MeritValue

IP STRATEGY HOLDINGS, INC.

IPSTdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

IP STRATEGY HOLDINGS, INC. earns about -51% on invested capital, but has diluted owners by 2159% over 3 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$7.97M1$8.4M2$10.1M2
Net income−$36.8M3$710,4584−$137.7M4
Operating cash flow−$8.48M5−$11.2M6−$15.3M6
Capital expenditure$26,5127$106,4218$74,7548
Free cash flow (derived)−$8.51M5−$11.3M6−$15.4M6
Total debt$14.3M9$13.2M10$2.57M10
Cash & equivalents$76,87811$453,16211$245,28211
Diluted shares381,543353,8878.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$113.94
your share of equity
Profit it earned you last year
−$159.76
Free cash flow it threw off
−$17.87
Debt you’d be carrying
$2.99

10 shares is a claim on $113.94 of net worth that earned you −$159.76 and generated −$17.87 of cash last year, against $2.99 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-51% avg · 3y
FY23 —FY24 5%FY25 -108%

It earned an average -51% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2159% shares · 3y

Share count is up 2159% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 82% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2023-12-31 · accession 0001788230-25-000048 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0001788230-26-000046 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001788230-25-000048 (NetIncomeLoss)
  4. 10-K · period ending 2024-12-31 · accession 0001788230-26-000046 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001788230-25-000048 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2024-12-31 · accession 0001788230-26-000046 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001788230-25-000048 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2024-12-31 · accession 0001788230-26-000046 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0001788230-25-000048 (LongTermDebt)
  10. 10-K · period ending 2024-12-31 · accession 0001788230-26-000046 (LongTermDebt)
  11. 10-K · period ending 2023-12-31 · accession 0001788230-26-000046 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)