Intelligent Protection Management Corp.

Greetings and welcome to you the Intelligent Protection Management Corporation's second quarter 2025 results conference call. At this time all participants are placed on a listen-only mode and 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 Mr. Joe Diaz of Litham Partners. Sir, the floor is yours.

Good afternoon and welcome to all participating on today's call to review the financial and operating results of IPM for the second quarter ended June 30, 2025. As the operator indicated, my name is Joe Diaz with Litham Partners. We are the investor relations representative for IPM. By now, everyone should have access to the earnings press release which was issued after the close of market today. This call is being webcast and will be available for replay. During the course of this call, management will include statements that are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, 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 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 the company's filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2024. 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 the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. On-disk call management will refer to adjusted EBITDA. a non-GAAP measure that, when used in combination with GAAP results, provides IPMs investors with additional analytical tools to understand the company's operations. For adjusted EBITDA, management has provided a reconciliation to the most directly comparable GAAP financial measure in the earnings press release, which has been posted to the investor relations section of the company's website at www.ipm.com. At this time, I'd like to turn the call over to IPM's Chief Executive Officer, Jason Katz. After Jason's remarks, we will hear from IPM's CFO, Kara Jenny, and we will conclude with investor questions that were emailed to the company in advance of this conference call. Jason, the floor is yours.

Thanks, Joe, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. As previously disclosed, on January 2nd, 2025, we completed our acquisition of NewTek Technology Solutions, Inc., or NTS, from NewTekOne, Inc., and we divested our Paltalk, Camfrog, and Bumber applications and certain assets and liabilities related to such applications to Meteor Mobile Holdings, Inc., This marks our second quarter following the acquisition of NTS and divestiture of our core video chat products. We are pleased with the sequential progress made during our first two operational quarters after these transactions and our successful rebranding to Intelligent Protection Management Corp., or what we refer to as IPM. During this period, we've laid the groundwork from sales, marketing, accounting, and human capital to to position IPM to be poised for growth for the benefit of our customers, employees, and shareholders. Since the closing of the transactions in January, we have successfully integrated our operations and serviced our existing customers without interruption. Moving forward, we believe we are now well positioned to grow the company through the expansion of our services offerings to our existing legacy NTS customers while cross-selling our ManyCam software and varying new services to our historical web hosting customer base. We expect this strategy to lead to further growth and enhancement of our operational efficiencies, all focused on driving stockholder value. Today, more than ever, cybersecurity and cloud infrastructure are critical to protecting sensitive data, ensuring business continuity, and securing a digital economy in an era of growing cyber threats. We have an exciting opportunity to build out a company that can become one of the leading managed technology solutions providers with a focus on cybersecurity and cloud infrastructure. As we see it, our job is to protect the heart and soul of virtually all businesses today. Their data, client information, intellectual property, financial data, among other things. There are a lot of bad players out there, individual hackers, criminal organizations, hostile governments looking to attack American corporations and citizens. I have spent the better part of my career in the technology managed services business, as have the majority of the IPM senior management team. The deep industry experience has led us to provide a white glove, high touch service to our clients. Every one of our clients has a dedicated technology manager as a single point of contact. We do not use voice response telephonic menus or handoff service calls to agents in call centers in foreign countries. Our clients speak directly to their IPM account team in the United States, people that are familiar with the needs of their business and the history of their account. This is an important IPM advantage. We have significant technological expertise, and we operate in a large and growing market where IPM is industry certified, including legal, healthcare, and finance, giving us another significant competitive advantage versus our peers. We expect those advantages to become more apparent in the quarter and years to come. Focusing in on the just completed second quarter, IPM was selected by Hewlett Packard Enterprise to be an accredited partner for its HPE Private Cloud AI solution. We initiated a collaboration with IT Ally, a trusted business and technology services provider focused on lower middle market private equity firms and their portfolio companies. Also during the quarter, the board approved the stock repurchase plan for up to $400,000 of our outstanding common stock, and IPM commenced offering Aura, a leading AI-powered online safety solution, for individuals and families designed to help minimize the impact of data breaches, scams, and other online threats on consumers. In regard to our previously disclosed patent litigation, on August 29, 2024, a jury awarded us $65.7 million in a jury verdict in connection with a lawsuit against WebEx Communications, Cisco WebEx LLC, and Cisco Systems in the U.S. District Court for the Western District of Texas. On October 8, 2024, an order granting a motion for final judgment was entered into by 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 appeals. 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. As we have previously indicated, we estimate that we would receive no more than one-third of the gross proceeds in connection with the awards subject to post-trial proceedings, including any potential appellate court proceedings by Cisco. We have not recorded any gain contingency in connection with this award. Having our NTS assets transition from being a division of a larger banking company to a company focused on technology-managed services over the course of the first six months of 2025 has been gratifying. We look forward to many opportunities to dramatically expand our business in the coming years. With that, let me turn the call over to Kara Jenny, our CFO, for a summary of our financial results for the second quarter and the six months ended June 30th, 2025. Following Kara's remarks, we'll move into the Q&A portion and answer questions that were submitted via email prior to this call. I'll hand it to you, Kara.