8-K
Intrusion Inc (INTZ)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM8-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): May 4, 2021
INTRUSION INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 000-20191 | 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 1300 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:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
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. ☐
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 |
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 May 4, 2021, Intrusion Inc. issued a press release announcing its financial results for the quarter ended March 31, 2021. 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
(d) Exhibits
99.1 —Press Release Issued by Intrusion Inc. on May 4, 2021.
SIGNATURES
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: May 4, 2021 | By: | /s/ Jack B. Blount |
| Jack B. Blount <br><br>President and Chief Executive Officer |
| 2 |
| --- |
Exhibit 99.1
| NEWS RELEASE |  |
|---|---|
| 101 East Park Blvd, Suite 1300<br><br> Plano, TX 75074<br><br> (972) 234-6400 |
Investor Relations Contact
Joel Achramowicz
P: (415) 845-9964
INTRUSION ReportsFirst Quarter 2021 Results
Plano, Texas – May 4, 2021 – INTRUSION, Inc. (NASDAQ: INTZ), a leading provider of cyberattack prevention solutions including zero-days, announced today financial results for the first quarter ended March 31, 2021.
“First quarter revenue grew quarter-over-quarter and year-over-year,” said Jack Blount, President and CEO of INTRUSION. “We continue to make excellent progress with the rollout of INTRUSION Shield in terms of new customers and adding channel partners. As is typical for newly launched SaaS products, it will take time for INTRUSION Shield to materially contribute to our quarterly results. We remain very encouraged by the exceptional feedback we’ve received from existing customers and the increasing interest from potential customers. We’re gaining strong momentum in our opportunity pipeline both in the U.S. as well as with our new international resellers.”
Blount continued, “A factor in our growth was our government business. We see activity in Washington progressing toward a gradual resumption of more normal ordering patterns as the year unfolds.”
First Quarter Financial Results
Revenue for the first quarter 2021 was $1.9 million, compared to $1.6 million for the fourth quarter 2020 and $1.8 million for the first quarter 2020.
Gross profit margin expanded to 66% of revenue in the first quarter 2021, compared to 58% for the fourth quarter 2020 and 58% for the first quarter 2020.
Operating expenses in the first quarter 2021 were $5.1 million, compared to $4.8 million for the fourth quarter 2020 and $1.5 million for the first quarter 2020.
The first quarter 2021 net loss was $3.9 million, or ($0.22) per share, compared to a net loss of $3.9 million, or ($0.23) per share, for the fourth quarter 2020 and a net loss of $0.5 million, or ($0.04) per share, for the first quarter 2020.
As of March 31, 2021, cash and cash equivalents were $13.1 million and working capital was $12.3 million.
Intrusion
First Quarter 2021 Results
Page - 2 -
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 1-844-200-6205, or +44-208-0682-558 for international callers, and providing the following access code: 969764. For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. CST until May 11, 2021 by clicking on the following link, Click Here, and entering the following access code: 898017. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About INTRUSION, Inc.
INTRUSION, Inc. (NASDAQ: INTZ) protects any-sized company by leveraging advanced threat intelligence with real-time artificial intelligence to kill cyberattacks as they occur – including zero-days. INTRUSION’s solution families include INTRUSION Shield, an advanced cyber-defense solution that kills cyberattacks in real-time using artificial intelligence (AI) and advanced cloud threat intelligence; INTRUSIONTraceCop™ for identity discovery and disclosure; and INTRUSION Savant™ for network data mining and advanced persistent threat detection. For more information, please visit www.intrusion.com.
Cautionary Statement Regarding Forward LookingInformation
This release may contain certain forward-looking statements, including, without limitations, statements about the performance of protections provided by our Shield products, the effect of the recent additions to our board and executive management team, the anticipated recovery of our governmental customers and an expanded need for them and an increasing customer base to address cybersecurity risks, leading to expected growth in our sales performance for this year, as well as any other statements which 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 risk that the Company does not benefit as anticipated from sales of our current solutions, including the INTRUSION Shield solution, the performance of our expanded management team, and that customers will address and mitigate their perceived cybersecurity risks through the purchase of our products and solutions. 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, 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.”
Intrusion
First Quarter 2021 Results
Page - 3 -
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
| December 31, | |||||
|---|---|---|---|---|---|
| 2020 | |||||
| ASSETS | |||||
| Current Assets | |||||
| Cash and cash equivalents | 13,072 | $ | 16,704 | ||
| Accounts receivable | 1,305 | 1,233 | |||
| Prepaid expenses | 700 | 370 | |||
| Total current assets | 15,077 | 18,307 | |||
| Noncurrent Assets | |||||
| Property and equipment, net | 592 | 466 | |||
| Finance leases right-of-use assets, net | 11 | 20 | |||
| Operating leases right-of-use assets, net | 979 | 1,010 | |||
| Other assets | 163 | 79 | |||
| Total noncurrent assets | 1,745 | 1,575 | |||
| TOTAL ASSETS | 16,822 | $ | 19,882 | ||
| LIABILITIES AND STOCKHOLDERS’<br>EQUITY | |||||
| Current Liabilities | |||||
| Accounts payable and accrued expenses | 1,563 | $ | 1,036 | ||
| PPP loan payable, current portion | 428 | 421 | |||
| Finance leases liability, current portion | 11 | 21 | |||
| Operating leases liability, current portion | 598 | 487 | |||
| Deferred revenue | 146 | 177 | |||
| Total current liabilities | 2,746 | 2,142 | |||
| Noncurrent Liabilities | |||||
| PPP loan payable, noncurrent portion | 207 | 212 | |||
| Operating leases liability, noncurrent portion | 1,746 | 1,867 | |||
| Total noncurrent liabilities | 1,953 | 2,079 | |||
| Stockholders' Equity: | |||||
| Common stock, 0.01 par value:<br> Authorized shares – 80,000<br> Issued shares – 17,625 in 2021 and 17,428 in 2020<br> Outstanding shares – 17,615 in 2021 and 17,418 in 2020 | 176 | 174 | |||
| Common stock held in treasury, at cost – 10 shares | (362 | ) | (362 | ) | |
| Additional paid-in capital | 77,550 | 77,187 | |||
| Accumulated deficit | (65,198 | ) | (61,295 | ) | |
| Accumulated other comprehensive loss | (43 | ) | (43 | ) | |
| Total stockholders' equity | 12,123 | 15,661 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 16,822 | $ | 19,882 |
All values are in US Dollars.
Intrusion
First Quarter 2021 Results
Page -4 -
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS
(In thousands except per share amounts)
| Quarter ended | Quarter ended | |||||
|---|---|---|---|---|---|---|
| March 31, | March 31, | |||||
| 2021 | 2020 | |||||
| Revenue | $ | 1,852 | $ | 1,795 | ||
| Cost of revenue | 625 | 747 | ||||
| Gross profit | 1,227 | 1,048 | ||||
| Operating expenses: | ||||||
| Sales and marketing | 2,689 | 510 | ||||
| Research and development | 1,469 | 753 | ||||
| General and administrative | 973 | 256 | ||||
| Operating loss | (3,904 | ) | (471 | ) | ||
| Interest expense | (2 | ) | (1 | ) | ||
| Interest income | 3 | 7 | ||||
| Net loss | (3,903 | ) | (465 | ) | ||
| Preferred stock dividends accrued | – | (33 | ) | |||
| Net loss attributable to common stockholders | $ | (3,903 | ) | $ | (498 | ) |
| Net loss per share attributable to common stockholders: | ||||||
| Basic | $ | (0.22 | ) | $ | (0.04 | ) |
| Diluted | $ | (0.22 | ) | $ | (0.04 | ) |
| Weighted average shares outstanding: | ||||||
| Basic | 17,541 | 13,703 | ||||
| Diluted | 17,541 | 13,703 |