Intrusion (INTZ) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 01, 2020
Cover [Abstract]
Entity Registrant Name	INTRUSION INC
Entity Central Index Key	0000736012
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		17,394,279
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity State Incorp	DE

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 1,505,000	$ 3,334,000
Accounts receivable	1,030,000	1,566,000
Prepaid expenses	647,000	152,000
Total current assets	3,182,000	5,052,000
Noncurrent Assets:
Property and equipment, net	356,000	335,000
Finance leases, right-of-use assets, net	30,000	62,000
Operating leases, right-of-use asset, net	1,160,000	1,348,000
Other assets	57,000	38,000
Total noncurrent assets	1,603,000	1,783,000
TOTAL ASSETS	4,785,000	6,835,000
Current Liabilities:
Accounts payable and accrued expenses	1,420,000	1,080,000
Dividends payable	0	20,000
Finance leases liability, current portion	31,000	43,000
Operating leases liability, current portion	295,000	284,000
PPP loan payable, current portion	392,000	0
Deferred revenue	58,000	516,000
Total current liabilities	2,196,000	1,943,000
Noncurrent Liabilities:
Finance leases liability, noncurrent portion	1,000	21,000
Operating leases liability, noncurrent portion	1,095,000	1,315,000
PPP loan payable, noncurrent portion	239,000	0
Total noncurrent liabilities	1,335,000	1,336,000
Commitments and contingencies
Stockholders equity:
Common stock, $0.01 par value: Authorized shares - 80,000 Issued shares - 14,939 in 2020 and 13,552 in 2019 Outstanding shares - 14,929 in 2020 and 13,542 in 2019	149,000	136,000
Common stock held in treasury, at cost 10 shares	(362,000)	(362,000)
Additional paid-in capital	58,877,000	56,759,000
Accumulated deficit	(57,367,000)	(54,777,000)
Accumulated other comprehensive loss	(43,000)	(43,000)
Total stockholders equity	1,254,000	3,556,000
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	4,785,000	6,835,000
Series 1 Preferred Stock [Member]
Stockholders equity:
Preferred stock	0	707,000
Series 2 Preferred Stock [Member]
Stockholders equity:
Preferred stock	0	724,000
Series 3 Preferred Stock [Member]
Stockholders equity:
Preferred stock	$ 0	$ 412,000

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
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)	14,939	13,552
Common stock, shares outstanding (in shares)	14,929	13,542
Common stock held in treasury, at cost, shares (in shares)	10	10
Series 1 Preferred Stock [Member]
Preferred stock, shares issued (in shares)	0	200
Preferred stock, shares outstanding (in shares)	0	200
Preferred stock, liquidation preference		$ 1,013
Series 2 Preferred Stock [Member]
Preferred stock, shares issued (in shares)	0	460
Preferred stock, shares outstanding (in shares)	0	460
Preferred stock, liquidation preference		$ 1,155
Series 3 Preferred Stock [Member]
Preferred stock, shares issued (in shares)	0	289
Preferred stock, shares outstanding (in shares)	0	289
Preferred stock, liquidation preference		$ 634

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue	$ 1,588	$ 3,860	$ 5,039	$ 11,071
Cost of revenue	652	1,465	2,050	4,339
Gross profit	936	2,395	2,989	6,732
Operating expenses:
Sales and marketing	885	356	1,880	813
Research and development	1,081	297	2,741	775
General and administrative	377	277	962	930
Operating income (loss)	(1,407)	1,465	(2,594)	4,214
Interest income	0	0	8	0
Interest expense	(2)	(1)	(4)	(45)
Net income (loss)	(1,409)	1,464	(2,590)	4,169
Preferred stock dividends accrued	(13)	(35)	(79)	(104)
Net income (loss) attributable to common stockholders	$ (1,422)	$ 1,429	$ (2,669)	$ 4,065
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.10)	$ 0.11	$ (0.19)	$ 0.30
Diluted (in dollars per share)	$ (0.10)	$ 0.09	$ (0.19)	$ 0.27
Weighted average common shares outstanding:
Basic (in shares)	14,450	13,523	13,981	13,466
Diluted (in shares)	14,450	15,371	13,981	15,314

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Preferred Stock	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock	Other Comprehensive Income / Loss	Total
Beginning balance, shares at Dec. 31, 2018	949	13,259
Beginning balance, value at Dec. 31, 2018	$ 1,843	$ 133	$ 56,609	$ (59,242)	$ (362)	$ (43)
Exercise of stock options, shares		291
Exercise of stock options, value		$ 2	234
Stock-based compensation			24
Preferred stock dividends declared, net of waived penalties by shareholders			(97)
Net income (loss)				4,169			$ 4,169
Ending balance, shares at Sep. 30, 2019	949	13,550
Ending balance, value at Sep. 30, 2019	$ 1,843	$ 135	56,770	(55,073)	(362)	(43)	3,270
Beginning balance, shares at Dec. 31, 2019	949	13,552
Beginning balance, value at Dec. 31, 2019	$ 1,843	$ 136	56,759	(54,777)	(362)	(43)	3,556
Conversion of preferred shares to common shares, shares converted	(949)	1,067
Conversion of preferred shares to common shares, value	$ (1,843)	$ 10	1,833
Exercise of stock options, shares		320
Exercise of stock options, value		$ 3	190
Stock-based compensation			174
Preferred stock dividends declared, net of waived penalties by shareholders			(79)
Net income (loss)				(2,590)			(2,590)
Ending balance, shares at Sep. 30, 2020	0	14,939
Ending balance, value at Sep. 30, 2020	$ 0	$ 149	$ 58,877	$ (57,367)	$ (362)	$ (43)	$ 1,254

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating Activities:
Net income (loss)	$ (2,590)	$ 4,169
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	164	136
Stock-based compensation	174	24
Penalties on dividends	0	6
Noncash lease costs	186	364
Changes in operating assets and liabilities:
Accounts receivable	536	(737)
Prepaid expenses and other assets	(514)	(45)
Accounts payable and accrued expenses	134	(621)
Deferred revenue	(457)	(361)
Net cash provided by (used in) operating activities	(2,367)	2,935
Investing Activities:
Purchases of property and equipment	(153)	(183)
Net cash used for investing activities	(153)	(183)
Financing Activities:
Proceeds from PPP loan payable	629	0
Payments on loan from officer	0	(1,815)
Proceeds from stock options exercised	193	236
Payments of dividends	(99)	(667)
Reduction of finance lease liability	(32)	(47)
Net cash provided by (used in) financing activities	691	(2,293)
Net increase (decrease) in cash and cash equivalents	(1,829)	459
Cash and cash equivalents at beginning of period	3,334	1,652
Cash and cash equivalents at end of period	1,505	2,111
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES:
Preferred stock dividends accrued	79	103
Conversion of preferred stock to common	$ 1,843	$ 0

1. Description of Business

1. Description of Business	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business We develop, market and support a family of entity identification, high speed data mining and cybersecurity solutions. Our products help detect, report and mitigate cybercrimes and advanced persistent threats. Intrusion’s products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. Our product families include the following: · TraceCop. TraceCop TraceCop TraceCop · Savant. Savant Savant · INTRUSION Shield. . · Additional Shield Products In Development hybrid

3. Loan Payable to Officer

3. Loan Payable to Officer	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Loan Payable to Officer	3. Loan Payable to Officer On February 8, 2018, the Company entered into an unsecured revolving promissory note to borrow up to $3,700,000 from G. Ward Paxton. Under the terms of the CEO Note, the Company had the ability to borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $3,700,000 at any given time through March 2020. On February 7, 2019, the Company amended the unsecured revolving promissory note to borrow up to $2,700,000 from G. Ward Paxton, the Company’s former Chief Executive Officer. Amounts borrowed under the CEO Note accrued interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1%. Under the terms of the note, the Company had the ability to borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,700,000 at any given time through March 2021. We reduced our borrowing under this note to zero as of May 2019. As of October 24, 2019, G. Ward Paxton passed away, terminating the CEO Note with the result that future borrowings thereunder will no longer be available to the Company.

4. Accounting for Stock-based C

4. Accounting for Stock-based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Accounting for Stock-Based Compensation	4. Accounting for Stock-Based Compensation During the three month periods ended September 30, 2020 and 2019, the Company granted 10,000 and none, respectively, of stock options to employees or directors. The Company recognized $100,000 and $10,000, respectively, of stock-based compensation expense for the three month periods ended September 30, 2020 and 2019. During the nine month periods ended September 30, 2020 and 2019, the Company granted 333,000 and 24,000, respectively, of stock options to employees and directors. The Company recognized $174,000 and $24,000, respectively, of stock-based compensation expense for the nine month periods ended September 30, 2020 and 2019. During the three month periods ended September 30, 2020 and 2019, 133,000 (30,000 under 2015 plan and 103,000 under the 2005 Plan) and 10,500 (2005 Plan) options were exercised, respectively. During the nine month periods ended September 30, 2020 and 2019, 319,600 (45,000 under the 2015 Plan and 274,600 under the 2005 Plan) and 291,000 (2005 Plan) options were exercised, respectively. 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 with the following assumptions: For Three Months September 30, For Three Months September 30, For Nine Months For Nine Weighted average grant date fair value 4.98 – $ 2.86 $ 3.61 Weighted average assumptions used: Expected dividend yield 0.0 % – 0.0 % 0.0 % Risk-free interest rate 0.23 % – 0.42 % 2.19 Expected volatility 70.85 % – 76.85 % 127.52 % Expected life (in years) 5.0 – 6.13 5.0 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.

5. Revenue Recognition

5. Revenue Recognition	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	5. Revenue Recognition We generally recognize product revenue upon shipment or after meeting certain performance obligations. These products can include hardware, perpetual software licenses and data sets. Data set updates are the majority of our sales. We do not currently offer software on a subscription basis. Warranty costs and sales returns have not been material. We recognize sales of our data sets in accordance with FASB ASC Topic 606 whereby revenue from contracts with customers is not recognized until all five of the following have been met: i) identify the contract with a customer; ii) identify the performance obligations in the contract; iii) determine the transaction price; iv) allocate the transaction price to the separate performance obligations; and v) recognize revenue upon satisfaction of a performance obligation. Data updates are typically done monthly and revenue will be matched accordingly. Product sales may include maintenance and customer support allocated revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy using the relative selling price method. All of our product offering and service offering market values are readily determined based on current and prior stand-alone sales. We may defer and recognize maintenance, updates and support revenue over the term of the contract period, which is generally one year. Service revenue, primarily including maintenance, training and installation are recognized upon delivery of the service and typically are unrelated to product sales. To date, training and installation revenue has not been material. These revenues are included in net customer support and maintenance revenues in the statement of operations. Our normal payment terms offered to customers, distributors and resellers are net 30 days domestically and net 45 days internationally. We do not offer payment terms that extend beyond one year and rarely do we extend payment terms beyond our normal terms. If certain customers do not meet our credit standards, we do require payment in advance to limit our credit exposure. Shipping and handling costs are billed to the customer and included in product revenue. Shipping and handling expenses are included in cost of product revenue. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the goods. Contract assets represent contract billings for sales per contracts with customers and are classified as current. Our contract assets include our accounts receivables. At September 30, 2020, the Company had contract assets balance of $1,030,000. At December 31, 2019, the Company had contract assets balance of $1,566,000. Contract liabilities consist of cash payments in advance of the Company satisfying performance obligations and recognizing revenue. The Company currently classifies deferred revenue as a contract liability. At September 30, 2020, the Company had contract liabilities balance of $58,000. At December 31, 2019, the Company had contract liabilities balance of $516,000.

6. Net Income (Loss) Per Share

6. Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	6. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (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. The aggregate number of common stock equivalents excluded from the diluted income (loss) per share calculation for the three month periods ended September 30, 2020 and 2019 are 1,071,952 and 0, respectively. The aggregate number of common stock equivalents excluded from the diluted income (loss) per share calculation for the nine month periods ended September 30, 2020 and 2019 are 960,933 and 4,044, respectively. Since the Company is in a net loss position for the three and nine month periods ending September 30, 2020, basic and dilutive net loss per share are the same.

7. Concentrations

7. Concentrations	9 Months Ended
	Sep. 30, 2020
Risks and Uncertainties [Abstract]
Concentrations	7. Concentrations Our operations are concentrated in one area—security software/entity identification. Sales to the U.S. Government through direct and indirect channels totaled 92.3% of total revenues for the third quarter of 2020 compared to 90.9% of total revenues for the third quarter of 2019. During the third quarter of 2020, approximately 92.3% of total revenues were attributable to four government customers compared to approximately 75.8% of total revenues attributable to three government customers in the third quarter of 2019. In the third quarter of 2020 and 2019, no individual commercial customer had revenues over 10.0% of total revenue. Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering.

8. Commitments and Contingencie

8. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 arise in the future will not have such a material impact on the Company.

9. Preferred Stock Conversion

9. Preferred Stock Conversion	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Preferred Stock Conversion	9. Preferred Stock Conversion During August 2020, all current shares of issued and outstanding preferred stock were voluntarily converted, resulting in the issuance of a total of 1,004,249 newly issued shares of the Company’s common stock. The addition of these newly issued shares has resulted in the dilution of each share of issued and outstanding common stock by a factor of 7.28%. The elimination of these three classes of preferred stock removed a number of the Company’s obligations to the holders of preferred stock (such as the obligation to pay continuing dividends) as well as a number of restrictions on the Company’s activities (such as restrictions on certain capital raising and funding transactions).

10. Right-of-use Asset and Leas

10. Right-of-use Asset and Leasing Liabilities	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Right-of-use Asset and Leasing Liabilities	10. Right-of-use Asset and Leasing Liabilities U nder the new lease accounting standard, we have determined that we Additional qualitative and quantitative disclosures regarding the Company's leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of: (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less. As the implicit rate is not readily determinable for the Company's lease agreement, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. This discount rate for the lease approximates SVB's prime rate. Supplemental cash flow information includes operating cash flows related to operating leases. For the nine months ended September 30, 2020 and 2019, the Company had $271 thousand and $177 thousand, respectively, in lease payments related to operating leases. Schedule of Items Appearing on the Statement of Operations: Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating expense: Amortization expense – Finance ROU $ 11 $ 16 $ 32 $ 48 Lease expense – Operating ROU 82 82 248 244 Other expense: Interest expense – Finance ROU $ – $ 1 $ 2 $ 3 Future minimum lease obligations consisted of the following at September 30, 2020 (in thousands): Operating Finance Period ending September 30, ROU Leases ROU Leases Total 2021 $ 363 $ 31 $ 394 2022 367 2 369 2023 378 – 378 2024 384 – 384 2025 62 – 62 Thereafter – – – $ 1,554 $ 33 $ 1,587 Less Interest* (164 ) (1 ) $ 1,390 $ 32 *Interest is imputed for operating ROU leases and classified as lease expense and is included in operating expenses in the accompanying condensed consolidated statement of operations.

11. PPP Loan

11. PPP Loan	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
PPP Loan	11. PPP Loan On March 27, 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which includes provision for a Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration (“SBA”). The PPP allows qualifying businesses to borrow up to $10 million calculated based on qualifying payroll costs. The loan is guaranteed by the federal government, and does not require collateral. On April 30, 2020 we entered into a PPP Loan with Silicon Valley Bank effective April 30, 2020, pursuant to the PPP under CARES for $629,000. The PPP Loan matures on April 30, 2022 and bears interest at a rate of 1.0% per annum. Monthly amortized principal and interest payments are deferred for six months after the date of disbursement. The PPP Loan funds were received on April 30, 2020. The PPP Loan contains events of default and other provisions customary for a loan of this type. The PPP provides that (1) the use of PPP Loan amount shall be limited to certain qualifying expenses, (2) 100 percent of the principal amount of the loan is guaranteed by the SBA and (3) an amount up to the full principal amount may qualify for loan forgiveness in accordance with the terms of CARES. As of September 30, 2020, the Company was in full compliance with all covenants with respect to the PPP Loan. The Company expects to use the full proceeds of the PPP loan in accordance with the provisions of CARES. As of September 30, 2020, the balance of the PPP Loan was $631,000, which includes $2.0 thousand in accrued interest. We have submitted the PPP Loan Forgiveness Application and expect full forgiveness as we have met all stated requirements. Future minimum loan obligations consisted of the following at September 30, 2020 (in thousands): Period ending September 30, PPP Loan 2021 $ 392 2022 249 2023 – 2024 – 2025 – Thereafter – $ 641 Less Interest* (12 ) $ 629

12. Coronavirus Outbreak in the

12. Coronavirus Outbreak in the United States	9 Months Ended
	Sep. 30, 2020
Coronavirus Outbreak In United States
Coronavirus Outbreak in the United States	12. Coronavirus Outbreak in the United States Uncertainties surrounding the effects of the coronavirus, particularly potential diversion of time and resources of federal government entities which make up a significant concentration of our customer base, could cause a material adverse effect on our results of operations and financial results. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers, employees and vendors all of which are uncertain and cannot be predicted. A material disruption in our workplace as a result of the coronavirus could affect our ability to carry on our business operations in the ordinary course and may require additional cost and effort should our employees not be able to be physically on-premises.

13. Subsequent Events

13. Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events The Company completed a follow-on public offering of 3,565,000 shares of common stock at a price to the public of $8.00 per share, including 2,000,000 shares of common stock to be issued and sold by INTRUSION and 1,100,000 shares of common stock to be offered by the group of selling shareholders, together with 465,000 shares purchased when the underwriter exercised its option to purchase all of the available shares under the underwriter’s overallotment option (the “Secondary Public Offering”). Gross proceeds of the offering to the company, before deducting underwriting discounts, commissions and estimated offering expenses, were approximately $19,720,000. Net proceeds to INTRUSION of approximately $18,053,000 are intended to fund several growth initiatives, including the commercialization of its new INTRUSION Shield solutions designed for the enterprise market. On October 9, 2020 and in connection with the closing of our Secondary Public Offering, our stock began trading on the Nasdaq Capital Market (“Nasdaq”) under the symbol “INTZ”.

4. Accounting for Stock-based_2

4. Accounting for Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Valuation assumptions for stock-based compensation	For Three Months September 30, For Three Months September 30, For Nine Months For Nine Weighted average grant date fair value 4.98 – $ 2.86 $ 3.61 Weighted average assumptions used: Expected dividend yield 0.0 % – 0.0 % 0.0 % Risk-free interest rate 0.23 % – 0.42 % 2.19 Expected volatility 70.85 % – 76.85 % 127.52 % Expected life (in years) 5.0 – 6.13 5.0

10. Right-of-use Asset and Le_2

10. Right-of-use Asset and Leasing Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Lease cost table	Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating expense: Amortization expense – Finance ROU $ 11 $ 16 $ 32 $ 48 Lease expense – Operating ROU 82 82 248 244 Other expense: Interest expense – Finance ROU $ – $ 1 $ 2 $ 3
Future minimum lease obligations	Operating Finance Period ending September 30, ROU Leases ROU Leases Total 2021 $ 363 $ 31 $ 394 2022 367 2 369 2023 378 – 378 2024 384 – 384 2025 62 – 62 Thereafter – – – $ 1,554 $ 33 $ 1,587 Less Interest* (164 ) (1 ) $ 1,390 $ 32

11. PPP Loan (Tables)

11. PPP Loan (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt [Table Text Block]	Period ending September 30, PPP Loan 2021 $ 392 2022 249 2023 – 2024 – 2025 – Thereafter – $ 641 Less Interest* (12 ) $ 629

3. Loan Payable to Officer (Det

3. Loan Payable to Officer (Details Narrative) - USD ($)	Oct. 24, 2019	Feb. 07, 2019	Feb. 08, 2018
Revolving Credit Facility [Member] | Chief Executive Officer [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 0	$ 2,700,000	$ 3,700,000

4. Accounting for Stock-based_3

4. Accounting for Stock-based Compensation - Valuation Assumptions (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Weighted average grant date fair value (in dollars per share)	$ 4.98		$ 2.86	$ 3.61
Weighted average assumptions used:
Expected dividend yield	0.00%		0.00%	0.00%
Risk-free interest rate	0.23%		0.42%	2.19%
Expected volatility	70.85%		76.85%	127.52%
Expected life (in years) (Year)	5 years		6 years 1 month 16 days	5 years

4. Accounting for Stock-based_4

4. Accounting for Stock-based Compensation (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock-based compensation expense			$ 174,000	$ 24,000
Options [Member]
Options granted, shares	10,000	10,000	24,000	333,000
Stock-based compensation expense	$ 10,000	$ 10,000	$ 24,000	$ 174,000
Stock options exercised, shares	133,000	10,500	319,600	291,000
Options [Member] | 2015 Plan [Member]
Stock options exercised, shares	30,000		45,000
Options [Member] | 2005 Plan [Member]
Stock options exercised, shares	103,000	10,500	274,600	291,000

5. Revenue Recognition (Details

5. Revenue Recognition (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 1,030,000	$ 1,566,000
Contract liabilities	$ 58,000	$ 516,000

6. Net Income (Loss) Per Share

6. Net Income (Loss) Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Antidilutive shares	1,071,952	0	960,933	4,044

7. Concentrations (Details Narr

7. Concentrations (Details Narrative) - Total Revenues [Member] - U S Government [Member]	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Concentration Risk, Percentage	92.30%	90.90%
Four Govt Customers [Member]
Concentration Risk, Percentage	92.30%
Three Govt Customers [Member]
Concentration Risk, Percentage		75.80%

9. Preferred Stock Conversion (

9. Preferred Stock Conversion (Details Narrative)	8 Months Ended
	Aug. 31, 2020shares
Common Stock [Member]
Stock converted, shares issued	1,004,249

10. Right-of-use Asset and Le_3

10. Right-of-use Asset and Leasing Liabilities (Details - Income Statement) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Amortization expense - Finance ROU	$ 11	$ 16	$ 32	$ 48
Lease expense - Operating ROU	82	82	248	244
Interest expense - Finance ROU	$ 0	$ 1	$ 2	$ 3

10. Right-of-use Asset and Le_4

10. Right-of-use Asset and Leasing Liabilities (Details - Minimum obligation) - USD ($)		Sep. 30, 2020	Mar. 31, 2019
Leases [Abstract]
Operating ROU Leases, 2021		$ 363,000
Operating ROU Leases, 2022		367,000
Operating ROU Leases, 2023		378,000
Operating ROU Leases, 2024		384,000
Operating ROU Leases, 2025		62,000
Operating ROU Leases, Thereafter		0
Operating ROU Leases Undiscounted Obligation		1,554,000
Operating ROU Leases, Less Interest*	[1]	(164,000)
Operating ROU Leases		1,390,000	$ 1,744,000
Finance ROU Leases, 2021		31,000
Finance ROU Leases, 2022		2,000
Finance ROU Leases, 2023		0
Finance ROU Leases, 2024		0
Finance ROU Leases, 2025		0
Finance ROU Leases, Thereafter		0
Finance ROU Leases Undiscounted Obligation		33,000
Finance ROU Leases, Less Interest*	[1]	(1,000)
Finance ROU Leases		32,000
2021		394,000
2022		369,000
2023		378,000
2024		384,000
2025		62,000
Thereafter		0
Lessee, Operating and Finance Lease, Liability, Payments, Due		$ 1,587,000
[1]	Interest is imputed for operating ROU leases and classified as lease expense and is included in operating expenses in the accompanying condensed consolidated statement of operations.

10. Right-of-use Asset and Le_5

10. Right-of-use Asset and Leasing Liabilities (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Mar. 31, 2019
Finance lease, term of contract	3 years
Operating Lease, Right-of-Use Asset	$ 1,160		$ 1,348	$ 1,553
Operating Lease, Liability, Total	1,390			$ 1,744
Operating Lease, Payments	$ 177	$ 271
Richardson Property [Member]
Operating lease, term of contract	4 years 2 months
The San Marcos Property [Member]
Operating lease, term of contract	6 months

11. PPP Loan (Details)

11. PPP Loan (Details) - Paycheck Protection Program CARES Act [Member]	Sep. 30, 2020USD ($)
2021	$ 392,000
2022	249,000
2023	0
2024	0
2025	0
Thereafter	0
Long-term Debt, Before Expected Interest	641,000
Less Interest*	(12,000)
Long-term Debt, Total	$ 629,000

11. PPP Loan (Details Narrative

11. PPP Loan (Details Narrative) - USD ($)	4 Months Ended	9 Months Ended
	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Proceeds from Issuance of Long-term Debt, Total		$ 629,000	$ 0
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Long-term Debt, Total	$ 629,000
Notes Payable, Total		631,000
Interest Payable		$ 2,000
Debt maturity date	Apr. 30, 2022