Core Viewpoint - Intrusion Inc. (INTZ) is expected to report a significant revenue increase of 46.5% year-over-year for Q1 2025, with a consensus estimate of $1.7 million, while the company is projected to incur a loss of 18 cents per share, unchanged from previous estimates [1][2]. Group 1: Financial Performance - The Zacks Consensus Estimate for revenues in Q1 2025 is $1.7 million, reflecting a 46.5% increase from the previous year [1]. - The expected loss per share for Q1 2025 is 18 cents, consistent with estimates from the past 30 days, compared to a loss of 94 cents per share in the same quarter last year [1]. - INTZ has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 4.7% [2]. Group 2: Business Drivers - Strong demand for INTZ's cybersecurity solutions, particularly in the U.S. and Asia Pacific, is anticipated to support revenue growth in Q1 [3]. - The launch of the Shield Cloud product on the AWS Marketplace is expected to drive significant growth for the company [3]. - The introduction of new products like Intrusion Shield Sentinel and Intrusion Shield Command Hub is likely to enhance the company's offerings and contribute positively to revenue [4]. Group 3: Cost Management and Investments - INTZ has implemented disciplined cost management strategies, including reducing 16 permanent roles and utilizing more affordable sales and marketing services, which likely lowered expenses [6]. - However, increased investment in R&D to enhance product offerings and address evolving cybersecurity challenges may impact profit margins [7]. - The company is also expanding its footprint in the government sector, which is seen as a positive growth factor [5].

Core Insights - The 2025 Data Breach Investigations Report (DBIR) reveals a significant increase in global data breaches, particularly in the EMEA region, where system intrusion breaches have nearly doubled to 53% [1][7] EMEA Findings - EMEA experienced a 53% surge in system intrusion breaches, up from 27% the previous year [7] - 29% of breaches in EMEA originated from within organizations, with 19% due to unintentional mistakes and 8% from misuse [7] - Internal threats in EMEA decreased by 41% in 2025, despite the region having the highest percentage of breaches caused by internal actors [2] - Social engineering, particularly phishing, was the second-most common incident pattern, appearing in 19% of breaches in EMEA [7] - Ransomware attacks rose by 37% since last year, now present in 44% of breaches [7] Global Findings - The report analyzed over 22,000 security incidents, including 12,195 confirmed data breaches [2] - Third-party involvement in breaches doubled to 30% [2] - There was a 34% increase in vulnerability exploitation globally, with a focus on zero-day exploits targeting perimeter devices and VPNs [7] - Manufacturing saw a nearly sixfold increase in espionage-motivated breaches, rising to 20% from 3% [6] - Retail organizations faced a 15% increase in cyber incidents, with attackers shifting focus from payment card data to customer credentials and business plans [7] Recommendations - Organizations are urged to strengthen internal cybersecurity measures, foster a culture of security awareness, and implement robust access controls and zero-trust frameworks [3] - A multi-layered defense strategy is emphasized, including strong password policies, timely patching of vulnerabilities, and comprehensive security awareness training for employees [6]

Company Performance - Intrusion Inc. (INTZ) closed at $1.14, showing no change from the previous trading day, while the S&P 500 declined by 1.97% [1] - Over the past month, Intrusion Inc. shares increased by 5.56%, outperforming the Computer and Technology sector's loss of 4.83% and the S&P 500's loss of 2.79% [1] Upcoming Earnings - The upcoming EPS for Intrusion Inc. is projected at -$0.18, representing an 80.85% increase compared to the same quarter last year [2] - Revenue is estimated to be $1.66 million, indicating a 46.46% increase year-over-year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of -$0.39 per share and revenue of $7.5 million, reflecting changes of +76.07% and +29.96% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Intrusion Inc. are important as they reflect near-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Intrusion Inc. as 2 (Buy) [6] Industry Context - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 22, placing it in the top 9% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Transition Metals Corp. has reported promising results from its 2025 drilling program at the Saturday Night Project, indicating significant potential for Ni-Cu-PGM mineralization due to the discovery of a thick layered intrusion similar to other successful deposits in the region [2][3][10]. Company Overview - Transition Metals Corp. is a Canadian-based multi-commodity explorer focused on discovering mineralization in underexplored areas, leveraging joint ventures to minimize capital expenditure and shareholder dilution [22]. Project Details - The Saturday Night Project is wholly owned by Transition Metals and consists of 63 staked mining claims located approximately 30 kilometers northwest of Thunder Bay, Ontario, with year-round road access and proximity to infrastructure [16]. - The project is situated within the Robinson Superior Treaty area and is linked to a magnetic anomaly associated with a mafic-ultramafic intrusion from the Proterozoic era, part of the Midcontinental Rift (MCR) geological feature [16][17]. Drilling Program Results - The 2025 drilling program included two holes totaling 1,417 meters, with hole SN-25-02 intersecting a 14.00-meter mineralized interval grading 1.04 g/t PGEs (Au + Pt + Pd) and 0.19% Cu [4][6]. - Hole SN-25-03 encountered over a 450-meter-thick rift-related intrusion, significantly thicker than previous observations, and indicated the presence of a reef-like feature with anomalous Ni-Cu mineralization [5][9]. - The drilling results suggest a large Midcontinental Rift-style intrusion, enhancing the potential for a sizable mineralized system comparable to the nearby Sunday Lake Discovery [6][10]. Future Plans - The company plans to deepen drill hole SN-25-03 to further explore the anticipated Ni-Cu-PGM mineralization at the basal contact, with drilling expected to resume once funding is secured [3][14]. - Transition Metals will present an overview of the Saturday Night Project at the Ontario Prospectors Association's Symposium in April 2025, highlighting the project's exploration potential [15]. Financial Support - Transition Metals has received financial support from the Ontario Junior Exploration Program (OJEP), amounting to up to $200,000 to cover 50% of eligible exploration costs, facilitating the exploration of critical minerals within Ontario [20].

Company Performance - Intrusion Inc. (INTZ) ended the latest trading session at $1.19, reflecting a +0.85% adjustment from the previous day's close, which lagged behind the S&P 500's 1.08% gain [1] - Over the past month, shares of Intrusion Inc. have decreased by 21.85%, while the Computer and Technology sector and the S&P 500 have lost 13.17% and 8.26%, respectively [1] Upcoming Earnings - Analysts expect Intrusion Inc. to report earnings of -$0.18 per share in the upcoming earnings disclosure, indicating a year-over-year growth of 80.85% [2] - The consensus estimate for revenue is projected at $1.66 million, representing a 46.46% increase compared to the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of -$0.39 per share and revenue of $7.5 million, showing changes of +76.07% and +29.96% from the previous year, respectively [3] Analyst Projections - Recent shifts in analyst projections for Intrusion Inc. are important for investors as they reflect changing business trends and analysts' confidence in the company's performance [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6] - The Zacks Consensus EPS estimate for Intrusion Inc. has increased by 45% in the past month, and the company currently holds a Zacks Rank of 2 (Buy) [6] Industry Overview - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Intrusion Inc. reported a narrower loss in Q4 2024 compared to the previous year, but the results fell short of market expectations, leading to a significant decline in share price [1][4]. Financial Performance - The company incurred a loss of 36 cents per share in Q4 2024, an improvement from a loss of $1.80 per share a year ago, but wider than the Zacks Consensus Estimate of a loss of 23 cents [1]. - Quarterly revenues reached $1.7 million, reflecting a year-over-year increase of 22.7% and an 11% sequential growth, although it was below the consensus estimate of $2 million [2]. - The gross profit margin was reported at 75%, down from 79% in the prior-year quarter, attributed to varying product mixes [5]. - Total operating expenses were $3.2 million, a decrease of 8.8% from the previous year, leading to an operating loss of $1.9 million, which narrowed by 20% year over year [5]. Product Development and Market Demand - The company expanded its product offerings with the introduction of Intrusion Shield Sentinel and Intrusion Shield Command Hub, aimed at enhancing cybersecurity solutions [3]. - Intrusion Inc. secured 20 new customer contracts in 2024, indicating a growing demand for its cybersecurity products [3]. Market Reaction - Following the earnings report, Intrusion Inc.'s shares fell by 9.2%, closing at $1.08 on February 27, and the stock has decreased by 71.1% over the past year, contrasting with a 46.8% growth in the Zacks Computer-Networking industry [4]. Balance Sheet - As of December 31, 2024, the company had total cash and cash equivalents of $4.9 million, a significant increase from $1.1 million as of September 30, 2024 [6].

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.7 million, representing an 11% increase sequentially and a 23% increase year-over-year [17] - For fiscal 2024, revenues totaled $5.8 million, a 3% increase compared to fiscal year 2023 [21] - Operating expenses in Q4 2024 were $3.2 million, flat sequentially and down $0.3 million year-over-year [24] - The net loss from operating activities for Q4 2024 was $2 million, improving by $0.5 million or 20% year-over-year [28] - The net loss for the full year 2024 was $7.8 million, a $6.1 million or 44% improvement from the prior year [29] Business Line Data and Key Metrics Changes - Consulting revenue in Q4 totaled $1.3 million, an increase of $0.3 million sequentially and $0.4 million year-over-year [21] - Shield revenue in Q4 was $0.4 million, a decrease of $0.1 million both sequentially and year-over-year [22] - For the full year, Shield revenue was $1.6 million, a decrease of $0.1 million or 5% from 2023 [22] Market Data and Key Metrics Changes - The company signed a total of 20 new Shield logos during the year, with near-zero churn among Shield customers [7] - The company has seen an expansion in its pipeline driven by increasing demand for its products in the U.S. and the Asia Pacific region [7] Company Strategy and Development Direction - The company aims to focus on sustainable growth and profitability, having eliminated the need for further capital raises in 2025 unless compelling opportunities arise [8][9] - The management is revamping its channel program and increasing digital marketing efforts to enhance visibility and engagement [12][13] - The company is investing in R&D to improve its product portfolio, including the launch of the Intrusion Shield Command Hub and the Intrusion Shield Sentinel [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial position and growth opportunities, emphasizing the rising demand for cybersecurity solutions [33] - The management noted that while the sales cycle may be elongated due to changes in federal administration, the overall environment remains steady for existing contracts [56][58] - Concerns about cybersecurity threats are increasing, which is expected to drive demand for the company's solutions [60][62] Other Important Information - The company is virtually debt-free and has sufficient cash to fund operations through fiscal year 2025 and beyond [8] - The gross profit margin for Q4 2024 was 75%, down from 79% in Q4 2023, primarily due to product mix [23] Q&A Session Summary Question: What would be compelling for potential capital raises? - Management indicated that compelling opportunities would include acquisitions or arrangements that significantly enhance the product portfolio [38][40] Question: What are the new promotional programs being considered? - Management plans to increase visibility through social media and influencer engagement, which will not require significant spending [44] Question: What is the size of the typical Shield contract? - The size of Shield contracts varies widely, ranging from $5,000 to a couple of hundred thousand dollars, with a focus on larger deals going forward [45][50] Question: What is the sales cycle for cybersecurity software, especially on the federal side? - The sales cycle is described as fluid, with a steady environment for existing contracts but potentially elongated cycles for new opportunities [56][58] Question: How is the $15 million in cash being utilized? - Management confirmed that the cash is being managed wisely, with plans to invest in sales personnel and other resources [67][70] Question: How many of the 20 Shield clients have increased their revenue obligations? - Approximately one-third of the new Shield clients have increased their commitments, while another third may have expansion potential [72][73] Question: What are the geographic areas of opportunity? - The company is focusing on the U.S. and Asia-Pacific regions, particularly the Philippines, with an emphasis on larger deals [78]

Core Viewpoint - Intrusion Inc. reported a quarterly loss of $0.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, marking a significant earnings surprise of -56.52% [1][2] Financial Performance - The company posted revenues of $1.68 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 17.24%, compared to revenues of $1.37 million a year ago [2] - Over the last four quarters, Intrusion has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Stock Performance - Intrusion shares have declined approximately 61.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Intrusion is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $2 million, and for the current fiscal year, it is -$0.70 on revenues of $9.01 million [7] - The estimate revisions trend for Intrusion is mixed, and changes in these estimates could occur following the recent earnings report [6] Industry Context - The Computer - Networking industry, to which Intrusion belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Revenue for the year ended December 31, 2024, totaled $5.8 million, an increase of $0.2 million or 2.9% from $5.6 million in 2023[105] - Gross profit for the 12-months ended December 31, 2024, was $4.4 million, maintaining a gross profit margin of 76.8% compared to 77.6% in 2023[110] - Operating expenses for the year ended December 31, 2024, totaled $12.9 million, a decrease of 21.5% from $16.4 million in 2023[111] - Net loss for the year ended December 31, 2024, was $7.8 million, a reduction of 43.9% from a net loss of $13.9 million in 2023[104] Revenue Sources - Revenues from U.S. government entities accounted for $4.8 million or 83.8% of total revenues in 2024, up from $2.6 million or 46.2% in 2023[107] - The company anticipates that sales to government customers will represent a lower percentage of total revenues as it gains traction in commercial markets[107] Expenses - Sales and marketing expenses decreased to $4.7 million in 2024, compared to $5.7 million in 2023[113] - Research and development expenses decreased to $4.4 million in 2024 from $5.6 million in 2023[114] Cash and Financing - Cash and cash equivalents as of December 31, 2024, were $4.9 million, with $1.9 million in working capital[125] - The company entered into a $10 million Standby Equity Purchase Agreement with Streeterville Capital, LLC on July 3, 2024[129] - In 2024, Streeterville purchased 1.2 million shares of common stock, resulting in aggregate net proceeds of $1.8 million, with $0.1 million received in 2024 and $1.7 million received in January 2025[131] - The company made principal payments of $0.4 million in 2023 and $1.5 million in 2022, with a remaining balance of $0.5 million on the first note due in September 2024[133] - A note purchase agreement in September 2024 involved Streeterville purchasing a note payable of $0.6 million for $0.5 million in cash, requiring weekly payments of $25,000 until maturity[134] - The CEO purchased a note payable of $1.1 million for $1.0 million in cash, with weekly payments of $40,000 until maturity on June 15, 2024[135] Revenue Recognition - The company recognizes product revenue upon shipment or after meeting performance obligations, with most sales derived from consulting services[140] - The new product, INTRUSION Shield, is offered on a subscription basis, with revenue recognized monthly over the contract term[143] Financial Estimates and Valuations - The company maintains allowances for credit losses for estimated losses from customer payment defaults, with historical estimates aligning closely with actual results[148] - The estimated fair value of accounts receivable and accounts payable approximates their carrying amounts due to short maturities[149] Preferred Stock - The Series A preferred stock has a stated value of $1,100 per share, with a portion of proceeds used to redeem outstanding preferred stock[133] - The company is in discussions with Streeterville regarding the redemption or amendment of the first note due in September 2024[133]

Revenue Performance - Revenue for Q4 2024 was $1.7 million, an increase of 11% sequentially, driven by new customers including a contract with the U.S. Department of Defense[3] - Full year revenue for 2024 was $5.8 million, a $0.2 million increase compared to 2023[6] Profitability Metrics - Gross profit margin for Q4 2024 was 75%, down from 79% in Q4 2023[4] - Net loss for Q4 2024 was $(2.0) million, or $(0.36) per share, an improvement from a net loss of $(2.8) million, or $(1.80) per share, in Q4 2023[5] - Full year net loss for 2024 was $(7.8) million, or $(1.63) per share, compared to a loss of $(13.9) million, or $(11.45) per share, in 2023[8] Operating Expenses - Operating expenses for Q4 2024 were $3.2 million, flat sequentially and a decrease of $0.3 million year-over-year[4] Capital and Funding - The company raised $14.5 million in proceeds through capital transactions in Q4 2024 and early January 2025[9] - Cash and cash equivalents at December 31, 2024, were $4.9 million, with additional proceeds of $9.2 million from transactions completed after year-end[9] Product Development and Customer Growth - Introduced new products including Intrusion Shield Sentinel and Intrusion Shield Command Hub, enhancing the cybersecurity portfolio[8] - The company signed a total of 20 new Intrusion Shield logos during 2024, indicating growth in customer base[8]