Intrusion(US:INTZ)2025-11-12 11:30Revenue Performance - Revenue for the three months ended September 30, 2025, was $1.966 million, a 31% increase from $1.504 million in 2024; for the nine months, revenue was $5.614 million, up 37% from $4.095 million in 2024[87] - Consulting revenue for the three and nine months ended September 30, 2025, was $1.5 million and $4.2 million, respectively, compared to $1.1 million and $2.9 million in the same periods of 2024, reflecting work under a Department of Defense contract[87] - Revenue from U.S. government entities for the three and nine months ended September 30, 2025, was $1.9 million and $5.3 million, comprising 96.7% and 94.7% of total revenues, respectively, compared to 85.9% and 79.5% in 2024[88] - INTRUSION Shield revenue for the three and nine months ended September 30, 2025, was $0.5 million and $1.4 million, respectively, compared to $0.4 million and $1.2 million in 2024[87] Profitability and Loss - Gross profit for the three months ended September 30, 2025, was $1.505 million, representing a gross profit margin of 76.6%, compared to $1.160 million and 77.1% in 2024; for the nine months, gross profit was $4.279 million, with a margin of 76.2%[91] - Net loss for the three months ended September 30, 2025, was $2.094 million, a slight decrease from $2.050 million in 2024; for the nine months, net loss was $6.234 million, compared to $5.833 million in 2024[99] - Operating loss for the three months ended September 30, 2025, was $2.136 million, a 5% increase from $2.038 million in 2024; for the nine months, operating loss was $6.315 million, a 3% improvement from $6.543 million in 2024[87] - The company reported a net loss of $(6.2) million for the nine months ended September 30, 2025, compared to a net loss of $(5.8) million for the same period in 2024[106][107] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $3.641 million, a 14% increase from $3.198 million in 2024; for the nine months, operating expenses were $10.594 million, up 9% from $9.718 million[91] Cash Flow and Investments - As of September 30, 2025, cash and cash equivalents totaled $2.5 million, with short-term investments in U.S. treasuries of $2.0 million, resulting in $4.5 million available to fund operations[100] - For the nine months ended September 30, 2025, net cash used in operating activities was $(6.2) million, compared to $(6.1) million for the same period in 2024[105][106] - Net cash used in investing activities for the nine months ended September 30, 2025, was $(4.2) million, which included $(2.0) million in short-term investments and $(2.2) million in software and hardware purchases[108] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $8.1 million, driven by $1.5 million from common stock sales and $7.0 million from a registered direct offering[109] - The company retired $0.5 million in Streeterville debt through the issuance of 552.3 thousand shares of common stock in March 2025[104] Accounting and Financial Policies - There were no significant changes to the company's critical accounting policies and estimates as disclosed in the 2024 Annual Report[111] - The company has not made any sales under the new shelf registration as of the date of the report[103] Customer Concentration - The company expects revenue concentration among customers to fluctuate, with government sales continuing to represent a significant portion of revenues, while no individual commercial customer accounted for more than 10% of total revenues in 2025[90] Adjustments and Working Capital - Adjustments for non-cash items in operating activities for the nine months ended September 30, 2025, amounted to $2.4 million, primarily from depreciation and stock-based compensation[106] - Changes in working capital for the nine months ended September 30, 2025, resulted in a decrease of $(2.4) million, largely due to an increase in contract billings[106]