INTELLIGENT PROTECTION MANAGEMENT CORP.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
IPM$1.62-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001213900-25-074973
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001213900-25-109212
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 146 previous paragraphs and 159 current paragraphs.
113 unchanged; 31 reworded; 15 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Third Quarter 2025 Operational Highlights
Current report
Fourth Quarter 2025 Business Objectives
Current report
Litigation expenses
Current report
Litigation expenses relate to expenses incurred in defense of the Cisco ManyCam Litigation (as described and defined below).
Current report
Devices Under Management
Current report
Devices under management represent the number of endpoints, servers, and network devices that are outsourced to us under managed services agreements. It is derived directly from our contract management system and adjusted monthly for additions and retirements (if any). Management uses this metric to measure growth and a measure of customer confidence in our ability to manage devices on their behalf. As of September 30, 2025, we had over 9,000 devices under management.
Current report
Depreciation and amortization expenses
Current report
Depreciation and amortization expenses increased by $481,960 to $624,544 for the three months ended September 30, 2025. The increase relates to increased amortization and depreciation in connection with the intangible and fixed assets acquired in the Acquisition.
Current report
Litigation expenses
Current report
Litigation expense totaled $507,181 for the three months ended September 30, 2025 and related to the costs incurred in connection with the Cisco ManyCam Litigation.
Current report
Depreciation and amortization expenses
Current report
Depreciation and amortization expenses increased by $1,365,486 to $1,982,236 for the nine months ended September 30, 2025. The increase relates to increased amortization and depreciation in connection with the intangible and fixed assets acquired in the Acquisition.
Current report
Litigation expenses
Current report
Litigation expense totaled $507,181 for the nine months ended September 30, 2025 and related to the costs incurred in connection with the Cisco ManyCam Litigation.
Current report
Additionally, we expect our long-term liquidity position will be sufficient to meet our long-term liquidity needs with cash flows from operations and financing arrangements. However, in the event of changes in business conditions or other developments, including a sustained market deterioration, unanticipated regulatory developments, significant acquisitions, competitive pressures, or to the extent our liquidity needs prove to be greater than expected or cash generated from operations is less than anticipated, we may need additional liquidity. To the extent we elect to finance our long-term liquidity needs, we believe that the potential financing capital available to us in the future will be sufficient.
Removed paragraphs (2)
Previous report
Second Quarter 2025 Operational Highlights
Previous report
Second Half 2025 Business Objectives
Reworded paragraphs (31)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with: (i) the accompanying unaudited condensed consolidated financial statements and notes thereto for the three and six months ended June 30, 2025 and 2024, (ii) the consolidated financial statements and notes thereto for the year ended December 31, 2024 included in our Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2025 and (iii) the discussion under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Form 10-K. Aside from certain information as of December 31, 2024, all amounts herein are unaudited.
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with: (i) the accompanying unaudited condensed consolidated financial statements and notes thereto for the three and nine months ended September 30, 2025 and 2024, (ii) the consolidated financial statements and notes thereto for the year ended December 31, 2024 included in our Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 24, 2025 and (iii) the discussion under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Form 10-K. Aside from certain information as of December 31, 2024, all amounts herein are unaudited.
Previous wording
Operational highlights during the three and six months ended June 30, 2025:
Current wording
Operational highlights during the three and nine months ended September 30, 2025:
Previous wording
We also generate subscription revenue from monthly premium subscription services for our ManyCam software. Subscription revenues are presented net of refunds, credits, and known and estimated credit card chargebacks. During the three and six months ended June 30, 2025 and 2024, subscriptions were offered in durations of twelve-month and twenty four-month terms. All subscription fees, however, are paid by credit card at the origination of the subscription regardless of the term of the subscription. Revenues from multi-month subscriptions are recognized on a straight-line basis over the period where the service is offered to the customer, indicated by length of the subscription term purchased. The unearned portion of subscription revenue is presented as deferred revenue in the accompanying condensed consolidated balance sheets.
Current wording
We also generate subscription revenue from monthly premium subscription services for our ManyCam software. Subscription revenues are presented net of refunds, credits and known and estimated credit card chargebacks. During the three and nine months ended September 30, 2025 and 2024, subscriptions were offered in durations of twelve-month and twenty-four-month terms. All subscription fees, however, are paid by credit card at the origination of the subscription regardless of the term of the subscription. Revenues from multi-month subscriptions are recognized on a straight-line basis over the period where the service is offered to the customer, indicated by length of the subscription term purchased. The unearned portion of subscription revenue is presented as deferred revenue in the accompanying condensed consolidated balance sheets.
Previous wording
Our management relies on certain non-GAAP financial measures to manage and evaluate our business. The non-GAAP financial measures set forth below help us evaluate growth trends, establish budgets, measure the effectiveness of our advertising and marketing efforts and assess operational efficiencies. Adjusted EBITDA is discussed below. We also discuss net cash provided by operating activities under the “Liquidity and Capital Resources” section below.
Current wording
Our management relies on certain non-GAAP financial measures to manage and evaluate our business. The non-GAAP financial measures set forth below help us evaluate growth trends, establish budgets, measure the effectiveness of our advertising and marketing efforts and assess operational efficiencies. Adjusted EBITDA is discussed below. We also discuss*“Devices Under Management”* and net cash provided by operating activities under the “Liquidity and Capital Resources” section below.
Previous wording
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense and net loss from discontinued operations.
Current wording
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense, net loss from discontinued operations and litigation expenses relating to the Cisco ManyCam Litigation. Prior to the fiscal quarter ended September 30, 2025, the Company did not exclude litigation expenses related to the Cisco ManyCam Litigation in calculating Adjusted EBTIDA as they were not material. However, after reevaluation, the Company has determined that presenting Adjusted EBITDA without excluding such costs provides less valuable information about the Company’s core operations. As a result, beginning with the fiscal quarter ended September 30, 2025, litigation expenses related to the Cisco ManyCam Litigation are now excluded from the calculation of Adjusted EBITDA.
Previous wording
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; the potentially dilutive impact of stock-based compensation; the provision for income taxes; and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Current wording
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; the potentially dilutive impact of stock-based compensation; the provision for income taxes; litigation expenses incurred in connection with our patent defense against Cisco Systems, Inc. and Cisco Technology, Inc. (the “Cisco ManyCam Litigation”); and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Previous wording
Total revenue increased by 2008.5% to $5,722,599 for the three months ended June 30, 2025 from $271,409 for the three months ended June 30, 2024. This increase was driven by new revenue streams acquired in connection with the Acquisition and the fact that revenue for the prior year period did not include revenue from discontinued operations.
Current wording
Total revenue increased by 2,164.9% to $6,238,019 for the three months ended September 30, 2025 from $275,420 for the three months ended September 30, 2024. This increase was driven by new revenue streams acquired in connection with the Acquisition and the fact that revenue for the prior year period did not include revenue from discontinued operations.
Previous wording
The following table sets forth our total revenue for the three months ended June 30, 2025 and the three months ended June 30, 2024, the increase between those periods, the percentage increase between those periods, and the percentage of total revenue that each represented for those periods:
Current wording
The following table sets forth our total revenue for the three months ended September 30, 2025 and the three months ended September 30, 2024, the increase between those periods, the percentage change between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Our subscription revenue for the six months ended June 30, 2025 relates to the sales from our ManyCam software, which increased by $16,867, or 3.1%, as compared to the six months ended June 30, 2024. The increase in subscription revenue was primarily driven by an increase in new subscribers to our ManyCam software.
Current wording
Our subscription revenue for the three months ended September 30, 2025 relates to the sales from our ManyCam software, which decreased by $3,199, or 1.2%, as compared to the three months ended September 30, 2024.
Previous wording
Total costs and expenses for the three months ended June 30, 2025 increased by $5,529,838, or 418.1%, as compared to the three months ended June 30, 2024. The following table presents our costs and expenses for the three months ended June 30, 2025 and 2024, the increase between those periods and the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Current wording
Total costs and expenses for the three months ended September 30, 2025 increased by $5,910,987, or 447.0%, as compared to the three months ended September 30, 2024. The following table presents our costs and expenses for the three months ended September 30, 2025 and 2024, the increase between those periods and the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Our cost of revenue for the three months ended June 30, 2025 increased by $2,784,412, or 3812.3%, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the expenses related to the new revenue streams, including but not limited to, costs associated with procurement equipment and related costs of $945,925, managed services expenses of $518,970, subscriptions and licensing of $698,846, professional and consulting costs of $278,498, web hosting expense of $123,455 and rent related to our Data Centers of $82,692.
Current wording
Our cost of revenue for the three months ended September 30, 2025 increased by $3,019,994, or 4,134.9%, as compared to the three months ended September 30, 2024. This increase was primarily due to an increase in the expenses related to the new revenue streams acquired in connection with the Acquisition, including but not limited to, costs associated with procurement equipment and related costs of $1,291,143, managed services expenses of $1,450,028, subscriptions and licensing of $647,974, professional and consulting costs of $252,112 web hosting expense of $135,188 and rent related to our Data Centers of $82,692.
Previous wording
Our sales marketing and product development expense for the three months ended June 30, 2025 increased by $581,999 or 226.1%, as compared to the three months ended June 30, 2024. The increase in sales marketing and product development expense for the three months ended June 30, 2025 was primarily due to an increase in salary-related expenses of approximately $510,333 and commissions of $134,844 earned by the Company’s sales team to service and grow its customer base. In addition, consulting expenses totaled $134,542 related to marketing activities. As a result of the Transactions, headcount on our sales team increased from zero in the prior year period to approximately 15 people in the current period, and their associated salaries are included in sales marketing and product development expense for the three months ended June 30, 2025.
Current wording
Our sales marketing and product development expense for the three months ended September 30, 2025 increased by $595,055, or 231.2%, as compared to the three months ended September 30, 2024. The increase in sales marketing and product development expense for the three months ended September 30, 2025 was primarily due to an increase in salary-related expenses of approximately $492,208 and commissions of $148,102 earned by the Company’s sales team to service and grow its customer base. In addition, consulting expenses totaled $78,914 related to marketing activities. As a result of the Transactions, headcount on our sales team increased from zero in the prior year period to approximately 15 people in the current period, and their associated salaries are included in sales marketing and product development expense for the three months ended September 30, 2025.
Previous wording
Our general and administrative expense for the three months ended June 30, 2025 increased by $1,695,359, or 215.6%, as compared to the three months ended June 30, 2024. The increase in general and administrative expenses for the three months ended June 30, 2025 was primarily due to legal and accounting expenses of $148,486 and $73,327, respectively. In addition, the Company incurred public company expenses of $115,586, rent expense of $95,187 in connection with our office and Data Centers and insurance costs of $205,411. Salary and salary related expenses totaled $1,534,583 for the three months ended June 30, 2025, plus $77,760 of non-cash share-based compensation. As a result of the Transactions, headcount increased from four individuals in the prior year period to approximately 41 individuals in the current period, and their associated salary and salary related costs are included in general and administrative expenses for the three months ended June 30, 2025.
Current wording
Our general and administrative expense for the three months ended September 30, 2025 increased by $1,369,797, or 174.2%, as compared to the three months ended September 30, 2024. The increase in general and administrative expenses for the three months ended September 30, 2025 was primarily due to legal and accounting expenses of $315,900 and $51,239, respectively. In addition, the Company incurred public company expenses of $209,157, rent expense of $91,762 in connection with our office and Data Centers and insurance costs of $205,411. Salary and salary related expenses totaled $1,515,582 for the three months ended September 30, 2025, plus $43,916 of non-cash share-based compensation. As a result of the Transactions, headcount increased from four individuals in the prior year period to approximately 41 individuals in the current period, and their associated salary and salary related costs are included in general and administrative expenses for the three months ended September 30, 2025.
Previous wording
Non-operating income for the three months ended June 30, 2025 was $151,678, a decrease of $138,822, or 47.8%, as compared to non-operating income of $290,500 for the three months ended June 30, 2024. The decrease in interest income was primarily a result of a decrease in the amount of principal the Company invested and at varying interest rates. Other income for the three months ended June 30, 2025 related to the sale of a domain name that the Company is not using. During the three months ended June 30, 2024 other income included proceeds from a class action lawsuit against a service provider.
Current wording
Non-operating income for the three months ended September 30, 2025 was $102,856, a decrease of $54,661, or 37.9%, as compared to non-operating income of $157,517 for the three months ended September 30, 2024. The decrease in interest income was primarily a result of a decrease in the amount of principal the Company invested and at varying interest rates.
Previous wording
Our provision for income taxes consists of federal, foreign and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. For the three months ended June 30, 2025, the Company recorded an income tax provision of $72,007 consisting primarily of federal, foreign, state and local taxes. For the three months ended June 30, 2024, the Company recorded an income tax provision of $532,502, consisting primarily of federal, foreign, state and local taxes.
Current wording
Our provision for income taxes consists of federal, foreign and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. For the three months ended September 30, 2025, the Company recorded an income tax benefit of $249,836 consisting primarily of federal, foreign, state and local taxes. For the three months ended September 30, 2024, the Company recorded an income tax benefit of $21,968, consisting primarily of federal, foreign, state and local taxes.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous wording
Total revenue increased by 1970.2% to $11,240,637 for the six months ended June 30, 2025 from $542,981 for the six months ended June 30, 2024. This increase was driven by new revenue streams acquired in connection with the Acquisition and the fact that revenue for the prior year period did not include revenue from discontinued operations.
Current wording
Total revenue increased by 2,035.7% to $17,478,656 for the nine months ended September 30, 2025 from $818,401 for the nine months ended September 30, 2024. This increase was driven by new revenue streams acquired in connection with the Acquisition and the fact that revenue for the prior year period did not include revenue from discontinued operations.
Previous wording
The following table sets forth our total revenue for the six months ended June 30, 2025 and the six months ended June 30, 2024, the increase between those periods, the percentage increase between those periods, and the percentage of total revenue that each represented for those periods:
Current wording
The following table sets forth our total revenue for the nine months ended September 30, 2025 and the nine months ended September 30, 2024, the increase between those periods, the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Our subscription revenue for the three months ended June 30, 2025 relates to the sales from our ManyCam software, which increased by $7,220, or 2.7%, as compared to the three months ended June 30, 2024. The increase in subscription revenue was primarily driven by an increase in new subscribers to our ManyCam software.
Current wording
Our subscription revenue for the nine months ended September 30, 2025 relates to the sales from our ManyCam software, which increased by $13,668, or 1.7%, as compared to the nine months ended September 30, 2024. The increase in subscription revenue was primarily driven by an increase in new subscribers to our ManyCam software.
Previous wording
Total costs and expenses for the six months ended June 30, 2025 increased by $11,105,222, or 427.3%, as compared to the six months ended June 30, 2024. The following table presents our costs and expenses for the six months ended June 30, 2025 and 2024, the increase between those periods, the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Current wording
Total costs and expenses for the nine months ended September 30, 2025 increased by $17,016,209, or 390.1%, as compared to the nine months ended September 30, 2024. The following table presents our costs and expenses for the nine months ended September 30, 2025 and 2024, the increase between those periods, the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Our cost of revenue for the six months ended June 30, 2025 increased by $5,187,439, or 3,851.9%, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the expenses related to the new revenue streams, including but not limited to, costs associated with procurement equipment and related costs of $1,723,423, managed services expenses of $987,017, subscriptions and licensing of $1,179,124, professional and consulting costs of $642,242, web hosting expense of $278,206 and rent related to our Data Centers of $165,384.
Current wording
Our cost of revenue for the nine months ended September 30, 2025 increased by $8,207,433, or 4,296.8%, as compared to the nine months ended September 30, 2024. This increase was primarily due to an increase in the expenses related to the new revenue streams acquired in connection with the Acquisition, including but not limited to, costs associated with procurement equipment and related costs of $3,013,042, managed services expenses of $1,535,181, subscriptions and licensing of $1,736,639, professional and consulting costs of $854,812, web hosting expense of $413,394 and rent related to our Data Centers of $248.076.
Previous wording
Our sales marketing and product development expense for the six months ended June 30, 2025 increased by $1,081,574, or 206.7%, as compared to the six months ended June 30, 2024. The increase in sales marketing and product development expense for the six months ended June 30, 2025 was primarily due to an increase in salary-related expenses of approximately $1,020,875 and commissions of $267,759 earned by the Company’s sales team to service and grow its customer base. In addition, consulting expenses totaled $247,459 related to marketing activities. As a result of the Transactions, headcount on our sales team increased from zero in the prior year period to approximately 15 people in the current period, and their associated salary costs are included in sales marketing and product development expense for the six months ended June 30, 2025.
Current wording
Our sales marketing and product development expense for the nine months ended September 30, 2025 increased by $1,676,629 or 217.0%, as compared to the nine months ended September 30, 2024. The increase in sales marketing and product development expense for the nine months ended September 30, 2025 was primarily due to an increase in salary-related expenses of approximately $1,480,167 and commissions of $415,861 earned by the Company’s sales team to service and grow its customer base. In addition, consulting expenses totaled $148,731 related to marketing activities. As a result of the Transactions, headcount on our sales team increased from zero in the prior year period to approximately 15 people in the current period, and their associated salary costs are included in sales marketing and product development expense for the nine months ended September 30, 2025.
Previous wording
Our general and administrative expense for the six months ended June 30, 2025 increased by $3,889,683, or 254.2%, as compared to the six months ended June 30, 2024. The increase in general and administrative expenses for the three months ended June 30, 2025 was primarily due to legal and accounting expenses of $417,901 and $342,724, respectively. In addition, the Company incurred public company expenses of $203,285, rent expense of $198,647 in connection with our office and Data Centers and insurance costs of $405,596. Salary and salary related expenses totaled $3,065,134 for the six months ended June 30, 2025, plus $245,391 of non-cash share-based compensation. As a result of the Transactions, headcount increased from four individuals in the prior year period to approximately 41 individuals in the current period, and their associated salary and salary related costs are included in general and administrative expenses for the six months ended June 30, 2025. Of the total expenses described above, approximately $334,970 were one-time expenses related to the Transactions.
Current wording
Our general and administrative expense for the nine months ended September 30, 2025 increased by $5,259,480, or 189.1%, as compared to the nine months ended September 30, 2024. The increase in general and administrative expenses for the three months ended September 30, 2025 was primarily due to legal and accounting expenses of $469,139 and $640,948, respectively. In addition, the Company incurred public company expenses of $507,163, rent expense of $290,409 in connection with our office and Data Centers and insurance costs of $611,007. Salary and salary related expenses totaled $4,580,716 for the nine months ended September 30, 2025, plus $289,308 of non-cash share-based compensation. As a result of the Transactions, headcount increased from four individuals in the prior year period to approximately 41 individuals in the current period, and their associated salary and salary related costs are included in general and administrative expenses for the nine months ended September 30, 2025. Of the total expenses described above, approximately $334,970 were one-time expenses related to the Transactions.
Previous wording
The following table presents the components of non-operating income for the six months ended June 30, 2025 and the six months ended June 30, 2024, the decrease between those periods, the percentage decrease between those periods and the percentage of total revenue that each represented for those periods:
Current wording
The following table presents the components of non-operating income for the nine months ended September 30, 2025 and the nine months ended September 30, 2024, the decrease between those periods, the percentage decrease between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Non-operating income for the six months ended June 30, 2025 was $234,070, a decrease of $208,414, or 47.1%, as compared to non-operating income of $442,484 for the six months ended June 30, 2024. The decrease was primarily a result of a decrease in the amount of principal the Company invested and at varying interest rates. Other income for the six months ended June 30, 2025 related to the sale of a domain name that the Company is not using. During the six months ended June 30, 2024 other income included proceeds from a class action lawsuit against a service provider.
Current wording
Non-operating income for the nine months ended September 30, 2025 was $336,926, a decrease of $263,075, or 43.8%, as compared to non-operating income of $600,001 for the nine months ended September 30, 2024. The decrease was primarily a result of a decrease in the amount of principal the Company invested and at varying interest rates. Other income for the nine months ended September 30, 2025 related to the sale of a domain name that the Company is not using. During the nine months ended September 30, 2024 other income included proceeds from a class action lawsuit against a service provider.
Previous wording
Our provision for income taxes consists of federal, foreign and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. For the six months ended June 30, 2025, the Company recorded an income tax benefit of $1,988,058 primarily related to a partial release of its valuation allowance as the Acquisition created a source of future taxable income allowing for the recognition of certain deferred tax assets. For the six months ended June 30, 2024, the Company recorded an income tax benefit of $66,208, consisting primarily of federal, foreign, state and local taxes.
Current wording
Our provision for income taxes consists of federal, foreign and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. For the nine months ended September 30, 2025, the Company recorded an income tax benefit of $2,237,894 primarily related to a partial release of its valuation allowance as the Acquisition created a source of future taxable income allowing for the recognition of certain deferred tax assets. For the nine months ended September 30, 2024, the Company recorded an income tax benefit of $88,176, consisting primarily of federal, foreign, state and local taxes.
Previous wording
We believe that our cash and cash equivalents balance, our cash available through the Facility and our expected cash flows from operations will be sufficient to meet all of our financial obligations for one year from the date these financial statements are issued. As of June 30, 2025, we had $8,301,692 of cash and cash equivalents, which included $1,014,714 of restricted cash.
Current wording
We believe that our cash and cash equivalents balance, our cash available through the Facility and our expected cash flows from operations will be sufficient to meet all of our financial obligations for one year from the date these financial statements are issued. As of September 30, 2025, we had $8,346,479 of cash and cash equivalents, which included $1,025,176 of restricted cash.
Previous wording
On May 8, 2025, the Board approved the Stock Repurchase Plan for up to $400,000 of our outstanding common stock, which expires on the one-year anniversary of such date. We intend to utilize the Stock Repurchase Plan to minimize the dilutive impact of awards granted under our equity incentive plans and to repurchase shares opportunistically. Shares of common stock may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 plans. The Stock Repurchase Plan does not obligate us to repurchase any shares of common stock, and the Stock Repurchase Plan may be modified, suspended, extended or terminated at any time by our Board. The actual timing, number and value of shares repurchased will be determined by a committee of the Board at its discretion and will depend on a number of factors, including the market price of our common stock, general market and economic conditions, alternative investment opportunities and other corporate considerations. As of June 30, 2025, 104,600 shares of common stock had been repurchased pursuant to the Stock Repurchase Plan.
Current wording
On May 8, 2025, the Board approved the Stock Repurchase Plan for up to $400,000 of our outstanding common stock, which expires on the one-year anniversary of such date. We intend to utilize the Stock Repurchase Plan to minimize the dilutive impact of awards granted under our equity incentive plans and to repurchase shares opportunistically. Shares of common stock may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 plans. The Stock Repurchase Plan does not obligate us to repurchase any shares of common stock, and the Stock Repurchase Plan may be modified, suspended, extended or terminated at any time by our Board. The actual timing, number and value of shares repurchased will be determined by a committee of the Board at its discretion and will depend on a number of factors, including the market price of our common stock, general market and economic conditions, alternative investment opportunities and other corporate considerations. As of September 30, 2025, 151,258 shares of common stock had been repurchased pursuant to the Stock Repurchase Plan.
Previous wording
Net cash provided by operating activities was $856,105 for the six months ended June 30, 2025, as compared to net cash used in operating activities of $103,210 for the six months ended June 30, 2024. The increase in the amount of cash provided by operations for the six months ended June 30, 2024 was primarily attributed to the change in the business activities of the Company following the Transactions compared to the six months ended June 30, 2024, specifically, the collection of accounts receivable (favorable by $0.3 million), and the timing of payment of payables (favorable by $1.5 million), netted against amounts collected by the Company during the second quarter following the Divestiture due to Meteor Mobile and paid subsequent to quarter end of $0.4 million.
Current wording
Net cash provided by operating activities was $989,142 for the nine months ended September 30, 2025, as compared to net cash used in operating activities of $1,551,736 for the nine months ended September 30, 2024. The increase in the amount of cash provided by operations for the nine months ended September 30, 2024 was primarily attributed to the change in the business activities of the Company following the Transactions compared to the nine months ended September 30, 2024, specifically, the collection of accounts receivable, and the timing of payment of payables, netted against amounts collected by the Company during the second quarter following the Divestiture due to Meteor Mobile and paid subsequent to quarter end of $0.4 million.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 was $4,280,149 and related to the cash consideration paid by the Company to Newtek in connection with the Acquisition as well as the acquisition of fixed assets. There was no cash used in or provided by investing activities for the six months ended June 30, 2024.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was $4,280,149 and related to the cash consideration paid by the Company to Newtek in connection with the Acquisition as well as the acquisition of fixed assets. There was no cash used in or provided by investing activities for the nine months ended September 30, 2024.
Previous wording
Net cash provided by financing activities was $1,137,202 for the six months ended June 30, 2025, which was attributed to the $1,350,000 received in connection with the Divestiture netted against the $212,798 used in connection with the Stock Repurchase Plan. There was no cash used in or provided by financing activities for the six months ended June 30, 2024.
Current wording
Net cash provided by financing activities was $1,048,952 for the nine months ended September 30, 2025, which was attributed to the $1,350,000 received in connection with the Divestiture netted against the $301,048 used in connection with the Stock Repurchase Plan. There was $39,772 cash provided by financing activities for the nine months ended September 30, 2024 related to the exercise of employee stock options.