GlobeNewswire Inc | Aug 12, 2021 04:05PM EDT

August 12, 2021

PLANO, Texas, Aug. 12, 2021 (GLOBE NEWSWIRE) -- INTRUSION, Inc. (NASDAQ: INTZ), a provider of cyberattack prevention solutions including zero-days, announced today financial results for the second quarter ended June 30, 2021.

Revenue for the second quarter 2021 was $2.0 million, compared to $1.9 million for the first quarter 2021 and $1.7 million for the second quarter 2020. Gross profit margin was 63% of revenue in the second quarter 2021, compared to 66% for the first quarter 2021 and 61% for the second quarter 2020.

Operating expenses in the second quarter 2021 were $6.9 million, compared to $5.1 million for the first quarter 2021 and $1.7 million for the second quarter 2020.

The second quarter 2021 net loss was $5.0 million, or ($0.28) per share, compared to a net loss of $3.9 million, or ($0.22) per share, for the first quarter 2021 and a net loss of $0.7 million, or ($0.05) per share, for the second quarter 2020.

As of June 30, 2021, cash and cash equivalents were $9.3 million and working capital was $7.3 million.

Conference CallINTRUSIONs management will host a conference call today at 4:00 P.M., CST. Interested investors can access the live call by dialing 1-833-366-0416, or 1-236-712-2506 for international callers, and providing the following access code: 5994378. 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 19, 2021 by dialing 1-800-585-8367, or 1-416-621-4642 for international callers, and entering the following access code: 5994378. 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. INTRUSIONs solution families include INTRUSIONShield, 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 Looking InformationThis 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 INTRUSIONShield 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.

Investor Relations ContactJoel Achramowiczsheltonir@sheltongroup.comP: (415) 845-9964



INTRUSION INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands except par value amounts)

June 30, December 2021 31, 2020ASSETS Current Assets: Cash and cash equivalents $ 9,337 $ 16,704 Accounts receivable 1,668 1,233 Prepaid expenses 445 370 Other current assets 16 - Total current assets 11,466 18,307 Non-Current Assets: Property and Equipment: Equipment 2,259 1,453 Furniture and fixtures 43 43 Leasehold improvements 67 67 2,369 1,563 Accumulated depreciation and amortization (1,281 ) (1,097 )Property and equipment, net 1,088 466 Finance leases, right-of-use assets, net 200 20 Operating leases, right-of-use assets, net 920 1,010 Other assets 169 79 Total non-current assets 2,377 1,575 TOTAL ASSETS $ 13,843 $ 19,882 LIABILITIES AND STOCKHOLDERS? EQUITY Current Liabilities: Accounts payable, trade $ 1,361 $ 408 Accrued expenses 854 628 Finance leases liabilities, current portion 71 21 Operating leases liabilities, current portion 709 487 PPP loan payable, current portion - 421 Deferred revenue 1,170 177 Total current liabilities 4,165 2,142 Non-Current Liabilities: PPP loan payable, noncurrent portion - 212 Finance lease liabilities, noncurrent portion 93 - Operating leases liability, noncurrent portion 1,600 1,867 Total non-current liabilities 1,693 2,079 Commitments and contingencies Stockholders? equity: Common stock, $0.01 par value: Authorized shares ? 80,000 Issued shares ? 17,631 in 2021 and 17,428 in 2020 Outstanding shares ? 17,621 in 2021 and 17,418 in 176 174 2020Common stock held in treasury, at cost ? 10 (362 ) (362 )sharesAdditional paid-in capital 78,363 77,187 Accumulated deficit (70,149 ) (61,295 )Accumulated other comprehensive loss (43 ) (43 )Total stockholders? equity 7,985 15,661 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 13,843 $ 19,882



INTRUSION INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands except per share amounts)

Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020Revenue $ 1,960 $ 1,655 $ 3,812 $ 3,450 Cost of 733 651 1,358 1,398 revenue Gross profit 1,227 1,004 2,454 2,052 Operating expenses:Sales and 3,652 485 6,341 995 marketingResearch and 1,530 907 2,999 1,660 developmentGeneral and 1,696 326 2,668 582 administrative Operating loss (5,651 ) (714 ) (9,554 ) (1,185 ) Interest and 66 1 68 7 other incomeInterest (1 ) (2 ) (3 ) (2 ) expenseGain on theextinguishment 635 - 635 - of debt Net loss $ (4,951 ) $ (715 ) $ (8,854 ) $ (1,180 ) Preferredstock - (33 ) - (66 ) dividendsaccruedNet lossattributable $ (4,951 ) $ (748 ) $ (8,854 ) $ (1,246 ) to common stockholders Net loss pershareattributable to commonstockholders:Basic $ (0.28 ) $ (0.05 ) $ (0.50 ) $ (0.09 ) Diluted $ (0.28 ) $ (0.05 ) $ (0.50 ) $ (0.09 ) Weightedaverage common sharesoutstanding:Basic 17,620 13,784 17,581 13,743 Diluted 17,620 13,784 17,581 13,743