8-K
INTELLIGENT PROTECTION MANAGEMENT CORP. (IPM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 24, 2025
| INTELLIGENT PROTECTION MANAGEMENT CORP. | ||
|---|---|---|
| (Exact name of registrant as specified in its charter) | ||
| Delaware | 001-38717 | 20-3191847 |
| --- | --- | --- |
| (State or other jurisdiction | (Commission File Number) | (IRS Employer |
| of incorporation) | Identification No.) |
| 30 Jericho Executive Plaza, Suite 400E<br><br> <br>Jericho, NY | 11753 |
|---|---|
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(212) 967-5120
(Former name or former address, if changed since last report)
Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.001 par value | IPM | The Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.02 Results of Operations and FinancialCondition.
On March 24, 2025, Intelligent Protection Management Corp. issued a press release announcing its financial results for the year and quarter ended December 31, 2024. The press release is furnished as Exhibit 99.1.
The information in this Current Report on Form 8-K (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release of Intelligent Protection Management Corp., dated March 24, 2025 (furnished pursuant to Item 2.02). |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: March 24, 2025 | ||
|---|---|---|
| INTELLIGENT PROTECTION MANAGEMENT CORP. | ||
| By: | /s/ Jason Katz | |
| Jason Katz | ||
| Chief Executive Officer |
2
Exhibit 99.1
IntelligentProtection Management Corp. Reports 2025 Business Objectives and Fourth Quarter and Full Year 2024 Results
Refocusedon Technology Service Offerings in the Cloud Infrastructure and Cybersecurity Sectors
Jericho,NY – March 24, 2025 (ACCESS Newswire) --Intelligent Protection Management Corp. (“IPM,” the “Company,” “we,” “our” or “us”) (NASDAQ: IPM), a managed technology solutions provider focused on cybersecurity and cloud infrastructure, today announced financial and operational results for the fourth quarter and year ended December 31, 2024.
As previously disclosed, in January 2025, the Company completed its acquisition of Newtek Technology Solutions, Inc. (“NTS”) from NewtekOne, Inc. and the sale of its “Paltalk”, “Camfrog” and “Vumber” applications and certain assets and liabilities related to such applications (the “Transferred Assets”) to Meteor Mobile Holdings, Inc. (together, the “Transactions”).
Following the Transactions, the Company’s business is focused on providing server hosting, cloud hosting, data storage, managed security, backup and disaster recovery, and other related services, including consulting and implementing technology solutions. The financial results for the fourth quarter and year ended December 31, 2024 discussed below relate to the Company’s business prior to the consummation of the Transactions.
KeyFinancial Highlights for Fourth Quarter Ended December 31, 2024 Compared to Prior Year Period
For the purposes of this earnings release and the financial information provided herein, assets and liabilities related to the Transferred Assets are presented as held for sale/discontinued operations, and the results of operations related to the Transferred Assets are presented as discontinued operations. Subsequent to year end, on January 2, 2025, the Company completed the sale of the Transferred Assets.
| ● | Revenue<br> from continuing operations increased 9.1% to $0.3 million from nearly $0.3 million, as a<br> result of increased sales from ManyCam. Including revenue from discontinued operations of<br> $1.9 and $2.4 for the three months ended December 31, 2024 and 2023, respectively (which<br> is included in loss from discontinued operations on the statement of operations), revenue<br> decreased 21% to $2.1 million from $2.7 million, primarily due to a decrease in subscription<br> and virtual gift revenue from Paltalk and Camfrog, partially offset by increased revenue<br> from advertising. |
|---|---|
| ● | Net<br> loss from continuing operations increased by 142% to $1.4 million compared to a net loss<br> from continuing operations of $0.6 million and included $0.6 million of increased professional<br> fees incurred in connection with the Transactions, as well as increased public company expenses<br> and an increase in compensation expense related to the Transactions. |
| --- | --- |
| ● | Loss<br> from discontinued operations increased by 1449% to $4.1 million compared to income from discontinued<br> operations of $0.3 million and included a one-time impairment loss on divested assets of<br> $3.8 million, as well as a decrease in virtual gift revenue from discontinued operations<br> compared to the three months ended December 31, 2023. |
| --- | --- |
| ● | Net<br> loss increased by 1840% to $5.5 million compared to $0.3 million. |
| --- | --- |
| ● | Adjusted<br> EBITDA^1^ loss was $1.5 million compared to Adjusted EBITDA^1^ loss of<br> $0.2 million, an increase of 594%. |
| --- | --- |
| ● | Net<br> cash used in operating activities for the quarter was $1.5 million. |
| --- | --- |
KeyFinancial Highlights for Year Ended December 31, 2024 Compared to Prior Year Period
| ● | Revenue<br> from continuing operations increased 14% to $1.1 million from $1.0 million as a result of<br> increased sales from ManyCam. Including revenue from discontinued operations of $8.0 and<br> $10.0 for the year ended December 31, 2024 and 2023, respectively (which is included in the<br> loss from discontinued operations on the statement of operations), revenue decreased 17%<br> to $9.1 million from $10.9 million, primarily due to a decrease in subscription and virtual<br> gift revenue from Paltalk and Camfrog, partially offset by increased revenue from advertising. |
|---|---|
| ● | Net<br> loss from continuing operations increased by 59% to $4.3 million compared to net loss from<br> continuing operations of $2.7 million and included $1.8 million of increased professional<br> fees incurred in connection with the Transactions, as well as increased public company expenses<br> and an increase in compensation expense related to the Transactions. |
| --- | --- |
| ● | Loss<br> from discontinued operations increased by 357% to $4.2 million compared to income from discontinued<br> operations of $1.6 million for the year ended December 31, 2024 and included a one-time impairment<br> loss on divested assets of $3.8 million, as well as a decrease in virtual gift revenue from<br> discontinued operations compared to the three months ended December 31, 2023. |
| --- | --- |
| ● | Net<br> loss increased by 690% to $8.4 million compared to a net loss of $1.1 million. |
| --- | --- |
| ● | Adjusted<br> EBITDA^1^ loss was $4.4 million compared to Adjusted EBITDA^1^ loss of<br> $1.0 million, an increase of 338%. |
| --- | --- |
| ● | The<br> Company had $10.6 million in cash and no long-term debt on its balance sheet as of December<br> 31, 2024. |
| --- | --- |
2025Business Objectives
For the near term, our business objectives include:
| ● | continuing<br>the integration of our comprehensive range of IT-related solutions; |
|---|---|
| ● | incorporate<br>ManyCam as an offering for our new customers and seek to optimize our cross-selling efforts with our other technology solutions; |
| --- | --- |
| ● | continuing<br>to explore strategic opportunities, including, but not limited to, potential mergers or acquisitions of other assets or entities that<br>are synergistic to our businesses; and |
| --- | --- |
| ● | continuing<br>to defend our intellectual property. |
| --- | --- |
| ^1^ | Adjusted<br>EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading “Non-GAAP Financial Measures and KeyMetrics” and the reconciliations at the end of this release for additional information concerning this and other non-GAAP financial<br>measures. |
| --- | --- |
2
ManagementCommentary
Jason Katz, Chairman and CEO of IPM, commented, “With the closing of our acquisition of NTS and our divestiture of our communication software and multimedia social platforms in early January 2025, we have officially moved our Company into the cloud infrastructure and cybersecurity sectors. We believe these transformational Transactions will have a meaningful impact on our revenue and will provide us with additional opportunities for growth and a strong value proposition for our stockholders.”
Mr. Katz continued, “While we are focused on delivering growth and increasing profitability as a managed technology solutions provider, we believe we bolstered our value in 2024 by successfully defending our intellectual property. In addition, as a result of the divesture, IPM is eligible to receive certain earn-out payments in the future based on the buyer’s cash revenue, attributable to the Paltalk, Camfrog and Vumber applications.”
Mr. Katz concluded, “We are very excited with the prospect of expanding our managed technology solutions business, particularly in the cloud infrastructure and cybersecurity sectors. Following the Transactions, our team is re-energized and focused on the growth of our business. Additionally, we expect that the recently announced referral arrangement with NewtekOne, a current client and a financial holding company with tens of thousands of its own business clients, has great potential to help us find new customers. We believe that cybersecurity is a technology area that is top of mind for all companies, small and large, and ripe for growth. Additionally, we believe there will be ample merger and acquisition opportunities to further scale growth. We look forward to growing the business and building a healthy pipeline of prospective and new customers.”
PatentLitigation Update
On July 23, 2021, our wholly owned subsidiary, Paltalk Holdings, Inc., filed a patent infringement lawsuit (the “Lawsuit”) against WebEx Communications, Inc., Cisco WebEx LLC, and Cisco Systems, Inc. (collectively, “Cisco”), in the U.S. District Court for the Western District of Texas (the “Court”). We alleged that certain of Cisco’s products infringed U.S. Patent No. 6,683,858, and that we were entitled to damages.
On August 29, 2024, the jury awarded us $65.7 million (the “Award”) in a jury verdict in connection with the Lawsuit. On October 8, 2024, an order granting a motion for final judgment (the “Final Judgment”) was entered into in the Court in connection with the Lawsuit. The Final Judgment was entered in our favor in the amount of the Award and started the time for filing any post-trial motions or appeal.
The exact amount of the Award proceeds to be received by us will be determined based on a number of factors and will reflect the deduction of significant litigation-related expenses, including legal fees. Consequently, we estimate that we would receive no more than one third of the gross proceeds in connection with the Award, subject to post-trial proceedings (including any potential appellate proceedings by Cisco). We have not recorded any gain contingency in connection with the Award.
3
PotentialEarn-Out Payable to IPM
As a closing condition to the NTS acquisition, IPM completed the sale of its telecommunications services provider, “Vumber”, as well as its “Paltalk” and “Camfrog” applications and certain related assets and liabilities (the “Transferred Assets”) to Meteor Mobile Holdings, Inc. IPM is eligible to receive certain payments based on cash revenue attributable to the Transferred Assets. The cash payable to IPM for each Earn-Out Period is set forth below:
| ● | Earn-Out<br>Period 1 – an amount equal to (i) for any revenue greater than or equal to $3,500,000 and less than $4,250,000, the amount<br>of such revenue multiplied by 0.30, plus (ii) for any revenue greater than or equal to $4,250,000, the amount of such revenue<br>in excess of $4,250,000 multiplied by 0.40; and |
|---|---|
| ● | Earn-Out<br>Period 2, Earn-Out Period 3 and Earn-Out Period 4 – an amount equal to (i) for any revenue greater than or equal to $7,000,000<br>and less than $8,500,000, the amount of such revenue multiplied by 0.30, plus (ii) for any revenue greater than or equal<br>to $8,500,000, the amount of such revenue in excess of $8,500,000 multiplied by 0.40. |
| --- | --- |
The Earn-Out Periods are set forth below:
| ● | Earn-Out<br>Period 1 = 7/1/25 – 12/31/25 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ● | Earn-Out<br>Period 2 = 1/1/26 – 12/31/26 | ||||||||||
| --- | --- | ||||||||||
| ● | Earn-Out<br>Period 3 = 1/1/27 – 12/31/27 | ||||||||||
| --- | --- | ||||||||||
| ● | Earn-Out<br>Period 4 = 1/1/28 – 12/31/28 | ||||||||||
| --- | --- | ||||||||||
| Three<br> Months Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December<br> 31, | |||||||||||
| (unaudited) | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| Revenue | $ | 280 | $ | 256 | 9.1 | % | |||||
| Net loss from continuing operations | (1,415 | ) | (585 | ) | ) | (141.8 | )% | ||||
| (Loss) income from discontinued<br> operations, net of tax | (4,075 | ) | 302 | ) | (1448.5 | )% | |||||
| Net loss | $ | (5,491 | ) | $ | (283 | ) | ) | (1839.5 | )% | ||
| Net cash used in operating<br> activities | $ | (1,468 | ) | $ | (99 | ) | ) | (1383.1 | )% | ||
| Adjusted EBITDA (a non-GAAP<br> measure) | $ | (1,549 | ) | $ | (223 | ) | ) | (593.9 | )% |
All values are in US Dollars.
| Year<br> Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December<br> 31, | Change | ||||||||||
| 2024 | 2023 | % | |||||||||
| Revenue | 1,098 | 962 | 14.2 | % | |||||||
| Net loss<br> from continuing operations | (4,269 | ) | (2,687 | ) | ) | (194.6 | )% | ||||
| (Loss)<br> income from discontinued operations, net of tax | (4,157 | ) | 1,620 | ) | (356.7 | )% | |||||
| Net loss | $ | (8,426 | ) | $ | (1,067 | ) | ) | (689.5 | )% | ||
| Net cash<br>used in operating activities | $ | (3,019 | ) | $ | (1,080 | ) | ) | (179.6 | )% | ||
| Adjusted<br> EBITDA (a non-GAAP measure) | $ | (4,432 | ) | $ | (1,013 | ) | ) | (337.5 | )% |
All values are in US Dollars.
4
ABOUTINTELLIGENT MANAGEMENT PROTECTION CORP. (Nasdaq: IPM)
Intelligent Management Protection Corp. is a managed technology solutions provider focused on cybersecurity and cloud infrastructure. IPM provides dedicated server hosting, cloud hosting, data storage, managed security, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients across the United States. IPM also operates ManyCam. The Company has an over 20-year history of technology innovation and holds 8 patents. For more information, please visit: www.ipm.com.
To be added to our news distribution list, please visit: http://www.ipm.com/investor-alerts/.
FORWARD-LOOKINGSTATEMENTS:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to differ materially from any future results, performance or achievements anticipated in such statements. Such forward-looking statements include, but are not limited to, statements relating to estimates of future synergies and efficiencies as a result of the NTS acquisition, expectations regarding the Company’s ability to effectively integrate assets it acquired as a result of the NTS acquisition, expectations of future plans, priorities, focus and benefits of the NTS acquisition, the Company’s ability to realize the intended benefits of the referral arrangement with NewtekOne, the Company’s plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as “aim,” “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “extent,” “focus,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “position,” “probable,” “progressing,” “projects,” “prudent,” “seeks,” “should,” “steady,” “target,” “view,” “will” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the possibility of security vulnerabilities, cyber-attacks and network disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; the Company’s ability to operate its secure private cloud through its data centers; the intense competition in the industry in which the Company operates and its ability to effectively compete with existing competitors and new market entrants; the Company’s ability to consummate favorable acquisitions and effectively integrate any companies or businesses that the Company acquires; the impact of adverse economic and market conditions, including those related to fluctuations in inflation and geopolitical conflicts; the Company’s reliance on a limited number of customers for its revenues and income; the Company’s ability to attract new customers, retain existing customers and sell additional services to customers; the Company’s ability to protect its intellectual property rights; and other events outside of the Company’s control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at www.sec.gov.
All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
InvestorContacts:
IR@ipm.com
ClearThink
nyc@clearthink.capital
917-658-7878
5
INTELLIGENTPROTECTION MANAGEMENT CORP.
RECONCILIATIONOF GAAP TO NON-GAAP FINANCIAL MEASURES
| Three Months Ended | Year<br> Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, (unaudited) | December<br> 31, <br><br> (unaudited) | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Reconciliation of net loss to Adjusted EBITDA: | ||||||||||||
| Net loss | $ | (5,490,501 | ) | $ | (283,090 | ) | $ | (8,426,209 | ) | $ | (1,067,335 | ) |
| Stock-based<br> compensation expense | 27,282 | 65,302 | 151,412 | 234,993 | ||||||||
| Depreciation<br> and amortization expense | 204,946 | 205,584 | 821,696 | 822,334 | ||||||||
| Impairment<br> loss in connection with the Divestiture | 3,849,766 | -- | 3,849,766 | -- | ||||||||
| Interest<br> income, net | (115,284 | ) | (177,178 | ) | (569,016 | ) | (639,611 | ) | ||||
| Other<br> income, net | -- | -- | (146,269 | ) | (343,045 | ) | ||||||
| Income<br> tax benefit | (25,156 | ) | (33,842 | ) | (113,232 | ) | (20,252 | ) | ||||
| Adjusted<br> EBITDA | $ | (1,548,947 | ) | $ | (223,224 | ) | $ | (4,431,852 | ) | $ | (1,012,916 | ) |
Useof Non-GAAP Financial Measures
The Company has provided in this release Adjusted EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA is defined as net (loss) income adjusted to exclude stock-based compensation expense, depreciation and amortization expenses, impairment loss in connection with the Divestiture, interest income, net, other (income) expense, net, and income tax (benefit) expense. The impairment loss in connection with the Divestiture relates to a one-time impairment charge recorded in connection with the Company’s divestiture of its Paltalk, Camfrog and Vumber applications.
Management uses Adjusted EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue and net loss, presented in accordance with GAAP.
6
INTELLIGENTPROTECTION MANAGEMENT CORP.
CONSOLIDATEDBALANCE SHEETS
| 2023 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash<br> and cash equivalents | 10,588,534 | $ | 13,568,049 | ||
| Employee<br> retention tax credit receivable, net | 114,212 | 114,212 | |||
| Prepaid<br> expense and other current assets | 462,422 | 744,510 | |||
| Assets<br> held for sale - current | 72,925 | 338,828 | |||
| Total<br> current assets | 11,238,093 | 14,765,599 | |||
| Operating<br> lease right-of-use asset | 74,490 | 77,005 | |||
| Assets<br> held for sale - noncurrent | 2,663,229 | 6,326,250 | |||
| Intangible<br> assets, net | 1,882,781 | 2,704,477 | |||
| Other<br> assets | 13,937 | 13,937 | |||
| Total<br> assets | 15,872,530 | $ | 23,887,268 | ||
| Liabilities<br> and stockholders’ equity | |||||
| Current<br> liabilities: | |||||
| Accounts<br> payable | 380,298 | 99,307 | |||
| Accrued<br> expenses and other current liabilities | 509,759 | 53,423 | |||
| Operating<br> lease liabilities, current portion | 74,490 | 77,005 | |||
| Deferred<br> subscription revenue | 555,039 | 544,442 | |||
| Liabilities<br> held for sale - current | 2,024,237 | 2,364,363 | |||
| Total<br> current liabilities | 3,543,823 | 3,138,540 | |||
| Deferred<br> tax liability | 429,045 | 614,041 | |||
| Total<br> liabilities | 3,972,868 | 3,752,581 | |||
| Commitments<br> and contingencies | |||||
| Stockholders’<br> equity: | |||||
| Common<br> stock, 0.001 par value, 25,000,000 shares authorized, 9,878,950 shares issued and 9,236,987 and 9,222,157 shares outstanding as<br> of December 31, 2024 and 2023, respectively | 9,879 | 9,864 | |||
| Treasury<br> stock, 641,963 shares repurchased as of December 31, 2024 and 2023 respectively | (1,199,337 | ) | (1,199,337 | ) | |
| Additional<br> paid-in capital | 36,399,897 | 36,208,728 | |||
| Accumulated<br> deficit | (23,310,777 | ) | (14,884,568 | ) | |
| Total<br> stockholders’ equity | 11,899,662 | 20,134,687 | |||
| Total<br> liabilities and stockholders’ equity | 15,872,530 | 23,887,268 |
All values are in US Dollars.
7
INTELLIGENTPROTECTION MANAGEMENT CORP.
CONSOLIDATEDSTATEMENTS OF OPERATIONS
| 2023 | |||||
| Revenue | |||||
| Subscription<br> revenue | 1,098,280 | $ | 962,032 | ||
| Costs and expenses | |||||
| Costs of revenue | 262,888 | 284,892 | |||
| Sales<br> and marketing expense | 61,706 | 91,939 | |||
| Product<br> development expense | 215,538 | 210,232 | |||
| General<br> and administrative expense | 5,679,697 | 4,072,580 | |||
| Total costs and expenses | 6,219,829 | 4,659,643 | |||
| Loss from continuing operations | (5,121,549 | ) | (3,697,611 | ) | |
| Interest<br> income, net | 569,016 | 639,611 | |||
| Other<br> income, net | 146,269 | 343,045 | |||
| Loss from continuing operations<br> before income tax benefit | (4,406,264 | ) | (2,714,955 | ) | |
| Income<br> tax benefit | 137,589 | 27,947 | |||
| Net<br> loss from continuing operations | (4,268,675 | ) | (2,687,008 | ) | |
| (Loss)<br> income from discontinued operations, net of income tax expense of 24,357 and 7,695, respectively | (4,157,534 | ) | 1,619,673 | ||
| Net<br> loss | (8,426,209 | ) | $ | (1,067,335 | ) |
| Net loss per share of common stock: | |||||
| Basic –<br> continuing operations | (0.48 | ) | $ | (0.29 | ) |
| Diluted<br> – continuing operations | (0.48 | ) | $ | (0.29 | ) |
| Basic –<br> discontinued operations | (0.43 | ) | $ | 0.17 | |
| Diluted<br> – discontinued operations | (0.43 | ) | $ | 0.17 | |
| Basic | (0.91 | ) | $ | (0.12 | ) |
| Diluted | (0.91 | ) | $ | (0.12 | ) |
| Weighted<br> average number of shares of common stock used in calculating net loss per share of common stock: | |||||
| Basic | 9,227,197 | 9,222,206 | |||
| Diluted | 9,227,197 | 9,222,206 |
All values are in US Dollars.
8
INTELLIGENTPROTECTION MANAGEMENT CORP.
CONSOLIDATEDSTATEMENTS OF CASH FLOWS
| Years<br> Ended<br> December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Cash flows from operating<br> activities: | ||||||
| Net loss | $ | (8,426,209 | ) | $ | (1,067,335 | ) |
| Net<br> loss (income) from discontinued operations | 4,157,534 | (1,619,673 | ) | |||
| Net loss from continuing<br> operations | $ | (4,268,675 | ) | $ | (2,687,008 | ) |
| Adjustments<br> to reconcile net loss from continuing operations to net cash used in operating activities: | ||||||
| Amortization<br> of intangible assets | 821,696 | 822,334 | ||||
| Amortization<br> of operating lease right-of-use assets | 83,700 | 82,176 | ||||
| Income<br> tax benefit | (71,764 | ) | (82,610 | ) | ||
| Deferred<br> tax liability | (137,589 | ) | (27,947 | ) | ||
| Stock-based<br> compensation | 151,412 | 234,993 | ||||
| Changes in operating assets<br> and liabilities: | ||||||
| Operating<br> lease liability | (83,700 | ) | (82,176 | ) | ||
| Employee<br> retention tax credit receivable, net | -- | (114,212 | ) | |||
| Prepaid<br> expense and other current assets | 95,343 | (295,491 | ) | |||
| Accounts<br> payable, accrued expenses and other current liabilities | 737,327 | (335,369 | ) | |||
| Deferred<br> subscription revenue | 10,597 | (494,889 | ) | |||
| Net<br> cash used in operating activities – continuing operations | (2,661,653 | ) | (2,980,199 | ) | ||
| Net cash<br> used in provided by operating activities –discontinued operations | (357,634 | ) | 1,900,528 | |||
| Net<br> cash used in operating activities | (3,019,287 | ) | (1,079,671 | ) | ||
| Cash<br> flows from investing activities: | ||||||
| Payment<br> of contingent consideration | -- | (85,000 | ) | |||
| Net<br> cash used in investing activities | -- | (85,000 | ) | |||
| Cash<br> flows from financing activities: | ||||||
| Proceeds<br> from exercise of employee stock options | 39,772 | -- | ||||
| Purchase<br> of treasury stock | -- | (7,213 | ) | |||
| Net<br> cash provided by (used in) financing activities | 39,772 | (7,213 | ) | |||
| Net<br> decrease in cash and cash equivalents | (2,979,515 | ) | (1,171,884 | ) | ||
| Balance<br> of cash and cash equivalents at beginning of year | 13,568,049 | 14,739,933 | ||||
| Balance<br> of cash and cash equivalents at end of year | $ | 10,588,534 | $ | 13,568,049 |
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