In the latest market close, Intrusion Inc. (INTZ) reached $1.71, with a -1.72% movement compared to the previous day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow saw an upswing of 0.23%, while the tech-heavy Nasdaq depreciated by 0.33%.The the stock of company has fallen by 54.09% in the past month, lagging the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05%.The investment community will be closely monitoring the performance of Intrusion Inc. in ...

Intrusion Inc. (INTZ) recently announced the acquisition of a minority stake in Klever AI. The investment, executed through an all-stock transaction, is set to enhance INTZ’s capabilities in cyber threat mitigation and augment its market footprint.Headquartered in Houston, TX, Klever AI is a modern artificial intelligence (AI)-based company that accelerates business transformation and tech adoption within enterprises through the implementation of cutting-edge AI and machine learning (ML) solutions. It has a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 001-39608 INTRUSION INC. (Exact name of registrant as specified in its charter) DELAWARE 75-1911917 (State or other jur ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2023 were $1.4 million, a 7% decline sequentially and a 25% decline year-over-year, primarily due to decreased consulting revenue linked to the federal government's continuing resolution [72] - The net loss for Q4 2023 was $2.8 million or $0.09 per share, an improvement from a loss of $3.2 million or $0.14 per share in Q3 2023, and a loss of $0.25 per share in Q4 2022 [45][72] - Full year revenues for 2023 were $5.6 million, a decrease of $1.9 million compared to 2022 [43] Business Line Data and Key Metrics Changes - Consulting revenue in Q4 2023 totaled $0.9 million, down $0.1 million sequentially and $0.2 million year-over-year, with a full year total of $4.0 million, a decrease of $2.3 million compared to 2022 [43][21] - Shield revenue for Q4 was $0.4 million, flat sequentially but up 37% year-over-year, with full year revenue of $1.6 million, a 36% increase compared to 2022 [44] Market Data and Key Metrics Changes - The company noted a trend of tapering cybersecurity budgets among clients, with many organizations reducing the rate of budget increases from previous years [52][53] - The loss of a significant low-margin consulting contract in Q4 2022 had a full impact on top line revenue in 2023 [33][72] Company Strategy and Development Direction - The company is focused on regaining compliance with NASDAQ listing requirements and has implemented measures to improve liquidity and strengthen the balance sheet [46][19] - Recent product developments include a cloud-based reporting and management platform for Shield, aimed at enhancing customer management capabilities [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2023, including legal issues and fundraising distractions, but expressed optimism about future growth opportunities, particularly in cybersecurity [4][10] - The company anticipates revenue growth from Shield in 2024, driven by new contracts and a strong consulting pipeline once federal budget clarity is achieved [13][21] Other Important Information - A private offering in November 2023 raised approximately $2.3 million for working capital and corporate purposes, with participation from the executive team and existing shareholders [16] - The company executed a 1-for-20 reverse stock split effective March 22, 2024, to help regain compliance with NASDAQ [41] Q&A Session Summary Question: Are there any patterns in the success of selling Shield? - Management noted that the introduction of consolidated reporting and management features for Shield has been well-received by larger clients, contributing to recent sales success [49] Question: What was the dollar amount contributed from the large nonrecurring Shield customer during 2023? - The CFO indicated that the contribution was significant, representing roughly 80% of Shield revenues for the year, but did not provide an exact figure [50] Question: How does the current pipeline look compared to previous periods? - Management clarified that while cybersecurity budgets are not being cut, the rate of increases has slowed, leading to a more cautious approach from CIOs regarding spending [52][53] Question: What are the plans for raising capital beyond the ATM? - The CEO mentioned plans for PIPE transactions similar to previous offerings, with personal investment from him and a small group of supportive investors [55] Question: Will consulting revenues increase following the passing of the federal budget? - Management expressed optimism about new contracts and renewals in the consulting area, anticipating growth once the budget impacts are fully understood [56][57]

Revenue Performance - Revenue for Q4 2023 was $1.4 million, a decrease of 7% sequentially and 5% year-over-year[3] - Full year 2023 revenue was $5.6 million, down $1.9 million compared to 2022[5] Profitability - Gross profit margin improved to 79% in Q4 2023, up from 63% in Q4 2022[4] - Full year gross profit margin was 78% in 2023, compared to 55% in 2022[6] Operating Expenses - Operating expenses for the full year 2023 decreased to $16.4 million from $20.5 million in 2022[7] Net Loss - Net loss for Q4 2023 was $(2.8) million, or $(0.09) per share, compared to a loss of $(5.2) million, or $(0.25) per share in Q4 2022[4] - Net loss for the full year 2023 was $(13.9) million, or $(0.57) per share, compared to a loss of $(16.2) million, or $(0.82) per share in 2022[7] Cash Position - Cash and cash equivalents as of December 31, 2023, were $0.1 million, down from $3.0 million a year earlier[8] Customer Acquisition and Expansion - The company added seven new customers for its Shield products in Q4 2023, including a $5 million multi-year contract[9] - The company announced the expansion of Intrusion Shield SaaS services in the Philippines[9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39608 INTRUSION INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

Intrusion Inc. (NASDAQ:INTZ) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Josh Carroll - Investor Relations Tony Scott - Chief Executive Officer Kimberly Pinson - Chief Financial Officer Conference Call Participants Aaron Warwick - Breakout Investors Zach Cummins - B. Riley Securities Ed Woo - Ascendiant Capital Scott Buck - H.C. Wainwright Ross Taylor - ARS Investment Partners Operator Welcome to Intrusion’s Inc. Second Quarter 2023 Earnings Conference Call and Webcast. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39608 INTRUSION INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Revenue and Profit - Revenue for Q1 2023 was $1.3 million, down from $1.8 million in Q1 2022, primarily due to the loss of a government contract that accounted for 35.8% of revenues in Q1 2022[86] - Gross profit increased to $1.0 million or 76.1% of revenues in Q1 2023, compared to $0.9 million or 50.8% in Q1 2022, attributed to the loss of a low-margin government contract[88] - INTRUSION Shield revenues were $0.3 million in Q1 2023, up from $0.2 million in Q1 2022, indicating growth in the commercial product line[86] - Revenues from U.S. government entities accounted for 48.4% of total revenues in Q1 2023, down from 72.2% in Q1 2022, reflecting a shift towards commercial sales[87] Expenses - Operating expenses totaled $5.0 million in Q1 2023, a slight increase from $4.9 million in Q1 2022, with significant shifts in resource allocation towards sales and marketing[89] - Sales and marketing expenses rose to $1.7 million in Q1 2023 from $1.2 million in Q1 2022, reflecting a strategic shift to support indirect sales efforts[91] - Research and development expenses increased to $1.8 million in Q1 2023, with $0.3 million capitalized for internal use software development[92] - Interest expense surged to $0.7 million in Q1 2023 from $0.1 million in Q1 2022, primarily due to new promissory notes[94] Cash Flow and Liquidity - As of March 31, 2023, cash and cash equivalents were $0.4 million, down from $3.0 million at the end of 2022, with a working capital deficit of $12.6 million[97] - For the quarter ended March 31, 2023, net cash used in operating activities was $2.3 million, compared to $3.5 million for the same period in 2022[106][108] - Net cash used in investing activities for the three months ended March 31, 2023, was $0.3 million, primarily for the capitalization of internally developed software[109] - Net cash provided by financing activities for the quarter ended March 31, 2023, was $0.0 million, a significant decrease from $5.6 million in the same period of 2022[110] - The company received $21 thousand in net proceeds from sales of common stock under the at-the-market program for the quarter ended March 31, 2023[104] Debt and Obligations - As of March 31, 2023, the total outstanding amount payable to Streeterville, including principal, accrued interest, and fees, was $10.2 million[102] - Streeterville made three separate redemption requests totaling $1.5 million through December 2022, all satisfied in cash[102] - The company amended note agreements with Streeterville, waiving redemption rights through March 31, 2023, for a fee of 3.75% of the outstanding note balance[102] - The company is in discussions with Streeterville to amend existing note agreements, but no assurance of improved liquidity has been provided[103] Net Loss - The net loss for the quarter ended March 31, 2023, was $4.7 million, with adjustments for non-cash items of $1.2 million[107] Cost Reduction - Cost reduction measures implemented in late March 2023 are expected to save approximately $1.5 million per quarter going forward[90] Public Float - The public float as of May 11, 2023, was calculated at $23.4 million, which restricts the company's ability to conduct primary offerings under Form S-3[105]

Intrusion Inc. (NASDAQ:INTZ) Q1 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants Josh Carroll - Alpha Investor Relations Tony Scott - Chief Executive Officer Kimberly Pinson - Chief Financial Officer Conference Call Participants Aaron Warwick - Breakout Investors Scott Buck - H.C. Wainwright Ross Taylor - ARS Investments Operator Welcome to Intrusion's First Quarter 2023 Earnings Conference Call and Webcast. At this time, all participant lines are in a listen-only mode. [Operator I ...