |   | Weighted averageexercise priceper share |   |
|--------------------------------------|--------|-----------------------|-----------|--------|---------------------------------------------------|--------|
| Total outstanding at January 1, 2011 |   |                  | 3,587,000 |   |                                              | $      | 0.62 |   |
|                                 |   |                  |      |   |                                              |   |   |   |
| Issued                               |   |                  | -         |   |                                              |   | - |   |
| Cancelled                            |   |                  | (75,000   | )      |                                              | $      | 0.83 |   |
| Exercised                            |   |                  | (120,000  | )      |                                              | $      | 1.22 |   |
| Total outstanding at March 31, 2011  |   |                  | 3,392,000 |   |                                              | $      | 0.59 |   |
| Total exercisable at March 31, 2011  |   |                  | 2,629,500 |   |                                              | $      | 0.50 |   |
|                                 |   |                  |      |   |                                              |   |   |   |
| Total outstanding at January 1, 2010 |   |                  | 4,517,411 |   |                                              | $      | 0.54 |   |
|                                 |   |                  |      |   |                                              |   |   |   |
| Issued                               |   |                  | 75,000    |   |                                              |   | 0.65 |   |
| Cancelled                            |   |                  | (1,000    | )      |                                              | $      | 1.35 |   |
| Exercised                            |   |                  | -         |   |                                              |   | - |   |
| Total outstanding at March 31, 2010  |   |                  | 4,591,411 |   |                                              | $      | 0.54 |   |
| Total exercisable at March 31, 2010  |   |                  | 3,421,408 |   |                                              | $      | 0.44 |   |

|                                                                     |   | Three Months endedMarch 31, |   |
|--------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                     |   | 2011                        |   |   | 2010 |   |
|                                                                     |   |                        |   |   |   |   |   |   |
| General and administrative expense                                       |   | $                           | 6,404  |   |   | $ | 29,180 |   |
| Share-based compensation before taxes                                    |   | $                           | 6,404  |   |   | $ | 29,180 |   |
| Total net share-based compensation expense                               |   | $                           | 6,404  |   |   | $ | 29,180 |   |
|                                                                     |   |                        |   |   |   |   |   |   |
| Net share-based compensation expenses per basic and diluted common share |   | nil                         |   |   | nil |   |

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| 8. | Earnings Per Common Share (EPS) |
|----|---------------------------------|

|                                                         |   | March 31 |       |
|--------------------------------------------------------------|--------|----------|------------|
|                                                         |   | 2011     |       |   | 2010 |   |
| Basic EPS computation:                                       |   |     |       |   |   |   |
| Net (loss) income                                            |   | $        | (317,360   | ) |   | $ | 239,298 |   |
| Weighted average number of common shares                     |   |     | 62,797,540 |   |   |   | 61,375,333 |   |
| Basic EPS                                                    |   | $        | (0.01      | ) |   | $ | 0.00 |   |
|                                                         |   |     |       |   |   |   |   |   |
| Diluted EPS                                                  |   |     |       |   |   |   |   |   |
| Net income                                                   |   | $        | (317,360   | ) |   | $ | 239,298 |   |
|                                                         |   |     |       |   |   |   |   |   |
| Weighted average number of common shares                     |   |     | 62,797,540 |   |   |   | 61,375,333 |   |
| Incremental shares from assumed conversions of stock options |   |     | -          |   |   |   | 1,599,020 |   |
| Adjusted weighted average number of common shares            |   |     | 62,797,540 |   |   |   | 62,974,353 |   |
|                                                         |   |     |       |   |   |   |   |   |
| Diluted EPS                                                  |   | $        | (0.01      | ) |   | $ | 0.00 |   |

| 9. | Segment Reporting |
|----|-------------------|

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|                                    |   | Three Months Ended March 31, 2011 |      |
|-----------------------------------------|--------|-----------------------------------|-----------|
|                                    |   | Wireless                          |      |   | Cyber |   |   | Consulting |   |   | Corp |   |   | Consol |   |
| Revenue                                 |   |                              | 5,607,586 |   |   |   | 1,256,249 |   |   |   | 3,665,290 |   |   |   | - |   |   |   | 10,529,125 |   |
| Operating income including amortization |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and depreciation expense                |   |                              | 354,410   |   |   |   | 77,285 |   |   |   | (323,214 | ) |   |   | (613,409 | ) |   |   | (504,928 | ) |
| Interest income (expense), net          |   |                              |      |   |   |   |   |   |   |   |   |   |   |   | (16,363 | ) |   |   | (16,363 | ) |
| Other income (expense), net             |   |                              |      |   |   |   |   |   |   |   |   |   |   |   | 1,143 |   |   |   | 1,143 |   |
| Pretax income                           |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (520,148 | ) |
| Income tax benefit                      |   |                              |      |   |   |   |   |   |   |   |   |   |   |   | 202,788 |   |   |   | 202,788 |   |
| Net income                              |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (317,360 | ) |
|                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   | Three Months Ended March 31, 2010 |      |
|                                    |   | Wireless                          |      |   | Cyber |   |   | Consulting |   |   | Corp |   |   | Consol |   |
| Revenue                                 |   |                              | 6,919,812 |   |   |   | 1,425,507 |   |   |   | 2,817,737 |   |   |   | - |   |   |   | 11,163,056 |   |
| Operating income including amortization |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and depreciation expense                |   |                              | 679,244   |   |   |   | 285,366 |   |   |   | 107,414 |   |   |   | (772,741 | ) |   |   | 299,283 |   |
| Interest Income (expense), net          |   |                              |      |   |   |   |   |   |   |   |   |   |   |   | (20,763 | ) |   |   | (20,763 | ) |
| Pretax income                           |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 278,520 |   |
| Income tax expense benefit              |   |                              |      |   |   |   |   |   |   |   |   |   |   |   | (39,222 | ) |   |   | (39,222 | ) |
| Net income                              |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 239,298 |   |

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|   | · | ORC specializes in cybersecurity solutions with a focus in IT integration and secure authentication processes and software, and providing services to the federal government.  ORC has been at the forefront of implementing Public Key Infrastructure (PKI) technologies. PKI technology uses a class of algorithms in which a user can receive two electronic keys, consisting of a public key and a private key, to encrypt any information and/or communication being transmitted to or from the user within a computer network and between different computer networks. We believe PKI technology is becoming the technology of choice to enable security services within and between different computer systems utilized by various agencies and departments of the federal government. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | iSYS specializes in wireless mobility solutions, characterized by comprehensive wireless environment managed services contracts to a number of large US federal agencies.  It also specializes in  forensic informatics, and IA services, predominantly to various agencies and departments of the federal government. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | WidePoint IL (in conjunction with WPNBIL) specializes in IT consulting services predominantly in the Chicago, Illinois regional area and cross-sells various services of our other operating subsidiaries. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ARCC specializes in providing identity assurance and priority resource management solutions; crime scene management and information protection, and other activities related or incidental thereto; and the development, maintenance, enhancement and provision of software, services, products and operations for identity management and information protection, which are offered primarily to state and local government agency markets. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Protexx, which is a development stage company, specializes in identity assurance, and encrypted mobile and wireless data protection products and services. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | § | Our Wireless Mobility Management segment recorded revenue of approximately $5.6 million for the quarter ended March 31, 2011 versus approximately $6.9 million for the quarter ended March 31, 2010.  This 19% reduction in revenue was predominately the result of a reduction in billable calling minutes and billable services we provide to our WHS and TSA customers.  Short-term, we may witness a reduction or variability in revenue growth as the revenue mix in this segment experiences a reduction of billable calling minutes as compared to managed fees as we shift our attention to expanding the fee portion of our sales mix.  We are presently pursuing several significant service contract award opportunities at a number of federal agencies and are also initiating a new strategy to expand into state and local municipalities and commercial enterprises by utilizing intermediary sales channels to potentially expand our reach beyond the federal sector and help to support the long-term growth of this segment.  For the first quarter of 2011 we had approximately 65,000 mobile devices under management.   We anticipate unit growth in the second quarter of 2011 as we add the U.S. Army Corp of Engineers to our current roster of customers under a contract that we entered into during the first quarter of 2011 commencing in the second quarter of 2011.  We believe we will add management of between 20,000 and 30,000 mobile devices during 2011 as a result of the addition of work we are performing for the U.S. Army Corp of Engineers.  As we continue to market our services we also anticipate we will continue to add units under management from new agency awards along with the possibility of additional awards from states, local municipalities, and other commercial opportunities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Our Cybersecurity Solutions segment recorded revenue of approximately $1.3 million for the three month period ended March 31, 2011 versus approximately $1.4 million for the three month period ended March 31, 2010.  This 12% decrease in revenue was primarily a result of revenues that were delayed as a result of the delivery of work moving from the first quarter of 2011 into the second quarter of 2011, as well as delays of anticipated awards associated with the U.S. budget process that experienced delays associated with award and contract finalization.  We anticipate that this segment should continue to demonstrate revenue growth in the future as various federal agency mandates continue to be implemented in order to strengthen the requirements for greater levels of identity management and better protect the federal information technology infrastructure within federal agencies.  We have entered into a number of affiliations with partners who support the end user base, which facilitate access to these various federal agencies and the related technology infrastructure in order to take advantage of these identity management improvement mandates.  We believe these new partnerships should widen our sales reach. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Our Consulting Services and Products segment recorded revenue of approximately $3.7 million for the three month period ended March 31, 2011 versus $2.9 million for the three month period ended March 31, 2010.  This 28% increase was materially due to an increase in our software reselling activities in the first quarter of 2011.  We anticipate long-term that this segment should continue to grow at a moderate rate but given the nature and variability of the products and services we offer within this segment the growth may be erratic quarter to quarter. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| EXHIBIT |   |                                                                                                                                             |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| NO.     |   | DESCRIPTION                                                                                                                                      |
|    |   |                                                                                                                                             |
| 31.1    |   | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).                             |
|    |   |                                                                                                                                             |
| 31.2    |   | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).                             |
|    |   |                                                                                                                                             |
| 32      |   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith). |

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|   |         | WIDEPOINT CORPORATION |                                       |
|--------|--------------|-----------------------|--------------------------------------------|
|   |         |                  |                                       |   |
| Date:  | May 16, 2011 |                  | /s/ STEVE L. KOMAR                         |   |
|   |         |                  | Steve L. Komar                             |   |
|   |         |                  | President and Chief Executive Officer      |   |
|   |         |                  |                                       |   |
| Date:  | May 16, 2011 |                  | /s/ JAMES T. MCCUBBIN                      |   |
|   |         |                  | James T. McCubbin                          |   |
|   |         |                  | Vice President – Principal Financial |   |
|   |         |                  | and Accounting Officer                     |   |

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