INTRUSION INC. Files 2023 Annual Report on Form 10-K

Ticker: INTZ · Form: 10-K · Filed: Apr 1, 2024 · CIK: 736012

Intrusion Inc 10-K Filing Summary
FieldDetail
CompanyIntrusion Inc (INTZ)
Form Type10-K
Filed DateApr 1, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.01, $5.6 million, $7.5 m, $13.9 million, $16.2 m
Sentimentneutral

Sentiment: neutral

Topics: 10-K, INTRUSION INC, INTZ, Annual Report, Financials

TL;DR

<b>INTRUSION INC. has filed its 2023 Form 10-K, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

INTRUSION INC (INTZ) filed a Annual Report (10-K) with the SEC on April 1, 2024. INTRUSION INC. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023. The company's principal executive offices are located at 101 East Park Blvd, Suite 1200, Plano, TX 75074. INTRUSION INC. was formerly known as INTRUSION COM INC, ODS NETWORKS INC, and OPTICAL DATA SYSTEMS INC. The filing covers the period from January 1, 2023, to December 31, 2023. The company operates in the Computer Communications Equipment industry, SIC code 3576.

Why It Matters

For investors and stakeholders tracking INTRUSION INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of INTRUSION INC.'s financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and disclosures within the 10-K allow for a thorough analysis of INTRUSION INC.'s performance compared to previous periods and industry benchmarks, informing investment decisions.

Risk Assessment

Risk Level: medium — INTRUSION INC shows moderate risk based on this filing. The company's financial performance and future outlook are subject to significant risks and uncertainties, as detailed in the 10-K filing, which could impact its ability to achieve its strategic objectives and generate sustainable revenue.

Analyst Insight

Investors should carefully review the detailed financial statements and risk factors outlined in the 10-K filing to understand the company's performance and potential challenges.

Key Numbers

  • 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
  • 2024-04-01 — Filing Date (FILED AS OF DATE)
  • 3576 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
  • 9722346400 — Business Phone (BUSINESS PHONE)

Key Players & Entities

  • INTRUSION INC (company) — FILER
  • Plano, TX (location) — BUSINESS ADDRESS CITY STATE
  • INTRUSION COM INC (company) — FORMER COMPANY
  • ODS NETWORKS INC (company) — FORMER COMPANY
  • OPTICAL DATA SYSTEMS INC (company) — FORMER COMPANY
  • DE (location) — STATE OF INCORPORATION

FAQ

When did INTRUSION INC file this 10-K?

INTRUSION INC filed this Annual Report (10-K) with the SEC on April 1, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by INTRUSION INC (INTZ).

Where can I read the original 10-K filing from INTRUSION INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by INTRUSION INC.

What are the key takeaways from INTRUSION INC's 10-K?

INTRUSION INC filed this 10-K on April 1, 2024. Key takeaways: INTRUSION INC. filed its annual report on Form 10-K for the fiscal year ending December 31, 2023.. The company's principal executive offices are located at 101 East Park Blvd, Suite 1200, Plano, TX 75074.. INTRUSION INC. was formerly known as INTRUSION COM INC, ODS NETWORKS INC, and OPTICAL DATA SYSTEMS INC..

Is INTRUSION INC a risky investment based on this filing?

Based on this 10-K, INTRUSION INC presents a moderate-risk profile. The company's financial performance and future outlook are subject to significant risks and uncertainties, as detailed in the 10-K filing, which could impact its ability to achieve its strategic objectives and generate sustainable revenue.

What should investors do after reading INTRUSION INC's 10-K?

Investors should carefully review the detailed financial statements and risk factors outlined in the 10-K filing to understand the company's performance and potential challenges. The overall sentiment from this filing is neutral.

How does INTRUSION INC compare to its industry peers?

INTRUSION INC. operates within the Computer Communications Equipment sector, focusing on providing advanced security solutions.

Are there regulatory concerns for INTRUSION INC?

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial performance and business operations.

Risk Factors

  • Customer Concentration Risk [high — market]: The company faces significant customer concentration risk, with a substantial portion of its revenue derived from a small number of customers, particularly government entities.

Industry Context

INTRUSION INC. operates within the Computer Communications Equipment sector, focusing on providing advanced security solutions.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial performance and business operations.

What Investors Should Do

  1. Analyze the detailed financial statements within the 10-K to understand revenue trends, profitability, and cash flow.
  2. Review the risk factors section, particularly customer concentration, to assess potential business vulnerabilities.
  3. Compare key financial metrics with previous fiscal years to identify performance improvements or deteriorations.

Key Dates

  • 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
  • 2024-04-01: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing a year-over-year comparison of the company's financial and operational status.

Filing Stats: 4,509 words · 18 min read · ~15 pages · Grade level 13.6 · Accepted 2024-04-01 16:07:37

Key Financial Figures

  • $0.01 — ch registered Common Stock, par value $0.01 per share INTZ Nasdaq Capital Market
  • $5.6 million — we generated revenues of approximately $5.6 million and $7.5 million, respectively, and rep
  • $7.5 m — enues of approximately $5.6 million and $7.5 million, respectively, and reported net l
  • $13.9 million — and reported net loss of approximately $13.9 million and $16.2 million, respectively, and ca
  • $16.2 m — loss of approximately $13.9 million and $16.2 million, respectively, and cash flow used
  • $7.8 million — n operating activities of approximately $7.8 million and $13.2 million, respectively. As not
  • $13.2 m — ities of approximately $7.8 million and $13.2 million, respectively. As noted in our au
  • $9.6 million — , 2023, we had stockholders' deficit of $9.6 million and a working capital deficit of $13.1
  • $13.1 million — illion and a working capital deficit of $13.1 million. As a result of our historical recurrin
  • $139 thousand — 23, we had cash and cash equivalents of $139 thousand and negative working capital of $13.1 m
  • $7.0 million — in an aggregate amount of approximately $7.0 million. To finance our operations and to conti

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 5 Item 1B. Unresolved Staff Comments 13 Item 1C. Cybersecurity 13 Item 2.

Properties

Properties 13 Item 3.

Legal Proceedings

Legal Proceedings 14 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 15 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 8.

Financial Statements

Financial Statements 23 Item 9A.

Controls and Procedures

Controls and Procedures 23 Item 9B. Other Information 24 PART III Item 10. Directors, Executive Officers, and Corporate Governance 25 Item 11.

Executive Compensation

Executive Compensation 25 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 25 Item 13. Certain Relationships and Related Transactions, and Director Independence 25 Item 14. Principal Accounting Fees and Services 25 PART IV Item 15. Exhibits and Financial Statement Schedules 26

Signatures

Signatures 29 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which statements involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our financial position; our ability to continue our business as a going concern; our business, sales, and marketing strategies and plans; our ability to successfully market, sell, and deliver our INTRUSION Shield commercial product and solutions to an expanding customer base; are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, such statements. You should not rely on forward-looking primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled "Risk Factors" and elsewhere in this Annual Report on Form 10-K. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These s

Business

Item 1. Business. Our Corporate Information We were organized in Texas in September 1983 and reincorporated in Delaware in October 1995. Our principal executive offices are located at 101 East Park Boulevard, Suite 1200, Plano, Texas 75074, and our telephone number is (972) 234-6400. Our website URL is www.intrusion.com. We post the following filings in the "Investors" section of our website as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission: our Annual Reports on Form 10-K; our Quarterly Reports on Form 10-Q; our current reports on Form 8-K; and any amendments to those reports or statements filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. All such filings on our website are available free of charge. Additionally, filings are available on the Securities and Exchange Commission's website (www.sec.gov). In this report, references to the "Company," "we", "us," "our", "Intrusion" or "Intrusion Inc." refer to Intrusion Inc. and its subsidiaries. TraceCop and Savant are registered trademarks of the Company. We have also applied for trademark protection for INTRUSION Shield. Our Business 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 Internet Protocol ("IP") addresses. After years of gathering global internet intelligence and working exclusively with government entities, the company released its first commercial product in 2021. For the fiscal years ended December 31, 2023, and 2022, we generated revenues of approximately $5.6 million and $7.5 million, respectively, and reported net loss of approximately $13.9 million and $16.2 million, respectively, and cash flow used in operating activities of approximately $7.8 million and $13.2 million, respectively. As not

Risk Factors

Item 1A. Risk Factors. The following are the significant factors that could materially adversely affect our business, financial condition, or operating results, as well as adversely affect the value of an investment in our common stock. The risks described below are not the only risks facing our Company. Risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results. Risks Related to our Financial Position and Liquidity The Company's ability to implement its current business plan is dependent on our ability to raise additional funds through additional public or private financings, which raises substantial doubt that the Company may not be able to continue as a going concern. As of December 31, 2023, we had cash and cash equivalents of $139 thousand and negative working capital of $13.1 million. Our primary source of cash for funding operations in 2023 has come from net proceeds received from a private offering of our common stock and warrants and net proceeds received from our at-the-market ("ATM") program in an aggregate amount of approximately $7.0 million. To finance our operations and to continue as a going concern, we believe it will be necessary for us to raise additional funds through public or private financings, including the utilization of our ATM program. We can provide no assurances that we will be able to raise additional funds through any future equity or debt financings, and the terms of those financings, if available at all, may be on terms, which are not favorable to us and, in the case of equity financings, will result in dilution to our stockholders. We are subject to certain contractual and regulatory limitations on our ability to consummate future financings. Pursuant to that certain securities purchase agreements we entered into in March 2022 with Streeterville Capital, LLC and related issuance of two promissory

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