Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-39608 | |
Entity Registrant Name | INTRUSION INC. | |
Entity Central Index Key | 0000736012 | |
Entity Tax Identification Number | 75-1911917 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 101 East Park Blvd | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75074 | |
City Area Code | (972) | |
Local Phone Number | 234-6400 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | INTZ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,401,395 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 177 | $ 3,015 |
Accounts receivable, net | 450 | 530 |
Prepaid expenses and other assets | 305 | 1,877 |
Total current assets | 932 | 5,422 |
Property and equipment: | ||
Equipment | 3,115 | 2,865 |
Capitalized software development | 2,527 | 1,380 |
Furniture and fixtures | 43 | 43 |
Leasehold improvements | 78 | 78 |
Property and equipment, gross | 5,763 | 4,366 |
Accumulated depreciation and amortization | (2,921) | (2,208) |
Property and equipment, net | 2,842 | 2,158 |
Finance leases, right-of-use assets, net | 549 | 1,048 |
Operating leases, right-of-use assets, net | 237 | 504 |
Other assets | 161 | 143 |
Total noncurrent assets | 3,789 | 3,853 |
TOTAL ASSETS | 4,721 | 9,275 |
Current Liabilities: | ||
Accounts payable, trade | 2,497 | 1,273 |
Accrued expenses | 635 | 446 |
Finance lease liabilities, current portion | 617 | 667 |
Operating lease liabilities, current portion | 113 | 294 |
Notes payable, current portion | 11,021 | 10,114 |
Deferred revenue | 862 | 455 |
Total current liabilities | 15,745 | 13,249 |
Noncurrent Liabilities: | ||
Finance lease liabilities, noncurrent portion | 4 | 10 |
Operating lease liabilities, noncurrent portion | 135 | 231 |
Notes payable, noncurrent portion | 370 | 0 |
Total noncurrent liabilities | 509 | 241 |
Commitments and Contingencies – (See Note 5) | ||
Stockholders’ Deficit: | ||
Preferred stock, $0.01 par value: Authorized shares – 5,000 Issued shares – 0 in 2023 and 2022 | 0 | 0 |
Common stock, $0.01 par value: Authorized shares – 80,000; Issued shares – 24,620 in 2023 and 21,198 in 2022; Outstanding shares – 24,610 in 2023 and 21,188 in 2022 | 246 | 212 |
Common stock held in treasury, at cost – 10 shares | (362) | (362) |
Additional paid-in capital | 96,026 | 92,304 |
Accumulated deficit | (107,400) | (96,326) |
Accumulated other comprehensive loss | (43) | (43) |
Total stockholders’ deficit | (11,533) | (4,215) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 4,721 | $ 9,275 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000 | 80,000 |
Common stock, shares issued | 24,620 | 21,198 |
Common stock, shares outstanding | 24,610 | 21,188 |
Common stock held in treasury, at cost, shares (in shares) | 10 | 10 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,468 | $ 2,192 | $ 4,245 | $ 6,085 |
Cost of revenue | 324 | 995 | 967 | 2,814 |
Gross profit | 1,144 | 1,197 | 3,278 | 3,271 |
Operating expenses: | ||||
Sales and marketing | 1,357 | 1,711 | 4,518 | 4,485 |
Research and development | 1,171 | 1,456 | 4,418 | 4,592 |
General and administrative | 1,309 | 1,852 | 4,000 | 5,961 |
Operating loss | (2,693) | (3,822) | (9,658) | (11,767) |
Interest and other income | 2 | 2,002 | 43 | 2,004 |
Interest expense | (520) | (1,061) | (1,459) | (1,657) |
Gain (loss) on lease termination | 0 | (35) | 0 | 385 |
Net loss | $ (3,211) | $ (2,916) | $ (11,074) | $ (11,035) |
Net loss per share: | ||||
Basic | $ (0.14) | $ (0.15) | $ (0.51) | $ (0.57) |
Diluted | $ (0.14) | $ (0.15) | $ (0.51) | $ (0.57) |
Weighted average common shares outstanding: | ||||
Basic | 23,061 | 19,826 | 21,844 | 19,433 |
Diluted | 23,061 | 19,826 | 21,844 | 19,433 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock, Common [Member] | AOCI Attributable to Parent [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 191 | $ (362) | $ (43) | $ 84,230 | $ (80,097) | $ 3,919 |
Beginning Balance, shares at Dec. 31, 2021 | 19,135 | 10 | ||||
Stock-based compensation expense | 427 | 427 | ||||
Exercise of stock options | $ 1 | 60 | 61 | |||
Exercise of stock options, shares | 91 | |||||
Public stock offering, net of fees | $ 3 | 946 | 949 | |||
Public stock offering, net of fees, shares | 248 | |||||
Net loss | (4,054) | (4,054) | ||||
Ending balance, value at Mar. 31, 2022 | $ 195 | $ (362) | (43) | 85,663 | (84,151) | 1,302 |
Ending Balance, shares at Mar. 31, 2022 | 19,474 | 10 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 191 | $ (362) | (43) | 84,230 | (80,097) | 3,919 |
Beginning Balance, shares at Dec. 31, 2021 | 19,135 | 10 | ||||
Net loss | (11,035) | |||||
Ending balance, value at Sep. 30, 2022 | $ 209 | $ (362) | (43) | 90,787 | (91,132) | (541) |
Ending Balance, shares at Sep. 30, 2022 | 20,883 | 10 | ||||
Beginning balance, value at Mar. 31, 2022 | $ 195 | $ (362) | (43) | 85,663 | (84,151) | 1,302 |
Beginning Balance, shares at Mar. 31, 2022 | 19,474 | 10 | ||||
Stock-based compensation expense | 450 | 450 | ||||
Exercise of stock options | 4 | 4 | ||||
Exercise of stock options, shares | 6 | |||||
Public stock offering, net of fees | $ 1 | 254 | 255 | |||
Public stock offering, net of fees, shares | 84 | |||||
Partial extinguishment of operating lease with common stock | 200 | 200 | ||||
Partial extinguishment of operating lease with common stock, shares | 75 | |||||
Issuance of restricted stock, net of forfeitures | $ 1 | (1) | ||||
Issuance of restricted stock, net of forfeitures, shares | 106 | |||||
Net loss | (4,065) | (4,065) | ||||
Ending balance, value at Jun. 30, 2022 | $ 197 | $ (362) | (43) | 86,570 | (88,216) | (1,854) |
Ending Balance, shares at Jun. 30, 2022 | 19,745 | 10 | ||||
Stock-based compensation expense | 229 | 229 | ||||
Public stock offering, net of fees | $ 3 | 685 | 688 | |||
Public stock offering, net of fees, shares | 199 | |||||
Registered direct offering, net of fees | $ 9 | 3,303 | 3,312 | |||
Registered direct offering, net of fees, shares | 939 | |||||
Net loss | (2,916) | (2,916) | ||||
Ending balance, value at Sep. 30, 2022 | $ 209 | $ (362) | (43) | 90,787 | (91,132) | (541) |
Ending Balance, shares at Sep. 30, 2022 | 20,883 | 10 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 212 | $ (362) | (43) | 92,304 | (96,326) | (4,215) |
Beginning Balance, shares at Dec. 31, 2022 | 21,198 | 10 | ||||
Stock-based compensation expense | 94 | 94 | ||||
Exercise of stock options | 7 | 7 | ||||
Exercise of stock options, shares | 58 | |||||
Public stock offering, net of fees | 21 | 21 | ||||
Public stock offering, net of fees, shares | 2 | |||||
Withholdings related to stock-based compensation awards | (5) | (5) | ||||
Net loss | (4,734) | (4,734) | ||||
Ending balance, value at Mar. 31, 2023 | $ 212 | $ (362) | (43) | 92,421 | (101,060) | (8,832) |
Ending Balance, shares at Mar. 31, 2023 | 12,258 | 10 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 212 | $ (362) | (43) | 92,304 | (96,326) | (4,215) |
Beginning Balance, shares at Dec. 31, 2022 | 21,198 | 10 | ||||
Net loss | (11,074) | |||||
Ending balance, value at Sep. 30, 2023 | $ 246 | $ (362) | (43) | 96,026 | (107,400) | (11,533) |
Ending Balance, shares at Sep. 30, 2023 | 24,620 | 10 | ||||
Beginning balance, value at Mar. 31, 2023 | $ 212 | $ (362) | (43) | 92,421 | (101,060) | (8,832) |
Beginning Balance, shares at Mar. 31, 2023 | 12,258 | 10 | ||||
Stock-based compensation expense | 331 | 331 | ||||
Public stock offering, net of fees | $ 10 | 1,299 | 1,309 | |||
Public stock offering, net of fees, shares | 970 | |||||
Issuance of restricted stock, net of forfeitures | $ 2 | (2) | ||||
Issuance of restricted stock, net of forfeitures, shares | 214 | |||||
Net loss | (3,129) | (3,129) | ||||
Ending balance, value at Jun. 30, 2023 | $ 224 | $ (362) | (43) | 94,049 | (104,189) | (10,321) |
Ending Balance, shares at Jun. 30, 2023 | 22,442 | 10 | ||||
Stock-based compensation expense | 293 | 293 | ||||
Exercise of stock options | ||||||
Exercise of stock options, shares | 3 | |||||
Public stock offering, net of fees | $ 22 | 1,684 | 1,706 | |||
Public stock offering, net of fees, shares | 2,175 | |||||
Net loss | (3,211) | (3,211) | ||||
Ending balance, value at Sep. 30, 2023 | $ 246 | $ (362) | $ (43) | $ 96,026 | $ (107,400) | $ (11,533) |
Ending Balance, shares at Sep. 30, 2023 | 24,620 | 10 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||
Net loss | $ (11,074) | $ (11,035) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,214 | 925 |
Bad debt expense | 59 | 0 |
Stock-based compensation | 718 | 1,106 |
Non-cash lease costs | 267 | 227 |
Amortization of debt issuance costs | 446 | 590 |
Non-cash interest and interest accretion up to the redemption common stock settlement amount | 831 | 1,038 |
Employee retention credit | 0 | (2,000) |
Gain on lease termination | 0 | (385) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 21 | 118 |
Prepaid expenses and other assets | 1,572 | (473) |
Accounts payable and accrued expenses | 1,037 | 1,018 |
Operating lease liabilities | (277) | (995) |
Deferred revenue | 407 | 309 |
Net cash used in operating activities | (4,779) | (9,557) |
Investing Activities: | ||
Capitalization of software development | (1,013) | (890) |
Purchases of property and equipment | (28) | (223) |
Net cash used in investing activities | (1,041) | (1,113) |
Financing Activities: | ||
Proceeds from notes payable | 0 | 10,000 |
Payment on notes payable issuance costs | 0 | (710) |
Principal payments on notes payable | 0 | (500) |
Proceeds from stock options exercised | 7 | 66 |
Proceeds from registered direct offering, net of fees | 0 | 3,312 |
Proceeds from public stock offering, net of fees | 3,036 | 1,891 |
Withholdings related to stock-based compensation awards | (5) | 0 |
Reduction of finance lease liability | (56) | (583) |
Net cash provided by financing activities | 2,982 | 13,476 |
Net (decrease) increase in cash and cash equivalents | (2,838) | 2,806 |
Cash and cash equivalents at beginning of period | 3,015 | 4,100 |
Cash and cash equivalents at end of period | 177 | 6,906 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ACTIVITIES: | ||
Cash paid for interest | 166 | 30 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Common stock issued for lease termination | 0 | 200 |
Equipment purchases and capitalized software included in accounts payable | $ 358 | $ 0 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | 1. Description of Business Intrusion, Inc. (together with its consolidated subsidiaries, the “Company”, “Intrusion”, “Intrusion Inc.”, “we”, “us”, “our”, or similar terms) was 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. The Company develops, sells, and supports products that protect any-sized company or government organization by fusing advanced threat intelligence with real-time mitigation to kill cyberattacks as they occur – including Zero-Days. The Company markets and distributes the Company’s solutions through value-added resellers, managed service providers and a direct sales force. The Company’s end-user customers include U.S. federal government entities, state and local government entities, and companies ranging in size from mid-market to large enterprises. TraceCop (“TraceCop™”) Savant “Savant™ INTRUSION Shield |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. 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 the condensed 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 approximate their carrying amounts due to the relatively short maturity of these instruments. Notes payable and financing and operating leases approximate fair value as they bear market rates of interest. None of these instruments are held for trading purposes. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As of September 30, 2023, the Company had cash and cash equivalents of $ 0.2 14.8 9.3 6.4 3.0 The audit opinion that accompanied the Company’s financial statements as of and for the year ended December 31, 2022, was qualified in that the Company’s auditors expressed substantial doubt about the Company’s ability to continue as a going concern. |
Right-of-use Asset and Leasing
Right-of-use Asset and Leasing Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Right-of-use Asset And Leasing Liabilities | |
Right-of-use Asset and Leasing Liabilities | 3. Right-of-use Asset and Leasing Liabilities The Company has operating and finance leases where it records the right-of-use assets and a related lease liability as required under ASC 842. The lease liabilities are determined by the net present value of total lease payments and amortized over the life of the lease. All obligations under the Company’s lease agreements are designed to terminate with the last scheduled payment. The Company’s leases are for the following types of assets: · Computer hardware and copy machines- The Company’s finance lease right-of-use assets consist of computer hardware and copy machines. These leases have a three-year life and are in various stages of completion. · Office space - The Company’s operating lease right-of-use assets include its rental agreements for its offices in Plano, TX, and a data service center in Allen, TX. The Plano offices operating lease expired on September 30, 2023. In October 2023, the Company signed a new lease with a term of eleven years and one month that commences upon completion of tenant improvements. A temporary lease has been signed and is effective until tenant improvements are complete. The data service center operating lease liability has a life of two years and one month as of September 30, 2023. In accordance with ASC 842, the Company has elected practical expedients to combine 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 agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. This discount rate for the lease approximates the federal reserve’s prime rate. For the three and nine months ended September 30, 2023, the Company had $ 0.1 0.3 1 56 Schedule of Items Appearing on the Condensed Consolidated Statement of Operations (in thousands): Schedule of lease cost Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating expense: Amortization expense – Finance ROU $ 166 $ 166 $ 499 $ 498 Lease expense – Operating ROU $ 112 $ 82 $ 268 $ 268 Other expense: Interest expense – Finance ROU $ 2 $ 7 $ 13 $ 29 Future minimum lease obligations consisted of the following as of September 30, 2023 (in thousands): Schedule of future minimum lease obligations Operating Finance Period ending December 31, ROU Leases ROU Leases Total 2023 $ 20 $ 611 $ 631 2024 123 8 131 2025 115 2 117 $ 258 $ 621 $ 879 Less Interest* (10 ) – $ 248 $ 83 * 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. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | 4. Notes Payable On March 10, 2022, Intrusion Inc. entered into a security purchase agreement (the “SPA”) with Streeterville Capital, LLC (“Streeterville”) whereby the Company issued two separate promissory notes of $ 5.4 million 4.6 4.7 0.4 0.4 1 There have been no redemptions in 2023. The Company has the option, in its sole discretion, to satisfy any redemption demands in cash or shares of its common stock that will be issued in an amount equal to the dollar amount of the redemption demand divided by the number that represents 85% of the average of the two lowest daily volume weighted average prices of common stock over a fifteen-day trailing period. This option to settle in shares at a 15% discount is deemed a beneficial conversion feature (“BCF”). Any remaining indebtedness at maturity is payable in cash. The loan agreement and accompanying notes are subject to standard and customary events of default, including, without limitation, the Company’s continued listing on the Nasdaq or New York Stock Exchange. While the notes remain outstanding, the Company will be subject to certain conditions and restrictions, including, without limitation the following: the noteholder’s right to consent to any future variable rate transactions (excluding ATMs, equity offerings, or private placements without market adjustable features) and any debt (excluding bank loans, lines of credit, mortgagees, leases, or asset backed loans); the noteholder’s right to participate in any debt or equity financings, excluding (ATM, loans, lines of credit, mortgagees, leases, or asset backed loans); a prohibition on the Company’s ability to extend or enter into any agreement restricting the Company’s ability to issue common stock under the notes; as well as a prohibition on the Company’s ability to permit any other lender to participate alongside the noteholder via any debt financing structures. The Company evaluated both the Note 1 and Note 2 in accordance with ASC 480 “ Distinguishing Liabilities from Equity The lender does not benefit if the fair value of the Company’s common stock increases and does not bear the risk that the fair value of the Company’s common stock might decrease. In accordance with ASC 480, the promissory notes have been recorded as a liability and the Company is recording interest expense over the term of the promissory note, using the interest method from ASC 835-30, to accrete the carrying amount of the promissory note up to the redemption common stock settlement amount. The Company has recorded debt issue costs totaling $ 1.8 0.5 For the three and nine months ended September 30, 2023, the Company recorded $ 0.5 1.5 26.9 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies The Company is periodically involved in various litigation claims asserted in the normal course of its business. The Company believes these actions are routine and incidental to the business. While the outcome of these actions cannot be predicted with certainty, the Company does not believe that any will have a material adverse impact on the Company’s business. Class Action Litigation On April 16, 2021, a class action lawsuit was filed in the United States District Court, Eastern District of Texas, Sherman Division, captioned Celeste v. Intrusion Inc. et al., Case No. 4:21-cv-00307 (E.D. Tex.) against the Company, the Company’s now-former chief financial officer, and now-former chief executive officer alleging, among other things, that the defendants made false and/or misleading statements or omissions about the Company’s business, operations, and prospects in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, as well as Section 20(a) of the Exchange Act. The Celeste lawsuit claimed compensatory damages and legal fees. On May 14, 2021, a related class action lawsuit was filed in the United States District Court, Eastern District of Texas, Sherman Division, captioned Neely v. Intrusion Inc., et al., Case No. 4:12-cv-00374 (E.D. Tex.) against the Company, the Company’s now-former chief financial officer, and now-former chief executive officer. The Neely lawsuit alleged the same violations under the federal securities laws as those alleged in the Celeste lawsuit. The Neely lawsuit also sought compensatory damages and legal fees. On November 23, 2021, the Court consolidated the Celeste and Neely actions, and appointed a lead plaintiff and lead plaintiff’s counsel. The lead plaintiff filed his amended complaint on February 7, 2022. The parties to the consolidated action held a mediation on April 5, 2022, at the conclusion of which the parties executed a settlement term sheet setting forth the material terms associated with the resolution of the action, subject to the preparation of formal documents and a plan of distribution approved by the Court. The settlement agreement was subject to certain terms and conditions and received final approval by the Court on December 16, 2022. At that time, a final judgment was entered dismissing the case, with the Court retaining jurisdiction over the action for purposes of enforcing the terms of the class settlement agreement. The $3.3 million settlement was paid by the Company’s insurance provider under its insurance policy as the Company’s retention had previously been exhausted. The lead plaintiff in the class action filed a motion for distribution of settlement funds on February 21, 2023. The Court approved the parties’ class action settlement and plan of allocation on March 22, 2023, and cancelled the previously rescheduled March 31, 2023, hearing on the motion for distribution, all remaining matters in the class action then-pending having been fully and finally adjudicated. Securities Investigation On August 8, 2021, the Company received a notification from the Securities and Exchange Commission, Division of Enforcement, that it was investigating captioned In the Matter Securities and Exchange Commission v Intrusion Inc. Stockholder Derivative Claim On June 3, 2022, a verified stockholder derivative complaint was filed in U.S. District Court, District of Delaware by plaintiff Nathan Prawitt (the “Plaintiff Stockholder”) on behalf of Intrusion against certain of the Company’s current and former officers and directors (the “Defendants”). Plaintiff alleges that Defendants through various actions breached their fiduciary duties, wasted corporate assets, and unjustly enriched Defendants by (a) incurring costs and expenses in connection with the ongoing SEC investigation, (b) incurring costs and expenses to defend the Company with respect to the consolidated class action, (c) settling class-wide liability with respect to the consolidated class action, as well as ancillary claims regarding sales of the Company’s common stock by certain of the Defendants. On September 28, 2023, the Company agreed to settle the claim. On October 2, 2023, public notice of the settlement was given. The settlement agreement provides in part for (i) an amendment to the Company’s Bylaws, committee Charters, and other applicable corporate policies to implement certain measures set forth more fully therein, to remain in effect for no less than three years; (ii) attorneys’ fees and expenses to plaintiff’s counsel of $ 0.3 0.3 0.5 In addition to these legal proceedings, the Company is subject to various other claims that may arise in the ordinary course of business. The Company does not believe that any claims exist where the outcome of such matters would have a material adverse effect on the Company’s condensed consolidated financial position, operating results, or cash flows. However, there can be no assurance such legal proceedings will not have a material impact on the Company’s future results. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Common Stock | 6. Common Stock ATM Program B. Riley Securities, Inc. acts as sales agent for the Company’s ATM program, which allows the Company to potentially sell up to $50.0 million of its common stock using a shelf registration statement on Form S-3 filed on August 5, 2021. On March 31, 2023, the date the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, the Company became subject to the offering limits in General Instruction I.B.6 of Form S-3. As a result, the Company filed a prospectus supplement to the prospectus relating to the registration of offerings under the program that reduced the amount the Company may sell to aggregate proceeds of up to $15 million. For the nine months ended September 30, 2023, the Company has received proceeds of approximately $3.0 million net of fees from the sale of common stock pursuant to the program. As of September 30, 2023, the Company has received proceeds of approximately $ 10.6 5.0 Registered Direct Offering On September 12, 2022, the Company entered in a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers to issue and sell to the purchasers an aggregate of 1,378,677 shares of the Company’s common stock (the “Shares”) each of which was coupled with a warrant to purchase one share of common stock (the “Warrants”) at an aggregate offering price of $4.29 per share and warrant, such offering is hereinafter referred to as its “registered direct offering”. Each warrant has an exercise price of $5.22 per share of common stock, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions and is exercisable from the date of its issuance through September 14, 2027. The Company delivered 939,284 Shares and Warrants on or about September 14, 2022. After September 30, 2022, the company issued an additional 273,309 Shares and related Warrants as a result of delayed closings. On November 10, 2022, the Company, reached an agreement with the sole remaining delayed basis investor in the registered direct offering to reduce the purchaser’s subscription by $0.7 million and, accordingly, reduce the Company’s obligation to issue securities. Following the final closing, the Company had received from its registered direct offering total aggregate proceeds of $5.2 million in exchange for the issuance of an aggregate of 1,212,593 shares of common stock and warrants to purchase 1,212,593 shares of common stock. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation The Company has three stock-based compensation plans as of September 30, 2023, and December 31, 2022. These plans include the 2021 Omnibus Incentive Plan, the 2015 Stock Incentive Plan and the 2005 Stock Incentive Plan. These plans are discussed in detail in the Company’s Annual Report Form 10-K for the year ended December 31, 2022, filed with the SEC. The Company grants stock from both the 2021 Omnibus Incentive Plan and the 2015 Stock Incentive Plan. These plans provide a means through which the Company may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of common stock, thereby strengthening their commitment to the welfare of the Company and aligning their interests with those of the Company’s stockholders. During the nine months ended September 30, 2023, the Company granted 213.7 131.6 0.1 0.3 0.2 0.5 0.2 During the nine months ended September 30, 2023, the Company granted 626.4 233.5 0.2 0.4 0.1 0.6 0.4 The following table summarizes the activities for the Company’s stock options for the nine months ended September 30, 2023: Schedule of stock option activities September 30, 2023 Number of Weighted Average (In thousands) Exercise Price Outstanding at beginning of year 668 $ 5.22 Granted 626 1.25 Exercised (72 ) 0.48 Forfeited (170 ) 4.32 Expired (42 ) 8.19 Outstanding on September 30, 2023 1,010 $ 3.12 Options exercisable on September 30, 2023 434 $ 4.24 Valuation Assumptions The fair values of employee option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: Schedule of valuation assumptions for stock-based compensation For Three Months Ended September 30, 2023 For Three Months Ended September 30, 2022 For Nine Months Ended September 30, 2023 For Nine Months Ended Weighted average grant date fair value $ – $ 3.58 $ 1.08 $ 3.41 Weighted average assumptions used: Expected dividend yield – 0.0% 0.0% 0.0% Risk-free interest rate – 2.81% 3.68% 1.43% Expected volatility – 132.2% 114.1% 132.7% Expected life (in years) – 6.9 6.4 6.7 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 United States (“U.S.”) Treasury instruments with maturities matching the relevant expected term of the award. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 8. Revenue Recognition The Company recognizes product revenue upon shipment or after meeting certain performance obligations. These products can include hardware, software subscriptions and consulting services. The Company also offers software on a subscription basis subject to software as a service (“SAAS”). Warranty costs and sales returns have not been material. The Company recognizes sales of its data sets in accordance with FASB ASC Topic 606 whereby revenue from contracts with customers are recognized once the criteria under the five steps below have been met: i) identification of the contract with a customer; ii) identification of the performance obligations in the contract; iii) determination of the transaction price; iv) allocation of the transaction price to each separate performance obligations; and v) recognition of revenue upon satisfaction of a performance obligation. Consulting services include reporting and are typically done monthly, and revenue is 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 product offering and service offering market values are readily determined based on current and prior stand-alone sales. The Company defers and recognizes maintenance, updates, and support revenue over the term of the contract period, which is generally one year. Normal payment terms offered to customers, distributors and resellers are net 30 days domestically. The Company does not offer payment terms that extend beyond one year and rarely does it extend payment terms beyond its normal terms. If certain customers do not meet the Company’s credit standards, the Company typically requires payment in advance to limit its credit exposure. With the Company’s newest product, INTRUSION Shield, INTRUSION Shield The Company utilizes the five-step process, mentioned above, per FASB ASC Topic 606 to recognize sales and will follow that directive, also, to define revenue items as individual and distinct. INTRUSION Shield · Access to Intrusion’s proprietary software and database to detect and prevent unauthorized access to its clients’ information networks; · Use of all software, associated media, printed materials, data, files, online documentation, and any equipment that Intrusion provides for customers to access the INTRUSION Shield · Tech support, post contract customer support (PCS) includes daily program releases or corrections provided by Intrusion without additional charge. INTRUSION Shield Contracts provide for no other services, and the Company’s customers have no rebates or return rights, nor are any such rights anticipated to be offered as part of this service. The Company satisfies its performance obligation when the INTRUSION Shield The Company’s accounts receivable represents unconditional contract billings for sales per contracts with customers and are classified as current assets. The Company had net accounts receivable balances of $ 0.5 52 no We had no Contract liabilities consist of cash payments in advance of the Company satisfying performance obligations and recognizing revenue. The Company classifies contract liabilities as deferred revenue. The following table presents changes in the Company’s contract liability during the nine months ended September 30, 2023, and the year ended December 31, 2022 (in thousands): Schedule of contract liability September 30, 2023 December 31, 2022 Balance at beginning of period $ 455 $ 560 Additions 2,619 1,877 Revenue recognized (2,212 ) (1,982 ) Balance at end of period $ 862 $ 455 |
Capitalized Software Developmen
Capitalized Software Development | 9 Months Ended |
Sep. 30, 2023 | |
Extractive Industries [Abstract] | |
Capitalized Software Development | 9. Capitalized Software Development The Company capitalizes internally developed software using the Agile software development methodology which allows the Company to accurately track, and record costs associated with new software development and enhancements. Pursuant to ASC Topic 350-40 Internal Use Software Accounting Capitalization, certain development costs related to the Company’s products during the application development stage are capitalized as part of property and equipment. Costs incurred in the preliminary stages of development are expensed as incurred. The preliminary stage includes such activities as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and the final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is complete and ready for its intended use. Capitalized internal use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 10. Net Loss Per Share The Company reports two separate net loss per share numbers, basic and diluted. Basic net loss attributable to common stockholders 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 attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. The common stock equivalents include all common stock issuable upon exercise of outstanding warrants, options and vesting of restricted stock awards. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three months ended September 30, 2023, and 2022 totaled 2,465 950 2,341 1,274 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events Partial Conversion of Streeterville Note #1 On October 11, 2023, and October 17, 2023, the Company agreed to exchange $0.4 million in aggregate principal on Streeterville Note #1 for 1.0 million shares of the Company’s common stock. The issuance of the shares was made pursuant to the exemption from the registration requirements afforded by Section 3(a)(9) of the Securities Act of 1933 as amended. Nasdaq Notification Regarding $35.0 Million Market Value of Listed Securities Continued Listing Requirements On October 26, 2023, Intrusion Inc. received a letter from the Listing Qualifications Staff of Nasdaq (the “Staff Determination”) notifying the Company that, based upon the Company’s non-compliance with the $35.0 million market value of listed securities requirement for continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Marketplace Rule 5550(b)(2), the Company’s securities are subject to delisting from Nasdaq unless the company requests a hearing before a Nasdaq Hearings Panel. The Company requested a hearing before a Hearings Panel, which will stay any action with respect to the Staff Determination until the Nasdaq Hearings Panel renders a final decision subsequent to the hearing. At the hearing, the Company expects to present its plan for regaining and sustaining compliance with all applicable requirements for continued listing on The Nasdaq Capital Market. There can be no assurance that such Nasdaq Panel will grant the Company’s request for continued listing. The notice has no immediate effect on the listing or trading of the Company’s common stock, which will continue to be listed and traded on the Nasdaq Capital Market. Private Offering On November 8, 2023, Intrusion Inc. entered into a Securities Purchase Agreement pursuant to which, among other things, the Company sold to certain purchasers, in a private offering, an aggregate of 4.4 million shares of its common stock, each of which is coupled with a warrant to purchase two shares of common stock, at an aggregate offering price of $0.60 per share and warrant. Wellington Shields & Co. LLC acted as placement agent in the offering. Each warrant will have an exercise price of $0.60 per share of common stock. The exercise prices for the warrants are subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions. The warrants are exercisable from the date of issuance through the five-year anniversary of such date. The private offering is expected to result in net proceeds to the Company of approximately $2.4 million, after deducting placement agent fees. The Company intends to use the net proceeds from the private offering for working capital, general corporate purposes, and the potential partial repayment of outstanding indebtedness to Streeterville Capital, LLC. |
Right-of-use Asset and Leasin_2
Right-of-use Asset and Leasing Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Right-of-use Asset And Leasing Liabilities | |
Schedule of lease cost | Schedule of lease cost Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating expense: Amortization expense – Finance ROU $ 166 $ 166 $ 499 $ 498 Lease expense – Operating ROU $ 112 $ 82 $ 268 $ 268 Other expense: Interest expense – Finance ROU $ 2 $ 7 $ 13 $ 29 |
Schedule of future minimum lease obligations | Schedule of future minimum lease obligations Operating Finance Period ending December 31, ROU Leases ROU Leases Total 2023 $ 20 $ 611 $ 631 2024 123 8 131 2025 115 2 117 $ 258 $ 621 $ 879 Less Interest* (10 ) – $ 248 $ 83 * 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. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activities | Schedule of stock option activities September 30, 2023 Number of Weighted Average (In thousands) Exercise Price Outstanding at beginning of year 668 $ 5.22 Granted 626 1.25 Exercised (72 ) 0.48 Forfeited (170 ) 4.32 Expired (42 ) 8.19 Outstanding on September 30, 2023 1,010 $ 3.12 Options exercisable on September 30, 2023 434 $ 4.24 |
Schedule of valuation assumptions for stock-based compensation | Schedule of valuation assumptions for stock-based compensation For Three Months Ended September 30, 2023 For Three Months Ended September 30, 2022 For Nine Months Ended September 30, 2023 For Nine Months Ended Weighted average grant date fair value $ – $ 3.58 $ 1.08 $ 3.41 Weighted average assumptions used: Expected dividend yield – 0.0% 0.0% 0.0% Risk-free interest rate – 2.81% 3.68% 1.43% Expected volatility – 132.2% 114.1% 132.7% Expected life (in years) – 6.9 6.4 6.7 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract liability | Schedule of contract liability September 30, 2023 December 31, 2022 Balance at beginning of period $ 455 $ 560 Additions 2,619 1,877 Revenue recognized (2,212 ) (1,982 ) Balance at end of period $ 862 $ 455 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Cash and cash equivalents | $ 0.2 | |
Working capital deficit | 14.8 | |
Common Stock [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from notes payable | $ 3 | |
Common Stock and Warrants [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance or sale of equity | $ 6.4 | |
Two Streeterville Notes [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from notes payable | $ 9.3 |
Right-of-use Asset and Leasin_3
Right-of-use Asset and Leasing Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating expense: | ||||
Amortization expense – Finance ROU | $ 166 | $ 166 | $ 499 | $ 498 |
Lease expense – Operating ROU | 112 | 82 | 268 | 268 |
Other expense: | ||||
Interest expense – Finance ROU | $ 2 | $ 7 | $ 13 | $ 29 |
Right-of-use Asset and Leasin_4
Right-of-use Asset and Leasing Liabilities (Details - Minimum lease obligation) $ in Thousands | Sep. 30, 2023 USD ($) | |
Operating and Finance total lease minimum obligation - Remaining 2023 | $ 631 | |
Operating and Finance total lease minimum obligation - 2024 | 131 | |
Operating and Finance total lease minimum obligation - 2025 | 117 | |
Operating and Finance total lease minimum obligation liability, | 879 | |
Operating ROU Leases [Member] | ||
Remaining 2023 | 20 | |
Operating ROU Leases, 2024 | 123 | |
Operating ROU Leases, 2025 | 115 | |
Operating ROU Leases Undiscounted Obligation | 258 | |
Operating ROU Leases, Less Interest | (10) | [1] |
Operating ROU Leases | 248 | |
Finance ROU Leases [Member] | ||
Remaining 2023 | 611 | |
Finance ROU Leases, 2024 | 8 | |
Finance ROU Leases, 2025 | 2 | |
Finance ROU Leases Undiscounted Obligation | 621 | |
Finance ROU Leases, Less Interest | 0 | [1] |
Finance ROU Leases | $ 83 | |
[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. |
Right-of-use Asset and Leasin_5
Right-of-use Asset and Leasing Liabilities (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Right-of-use Asset And Leasing Liabilities | ||
Operating lease payments | $ 100 | $ 300 |
Financing lease payments | $ 1 | $ 56 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 17, 2023 | Jun. 29, 2022 | Mar. 10, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Jan. 11, 2023 | |
Securities Financing Transaction [Line Items] | ||||||
Debt interest expense | $ 500,000 | $ 1,500,000 | ||||
Streeterville Capital [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Unamortized debt issuance costs | 500,000 | 500,000 | $ 400,000 | |||
Debt issue costs | $ 1,800,000 | $ 1,800,000 | ||||
Effective interest rate | 26.90% | 26.90% | ||||
Streeterville Capital [Member] | Tranche 1 [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | $ 5,400,000 | |||||
Proceeds from Issuance of Debt | 4,600,000 | |||||
Debt converted, amount converted | $ 400,000 | |||||
Debt converted, shares issued | 1 | |||||
Streeterville Capital [Member] | Tranche 2 [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | $ 5,400,000 | |||||
Streeterville Capital [Member] | Tranch 2 [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Proceeds from Issuance of Debt | $ 4,700,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Subsequent Event [Member] $ in Millions | Oct. 02, 2023 USD ($) |
Subsequent Event [Line Items] | |
Counsel fees and expenses | $ 0.3 |
Payment for insurance | 0.3 |
Paid retention was exhausted | $ 0.5 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - ATM Offering [Member] shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Securities Financing Transaction [Line Items] | |
Proceeds from issuance of common stock | $ | $ 10.6 |
Issuance of common stock | shares | 5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details - Stock option activities) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of options, Outstanding beginning balance | shares | 668 |
Weighted average exercise price, Outstanding beginning balance | $ / shares | $ 5.22 |
Number of options, Granted | shares | 626 |
Weighted average exercise price, Granted | $ / shares | $ 1.25 |
Number of options, Exercised | shares | (72) |
Weighted average exercise price, Exercised | $ / shares | $ 0.48 |
Number of options, Forfeited | shares | (170) |
Weighted average exercise price, Forfeited | $ / shares | $ 4.32 |
Number of options, Expired | shares | (42) |
Weighted average exercise price, Expired | $ / shares | $ 8.19 |
Number of options, Outstanding ending balance | shares | 1,010 |
Weighted average exercise price, Outstanding ending balance | $ / shares | $ 3.12 |
Number of options, Exercisable | shares | 434 |
Weighted average exercise price, Exercisable | $ / shares | $ 4.24 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details - Valuation Assumptions) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Weighted average grant date fair value | $ 0 | $ 3.58 | $ 1.08 | $ 3.41 |
Expected dividend yield | 0% | 0% | 0% | 0% |
Risk-free interest rate | 0% | 2.81% | 3.68% | 1.43% |
Expected volatility | 0% | 132.20% | 114.10% | 132.70% |
Expected life (in years) (Year) | 6 years 10 months 24 days | 6 years 4 months 24 days | 6 years 8 months 12 days |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 718 | $ 1,106 | ||
Restricted Stock Awards [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock options granted | 213,700 | 131,600 | ||
Stock-based compensation expense | $ 100 | $ 200 | $ 300 | $ 500 |
Unrecognized compensation cost not yet recognized, amount | 200 | $ 200 | ||
Stock Option Awards [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock options granted | 626,400 | 233,500 | ||
Stock-based compensation expense | 200 | $ 100 | $ 400 | $ 600 |
Unrecognized compensation cost not yet recognized, amount | $ 400 | $ 400 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability, Beginning | $ 455 | $ 560 |
Additions | 2,619 | 1,877 |
Contract liabilities revenue recognized | (2,212) | (1,982) |
Contract liability, Ending | $ 862 | $ 455 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 500 | $ 500 |
Allowance of doubtful accounts | 52 | 0 |
Contract assets | $ 0 | $ 0 |
Net Loss Per Share (Details Nar
Net Loss Per Share (Details Narrative) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares | 2,465 | 950 | 2,341 | 1,274 |