INTELLIGENT PROTECTION MANAGEMENT CORP. Q1 FY2025 earnings call

Jason Katz mentioned that the first quarter of 2025 was transformational following the acquisition of NTS, focusing the business on cloud infrastructure and cybersecurity. He outlined the company's IT and cloud-based solutions, including managed IT security services with proactive monitoring, maintenance, cybersecurity management, etc. The company's five core service areas are Professional Services (design and implementation of IT products/services), Procurement Services (obtaining and configuring products for customers), Secure Private Cloud Hosting (dedicated cloud environments with security measures), Managed Backup and Disaster Recovery (data protection), and Web Hosting (with security features). The company hired a marketing firm for various marketing activities, allocated spend for a CRM system to email a customer database of of of of of of of and track open rates and response. The Board of Directors approved a stock repurchase plan for up to $400,000 of outstanding common stock. On August 29, 2024, jury awarded $65.7 million in patent litigation against WebEx Communications, Cisco Webex LLC and Cisco Systems, but estimated receiving no more than one-third of the gross proceeds subject to post-trial proceedings.

Total revenue for the three months ended March 31, 2025 was $5.5 million, compared to $0.3 million for the same period in 2024. The loss from continuing operations for the first quarter of 2025 was $1.3 million, whereas it was $1.0 million in the first quarter of 2024. Net income for the first quarter of 2025 was $0.8 million, in contrast to a net loss of $0.5 million in the first quarter of 2024. Adjusted EBITDA remained relatively unchanged at negative $0.5 million for both the first quarters of 2025 and 2024. Net cash generated from operating activities for the quarter was $1.7 million. Cash and cash equivalents totaled $9.7 million at March 31, 2025, a decrease from $10.6 million at December 31, 2024, due to a $4 million cash payment from the acquisition of NTS, partially offset by $1.4 million cash inflow from the divestiture of transferred assets and $1.7 million cash flow from operations. The company had no long-term debt as of March 31, 2025.

Management expects to report our second quarter and first half 2025 results in early to mid-August.

Forward-looking statements 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. A detailed discussion of such risks and uncertainties are contained in our filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2024. 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.

Q: Since you have now owned this business for four plus months, can you discuss what you have done or put in place to grow and expand this business? Have you made additional sales and marketing hires?

A: We hired a company that focuses on marketing, search engine optimization, pay-per-click advertising, branding and email marketing management. In addition, we have allocated marketing spend to enable a CRM system that allows us to email our customer database of approximately 40,000 current and former customers and track their open rates and response to our email.

Q: Can you tell us roughly how many of your clients currently utilize just one of your Managed Technology offerings? And as a follow-on to that, have you begun to cross-sell additional offerings to your clients?

A: Yeah. We have started to email and cross-sell our Managed Technology offerings to the ManyCam user base, as well as offering our Web Hosting customers all of our additional solutions.