Intelligent Protection Management Corp.

Greetings. Welcome to the Intelligent Protection Management Corporation Q4 2024 Results Conference Call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Kara Jenny, CFO. You may begin.

Hello, everyone, and welcome to the IPM Operating and Financial Results Conference Call for the fourth quarter and year-ended December 31st, 2024. By now, everyone should have access to the earnings results press release, which was issued earlier this afternoon at approximately 4 p.m. Eastern Time. This call is being webcast and will be available for replay. In our remarks today, we will include statements that are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and including forward-looking statements about future results of operations, business strategies and plans, our relationships with our customers, as well as market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks, uncertainties, and assumptions related to factors that may cause actual results to differ materially from from those anticipated in the forward-looking statements. These expectations and beliefs may not ultimately prove to be correct. A detailed discussion of such risks and uncertainties are contained in our filings with the SEC, including our annual report on Form 10-K. You should refer to and consider these factors when relying on such forward-looking information. The company does not undertake and expressly disclaims any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. On this call, we will refer to adjusted EBITDA, a non-GAAP measure that, when used in combination with GAAP results, provides us and our investors with additional analytical tools to understand our operations. For adjusted EBITDA, we've provided a reconciliation to the most directly comparable GAAP financial measure in our earnings press release, which will be posted on the investor relations section of our website at www.ipm.com. And with that, I would like to introduce IPM's Chief Executive Officer, Jason Katz.

Thank you, Cara, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. As previously disclosed in January 2025, we completed our acquisition of NewTek Technology Solutions, or NTS, from NewTekOne, and the sale of our Paltalk, Camfrog, and Vumber applications and certain assets and liabilities related to such applications to Meteor Mobile Holdings, Inc. The financial results for the three months and year ended December 31st, 2024 discussed throughout this call relate to our business prior to such transactions. We will also provide the rationale behind our transition into the cloud infrastructure and cybersecurity sectors and provide color on our new business objectives and strategies. After my opening statement, our CFO, Cara Genney, will give a summary of our financial results for the fourth quarter and year ended December 31st, 2024, which again are reflective of our historic business prior to the transactions. Following our prepared remarks, we'll move into the Q&A portion and answer any questions that were submitted prior to this call. With that, I would now like to walk you through our recent financial and operating highlights and near-term business objectives. 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. 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 divestiture, IPM is eligible to receive certain earn-out payments in the future based on Meteor Mobile's cash revenue attributable to the Paltalk, Camfrog, and Vumber applications. We're 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. As a result of the transformative transactions, our near-term business objectives now include continuing the integration of our comprehensive range of IT-related solutions, incorporating ManyCam as an offering for our new customers, and seeking to optimize our cross-selling efforts with our other technology solutions. continuing to explore strategic opportunities, including but not limited to potential mergers or acquisitions of other assets or entities that are synergistic to our businesses, and continuing to defend our intellectual property. In regards to our patent litigation, on July 23, 2021, our wholly owned subsidiary, Paltalk Holdings, Inc., filed a patent infringement lawsuit against WebEx Communications, Inc., Cisco WebEx LLC, and Cisco Systems, Inc., and the District Court for the Western District of Texas. We allege that certain of Cisco's products infringed U.S. Patent No. 6683858 and that we were entitled to damages. On August 26, 2024, a jury trial commenced in the Western District of Texas before the Honorable Judge Allen Albright. On August 29th, 2024, after four days of trial, the jury awarded us $65.7 million in the jury verdict in connection with the lawsuit. On October 8th, 2024, an order granting a motion for 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. Now I'd like to pass it to Kara for a financial summary of the fourth quarter and year ended December 31st, 2024.