INCOME STATEMENT
RECONCILIATION CHECKS
| Checkpoint | Computation | Result |
|---|---|---|
| Gross Profit | $168,000 - $36,960 | $131,040 |
| Gross Margin | $131,040 / $168,000 | 78.0% |
| Operating Income | $131,040 - $110,340 | $20,700 |
| EBITDA (memo) | $20,700 + $8,200 (D&A) | $28,900 |
| Net Other Income | $420 + $60 - $180 | $300 |
| Pre-Tax Income | $20,700 + $300 | $21,000 |
| Income Tax | $21,000 x 25.0% | $5,250 |
| Net Income | $21,000 - $5,250 | $15,750 |
All checkpoints confirmed. Net income of $15,750K agrees with the Adjusted Trial Balance, the Structured Data Map (A-042), and serves as the starting figure for the Statement of Stockholders' Equity and Statement of Cash Flows.
EBITDA RECONCILIATION
| Item | Amount ($000) |
|---|---|
| Net Income | $15,750 |
| Add: Income Tax Provision | 5,250 |
| Add: Interest Expense | 180 |
| Less: Interest Income | (420) |
| Less: Other Income | (60) |
| Operating Income (EBIT) | $20,700 |
| Add: Depreciation and Amortization [8] | 8,200 |
| EBITDA (Reported) | $28,900 |
| EBITDA Adjustments (to Adjusted EBITDA): | |
| Add: Stock-Based Compensation (non-cash) [9] | $3,100 |
| Add: Founder Excess Compensation [10] | 2,800 |
| Add: One-Time Litigation Settlement [11] | 1,400 |
| Add: Non-Recurring Executive Recruiting [12] | 900 |
| Less: Below-Market Lease Adjustment [13] | (3,500) |
| Adjusted EBITDA | $33,600 |
STOCK-BASED COMPENSATION ALLOCATION
| Function | SBC ($000) |
|---|---|
| Cost of Revenue | $200 |
| Research and Development | 1,400 |
| Sales and Marketing | 500 |
| General and Administrative | 1,000 |
| Total SBC | $3,100 |
DEPRECIATION & AMORTIZATION ALLOCATION
| Component | Amount ($000) |
|---|---|
| Amortization of Capitalized Software (in COR) | $3,360 |
| Amortization of Capitalized Software (in R&D) | 2,440 |
| Depreciation of PP&E (in R&D) | 400 |
| Depreciation of PP&E (in S&M) | 680 |
| Depreciation of PP&E (in G&A) | 920 |
| Amortization of Intangible Assets (in G&A) | 400 |
| Total Depreciation and Amortization | $8,200 |
FOOTNOTES
[1] Amortization of Capitalized Software (COR): IMT capitalizes qualifying internal-use software development costs under ASC 350-40. The COR component ($3,360K) represents amortization of capitalized software directly related to the production platform that serves customers. Total capitalized software amortization for FY2024 was $5,800K ($3,360K in COR + $2,440K in R&D for internal development tools). See Structured Data Map, A-011 and D&A Allocation table.
[2] Other Cost of Revenue: Includes allocated facilities costs for customer support and professional services teams ($1,200K), third-party software licenses embedded in the platform ($1,080K), and payment processing fees on subscription billing ($720K). See Structured Data Map, A-012.
[3] Research and Development: R&D expense of $42,840K includes personnel costs ($32,400K), stock-based compensation ($1,400K), capitalized software amortization for internal tools ($2,440K), PP&E depreciation ($400K), facilities and infrastructure ($4,200K), and third-party tools and services ($2,000K). R&D is presented net of $8,400K in capitalized internal-use software development costs under ASC 350-40. Gross R&D spending was $51,240K, representing 30.5% of revenue. See Structured Data Map, A-015.
[4] Sales and Marketing: S&M expense of $43,680K includes personnel costs for sales, marketing, and customer success teams ($28,400K), amortization of deferred commissions ($7,200K), advertising and demand generation ($3,800K), stock-based compensation ($500K), PP&E depreciation ($680K), events and conferences ($1,600K), and other ($1,500K). See Structured Data Map, A-016.
[5] General and Administrative: G&A expense of $23,820K includes executive and administrative personnel ($12,400K), professional fees -- legal, audit, tax ($3,200K), stock-based compensation ($1,000K), PP&E depreciation ($920K), intangible amortization ($400K), insurance ($1,800K), facilities ($2,400K), and other ($1,700K). Co-founder compensation of $4,600K (above-market by $2,800K) is included in personnel costs. One-time litigation settlement of $1,400K related to patent defense is included in professional fees. See Structured Data Map, A-017.
[6] Income Tax Provision: IMT is a Delaware C-Corporation subject to federal and state income taxes. The provision of $5,250K represents an effective tax rate of 25.0% and comprises current tax expense of $4,650K and deferred tax expense of $600K. The effective rate approximates the statutory federal rate of 21% plus a blended state rate of approximately 4%. Deferred tax items arise from timing differences on capitalized software, deferred commissions, stock-based compensation, and operating lease accounting. See Structured Data Map, A-040.
[7] Earnings Per Share: Basic EPS of $0.19 is computed on 82,000K weighted average common shares outstanding. Diluted EPS of $0.18 includes the dilutive effect of 5,400K stock options, restricted stock units, and other equity awards, resulting in 87,400K diluted weighted average shares. See Structured Data Map, A-042.
[8] Depreciation and Amortization: Total D&A of $8,200K comprises capitalized software amortization ($5,800K), PP&E depreciation ($2,000K), and intangible asset amortization ($400K). D&A is allocated across cost of revenue and operating expense functions per the allocation table above. See Structured Data Map, A-034.
[9] Stock-Based Compensation: SBC of $3,100K is a non-cash expense recognized under ASC 718 for stock options and RSUs granted to employees. Added back for Adjusted EBITDA as a non-cash charge. See Structured Data Map, A-092.
[10] Founder Excess Compensation: Co-founders' combined compensation of $4,600K exceeds market-rate CEO/CTO compensation for a company of IMT's scale by approximately $2,800K. The excess is added back to normalize EBITDA for a market-rate management team. See Structured Data Map, D-001.
[11] One-Time Litigation Settlement: IMT incurred $1,400K in legal fees and settlement costs defending against a patent infringement claim filed by a competitor. The matter was fully resolved in Q3 2024 with no ongoing obligations. Added back as a non-recurring item. See Structured Data Map, D-002.
[12] Non-Recurring Executive Recruiting: Retained search fees of $900K for VP-level executive searches (VP Customer Success, VP Data Engineering, VP Security Product) conducted during FY2024. Added back as non-recurring. See Structured Data Map, D-003.
[13] Below-Market Lease Adjustment: IMT's Austin headquarters lease includes a below-market sublease arrangement with a related party (co-founder-owned entity) that reduces annual rent by approximately $3,500K relative to market rates. The sublease expires in December 2025, after which IMT will be subject to market-rate rent. Adjusted EBITDA deducts this benefit to reflect normalized occupancy costs. See Structured Data Map, D-004.
SOURCE REFERENCE INDEX
| Income Statement Line | Data Map Ref | TB Account(s) |
|---|---|---|
| Subscription Revenue | A-002 | 4000 |
| Professional Services Revenue | A-003 | 4010 |
| Total Revenue | A-001 | -- |
| Cloud Infrastructure and Hosting | A-008 | 5000 |
| Customer Support Personnel | A-009 | 5100 |
| Professional Services Delivery | A-010 | 5200 |
| Capitalized Software Amortization (COR) | A-011 | 5300 |
| Other Cost of Revenue | A-012 | 5400 |
| Total Cost of Revenue | A-007 | -- |
| Gross Profit | A-013 | -- |
| Research and Development | A-015 | 6000 |
| Sales and Marketing | A-016 | 6100 |
| General and Administrative | A-017 | 6200 |
| Total Operating Expenses | A-014 | -- |
| Operating Income | A-018 | -- |
| Interest Income | A-036 | 8000 |
| Interest Expense | A-037 | 8100 |
| Other Income | A-038 | 8200 |
| Income Before Income Taxes | A-039 | -- |
| Income Tax Provision | A-040 | 9000 |
| Net Income | A-042 | -- |