Jaso Katz, Chai ma a d Chief Executive Office , said: “Fi a cial esults fo the thi d qua te of 2026 eflected exceptio al custome dema d a d co ti ued executio of ou g owth st ategy, esulti g i total eve ue i c easi g mo e tha 75% to app oximately $11.0 millio compa ed to the thi d qua te of 2025. Fo the i e mo ths e ded Septembe 30, 2026, total eve ue i c eased 36% yea -ove -yea to $23.8 millio . Ou pe fo ma ce du i g the qua te was d ive p ima ily by i c eased p ocu eme t eve ue of app oximately 271% compa ed to the p io yea pe iod. This co e a ea ep ese ted a la ge po tio of ou ove all eve ue mix compa ed to p io pe iods, as custome s accele ated i f ast uctu e i vestme ts i cybe secu ity, cloud mode izatio , data ce te expa sio a d a tificial i tellige ce. Additio ally, we successfully fulfilled a sig ifica t custome o de du i g the thi d qua te , fu the demo st ati g ou ability to execute o la ge-scale oppo tu ities a d meet custome dema d.”
M . Katz co ti ued: “Sta da d p ocu eme t g oss ma gi s t e d lowe tha the est of ou busi ess. At the same time, p ocu eme t se vices ca p ovide a e t y poi t fo b oade custome elatio ships. Ou p ofessio al se vices help custome s pla thei tech ology i vestme ts; ou p ocu eme t se vices sou ce the i f ast uctu e; a d ou ma aged IT secu ity se vices, p ivate cloud, a d ma aged backup a d disaste ecove y se vices c eate oppo tu ities to suppo t those e vi o me ts ove time. Ou objective is to co ve t these oppo tu ities i to ecu i g e gageme ts, ecog izi g that co ve sio is ot automatic a d depe ds o custome eeds a d executio .”
M . Katz added: “While it ca take time, we a e maki g p og ess i expa di g ou ecu i g busi ess. Co e ma aged se vices eve ue f om o -affiliated custome s i c eased 33% ove the p io -yea pe iod. That esult suppo ts ou focus o deepe i g custome elatio ships a d dive sifyi g ou eve ue base. We emai focused o expa di g highe -ma gi ecu i g e gageme ts ac oss ou se vice po tfolio, while co ti ui g to execute o p ofessio al se vices a d p ocu eme t oppo tu ities to deepe custome elatio ships a d i c ease lo g-te m custome value.”
M . Katz co cluded: “Ou bala ce sheet emai s st o g, p ovidi g the fi a cial flexibility ecessa y to suppo t o ga ic g owth i itiatives while pu sui g st ategic oppo tu ities that e ha ce ou lo g-te m g owth p ofile. Du i g the qua te , we i cu ed app oximately $195,000 of acquisitio – elated expe ses associated with the ece tly a ou ced AdTech acquisitio . O ce completed, we believe the t a sactio ca expa d ou custome each a d c eate oppo tu ities to i t oduce IPM’s ma aged IT secu ity se vices, p ivate cloud, ma aged backup a d disaste ecove y, p ofessio al se vices, a d p ocu eme t offe i gs ac oss a la ge combi ed custome base. We emai committed to discipli ed capital allocatio a d c eati g lo g-te m sha eholde value. We a e e cou aged by the mome tum we a e seei g ac oss the busi ess a d emai focused o executi g ou lo g-te m st ategy.”
| % | $ | 159,201 | $ | (260,121 | ) |
| % | $ | 17,478,656 | $ | (2,791,090 | ) | $ | (1,324,568 | ) | $ | 989,142 | $ | (535,753 | ) |
1Adjusted EBITDA is a o -GAAP fi a cial measu e. Please see the discussio below u de the headi g “Use of No -GAAP Fi a cial Measu es” a d the eco ciliatio at the e d of this elease fo additio al i fo matio .
Fo the th ee mo ths e ded Septembe 30, 2026, total eve ue i c eased by app oximately 76% to $11.0 millio f om $6.2 millio fo the th ee mo ths e ded Septembe 30, 2025. This i c ease was p ima ily d ive by i c eased p ocu eme t eve ue elated to custome i vestme ts i i f ast uctu e, as well as i c eased p ofessio al se vices a d ma aged i fo matio tech ology eve ue, att ibuted to both ew custome s a d the expa sio of se vices sold to existi g custome s, pa tially offset by a dec ease i subsc iptio eve ue. Total eve ue by eve ue compo e t fo the thi d qua te e ded Septembe 30, 2026, was as follows:
- Ma aged i fo matio tech ology eve ue, which co sists of eve ue f om ou ma aged IT secu ity se vices, ma aged backup a d disaste ecove y solutio s a d web hosti g, was $3.9 millio , a i c ease of 1.8% f om Q3 2025.
- P ocu eme t eve ue was $6.3 millio , a i c ease of 271% f om Q3 2025.
- P ofessio al se vices eve ue was $545,317, a i c ease of 14.5% f om Q3 2025.
- Subsc iptio eve ue was $243,886, a dec ease of 10.4% f om Q3 2025.
Reve ue f om NewtekO e, I c., a elated pa ty, was impacted by its o goi g i itiatives to educe i fo matio tech ology spe di g. We pa tially offset this decli e i eve ue th ough g owth i ecu i g eve ue f om custome s who a e ot elated pa ties, i cludi g the additio of ew custome elatio ships a d se vice co t acts du i g the pe iod. Reve ue f om ou co e ma aged i fo matio tech ology se vices, which co sists of eve ue f om ou ma aged IT secu ity se vices a d ma aged backup a d disaste ecove y solutio s, f om o -affiliated custome s i c eased by 33% compa ed to the p io yea pe iod.
- Net loss fo the th ee mo ths e ded Septembe 30, 2026 totaled $0.8 millio compa ed to et loss of $1.1 millio fo the th ee mo ths e ded Septembe 30, 2025;
- Adjusted EBITDA fo the th ee mo ths e ded Septembe 30, 2026 totaled positive $0.2 millio compa ed to egative $0.3 millio fo the th ee mo ths e ded Septembe 30, 2025;
- Cash p ovided by ope atio s totaled $5.6 millio fo the th ee mo ths e ded Septembe 30, 2026 compa ed to cash p ovided by ope atio s of $0.1 millio fo the th ee mo ths e ded Septembe 30, 2025, p ima ily elated to ou sou ci g of p oduct i co ectio with the i c eased p ocu eme t eve ue;
- Defe ed eve ue was $4.9 millio as of Septembe 30, 2026, which will be ecog ized as eve ue i futu e qua te s as p oducts a d/o se vices a e i stalled; a d
- At Septembe 30, 2026, we had $12.5 millio of cash a d cash equivale ts o ou bala ce sheet a d o lo g-te m debt.
Fo the i e mo ths e ded Septembe 30, 2026, total eve ue i c eased by 36.0% to $23.8 millio f om $17.5 millio fo the compa able i e-mo th pe iod i 2025. The i c ease was p ima ily d ive by i c eased p ocu eme t eve ue elated to sale of AI- elated equipme t to custome s, as well as i c eased ma aged i fo matio tech ology eve ue, att ibuted to both ew custome s as well as the expa sio of se vices sold to existi g custome s, pa tially offset by dec eases i p ofessio al se vices eve ue a d subsc iptio eve ue. Reve ue f om ou co e ma aged i fo matio tech ology se vices f om o -affiliated custome s i c eased by 34% compa ed to the p io yea pe iod.
- Ma aged i fo matio tech ology eve ue, which co sists of eve ue f om ou ma aged IT secu ity se vices, ma aged backup a d disaste ecove y solutio s a d web hosti g, was $11.6 millio , a i c ease of 6.7% f om the p io yea pe iod.
- P ocu eme t eve ue was $10.0 millio , a i c ease of 157.8% f om the p io yea pe iod.
- P ofessio al se vices eve ue was $1.4 millio , a dec ease of 26.4% f om the p io yea pe iod.
- Subsc iptio eve ue was $747,432, a dec ease of 10.2% f om the p io yea pe iod.
- Net loss fo the i e mo ths e ded Septembe 30, 2026 totaled $2.8 millio , compa ed to et loss of $1.3 millio fo the i e mo ths e ded Septembe 30, 2025;
- Adjusted EBITDA fo the i e mo ths e ded Septembe 30, 2026 totaled egative $0.5 millio , compa ed to egative $1.1 millio fo the i e mo ths e ded Septembe 30, 2025; a d
- Cash p ovided by ope atio s of $4.9 millio fo the i e mo ths e ded Septembe 30, 2026 compa ed to cash p ovided by ope atio s of $1.0 millio fo the i e mo ths e ded Septembe 30, 2025, p ima ily elated to payme ts eceived i co ectio with the i c eased p ocu eme t eve ue.
- Subseque t to qua te e d, i Octobe 2026, the Compa y e te ed i to a u it pu chase ag eeme t with Adva ced Tech ology Dist ibuto s I c. (“AdTech”), pu sua t to which the Compa y will acqui e AdTech’s i fo matio tech ology, telecommu icatio s, co ectivity, ma aged se vices a d elated i f ast uctu e solutio s busi ess fo a pu chase p ice of up to $2.7 millio , subject to customa y adjustme ts.
- Lau ched IPM GO, You Always-Available AI Vi tual Assista tthat is hosted withi IPM’s p ivate cloud i f ast uctu e, e abli g clie ts to deploy, ma age a d scale web-based e gageme t solutio s elated to custome sales a d suppo t i te actio s.
- Expa ded ou sales o ga izatio by addi g a dedicated te ito y focused o the Phoe ix met opolita a ea a d b oade West Coast ma ket, which i cludes a established custome base a d i dust y expe tise. Ma ageme t believes this expa sio positio s us to pu sue additio al eve ue oppo tu ities a d suppo t futu e g owth.
- Executed a exte sio of ou existi g Phoe ix data ce te colocatio lice se ag eeme t with a i dust y-leadi g data ce te p ovide th ough August 2032.
- Successfully achieved SOC 2 Type 1 complia ce, a key milesto e i ou o goi g commitme t to safegua di g custome data a d delive i g t usted cybe secu ity a d cloud i f ast uctu e solutio s.
- Repu chased 50,000 sha es of commo stock du i g the fi st qua te of 2026, u de ou stock epu chase pla fo a agg egate of $83,491. As of Septembe 30, 2026, all sha es of commo stock available fo epu chase u de the stock epu chase pla had bee epu chased a d such pla had expi ed.
The Compa y will co duct a co fe e ce call fo all i te ested pa ties o Tuesday, Novembe 10, 2026, at 4:30 p.m. Easte Time to discuss its fi a cial esults a d add ess stockholde questio s submitted i adva ce of the co fe e ce call.
To pa ticipate i this call, please dial (888) 506-0062 o (973) 528-0011, access code: 468469 o liste via a live webcast, which is available i the I vesto s sectio of the Compa y’s website at https://i vesto s.ipm.com/ o https://www.webcaste 5.com/Webcast/Page/2856/54663.
A eplay of the call will be available by visiti g https://i vesto s.ipm.com/ fo the ext 90 days o by calli g (877) 481-4010 o (919) 882-2331, eplay access code 54663 th ough Tuesday, Novembe 24, 2026.
If you would like to submit a questio , please se d a email with you questio to IPM@lythampa t e s.com p io to the call. IPM will do its best to a swe all app op iate questio s.
I tellige t P otectio Ma ageme t Co p. (Nasdaq: IPM) is a ma aged tech ology solutio s p ovide focused o cybe secu ity a d cloud i f ast uctu e. IPM p ovides dedicated se ve hosti g, cloud hosti g, data sto age, ma aged secu ity, backup a d disaste ecove y, a d othe elated se vices, i cludi g p ofessio al se vices a d impleme ti g tech ology solutio s fo e te p ise a d comme cial clie ts ac oss the U ited States. IPM’s othe p oducts i clude Ma yCam. IPM has a ove 20-yea histo y of tech ology i ovatio a d holds 8 pate ts. Fo mo e i fo matio , please visit: www.ipm.com
This p ess elease co tai s fo wa d-looki g stateme ts withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995. These fo wa d-looki g stateme ts i volve k ow a d u k ow isks, u ce tai ties a d othe facto s that may cause the Compa y’s actual esults, pe fo ma ce o achieveme ts to be mate ially diffe e t f om a y futu e esults, pe fo ma ce o achieveme ts a ticipated i such stateme ts. Fo wa d-looki g stateme ts may be ide tified by wo ds such as “aim,” “a ticipates,” “believes,” “buildi g,” “co ti ue,” “could,” “d ive,” “estimates,” “expects,” “exte t,” “focus,” “fo ecasts,” “goal,” “guida ce,” “i te ds,” “may,” “might,” “outlook,” “pla ,” “positio ,” “p obable,” “p og essi g,” “p ojects,” “p ude t,” “seeks,” “should,” “steady,” “ta get,” “view,” “will” o “would” o the egative of these wo ds a d ph ases o simila wo ds o ph ases. Fo wa d-looki g stateme ts i this p ess elease may i clude, but a e ot limited to, the AdTech acquisitio a d its expected te ms, timi g a d closi g; the Compa y’s ability to successfully i teg ate AdTech’s busi ess a d ealize the a ticipated be efits of the AdTech acquisitio ; the a ticipated be efits of the Compa y’s st ategic collabo atio with MASORI; the expected ability of the Compa y’s custome s to adopt, impleme t, a d ealize efficie cies f om AI solutio s offe ed th ough the elatio ship; the Compa y’s ability to se ve as a hosti g pa t e fo thi d-pa ty AI platfo ms a d to delive such tech ology to its clie t base; the Compa y’s expectatio s of futu e pla s, p io ities a d focus; the Compa y’s expectatio s ega di g its p ocu eme t, p ofessio al se vices a d subsc iptio s busi esses co t ibuti g to the Compa y’s ove all esults; the Compa y’s pote tial g owth oppo tu ities; the Compa y’s pla s, objectives, st ategies, expectatio s, a d i te tio s; a d othe stateme ts that a e ot stateme ts of histo ical fact. The followi g facto s, amo g othe s, could cause actual esults to diffe mate ially f om those set fo th i the fo wa d-looki g stateme ts: the Compa y’s ability to co summate the AdTech acquisitio i a timely ma e o at all; the possibility of secu ity vul e abilities, cybe -attacks a d etwo k dis uptio s, i cludi g b eaches of data secu ity a d p ivacy leaks, data loss, a d busi ess i te uptio s; the Compa y’s ability to ope ate its secu e p ivate cloud th ough its data ce te s; the i te se competitio i the i dust y i which the Compa y ope ates a d its ability to effectively compete with existi g competito s a d ew ma ket e t a ts; the impact of supply co st ai ts, i cludi g those elated to compo e ts of the Compa y’s p ocu eme t se vices; the Compa y’s ability to co summate favo able acquisitio s a d effectively i teg ate a y compa ies o busi esses that the Compa y acqui es; the impact of adve se eco omic a d ma ket co ditio s, i cludi g those elated to fluctuatio s i i flatio a d geopolitical co flicts; the Compa y’s elia ce o a limited umbe of custome s fo its eve ues a d i come; the Compa y’s ability to att act ew custome s, etai existi g custome s a d sell additio al se vices to custome s; the Compa y’s ability to p otect its i tellectual p ope ty ights; a d othe eve ts outside of the Compa y’s co t ol. Mo e detailed i fo matio about the Compa y a d the isk facto s that may affect the ealizatio of fo wa d-looki g stateme ts is set fo th i the Compa y’s fili gs with the Secu ities a d Excha ge Commissio (“SEC”), i cludi g the Compa y’s most ece t A ual Repo t o Fo m 10-K a d Qua te ly Repo ts o Fo m 10-Q. I vesto s a d secu ity holde s a e u ged to ead these docume ts f ee of cha ge o the SEC’s website at www.sec.gov.
All fo wa d-looki g stateme ts speak o ly as of the date o which they a e made. The Compa y u de takes o obligatio to update a y fo wa d-looki g stateme t o stateme ts to eflect eve ts o ci cumsta ces afte the date o which such stateme t was made, except to the exte t equi ed by applicable secu ities laws.
Joe Do ame, Roge WeissLytham Pa t e s, LLC602-889-9680E: ipm@lythampa t e s.com
Cu e t assets: | Cash a d cash equivale ts | $ | 10,514,870 | $ | 5,597,014 | Cash a d cash equivale ts (o deposit with a elated pa ty) | 2,030,182 | 1,801,300 | Cash a d cash equivale ts – est icted cash (o deposit with elated pa ty) | — | 1,035,747 | Accou ts eceivable, et of allowa ce of $96,514 a d $100,000 as of Septembe 30, 2026 a d Decembe 31, 2025, espectively | 1,137,495 | 1,599,725 | Due f om elated pa ty | 356,862 | 75,601 | P epaid expe se a d othe cu e t assets | 1,949,941 | 1,363,574 | Total cu e t assets | 15,989,350 | 11,472,961 | P ope ty a d equipme t, et | 857,056 | 550,628 | I ta gible assets, et | 6,631,666 | 7,718,836 | Goodwill | 4,555,208 | 4,555,208 | Ope ati g lease ight of use assets, et | 3,960,331 | 1,140,196 | Othe assets | 402,071 | 602,688 | $ | 32,395,682 | $ | 26,040,517 | Cu e t liabilities: | Accou ts payable | $ | 7,071,214 | $ | 1,604,898 | Acc ued expe ses a d othe cu e t liabilities | 795,703 | 1,031,733 | Ope ati g lease liabilities, cu e t po tio | 528,188 | 756,590 | Defe ed eve ue | 4,928,490 | 3,878,114 | Due to elated pa ty | 55,579 | 46,450 | Total cu e t liabilities | 13,379,174 | 7,317,785 | Ope ati g lease liabilities, o -cu e t po tio | 3,527,647 | 387,906 | Defe ed tax liability | 70,340 | 148,898 | 16,977,161 | 7,854,589 | Commitme ts a d co ti ge cies | Stockholde s’ equity: | Se ies A P efe ed Stock, $0.001 pa value, 9,000,000 sha es autho ized, 4,000,000 sha es issued a d outsta di g as of Septembe 30, 2026 a d Decembe 31, 2025 | 4,000 | 4,000 | Commo stock, $0.001 pa value, 50,000,000 sha es autho ized, 9,878,950 sha es issued a d 9,035,729 a d 9,085,729 sha es outsta di g as of Septembe 30, 2026 a d Decembe 31, 2025, espectively | 9,879 | 9,879 | T easu y stock, 843,221 a d 793,221 sha es epu chased as of Septembe 30, 2026 a d Decembe 31, 2025, espectively | (1,583,876 | ) | (1,500,385 | ) | Additio al paid-i capital | 45,046,921 | 44,939,747 | Accumulated deficit | (28,058,403 | ) | (25,267,313 | ) | 15,418,521 | 18,185,928 | $ | 32,395,682 | $ | 26,040,517 |
Reve ue | Ma aged i fo matio tech ology, i cludes $1,690,947 a d $1,910,957 of elated pa ty eve ue fo the th ee mo ths e ded Septembe 30, 2026 a d 2025, espectively, a d $5,308,934 a d $5,427,357, of elated pa ty eve ue fo the i e mo ths e ded Septembe 30, 2026 a d 2025, espectively | $ | 3,859,198 | $ | 3,791,746 | $ | 11,582,012 | $ | 10,857,333 | P ocu eme t eve ue, i cludes $30,820 a d $28,598 of elated pa ty eve ue fo the th ee mo ths e ded Septembe 30, 2026 a d 2025, espectively, a d $88,721 a d $106,479 of elated pa ty eve ue fo the i e mo ths e ded Septembe 30, 2026 a d 2025, espectively | 6,301,744 | 1,697,854 | 10,046,322 | 3,897,634 | P ofessio al se vices eve ue, i cludes $38,381 a d $38,706 of elated pa ty eve ue fo the th ee mo ths e ded Septembe 30, 2026 a d 2025, espectively, a d $120,270 a d $146,953 of elated pa ty eve ue fo the i e mo ths e ded Septembe 30, 2026 a d 2025, espectively | 545,317 | 476,198 | 1,391,672 | 1,891,620 | Subsc iptio eve ue | 243,886 | 272,221 | 747,432 | 832,069 | Total eve ue | 10,950,145 | 6,238,019 | 23,767,438 | 17,478,656 | Costs a d expe ses | Costs of eve ue | 7,768,277 | 3,076,333 | 14,820,058 | 8,398,445 | Sales, ma keti g a d p oduct developme t expe se | 757,107 | 844,463 | 2,302,804 | 2,449,224 | Ge e al a d admi ist ative expe se | 2,502,631 | 2,621,260 | 7,565,347 | 8,040,958 | Dep eciatio a d amo tizatio | 490,389 | 624,544 | 1,443,571 | 1,982,236 | Litigatio expe ses elati g to the Cisco Ma yCam Litigatio | 317,818 | 507,181 | 802,288 | 507,181 | Total costs a d expe ses | 11,836,222 | 7,673,781 | 26,934,068 | 21,378,044 | Loss f om ope atio s | (886,077 | ) | (1,435,762 | ) | (3,166,630 | ) | (3,899,388 | ) | I te est i come, et | 61,869 | 102,856 | 181,095 | 273,176 | Othe i come | — | — | 22,000 | 63,750 | Loss f om ope atio s befo e i come tax be efit | (824,208 | ) | (1,332,906 | ) | (2,963,535 | ) | (3,562,462 | ) | I come tax be efit | 44,830 | 249,836 | 172,445 | 2,237,894 | Net loss | $ | (779,378 | ) | $ | (1,083,070 | ) | $ | (2,791,090 | ) | $ | (1,324,568 | ) | Net loss pe sha e of commo stock: | Basic | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.21 | ) | $ | (0.10 | ) | Diluted | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.21 | ) | $ | (0.10 | ) | Weighted ave age umbe of sha es of Se ies A P efe ed Stock used i calculati g et loss pe sha e of Se ies A P efe ed Stock, basic a d diluted | 4,000,000 | 4,000,000 | 4,000,000 | 3,985,348 | Weighted ave age umbe of sha es of Commo Stock used i calculati g et loss pe sha e of Commo Stock, basic a d diluted | 9,035,729 | 9,108,805 | 9,047,487 | 9,182,014 | Basic a d diluted et loss pe sha e of Se ies A P efe ed Stock, basic a d diluted | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.21 | ) | $ | (0.10 | ) | Basic a d diluted et loss pe sha e of Commo Stock, basic a d diluted | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.21 | ) | $ | (0.10 | ) | Weighted ave age umbe of sha es of commo stock used i calculati g et loss pe sha e of commo stock: | Basic | 13,035,729 | 13,108,805 | 13,047,487 | 13,167,362 | Diluted | 13,035,729 | 13,108,805 | 13,047,487 | 13,167,362 |
Net loss | $ | (2,791,090 | ) | $ | (1,324,568 | ) | Adjustme ts to eco cile et loss f om co ti ui g ope atio s to et cash (used i ) p ovided by ope ati g activities: | Amo tizatio of i ta gible assets | 1,087,170 | 1,602,053 | Amo tizatio of ope ati g lease ight-of-use assets | 535,067 | 415,661 | Dep eciatio o p ope ty a d equipme t | 356,401 | 380,182 | Defe ed taxes | (78,558 | ) | 99,881 | I come tax liability | — | (2,321,316 | ) | Stock-based compe satio | 107,174 | 289,305 | Cha ge i allowa ce fo c edit losses | (3,486 | ) | 3,436 | Cha ges i ope ati g assets a d liabilities, et of acqui ed assets a d dispositio : | Accou ts eceivable | 184,455 | 2,136,524 | Ope ati g lease liability | (443,863 | ) | (416,523 | ) | P epaid expe se a d othe cu e t assets | (385,750 | ) | (1,164,283 | ) | Employee ete tio tax c edit eceivable, et | — | 114,212 | Accou ts payable, acc ued expe ses a d othe cu e t liabilities | 5,239,415 | 1,682,770 | Defe ed eve ue | 1,050,376 | (508,192 | ) | Pu chase of fixed assets | (662,829 | ) | (280,149 | ) | Cash paid fo acquisitio of NTS | — | (4,000,000 | ) | Net cash used i i vesti g activities | (662,829 | ) | (4,280,149 | ) | Pu chase of t easu y stock | (83,491 | ) | (301,048 | ) | P oceeds f om sale of T a sfe ed Assets | — | 1,350,000 | Bala ce of cash, cash equivale ts a d est icted cash at begi i g of pe iod | 8,434,061 | 10,588,534 | Bala ce of cash, cash equivale ts a d est icted cash at e d of pe iod | 12,545,052 | 8,346,479 | Cash a d cash equivale ts | $ | 10,514,870 | $ | 6,148,796 | Cash a d cash equivale ts (o deposit with elated pa ty) | $ | 2,030,182 | $ | 1,182,969 | Cash a d cash equivale ts – est icted cash (o deposit with elated pa ty) | $ | — | $ | 1,014,714 | Bala ce of cash a d cash equivale ts at e d of pe iod | $ | 12,545,052 | $ | 8,346,479 | Suppleme tal o -cash disclosu e: | Ope ati g lease exte sio , ight of use asset | $ | 3,355,202 | $ | — | No -cash po tio of co side atio fo acquisitio of NTS (Se ies A P efe ed Stock issua ce) | $ | — | $ | 8,200,000 |
The Compa y has p ovided i this elease Adjusted EBITDA, a o -GAAP fi a cial measu e, to suppleme t the co solidated fi a cial stateme ts, which a e p epa ed i acco da ce with ge e ally accepted accou ti g p i ciples i the U ited States (“GAAP”). Adjusted EBITDA is defi ed as et i come (loss) adjusted to exclude i te est (i come) expe se, et, othe (i come) expe se, et, i come tax (be efit) expe se, dep eciatio a d amo tizatio expe se, stock-based compe satio expe se, et loss f om disco ti ued ope atio s, impai me t loss i co ectio with the Divestitu e, litigatio expe ses elati g to the Cisco Ma yCam Litigatio (as defi ed below) a d acquisitio – elated expe ses associated with the AdTech Acquisitio (as defi ed below), as each a e applicable to the pe iods p ese ted. P io to the fiscal qua te e ded Septembe 30, 2026, we did ot exclude acquisitio – elated expe ses associated with the AdTech Acquisitio i calculati g Adjusted EBITDA. Fo the i e mo ths e ded Septembe 30, 2026, the acquisitio – elated expe ses of $277,844 i clude $82,819 i cu ed i the th ee mo ths e ded Ju e 30, 2026, which amou t was ot adjusted i the p io qua te as it was ot mate ial. Howeve , afte eevaluatio , we have dete mi ed that p ese ti g Adjusted EBITDA without excludi g such costs p ovides less valuable i fo matio about ou co e ope atio s. As a esult, begi i g with the fiscal qua te e ded Septembe 30, 2026, acquisitio – elated expe ses associated with the AdTech Acquisitio a e excluded f om the calculatio of Adjusted EBITDA.
Ma ageme t uses Adjusted EBITDA i te ally i a alyzi g the Compa y’s fi a cial esults to assess ope atio al pe fo ma ce a d to dete mi e the Compa y’s futu e capital equi eme ts. The p ese tatio of this fi a cial i fo matio is ot i te ded to be co side ed i isolatio o as a substitute fo the fi a cial i fo matio p epa ed i acco da ce with GAAP. The Compa y believes that both ma ageme t a d i vesto s be efit f om efe i g to Adjusted EBITDA i assessi g its pe fo ma ce a d whe pla i g, fo ecasti g a d a alyzi g futu e pe iods. The Compa y believes Adjusted EBITDA is useful to i vesto s a d othe s to u de sta d a d evaluate the Compa y’s ope ati g esults a d it allows fo a mo e mea i gful compa iso betwee the Compa y’s pe fo ma ce a d that of competito s. Ou use of Adjusted EBITDA has limitatio s as a a alytical tool, a d you should ot co side this pe fo ma ce measu e i isolatio f om o as a substitute fo a alysis of ou esults as epo ted u de GAAP. Some of these limitatio s a e that Adjusted EBITDA does ot eflect, amo g othe thi gs: i te est i come, et; the be efit o p ovisio fo i come taxes; othe i come, et; litigatio expe ses i cu ed i co ectio with ou pate t defe se agai st Cisco Systems, I c. a d Cisco Tech ology, I c. (the “Cisco Ma yCam Litigatio “); acquisitio – elated expe ses associated with the Compa y’s pe di g acquisitio of the IT a d i f ast uctu e solutio s busi ess of Adva ced Tech ology Dist ibuto s I c. (the “AdTech Acquisitio “); cash capital expe ditu es fo assets u de lyi g dep eciatio a d amo tizatio expe se that may eed to be eplaced o fo ew capital expe ditu es; a d the pote tially dilutive impact of stock-based compe satio . Othe compa ies, i cludi g compa ies i ou i dust y, may calculate Adjusted EBITDA diffe e tly, which educes its useful ess as a compa ative measu e.
Because of these limitatio s, you should co side Adjusted EBITDA alo g with othe fi a cial pe fo ma ce measu es, i cludi g total eve ues, subsc iptio eve ue, defe ed eve ue, et i come (loss), cash a d cash equivale ts, est icted cash, et cash used i ope ati g activities a d ou fi a cial esults p ese ted i acco da ce with GAAP.
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