10-Q - INTRUSION INC (0000736012) (Filer)

Tue, Apr 29, 9:11 PM (23 days ago)

**Intrusion Inc. (INTZ) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,775,000, up 56.9% YoY, driven by consulting services and new INTRUSION Shield customers. - **Gross Profit:** $1,343,000, with a margin of 75.7%, down from 80.0% YoY due to product mix changes. - **Operating Loss:** $(2,093,000), improved by 15.3% YoY, with operating expenses remaining flat. - **Net Loss:** $(2,098,000), or $(0.11) per share, up 22.3% YoY due to a net interest credit in Q1 2024. - **Cash Flow:** Positive cash flow from financing activities ($8,370,000) offset negative operating ($1,690,000) and investing ($787,000) cash flows. **Key Trends & Uncertainties:** - **Revenue Concentration:** Three customers accounted for 91.4% of total revenue, with government sales at 91.6%. - **Product Mix:** INTRUSION Shield revenues were backfilled after losing a large customer, with new customers added. - **Liquidity:** Cash and cash equivalents increased to $10,744,000, with net working capital at $9,000,000. - **Future Operations:** Expect increased sales and marketing spend, and potential INTRUSION Shield revenue growth in 2025. **Future Impact:** - **Government Sales Risk:** Dependence on government sales presents risks related to appropriation and spending patterns. - **Product Development:** Continued investment in INTRUSION Shield and other products may impact operating expenses. - **Financing:** Successful equity offerings and debt exchanges have improved liquidity, but future financing may be required.