Jaso Katz, Chai ma a d Chief Executive Office , said, “Fi a cial esults fo the seco d qua te of 2026 we e solid despite supply chai co st ai ts, achievi g a 13% i c ease i total eve ue to $6.5 millio compa ed to last yea ‘s seco d qua te . Fo the six mo ths e ded Ju e 30, 2026, total eve ue i c eased 14% to $12.8 millio . We achieved double-digit eve ue g owth by ge e ati g ew custome s, expa di g sales to existi g custome s a d i vesti g st ategically fo futu e g owth. Ou pe fo ma ce u de sco es the st e gth a d value of ou “white glove” ma aged tech ology solutio s i highly egulated i dust ies. As custome s i c easi gly ecog ize the secu ity, eliability a d scalability of ou platfo m, we believe we emai well positio ed to capitalize o g owi g ma ket dema ds.
“I the seco d qua te “, M . Katz co ti ued, “we had a st o g i c ease of 64% i p ocu eme t eve ues, as custome s focused o buildi g out thei i f ast uctu e as quickly as possible to execute o thei AI i itiatives. Custome p ocu eme t by its atu e is u eve a d depe de t o ma y u p edictable facto s. I that ega d, we have i vested i expa di g ou p ocu eme t a d fulfillme t i f ast uctu e to bette se ve ou clie ts.
“We expe ie ced supply chai co st ai ts du i g the qua te , which affected the availability of memo y, CPU a d GPU compo e ts th oughout the qua te . These co ditio s exte ded p oduct lead times, esulti g i delays betwee custome booki gs a d p oduct shipme ts. Co seque tly, a po tio of booked o de s emai ed u ecog ized as of the e d of Ju e 30, 2026 as eve ue pe di g fulfillme t a d delive y i futu e qua te s. Goi g fo wa d, we a e bette p epa ed to ma age this pa t of ou busi ess i a mo e effective way a d o a mo e timely basis, as we a e addi g additio al dist ibuto s, ve do s, pa t e s a d ma ufactu e s to fu the dive sify ou sou ces.
“Du i g the qua te we co ti ued to add ew custome elatio ships a d se vice co t acts, as we emai dedicated to buildi g a dive sified custome base to educe co ce t atio i a ha dful of custome s. Additio ally, du i g the fi st half of 2026, we fu the st e gthe ed ou competitive positio by achievi g SOC 2 Type 1 complia ce, exte di g ou Phoe ix data ce te ag eeme t th ough 2032 a d accele ati g AI i teg atio th ough ou pa t e ship with MASORI The apeutics. These adva ceme ts e ha ce ou ability to delive secu e, e te p ise-g ade i f ast uctu e a d AI-d ive automatio , elevati g ou positio as a t usted pa t e .”
M . Katz, co cluded, “As I have i dicated p eviously, we co ti ue to explo e a d evaluate st ategic oppo tu ities, i cludi g, but ot limited to, pote tial me ge s o acquisitio s of othe e tities o assets that a e sy e gistic to ou busi esses a d expa d ou ma ket leade ship. With a st o g bala ce sheet, o lo g-te m debt a d a g owi g pipeli e, we believe we a e well positio ed to move agg essively a d i teg ate ope atio s that a e sy e gistic with ou co e ope atio s a d ca be acqui ed at easo able valuatio s to p ovide g eate etu s fo ou loyal stockholde s. We a e co fide t i ou ability to build o ou mome tum a d delive st o g esults th oughout the emai de of 2026 as well as delive sha eholde value.”
Net loss | Net cash (used i ) ope ati g activities | $ | (591,018 | ) | $ | (888,678 | ) | Adjusted EBITDA (a o -GAAP measu e) 1 | $ | (610,254 | ) | $ | (378,289 | ) |
$ | 11,240,637 | $ | (2,011,712 | ) | $ | (241,498 | ) | $ | 856,105 |
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 Ju e 30, 2026, total eve ue i c eased by 13% to $6.5 millio f om $5.7 millio fo the th ee mo ths e ded Ju e 30, 2025. This i c ease was d ive by 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, a d a i c ease i p ocu eme t eve ue elated to sales of AI- elated equipme t to custome s, pa tially offset by dec eases i p ofessio al se vices eve ue a d subsc iptio eve ue. Total eve ue by eve ue compo e t fo the seco d qua te e ded Ju e 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 solutio s a d web hosti g, was $3.8 millio , a i c ease of 8.4% f om Q2 2025.
P ocu eme t eve ue was $2.0 millio , a i c ease of 64.0% f om Q2 2025.
P ofessio al se vices eve ue was $363,055, a dec ease of 47.3% f om Q2 2025.
Subsc iptio eve ue was $249,490, a dec ease of 10.5% f om Q2 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.
Net loss fo the th ee mo ths e ded Ju e 30, 2026 totaled $1.4 millio compa ed to et loss of $1.1 millio fo the th ee mo ths e ded Ju e 30, 2025;
Adjusted EBITDA fo the th ee mo ths e ded Ju e 30, 2026 totaled egative $0.6 millio compa ed to egative $0.4 millio fo the th ee mo ths e ded Ju e 30, 2025;
Cash used i ope atio s totaled $0.6 millio fo the th ee mo ths e ded Ju e 30, 2026 compa ed to cash used i ope atio s of $0.9 millio fo the th ee mo ths e ded Ju e 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 $4.5 millio as of Ju e 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 Ju e 30, 2026 we had $7.5 millio of cash a d cash equivale ts o ou bala ce sheet a d o lo g-te m debt.
Fo the six mo ths e ded Ju e 30, 2026, total eve ue i c eased by 14% to $12.8 millio f om $11.2 millio fo the compa able six-mo th pe iod i 2025. The i c ease was d ive by 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, a d a i c ease i p ocu eme t eve ue elated to sales of AI- elated equipme t to custome s, pa tially offset by dec eases i p ofessio al se vices eve ue a d subsc iptio eve ue.
Fo the six mo ths e ded Ju e 30, 2026, eve ue totaled $12.8 millio compa ed to $11.2 millio fo the six mo ths e ded Ju e 30, 2025, a i c ease of 14%, p ima ily att ibuted to a i c ease i ou ma aged IT se vices of 9% compa ed to the p io yea pe iod, as well as a i c ease i p ocu eme t eve ue of 70% compa ed to the p io yea pe iod;
Net loss fo the six mo ths e ded Ju e 30, 2026 totaled $2.0 millio , compa ed to et loss of $0.2 millio fo the six mo ths e ded Ju e 30, 2025;
Adjusted EBITDA fo the six mo ths e ded Ju e 30, 2026 totaled egative $0.8 millio , compa ed to egative $0.9 millio fo the six mo ths e ded Ju e 30, 2025; a d
Cash used by ope atio s of $0.8 millio fo the six mo ths e ded Ju e 30, 2026 compa ed to cash p ovided by ope atio s of $0.9 millio fo the six mo ths e ded Ju e 30, 2025, p ima ily elated to ou sou ci g of i ve to y i co ectio with the i c eased p ocu eme t eve ue.
Du i g the th ee mo ths e ded Ju e 30, 2026, we expe ie ced supply chai co st ai ts affecti g the availability of memo y, CPU a d GPU compo e ts. These co st ai ts exte ded p oduct lead times compa ed to histo ical levels, esulti g i delays betwee custome booki gs a d p oduct shipme ts. As a esult, a po tio of booked o de s du i g the qua te emai ed u ecog ized as eve ue pe di g fulfillme t a d delive y, which we expect to ecog ize i futu e qua te s as the u de lyi g p oducts a d se vices a e shipped a d i stalled.
Du i g the six mo ths e ded Ju e 30, 2026, a sig ifica t custome o de was delayed a d fulfilled ac oss two epo ti g pe iods due to supply chai co st ai ts affecti g both ou ve do a d dist ibutio cha el. These co st ai ts alte ed the cost st uctu e associated with fulfilli g the o de . The i itial shipme t, completed i the fi st qua te , was ecog ized at expected ma gi s, while the subseque t shipme t, completed du i g the seco d qua te , i cu ed highe compo e t a d f eight costs, esulti g i a loss o that po tio of the o de . As a esult, the combi ed o de esulted i a loss, which co t ibuted to the i c ease i cost of eve ue fo the pe iod.
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.
E te ed i to a st ategic collabo atio with MASORI The apeutics (“MASORI”), a adva ced a tificial i tellige ce (“AI”) platfo m desig ed to accele ate esults by educi g cost, complexity, a d time fo small a d medium AI models, allowi g o ga izatio s to save sig ifica tly by dec easi g ecessa y code developme t a d p ovidi g AI- elated be efits.
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 Ju e 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, August 11, 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: 127631 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/2856/54297.
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 54297 th ough Tuesday, August 25, 2026.
If you would like to submit a questio , please se d a email with you questio to
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 co sulti g 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 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 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:
Cu e t assets: | Cash a d cash equivale ts | $ | 5,228,082 | $ | 5,597,014 | Cash a d cash equivale ts (o deposit with a elated pa ty) | 2,257,069 | 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 $98,104 a d $100,000 as of Ju e 30, 2026 a d Decembe 31, 2025, espectively | 1,920,708 | 1,599,725 | Due f om elated pa ty | 26,283 | 75,601 | P epaid expe se a d othe cu e t assets | 2,345,056 | 1,363,574 | Total cu e t assets | 11,777,198 | 11,472,961 | P ope ty a d equipme t, et | 400,915 | 550,628 | I ta gible assets, et | 6,994,056 | 7,718,836 | Goodwill | 4,555,208 | 4,555,208 | Ope ati g lease ight of use assets, et | 4,149,953 | 1,140,196 | Othe assets | 481,023 | 602,688 | $ | 28,358,353 | $ | 26,040,517 | Cu e t liabilities: | Accou ts payable | $ | 2,752,648 | $ | 1,604,898 | Acc ued expe ses a d othe cu e t liabilities | 583,805 | 1,031,733 | Ope ati g lease liabilities, cu e t po tio | 564,980 | 756,590 | Defe ed eve ue | 4,469,109 | 3,878,114 | Due to elated pa ty | 58,675 | 46,450 | Total cu e t liabilities | 8,429,217 | 7,317,785 | Ope ati g lease liabilities, o -cu e t po tio | 3,645,350 | 387,906 | Defe ed tax liability | 127,933 | 148,898 | 12,202,500 | 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 autho ized, 4,000,000 sha es issued a d outsta di g as of Ju e 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 Ju e 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 Ju e 30, 2026 a d Decembe 31, 2025, espectively | (1,583,876 | ) | (1,500,385 | ) | Additio al paid-i capital | 45,004,875 | 44,939,747 | Accumulated deficit | (27,279,025 | ) | (25,267,313 | ) | 16,155,853 | 18,185,928 | $ | 28,358,353 | $ | 26,040,517 |
Reve ue | Ma aged i fo matio tech ology, i cludes $1,727,862 a d $1,827,817 of elated pa ty eve ue fo the th ee mo ths e ded Ju e 30, 2026 a d 2025, espectively, a d $3,617,987 a d $3,516,400, of elated pa ty eve ue fo the six mo ths e ded Ju e 30, 2026 a d 2025, espectively | $ | 3,802,320 | $ | 3,506,754 | $ | 7,722,814 | $ | 7,065,587 | P ocu eme t eve ue, i cludes $23,463 a d $23,361 of elated pa ty eve ue fo the th ee mo ths e ded Ju e 30, 2026 a d 2025, espectively, a d $57,901, a d $77,881 of elated pa ty eve ue fo the six mo ths e ded Ju e 30, 2026 a d 2025, espectively | 2,047,677 | 1,248,401 | 3,744,578 | 2,199,780 | P ofessio al se vices eve ue, i cludes $44,514 a d $56,396 of elated pa ty eve ue fo the th ee mo ths e ded Ju e 30, 2026 a d 2025, espectively, a d $81,889 a d $108,246 of elated pa ty eve ue fo the six mo ths e ded Ju e 30, 2026 a d 2025, espectively | 363,055 | 688,815 | 846,355 | 1,415,422 | Subsc iptio eve ue | 249,490 | 278,629 | 503,546 | 559,848 | Total eve ue | 6,462,542 | 5,722,599 | 12,817,293 | 11,240,637 | Costs a d expe ses | Costs of eve ue | 3,791,615 | 2,857,449 | 7,051,781 | 5,322,112 | Sales, ma keti g a d p oduct developme t expe se | 767,668 | 839,397 | 1,545,697 | 1,604,761 | Ge e al a d admi ist ative expe se | 2,555,085 | 2,481,801 | 5,062,716 | 5,419,698 | Dep eciatio a d amo tizatio | 477,684 | 673,651 | 953,182 | 1,357,692 | Litigatio expe ses elati g to the Cisco Ma yCam Litigatio | 382,861 | — | 484,470 | — | Total costs a d expe ses | 7,974,913 | 6,852,298 | 15,097,846 | 13,704,263 | Loss f om ope atio s | (1,512,371 | ) | (1,129,699 | ) | (2,280,553 | ) | (2,463,626 | ) | I te est i come, et | 57,848 | 87,928 | 119,226 | 170,320 | Othe i come | — | 63,750 | 22,000 | 63,750 | Loss f om ope atio s befo e i come tax be efit (expe se) | (1,454,523 | ) | (978,021 | ) | (2,139,327 | ) | (2,229,556 | ) | I come tax be efit (expe se) | 103,025 | (72,007 | ) | 127,615 | 1,988,058 | Net loss | $ | (1,351,498 | ) | $ | (1,050,028 | ) | (2,011,712 | ) | $ | (241,498 | ) | Net loss pe sha e of commo stock: | Basic | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.02 | ) | Diluted | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.02 | ) | 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 | 3,977,901 | 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 | 9,201,658 | 9,053,463 | 9,219,225 | Basic a d diluted et loss pe sha e of Se ies A P efe ed Stock, basic a d diluted | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.02 | ) | Basic a d diluted et loss pe sha e of Commo Stock, basic a d diluted | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.02 | ) | 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 | 13,201,658 | 13,053,463 | 13,197,125 | Diluted | 13,035,729 | 13,201,658 | 13,053,463 | 13,197,125 |
Net loss | $ | (2,011,712 | ) | $ | (241,498 | ) | 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 | 724,780 | 1,130,176 | Amo tizatio of ope ati g lease ight-of-use assets | 345,445 | 415,661 | Dep eciatio o p ope ty a d equipme t | 228,402 | 227,515 | Defe ed taxes | (20,965 | ) | (1,971,762 | ) | Stock-based compe satio | 65,128 | 245,389 | Cha ge i allowa ce fo c edit losses | (1,896 | ) | 3,436 | Cha ges i ope ati g assets a d liabilities, et of acqui ed assets a d dispositio : | Accou ts eceivable | (269,769 | ) | 1,199,060 | Ope ati g lease liability | (289,368 | ) | (420,414 | ) | P epaid expe se a d othe cu e t assets | (981,482 | ) | (1,650,494 | ) | Othe assets | 121,665 | — | Accou ts payable, acc ued expe ses a d othe cu e t liabilities | 712,047 | 2,067,674 | Defe ed eve ue | 590,995 | (148,638 | ) | Pu chase of fixed assets | (78,689 | ) | (280,149 | ) | Cash paid fo acquisitio of NTS | — | (4,000,000 | ) | Net cash used i i vesti g activities | Pu chase of t easu y stock | (83,491 | ) | (212,798 | ) | 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 | 7,485,151 | 8,301,692 | Cash a d cash equivale ts | $ | 5,228,082 | $ | 6,624,860 | Cash a d cash equivale ts (o deposit with elated pa ty) | $ | 2,257,069 | $ | 662,118 | 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 | $ | 7,485,151 | $ | 8,301,692 | 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 a d litigatio expe ses elati g to the Cisco Ma yCam Litigatio (as defi ed below). P io to the fiscal qua te e ded Septembe 30, 2025, the Compa y did ot exclude litigatio expe ses elated to the Cisco Ma yCam Litigatio i calculati g Adjusted EBITDA as they we e ot mate ial. Howeve , afte eevaluatio , the Compa y has dete mi ed that p ese ti g Adjusted EBITDA without excludi g such costs p ovides less valuable i fo matio about the Compa y’s co e ope atio s. As a esult, begi i g with the fiscal qua te e ded Septembe 30, 2025, litigatio expe ses elated to the Cisco Ma yCam Litigatio a e ow 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: 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; i te est i come, et; othe expe se, et; the pote tially dilutive impact of stock-based compe satio ; the p ovisio fo i come taxes; 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 “); a d et loss f om disco ti ued ope atio s. 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.
Reco ciliatio of et loss to Adjusted EBITDA: | Net loss | $ | (1,351,498 | ) | $ | (1,050,028 | ) | I te est i come, et | (57,848 | ) | (87,928 | ) | I come tax expe se (be efit) | (103,025 | ) | 72,007 | Othe i come, et | — | (63,750 | ) | Litigatio expe ses elati g to the Cisco Ma yCam Litigatio | 382,861 | — | Dep eciatio a d amo tizatio expe se | 477,684 | 673,650 | Stock-based compe satio expe se | 41,572 | 77,760 | Adjusted EBITDA | $ | (610,254 | ) | $ | (378,289 | ) |
Reco ciliatio of et loss to Adjusted EBITDA: | Net loss | $ | (2,011,712 | ) | $ | (241,498 | ) | I te est i come, et | (119,226 | ) | (170,320 | ) | I come tax expe se (be efit) | (127,615 | ) | (1,988,058 | ) | Othe i come, et | (22,000 | ) | (63,750 | ) | Litigatio expe ses elati g to the Cisco Ma yCam Litigatio | 484,470 | — | Dep eciatio a d amo tizatio expe se | 953,182 | 1,357,691 | Stock-based compe satio expe se | 65,128 | 245,389 | Adjusted EBITDA | $ | (777,773 | ) | $ | (860,546 | ) |
