Good afternoon. Welcome to the Q3 2025 Financial Results Conference call for Intelligent Protection Management Corporation, better known as IPM, for the quarter ended on 09/30/2025. At this time, all participants have been placed on a listen-only mode. Let me turn the floor over to Joe Diaz of Lithium Partners. Joe, please proceed.

Good afternoon, and welcome to all participating on today's call to review the financial and operating results of IPM for the third quarter ended 09/30/2025. As the operator indicated, my name is Joe Diaz. I'm with Lithium Partners. We are the investor relations representative for IPM. By now, everyone should have access to the earnings results 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, IPM's relationship with its 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 IPM's filings with the SEC, including its annual report on Form 10-Ks for the year ended 12/31/2024. 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 its forward-looking statements whether as a result of new information, future events, or otherwise, except as required by applicable law. On this call, management will refer to adjusted EBITDA, a non-GAAP measure, which when used in combination with GAAP results provides 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 that has been posted on the Investor Relations section of the company's website at www.ipm.com. As previously disclosed on 01/02/2025, IPM completed its acquisition of Newtek Technology Solutions from NewtekOne Incorporated. The company also divested its Paletalk, Camfrog, and Vumber applications and certain assets and liabilities related to such applications to Meteor Mobile Holdings Incorporated, which are referred to as the transferred assets. 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 sent via email. Jason, take it away.

Thanks, Joe, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. We are pleased with the sequential progress made during our first three operational quarters after the acquisition of Newtek Technology Solutions and our successful rebranding to Intelligent Management Solutions or IPM. We continue to advance all components of the company: sales, marketing, accounting, and human capital. We have clearly stated that our focus is to position IPM to be a consistently performing company for the benefit of our customers, employees, and shareholders. Since the January 2 transactions, we have successfully integrated our operations and serviced our existing customers without interruption or downtime. Looking ahead, we are well-positioned to grow the company through the expansion of our service to existing legacy MTS customers while cross-selling our ManyCam software and varying new services to our historical web hosting customer base. Operational efficiencies continue to be advanced with the goal of driving value for all our stakeholders. Cybersecurity and cloud infrastructure are even more critical to protecting sensitive data, ensuring business continuity, and securing a digital economy in an era of growing cyber threats. We are dedicated to becoming 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, as it were, of all businesses today: their data, client information, intellectual property, and financial data, among other things. There are a load of bad players out there: individual organizations, and even governments looking to attack corporations as well as American citizens. I've spent the better part of my career in the technology services business, and so have the rest of the IPM senior management team. That deep industry experience has led us to provide a…

Thank you, Jason. As Jason indicated, we acquired the operations of NTS on 01/02/2025 and rebranded the operation to Intelligent Protection Management Corp or IPM. The quarterly financial comparisons of IPM and the former NTS as a division of Newtek One are not comparable from a GAAP perspective. IPM Financials will become comparable on a GAAP basis as of 2026. For the three months ended 09/30/2025, revenue totaled $6.2 million compared to $300,000 for the prior year period. On a sequential basis, revenue increased 9% from 2025. Revenue for the nine months totaled $17.5 million compared to $800,000 in the prior year period. Revenue by product for the three and nine months period ended 09/30/2025 was as follows: Managed information technology revenue was $3.8 million and $10.9 million respectively. Procurement revenue was $1.7 million and $3.9 million respectively. Professional services revenue was $500,000 and $1.9 million respectively. Subscription revenue was $300,000 and $800,000 respectively. Operating loss from continuing operations for the three months ended 09/30/2025 totaled $1.4 million compared to an operating loss from continuing operations of $1.5 million for the three months ended 09/30/2024. Operating loss from continuing operations for the nine months ended 09/30/2025 totaled $3.9 million compared to an operating loss from continuing operations of $3.5 million for the prior nine months ended 09/30/2024. Net loss for the three months ended 09/30/2025 totaled $1.1 million compared to a net loss of $1.5 million for the three months ended 09/30/2024. Net loss for the nine months ended September 30 totaled $1.3 million compared to a net loss of $2.9 million for the nine months ended 09/30/2024. The reduction in net loss was attributed to IPM recording an income tax benefit during the first quarter of approximately $2.1 million in connection with the transaction. Adjusted EBITDA for the three months ended 09/30/2025 was negative $300,000 compared to negative $1.5 million for the three months ended 09/30/2024. Adjusted EBITDA for the nine months ended 09/30/2025 was negative $1.1 million compared to negative $2.9 million for the nine months ended 09/30/2024. As of 09/30/2025, we had no long-term debt and cash and cash equivalents totaled $8.3 million, which included $1 million of restricted cash. Cash provided by continuing operations for the nine months ended 09/30/2025 was $1 million compared to cash used in continuing operations for the nine months ended 09/30/2024 of $900,000. IPM reported deferred revenue of $3.5 million for Q3 2025, which will be recognized as revenue in future quarters as products and/or services are installed. The company had over 9,000 devices under management at 09/30/2025, representing the number of endpoints, servers, and network devices that are outsourced to the company under managed service agreements. That completes my comments, and we'll now move on to addressing online submitted questions.

Okay. Thank you, Kara. We will now move into the question and answer section. One question submitted by investors was, are there any bolt-on acquisitions that would make sense to expand the business or new service offerings that you would like to see added to IPM in the coming years?

Sure. Acquiring sole proprietor lifestyle-type managed service provider businesses with attractive EBITDA multiples would be strategic in that we would be acquiring customer contracts with term agreements. This has the potential of immediately adding devices under management and monthly recurring revenue and would offer upside potential in other service lines. So in the short term, our focus would be to grow our existing customer base with more of the same types of services so that we leverage our existing infrastructure.

Another question is, can you comment briefly on the recent AWS outages? What does IPM bring to the table that others can't?

That's a great question. We offer potential solutions that mitigate the recent public cloud outages. IPM's use of private data centers and private cloud means that our customers were generally not affected by the recent AWS outages, which impacted many public cloud users. We like to say that at IPM, we don't just try harder. We protect smarter.

Can you please comment on the capital structure of the company right now? Will there be a need to raise additional capital in the next couple of years, 2026 or 2027 going forward?

We have a very clean capital structure and sufficient cash to run our business for at least the next twelve months. If we found an acquisition that was accretive and required financing, we would definitely consider doing that.

Alright. Thank you, Jason. And that concludes the Q&A section. Let me turn the call back over to Jason for closing remarks. Jason?

Thanks, everyone, for your support and for joining us today. We are very grateful for your interest in our business. We look forward to updating the market on our progress as we continue to execute on our business plan. We will talk with you again to review our fourth quarter and full-year financial results in 2026.

Have a great day.

Thank you. Ladies and gentlemen, this does conclude today's conference call. You may disconnect your lines at this time, and thank you for your participation.