IP Strategy Holdings (IPST) investor relations material

Executive summary

• H1 net loss was $82.2M, driven mainly by a $76.1M non-cash fair-value loss on digital assets; operating losses and negative operating cash flow continued.

• Revenue mix shifted to crypto and related activity, while spirits sales declined after tasting-room closures and the move to third-party production.

• Planned migration of the DATA Network to Sui is expected to end current validator operations; timing and replacement revenue remain uncertain.

Financial highlights

• Q2 revenue was $736,290 vs. $1,321,822 YoY; H1 revenue was $2,448,515 vs. $2,413,805.

• Q2 operating loss was $14.8M vs. $6.6M; H1 operating loss was $81.2M vs. $9.1M, including digital-asset fair-value losses of $11.7M and $76.1M, respectively.

• Q2 net loss was $15.4M vs. $7.3M; H1 net loss was $82.2M vs. $10.3M. Basic and diluted loss per share were $13.30 for Q2 and $68.10 for H1.

• H1 operating cash use was $4.1M; investing cash inflow was $3.9M, including $3.8M from digital-asset sales. Cash ended June at $19,362 vs. $245,282 at year-end 2025.

Outlook and guidance

• Management expects cash resources and anticipated operating cash flows to support obligations for at least 12 months, contingent on executing the plan and stabilizing key revenue drivers.

• Validator revenue is expected to end after the Sui migration unless alternative arrangements emerge; no replacement role or compensation has been secured.

• Third-party production, licensing and lease exits are expected to reduce spirits overhead; unabsorbed production overhead is expected to be largely eliminated in 2027 and beyond.

• Liquidity actions may include selling digital assets; covered calls can generate premiums but may result in token dispositions and depend on market conditions.