Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Intrusion Inc | |
Entity Central Index Key | 736,012 | |
Trading Symbol | intz | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 12,797,836 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 193,000 | $ 64,000 |
Accounts receivable | 523,000 | 745,000 |
Inventories | 45,000 | 45,000 |
Prepaid expenses | 118,000 | 75,000 |
Total current assets | 879,000 | 929,000 |
Property and equipment, net | 262,000 | 308,000 |
Other assets | 39,000 | 40,000 |
TOTAL ASSETS | 1,180,000 | 1,277,000 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 911,000 | 896,000 |
Dividends payable | 338,000 | 303,000 |
Obligations under capital lease, current portion | 119,000 | 139,000 |
Deferred revenue | 67,000 | 395,000 |
Total current liabilities | 1,435,000 | 1,733,000 |
Loan payable to officer | 3,465,000 | 2,885,000 |
Obligations under capital lease, noncurrent portion | 45,000 | 61,000 |
Commitments and contingencies | ||
Stockholders’ deficit: | ||
Common stock, $0.01 par value: Authorized shares — 80,000, Issued shares — 12,808 as of March 31, 2017 and 12,758 as of December 31, 2016 Outstanding shares — 12,798 as of March 31, 2017 and 12,748 as of December 31, 2016 | 128,000 | 128,000 |
Common stock held in treasury, at cost – 10 shares | (362,000) | (362,000) |
Additional paid-in capital | 56,583,000 | 56,595,000 |
Accumulated deficit | (61,850,000) | (61,499,000) |
Accumulated other comprehensive loss | (107,000) | (107,000) |
Total stockholders’ deficit | (3,765,000) | (3,402,000) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,180,000 | 1,277,000 |
Series 1 [Member] | ||
Stockholders’ deficit: | ||
Preferred stock | 707,000 | 707,000 |
Series 2 [Member] | ||
Stockholders’ deficit: | ||
Preferred stock | 724,000 | 724,000 |
Series 3 [Member] | ||
Stockholders’ deficit: | ||
Preferred stock | $ 412,000 | $ 412,000 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000 | 80,000 |
Common stock, shares issued (in shares) | 12,808 | 12,758 |
Common stock, shares outstanding (in shares) | 12,798 | 12,748 |
Common stock held in treasury, shares (in shares) | 10 | 10 |
Series 1 [Member] | ||
Preferred stock, shares issued (in shares) | 200 | 200 |
Preferred stock, shares outstanding (in shares) | 200 | 200 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,125 | $ 1,113 |
Series 2 [Member] | ||
Preferred stock, shares issued (in shares) | 460 | 460 |
Preferred stock, shares outstanding (in shares) | 460 | 460 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,284 | $ 1,270 |
Series 3 [Member] | ||
Preferred stock, shares issued (in shares) | 289 | 289 |
Preferred stock, shares outstanding (in shares) | 289 | 289 |
Preferred stock, liquidation preference (in dollars per share) | $ 704 | $ 697 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | $ 1,559 | $ 1,511 |
Cost of revenue | 583 | 539 |
Gross Profit | 976 | 972 |
Operating expenses: | ||
Sales and marketing | 361 | 428 |
Research and development | 585 | 730 |
General and administrative | 331 | 327 |
Operating loss | (301) | (513) |
Interest expense, net | (50) | (31) |
Net loss | (351) | (544) |
Preferred stock dividend accrued | (35) | (35) |
Net loss attributable to common stockholders | $ (386) | $ (579) |
Net loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.03) | $ (0.05) |
Diluted (in dollars per share) | $ (0.03) | $ (0.05) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 12,748 | 12,703 |
Diluted (in shares) | 12,748 | 12,703 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities: | ||
Net loss | $ (351) | $ (544) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 55 | 74 |
Stock-based compensation | 5 | 42 |
Penalties and waived penalties on dividends | 7 | 4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 222 | (163) |
Prepaid expenses and other assets | (42) | (31) |
Accounts payable and accrued expenses | 15 | 91 |
Deferred revenue | (328) | (267) |
Net cash used in operating activities | (417) | (794) |
Investing Activities: | ||
Purchases of property and equipment | (9) | |
Financing Activities: | ||
Proceeds from line-of-credit | 364 | |
Borrowings on loan from officer | 580 | 525 |
Proceeds from stock options exercised | 11 | 99 |
Principal payments on capital leases | (36) | (50) |
Net cash provided by financing activities | 555 | 938 |
Net increase (decrease) in cash and cash equivalents | 129 | 144 |
Cash and cash equivalents at beginning of period | 64 | 102 |
Cash and cash equivalents at end of period | 193 | 246 |
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES: | ||
Preferred stock dividends accrued | $ 35 | $ 35 |
Note 1 - Description of Busines
Note 1 - Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Description of Business We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. Our product families include: ● TraceCop™ for identity discovery and disclosure, ● Savant™ for network data mining and advanced persistent threat detection. We market and distribute our products through a direct sales force to: ● end-users, ● value-added resellers, ● system integrators, ● managed service providers, and ● distributors. Our end-user customers include: ● U.S. federal government entities, ● local government entities, ● banks, ● airlines, ● credit unions, ● other financial institutions, ● hospitals and other healthcare providers, and ● other customers. Essentially, our end-users can be defined as any end-users requiring network security solutions for protecting their mission critical data. We were organized in Texas in September 1983 October 1995. 1101 200, 75081, (972) 234 6400. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10 10 01 December 31, 2016 three March 31, 2017 may 10 December 31, 2016, March 29, 2017. The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third |
Note 3 - Inventories
Note 3 - Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories (In thousands) March 31 , 17 December 31, 16 Inventories consist of: Finished products 45 45 Net inventory $ 45 45 |
Note 4 - Loan Payable to Office
Note 4 - Loan Payable to Officer | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 4. On February 9, 2017, $3,400,000 may $3,400,000 March 2018. On March 2, 2017, $3,700,000 March 2019. Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% March 31, 2017). March 31, 2019. March 31, 2017, $3,465,000 $224,000. |
Note 5 - Accounting for Stock-b
Note 5 - Accounting for Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. Accounting for Stock-Based Compensation During the three March 31, 2017 2016, no $5,000 $42,000, three March 31, 2017 2016. During the three March 31, 2017, 50,000 2005 136,000 Valuation Assumptions The fair values of employee and director option awards were estimated at the date of grant using a Black-Scholes option-pricing model. Expected volatility is based on historical volatility and in part on implied volatility. The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior. The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. Options granted to non-employees are valued using the fair market value on each measurement date of the option. |
Note 6 - Net Loss Per Share
Note 6 - Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. Our common stock equivalents include all common stock issuable upon conversion of preferred stock and the exercise of outstanding options and warrants. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three March 31, 2017 2016 3,263,277 3,572,933, |
Note 7 - Concentrations
Note 7 - Concentrations | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 7. Our operations are concentrated in one 77.0% first 2017 65.2% first 2016. first 2017, 73.8% four 65.2% four first 2016. one first 2017 19.9% 25.6% one 2016. |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8. Commitments and Contingencies We are subject from time to time to various legal proceedings and claims that arise during the ordinary course of our business. We do not believe that the outcome of those "routine" legal matters should have a material adverse effect on our consolidated financial position, operating results or cash flows; however, we can provide no assurances that legal claims that may |
Note 9 - Dividends Payable
Note 9 - Dividends Payable | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Dividends Payable During the quarter ended March 31, 2017, $12,000 5% $15,000 2 5% $8,000 3 5% March 31, 2017, $338,000 Delaware law provides that we may 18% 2 3 one 2 3 2 3 45 2 3 April 30, 2017, $2.2 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31 , 17 December 31, 16 Inventories consist of: Finished products 45 45 Net inventory $ 45 45 |
Note 3 - Inventories - Summary
Note 3 - Inventories - Summary of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories consist of: | ||
Finished products | $ 45 | $ 45 |
Net inventory | $ 45 | $ 45 |
Note 4 - Loan Payable to Offi17
Note 4 - Loan Payable to Officer (Details Textual) - Revolving Credit Facility [Member] - Chief Executive Officer [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 02, 2017 | Feb. 09, 2017 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,700,000 | $ 3,400,000 | |
Line of Credit Facility, Interest Rate at Period End | 5.00% | ||
Long-term Line of Credit | $ 3,465,000 | ||
Interest Payable, Current | $ 224,000 | ||
Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Note 5 - Accounting for Stock18
Note 5 - Accounting for Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Allocated Share-based Compensation Expense | $ 5,000 | $ 42,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 50,000 | 136,000 |
Note 6 - Net Loss Per Share (De
Note 6 - Net Loss Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,263,277 | 3,572,933 |
Note 7 - Concentrations (Detail
Note 7 - Concentrations (Details Textual) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Number of Areas in Which Operations are Concentrated | 1 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | U.S. Government [Member] | ||
Concentration Risk, Percentage | 77.00% | 65.20% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Government Customers [Member] | ||
Concentration Risk, Percentage | 73.80% | 65.20% |
Number of Major Customers | 4 | 4 |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Commercial Customers [Member] | ||
Concentration Risk, Percentage | 19.90% | 25.60% |
Number of Major Customers | 1 | 1 |
Note 9 - Dividends Payable (Det
Note 9 - Dividends Payable (Details Textual) | 3 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Preferred Stock Dividends, Income Statement Impact | $ 35,000 | $ 35,000 | ||
Dividends Payable, Current | 338,000 | $ 303,000 | ||
Series 1 [Member] | ||||
Preferred Stock Dividends, Income Statement Impact | $ 12,000 | |||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||
Series 2 [Member] | ||||
Preferred Stock Dividends, Income Statement Impact | $ 15,000 | |||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||
Series 3 [Member] | ||||
Preferred Stock Dividends, Income Statement Impact | $ 8,000 | |||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||
Series 2 Preferred Stock and Series 3 Preferred Stock [Member] | ||||
Preferred Stock Unpaid Dividends Additional Late Fee Penalty Percentage | 18.00% | |||
Number of Outside Board Members Holding Interest In Preferred Stock | 1 | |||
Period From Issuance of Written Notice For Failure to Pay Dividend Within Which Entity Must Cure Breach | 45 days | |||
Series 2 Preferred Stock and Series 3 Preferred Stock [Member] | Subsequent Event [Member] | ||||
Preferred Stock, Redemption Amount | $ 2,200,000 |