8-K
INTRUSION INC (INTZ)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4,2022
INTRUSION
INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 001-39608 | 75-1911917 |
|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission File<br><br>Number) | (IRS Employer<br><br>Identification No.) |
| 101 East Park Blvd, Suite 1200 Plano, Texas | 75074 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
(972) 234-6400
(Registrant’s Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value per share | INTZ | NASDAQ Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
|---|
The following information is furnished pursuant to Item 2.02, Disclosure of Results of Operations and Financial Condition.
On August 4, 2022, Intrusion Inc. issued a press release announcing its financial results for the quarter ended June 30, 2022. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
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(d) Exhibits
| 99.1 | Press Release Issued by Intrusion Inc. on August 4, 2022 |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| INTRUSION INC. | ||
|---|---|---|
| Dated: August 4, 2022 | By: | /s/ Kimberly Pinson |
| Kimberly Pinson | ||
| Chief Financial Officer |
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Exhibit 99.1
Intrusion, Inc.Reports Second Quarter of Fiscal 2022 Results
New Intrusion Shield Product DevelopmentRemains on Track
PLANO, Texas, August 4, 2022 (GLOBE NEWSWIRE) -- Intrusion Inc. (NASDAQ: INTZ), a leader in cyberattack prevention solutions, announced today financial results for the second quarter of fiscal year 2022.
Recent Financial & Business Highlights:
| · | Second quarter revenue of $2.1 million was up $0.2 million or 12% sequentially and up $0.1 million or<br>5% year-over-year. |
|---|---|
| · | Intrusion Shield revenue increased 69% sequentially, 139% year-over-year, and represented approximately<br>16% of total revenue in the quarter. |
| · | New product development remains on track with the Shield cloud product and end-point solution reaching<br>demo capabilities in the second quarter. |
| · | The Company improved its financial flexibility with the closing of an additional $5.4 million in unsecured<br>notes on June 29, 2022. |
“We are pleased with the positive momentum in the quarter as we near the general availability of our new and innovative products, and we continue to realize the benefits of our revamped strategic channel relationships,” said Tony Scott, CEO of Intrusion. “Across various industries, companies are looking to leverage our advanced, threat-hunting capabilities, resulting in both new business wins and a robust sales pipeline for Intrusion. We continue to get positive and insightful feedback from our beta users, we’re converting leads into customers, building further relationships with channel partners, and preparing for the upcoming launch of our new, high-growth products.”
“The cybersecurity landscape remains dynamic, with zero-day and ransomware protection being top of mind for executives of large enterprises. We remain encouraged by how the demand backdrop for our solutions continues to grow, specifically in the market subsegments we serve. We have outlined and started to execute along our multi-year product roadmap in support of the growing future demand, with several planned near-term releases. With over 25 years of IP reputational behavior, which includes a database of over 8.5 billion domain names and IP addresses, our products are tested and proven to provide a critical layer of protection to organizations’ zero trust architecture. The actions we are taking today are laying the foundation for sustained, profitable growth over the long term.”
Second Quarter Financial Results
Revenue for the second quarter of 2022 was $2.1 million, an increase of $0.2 million sequentially and $0.1 million compared with the second quarter of the prior year.
The gross profit margin was 67.6% for the second quarter of 2022, compared to 62.6% for the second quarter of 2021.
Operating expenses in the second quarter of 2022 were $5.4 million, a decrease from $6.9 million in the comparable quarter of last year.
The net loss for the second quarter of 2022 was $4.1 million, or ($0.21) per share, compared to a loss of $5.0 million, or ($0.28) per share for the second quarter of 2021.
As of June 30, 2022, cash and cash equivalents were $7.0 million, up from $4.1 million the prior quarter.
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Conference Call
Intrusion’s management will host a conference call today at 4:00 P.M., CST. Interested investors can access the live call by dialing 1-888-330-2041, or 1-646-960-0151 for international callers, and providing the following access code: 6774917. The call will also be webcast live LINK. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until August 11, 2022, by dialing 1-800-770-2030, or 1-647-362-9199 for international callers, and entering the following access code: 6774917. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About Intrusion Inc.
Intrusion, Inc. is a cybersecurity company based in Plano, Texas. The Company offers its customers access to its exclusive threat intelligence database containing the historical data, known associations, and reputational behavior of over 8.5 billion IP addresses. After years of gathering global internet intelligence and working exclusively with government entities, the company released its first commercial product in 2021. Intrusion Shield is designed to allow businesses to incorporate a Zero Trust, reputation-based security solution into their existing infrastructure. IntrusionShield observes traffic flow and instantly blocks known malicious or unknown connections from both entering or exiting a network to help protect against Zero-Day and ransomware attacks. Incorporating Intrusion Shield into a network can elevate an organization's overall security posture by enhancing the performance and decision-making of other solutions in its cybersecurity architecture.
Cautionary Statement Regarding Forward-LookingInformation
This release may contain certain forward-looking statements, including, without limitation, our expectations for positive results from our recent sales, marketing, and strategic initiatives, which statements reflect management’s expectations regarding future events and operating performance. These forward-looking statements speak only as of the date hereof and involve a number of risks and uncertainties, including the risks that our recent sales, marketing, and strategic efforst will not result in increased product awareness or sales of our Intrusion Shield. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, the risk that this financing fails to provide the needed capital for the Company to execute its current business strategies, the Company does not achieve the anticipated results from its current sales, marketing, operational, and product development initiatives, as well as risks that we have detailed in the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”
IR Contact
Alpha IR Group
Mike Cummings or Sam Cohen
INTZ@alpha-ir.com
Source: Intrusion, Inc.
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INTRUSION INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| June 30, | June 30, | |||||
| 2022 | 2021 | |||||
| Revenue | $ | 2,058 | $ | 1,960 | ||
| Cost of revenue | 667 | 733 | ||||
| Gross profit | 1,391 | 1,227 | ||||
| Operating expenses: | ||||||
| Sales and marketing | 1,817 | 3,652 | ||||
| Research and development | 1,486 | 1,530 | ||||
| General and administrative | 2,049 | 1,696 | ||||
| Operating loss | (3,961 | ) | (5,651 | ) | ||
| Interest and other income | 1 | 66 | ||||
| Interest expense | (525 | ) | (1 | ) | ||
| Gain on the extinguishment of debt | – | 635 | ||||
| Gain on lease termination | 420 | – | ||||
| Net loss attributable to common stockholders | $ | (4,065 | ) | $ | (4,951 | ) |
| Net loss per share attributable to common stockholders: | ||||||
| Basic | $ | (0.21 | ) | $ | (0.28 | ) |
| Diluted | $ | (0.21 | ) | $ | (0.28 | ) |
| Weighted average common shares outstanding: | ||||||
| Basic | 19,372 | 17,620 | ||||
| Diluted | 19,372 | 17,620 |
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INTRUSION INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
| 2021 | |||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash and cash equivalents | 7,018 | $ | 4,100 | ||
| Accounts receivable | 1,289 | 1,034 | |||
| Prepaid expenses | 784 | 356 | |||
| Total current assets | 9,091 | 5,490 | |||
| Non-Current Assets: | |||||
| Property and Equipment: | |||||
| Equipment | 2,643 | 2,517 | |||
| Capitalized software development | 350 | – | |||
| Furniture and fixtures | 43 | 43 | |||
| Leasehold improvements | 67 | 67 | |||
| Property and equipment, gross | 3,103 | 2,627 | |||
| Accumulated depreciation and amortization | (1,850 | ) | (1,567 | ) | |
| Property and equipment, net | 1,253 | 1,060 | |||
| Finance leases, right-of-use assets, net | 1,377 | 1,709 | |||
| Operating leases, right-of-use assets, net | 658 | 808 | |||
| Other assets | 163 | 166 | |||
| Total non-current assets | 3,451 | 3,743 | |||
| TOTAL ASSETS | 12,542 | $ | 9,233 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current Liabilities: | |||||
| Accounts payable, trade | 521 | $ | 718 | ||
| Accrued expenses | 872 | 534 | |||
| Finance lease liabilities, current portion | 650 | 644 | |||
| Operating lease liabilities, current portion | 311 | 935 | |||
| Note payable, current portion | 6,796 | – | |||
| Deferred revenue | 1,314 | 560 | |||
| Total current liabilities | 10,464 | 3,391 | |||
| Non-Current Liabilities: | |||||
| Note payable, noncurrent portion | 2,934 | – | |||
| Finance lease liabilities, noncurrent portion | 626 | 673 | |||
| Operating lease liabilities, noncurrent portion | 372 | 1,250 | |||
| Total non-current liabilities | 3,932 | 1,923 | |||
| Stockholders’ equity: | |||||
| Common stock 0.01 par value: | |||||
| Authorized shares – 80,000; Issued shares – 19,745 in 2022 and 19,135 in 2021 | |||||
| Outstanding shares – 19,735 in 2022 and 19,125 in 2021 | 197 | 191 | |||
| Common stock held in treasury, at cost – 10 shares | (362 | ) | (362 | ) | |
| Additional paid-in capital | 86,570 | 84,230 | |||
| Accumulated deficit | (88,216 | ) | (80,097 | ) | |
| Accumulated other comprehensive loss | (43 | ) | (43 | ) | |
| Total stockholders’ equity | (1,854 | ) | 3,919 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 12,542 | $ | 9,233 |
All values are in US Dollars.
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