Good day, everyone, and thank you for joining us today for the Lytham Partners Fall 2026 Investor Conference. My name is Joe Dorame, Managing Partner at Lytham Partners. I would like to welcome Intelligent Protection Management, IPM, which trades on the Nasdaq under the ticker IPM. Today, I will be moderating a fireside chat with Jason Katz, Chief Executive Officer. Let's get started. Welcome, Jason.
Hi, how are you today? Thanks for having me.
Great. All right. To begin, please provide an overview of IPM and what makes the company unique.
It's a great question. IPM is a managed service provider. It's also a managed security provider. What makes it unique is really hands-on, 24/7, white glove service so that our customers can expect to have somebody respond to an issue or question, basically in real time, in English, 24/7/365. That's a highly tailored experience. We do get the question, "Why does anyone need you when there's AWS and Azure and all these other cloud services?" Because there's not really good support in any of those places. For small medium business that just wants to focus on its business and not worry about the IT, it's a much smarter idea to outsource it to us. We will take care of it. We will be there in real time.
If you're in the other places and you don't have staff to deal with it, you're not really a technology company, you can't do it in real time. I'd say that's our biggest value add. It's a targeted business, small, medium business. If you're a very large business, you're going to have your own IT staff. If you're very small, it's too small for us. But right in the middle there is a good spot.
That's helpful. From your standpoint, what's the biggest misconception about the business that you think this conversation can help clarify?
Yeah. I think it's what I just alluded to. Why does anybody need a company like ours when there are all these other big cloud providers out there? It's what I said, it's customized real time service. You have somebody in the United States that will answer you in real time. We are proactive on your business. Once somebody gets phished, once somebody gets hacked, it's too late. You want to be way ahead of the curve in this area, and many of these businesses are behind the curve, and they wait until they have a problem to fix it.
One of the things we offer is a free security assessment. Doesn't cost anybody anything. We will find vulnerabilities. Unless you are a very big, buttoned-up, high dollar IT company, you're going to have exposure. We have a world in which everyone is cellphone dependent and their smartphones. The minute you mix your regular life with your business life in the same device, you are opening up your environment and what's most important to a business is really the security of their data and their customers'. We are in some ways an insurance policy against all of that with a high level of service and expertise.
When you look at the business again and as you operate it, what are the primary growth drivers you're focused on, and how do they translate into near-term execution priorities for you?
That's a great question. I've had a long history looking at the internet. I remember being in college when the first PCs were delivered. That's a pretty good arc of something like 45 years, to see the beginning of PCs. The famous quote from Bill Gates, mother asked Bill Gates, "What's your goal?" And he said, "To put a computer in everybody's living room." And she said, "Why would anybody want a computer in their living room?" We've sort of had this crazy movement towards everybody having a computer, everybody having a smartphone. Now with the advent of AI, I keep hearing more and more people. AI now reminds me of the beginning of the internet going crazy in the late 90s.
That was what we would call Internet 1.0, and then the bubble burst in 2001, for those of us who are old enough to remember it. Pets.com, it didn't matter what it was in the internet, it had a high valuation. This is utterly different than that with AI, in my opinion. It is also the beginning. You'll hear a lot of people say, "Well, the valuations are overinflated, and it's too much." I totally disagree.
I think we're in the first inning of this. I see people, regular people, they're in love with their AI. They're talking to their AI. The AI knows their name. They use it as a psychiatrist. It's the funniest thing. Why is any of this important? It's important because the back end of that is CPU, GPU, and memory. Without that stuff, none of that happens. There is such an incredible tailwind to what's going on behind the AI.
You see it in the chips. You see it in NVIDIA and AMD and those guys. You see it in companies like Nutanix that we do business with. You see it in Dell. Dell making crazy new highs. Nobody that sells any of that stuff can keep it on the shelves. I'd say that tailwind is incredibly important for our business. It's our customers demand that stuff. We're in the middle of it. We buy it. We do many things for customers.
One of those things is buy equipment, and buy hardware. Usually, if it is just an order that's equipment, it leads to other business, right? They need help with implementing software, computer systems, networks, whatever, or security, cybersecurity. I see those tailwinds as incredibly important for our business, and I think we're in the first inning. I don't think it even started yet. We also have at a time when there's no data center and no power and hard to really purchase new compute, we have an abundance of all of those things. If somebody has a big demand for space and power and compute right now, we can support them. And there's not enough of that around right now.
Wow. That's impressive. Now, you've touched on the value propositions here already, but the strongest competitive advantages you see, can you provide a little bit more color on that for investors?
Yeah. Just to give some background, and I think it's important, I acquired what is IPM. It was called Newtek Technology Solutions. It was a subsidiary of a company called Newtek Bank, which is a Nasdaq bank, N-E-W-T. We provide the backend for everything that Newtek does, and that's a $300 million company with 600 employees. It's also highly regulated, SOC 2, and we are SOC 2 compliant, so that's a huge differentiator for our business.
If you're in a highly regulated business, say healthcare or financial, legal, we can support you. Most companies in our business cannot support you. Again, I see that as a core differentiator in what we do. Also, the team has been together for a long time. Again, I acquired this business two years ago. We were a software company before that. We sold the software company.
Basically, Nasdaq company remains the same, but we sold the software, and we bought this. It is a different business, but it is the same business in some ways because we were data center centric. We had upwards of 400 servers. There is a lot of similarity. I am very familiar with data centers. The demand for data center today is big. Why does all this matter? Nobody ever heard of IPM. I rebranded it.
It was NTS, Newtek Technology Solutions. I rebranded it into Intelligent Protection Management. We are IPM symbol, ipm.com. That is very good in terms of being able to get the name, the symbol, the website, the trademark, all of those things lined up. I spend a lot of my time just trying to educate people. That was a pretty heavy lift. This is a business that has been around 20 something years. It has great tailwinds now.
We are a $26 million, $27 million, run rate business-ish. We have great ability to roll up other IT businesses because most of them that are managed service providers like us are very local, and we are national, and that is also a huge differentiator. Those little mom and pop guys, they are lifestyle businesses. If you are in Phoenix, then you are going to have somebody support you in Phoenix. We do not have that issue. I like the idea of rolling those things up at a reasonable valuation and creating a much larger version of what we do because we have a national platform.
That is very helpful. Can you help investors understand what it means for IPM to operate as a strategic technology partner and how that role directly translates into recurring revenue and deeper client engagement and long-term value?
Yep. It is a great question. Again, I will go back to the AI discussion. AI is rather new. There are a couple of colossuses, let us call them, very large companies in the AI space that are killing it. Everybody else, who is interested is either just a normal, small, medium, larger business. They do not really know what to do with AI yet. That is our role. Our role is the trusted advisor role inside the company. Our niche target, and it is not a niche because it is billions of dollars of addressable market, are the companies that just are small, medium.
They do not have enough staff, they do not have enough expertise in this area to know what to do. Our job is to be their trusted advisor and then help them implement what the solution might be. We sit down with them, and we say, "What is the problem you're trying to solve?" Then we bring whatever the best technology is to bear on it and install it for them, manage it, and train their people, essentially.
Great. Recently, you launched IPM GO. Why is this important to IPM, and how do you expect it to strengthen customer engagement and contribute to long-term revenue growth?
IPM GO is very interesting. It is called an AI virtual assistant. We did a press release on this about a month ago. It's impressive. We didn't build it. We partnered with a company called Masary to implement it. But what it does is any website, you just put in the URL of the website, so let's use ipm.com as an example. You put in the website in the IPM GO self-serve solution, and it builds a virtual assistant for you or a chatbot on the fly. In about five minutes, you have this 24/7, 365 virtual assistant. You will never miss another lead. You will not be able to support in real time. Again, I don't know what the audience that's listening to this experience is, but I know what my experience has been lately.
Whatever I call a support line, I'm getting an AI virtual assistant similar to what I'm talking about, and it's highly effective. What it lets you do is it lets you bypass a whole level of people and possibly avoid people altogether, to get the answer to whatever it is you're trying to do. I don't think any company wants to spend money on anything at this point, because unless it's going to help their bottom line, they don't want to do it.
AI is interesting because it costs money, but it should reduce expense more than it costs. That is where I think Masary comes in. We have 15,000 websites that host with us, something like 15,000. It's a lot. It's just like they pay $10, $20 just to host their website like GoDaddy, similar business to that. By the way, I didn't build that business. That was part of the NTS business when I bought it. Why is that important? Because they just pay me $10 or $20 and they pay me nothing else. I can market IPM GO to them. I can even possibly give them a free trial of it, and now, instead of them paying us $10 or $20, they pay us $50.
Or maybe they become a managed client and pay me $500 or $1,000 or $10,000, because behind every website is a business. That is why it is really important. It is a way to monetize all of those people. There is an ability to cross-sell what we are doing across everything we do. We come across anybody. Just because they are buying network support from us does not mean they are buying cybersecurity from us, does not mean they are buying hardware from us. We have a line, and then there is professional services.
Again, anything you want to implement and you do not have the staff to do it yourself, we will do that. Those are all things that we do, and this is a way to help cross-sell what we do into all those 15,000 businesses. Other businesses that are not our customer can go do this as well. We have to market. If there is ability to do what I just said in real time and create a real-time AI virtual assistant on the fly for $50, I am not sure where it is. I do not know where to go find it online. I think it is very differentiated.
Impressive, and sounds like a great opportunity.
Yeah.
All right. As we are running out of time, last question. Looking forward, what are the keys to success that investors should be looking at as you finish 2026 and head into 2027? What do you want investors to understand about the company and its long-term potential?
Sure. We're, as I described it before, really a special situation. We're a rebranded, reassembled, re-URL'd company. I'm re-educating people on what we are. We were a software company before that did video conferencing. Now we are a managed service provider, managed security provider. One thing that hasn't changed is we're also an owner of significant IP. We own patents. We've licensed the patents.
Licensed the patents to Microsoft, to Sony, to Activision Blizzard in the past. Those licenses all happened when we were a private company. We became public in 2016, so I've been around a long time. In 2024, we sued Cisco for patent infringement, specifically Webex, and we went to trial in 2024. The lawsuit, it was in 2021. Trial was two years ago in 2024. We got a jury verdict of $65.7 million.
If your investors go and research, and we've been on the record saying we'll get no more than a third of that, there's interest running on that too. It's still a very significant amount of money. Let's just say an even number of $75 million with interest and everything else, that could be $25 million to the company. The market cap is about $25 million right now, with a business that does $26 million, has $7.5 million in the bank. It's a very much a special situation. We have all these AI tailwinds. I like the business we're in, and we have this special potential revenue stream that's out there. We have no debt.
I don't know a whole lot of things trading at one-time sales with no debt and cash at this level. I think it's a pretty interesting opportunity for investors. By the way, all any investor has to do is go look back at where the stock has been in the past with less revenue than we have now, with no patent judgment. By the way, the patent judgment is on appeal. We expect a decision on that probably sometime next year. I guess the bottom line is none of that's in the stock. Yeah. It's something to evaluate if you're an investor on your own. There's a potential for a real special payment here that doesn't exist in most businesses.
Great. Jason, thank you for your time today. I think this has been a very helpful discussion, and thanks to everyone for watching. If you have any questions or would like to schedule a meeting with IPM, please send me an email at dorame@lythampartners.com. Thank you and have a great day.
Thanks for having me today. It was a pleasure.
Thank you, Jason.