Intelligent Protection Management Corp. (formerly Paltalk, Inc.) reported a significant transformation in its financial performance and operational strategy in its latest 10-K filing. For the fiscal year ending December 31, 2024, the company generated approximately $1.1 million in revenue from continuing operations, marking a 14.2% increase from $1.0 million in the previous year. However, the company also reported a net loss of $8.4 million, a substantial increase from a net loss of $1.1 million in 2023. This increase in losses was attributed to a one-time non-cash impairment charge of $3.8 million related to the divestiture of its telecommunications services and applications, as well as $1.8 million in legal and accounting expenses associated with its recent acquisition.
The company underwent significant strategic changes, including the acquisition of Newtek Technology Solutions, Inc. (NTS) on January 2, 2025, for $4 million in cash and 4 million shares of Series A Preferred Stock. This acquisition is expected to enhance the company's capabilities in IT-related services, including dedicated server hosting, cloud hosting, and managed security services. Concurrently, the company divested its telecommunications services, including the Vumber, Paltalk, and Camfrog applications, to Meteor Mobile Holdings, Inc. for $1.35 million in cash. This divestiture reflects a strategic shift away from consumer-facing video-based applications towards a focus on enterprise IT solutions.
Operationally, the company reported a decrease in customer engagement metrics from its discontinued operations, with subscription revenue from the divested applications dropping to $7.6 million in 2024 from $9.7 million in 2023. The company also noted a significant impairment loss of $3.8 million related to the divestiture, which impacted its overall financial results. As of March 14, 2025, the company had 55 full-time employees, reflecting a commitment to maintaining a lean operational structure while focusing on its new business model.
Looking ahead, Intelligent Protection Management Corp. aims to integrate its new IT service offerings and optimize cross-selling opportunities with its ManyCam software. The company plans to explore further strategic acquisitions and investments to enhance its service portfolio. Management expressed confidence in the potential for growth in the IT and cybersecurity sectors, emphasizing the importance of attracting new customers and retaining existing ones to drive future revenue. The company’s outlook remains cautious, given the competitive landscape and the need to navigate the integration of NTS while managing operational costs effectively.
About INTELLIGENT PROTECTION MANAGEMENT CORP.
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