Intrusion at Sidoti Micro Cap Virtual Conference: Cybersecurity Growth Strategies

On Thursday, 21 August 2025, Intrusion Inc. (NASDAQ:INTZ) presented at the Sidoti Micro Cap Virtual Conference, unveiling strategic plans to enhance its cybersecurity solutions. The company highlighted its strengths, such as a robust threat intelligence database, while addressing challenges like cash burn and the need for revenue growth. Intrusion is shifting focus from government consulting to commercial products, aiming to expand its market presence.

Key Takeaways

• Intrusion’s Shield product line offers an additional cybersecurity layer, leveraging a database of 8.5 billion IPs.
• A $3 million contract with the US Department of Defense was secured for infrastructure protection in the Pacific Rim.
• The company is targeting Managed Service Providers and Value-Added Resellers to drive sales.
• Intrusion aims to break even at $12 million in revenue and is considering capital raising next year.
• Expansion into AWS and Azure Marketplaces is underway to boost commercial sales.

Financial Results

• Intrusion reported $8.84 million in cash and investments in its latest quarterly results.
• The company experiences a cash burn of approximately $2 million per quarter.
• Aiming for a breakeven point at around $12 million in revenue, with five consecutive quarters of growth.
• Potential capital raising is considered in the second quarter of next year if revenue targets are not met.

Operational Updates

• Intrusion secured a $3 million contract with the US Department of Defense, focusing on the Pacific Rim.
• The company is expanding its presence in the AWS Marketplace and plans to enter the Azure Marketplace.
• Licensing agreements with solution providers like PortNexus are in place to broaden technology reach.
• Emphasis is on the commercial Shield product to drive demand and sales.

Future Outlook

• Intrusion targets Managed Service Providers, Managed Service Security Providers, and Value-Added Resellers for growth.
• Plans are set to expand in AWS and Azure Marketplaces to enhance commercial sales.
• The company expects a growing pipeline due to its capabilities in defending against zero-day exploits and emerging threats.
• A robust development roadmap includes more than a year’s worth of planned features and capabilities.

Q&A Highlights

• CEO Tony Scott emphasized Intrusion’s unique cybersecurity capabilities as a reason for joining the company.
• The focus is shifting from government consulting to the commercial product, Shield, for growth opportunities.
• Intrusion’s revenue remains heavily weighted towards defense and government sectors.
• The company differentiates itself with a reputation-based system that retains and analyzes threat data longer than competitors.

In conclusion, Intrusion’s presentation at the Sidoti Micro Cap Virtual Conference highlighted its strategic focus on expanding commercial cybersecurity solutions while addressing financial challenges. For more detailed insights, refer to the full transcript below.

Full transcript - Sidoti Micro Cap Virtual Conference:

Anya Soderstrom, Senior Equity Analyst, Sidoti: The virtual microcap conference, and thank you for joining us. I’m Anya Soderstrom, a senior equity analyst here at Sidoti. And as I mentioned, next up, we have Intrusion, which trades under the ticker INTC at I have with me today Tony Scott, the CEO, and Kim Kimberly Pinson, the CFO. And this is gonna be conducted as a presentation followed by q and a. So the presentation is accessible on the company’s website if you want to follow along with the slides.

And if you would like to submit a question for the q and a, you can do so at the q and a function at the bottom of your screen. And with that, I’m happy to hand it over to you, Tony.

Tony Scott, CEO, Intrusion: Great. Thanks. And I apologize for being late. I was interviewing a salesperson that we are interested in for our company, so it just went a little longer than I was expecting it to. So thanks for having us today.

Mike, are you running the slides or who who’s who’s running the slides for us? I think it’s coming up. There we go. So we’re obviously in the cybersecurity space. We think we’re a great add on to the stack of technologies that companies may already have.

And what we do is pretty simple. We’re a extra layer of protection that turns out is really needed in today’s modern environment. Most companies and most organizations have a firewall of some kind that’s trying to protect the internal network, all of the devices and all of the people inside the organization, from the bad guys who are hanging out on the Internet somewhere and peppering every organization with phishing attacks and malware attacks and malvertising and all kinds of other things. And so what intrusion does is we sit right behind the firewall, and we’re a more fine grained filter for that traffic that’s making its way through the firewall inbound for your internal network. And then similarly, you may have conversations or or network connections that are started by devices or people inside your network bound for bad places on the Internet, and we also look at that traffic.

So that’s what we do. We’re this more fine grained filter. We’ve been building this for over thirty years. Our CTO, who’s still with us, decided early on when the Internet started that reputation on the Internet was gonna be something that was important. And so since the beginning of the Internet, we’ve been collecting information about good and bad actors on the Internet and who they associate with and the techniques and processes they use to try to compromise people with Internet connection.

And so our database today is over eight and a half billion IPs that has the this history of IP addresses and host names and so on. And our competitors by comparison tend to have a much smaller set of these things, although most cybersecurity companies have some form of this they call their blacklist, but ours is significantly bigger. All that really means is that there’s a much greater chance that we’re gonna catch something bad coming into your network or a connection that maybe somebody inside your environment is trying to make with a bad place outside. So the company started in 1983. We were building secure networks for the government, and that morphed into a government consulting business over time.

We launched our first shield commercial product in mid twenty twenty one, and I joined in the 2021. And then more recently in ’23 and ’24, we introduced additional capabilities for the cloud and and for endpoints. The first product was just an appliance that would go in the data center. And in ’25, we were fortuitously able to take advantage of a big bump in the marketplace, and we now are debt free. We have a great balance sheet and cash in the bank, and we’re now poised for long term sustainable growth.

Here’s a little on my background. I’ve had some fortune in terms of having had a bunch of really great experiences as CIO for the federal government and Microsoft and the Walt Disney Company and CTO at General Motors and CIO at vam VMware. And when I the reason I’m here and the reason I decided to join Intrusion is as CEO is I thought it was the most unique capability I’d ever seen in cybersecurity. Today, we have a very experienced team. Joining me today is Kim, our CFO.

She’s had great experience with taking companies from start up phase to mature company, worked with public companies as well as private equity based companies. Joe, who’s not on the call with us, is our CTO and one of the founders of the company. And Andrew and Blake and Mike together have decades of experience in the cybersecurity space. Much of that work working on some of the hardest problems that DOD and and some of our other government customers have have had to deal with. So we’ve given you a list of reasons why we think we’re a good investment at this particular point.

We’re we’re not trying to raise capital at the at the moment, and we don’t see a need to do so for probably the next year at least. But we do wanna create some awareness of who we are and and why we’re a great investment at this particular point. Our target market for our commercial product is managed service providers, managed service security providers, and value added resellers. And we think that approach allows us to scale sales without scaling expenses in disproportion. Couple of recent highlights.

We just announced a $3,000,000 contract with the US Department of Defense protecting critical infrastructure in the Pacific Rim. These are things like utilities for water and communications and electricity and so on. And as I mentioned earlier this year, we had a fortuitous market event that allowed us to retire debt and and put some money in the bank. We think we’re in a space where there’s a huge opportunity in terms of the addressable market. The the cost of cybercrime just keeps escalating, and the space that we’re targeting, small medium businesses in particular, are a prime target for bad guys who are doing this for economic reasons and are also a prime target from some of the strategic threats who would like to upset our core infrastructure.

So we think we’re in a in a particularly good space. There’s a bunch of things going on in our industry that we again think play to our strengths. The attacks are coming more and more frequently aided by AI now, so that virtually anybody who wants to become an actor in this threat landscape can use AI tools to create pretty sophisticated cyber attacks. So the quantity and and efficacy of attacks keeps increasing. And at the same time, the defenders are struggling with finding qualified staff.

When you ask CISOs, you know, how confident are you in your capabilities, you get a lot of, I’m not sure because the nature of these attacks keeps changing and and it’s a big big ask, a big problem that they that they face. And as I mentioned, the complexity of these attacks is also going up. And so we’re well positioned to defend against these and help these managed service providers and managed service security providers provide the best service they can to their small and medium business customers. We’re in a bunch of different segments across the board. For in terms of growth, we think critical infrastructure is probably the biggest opportunity that we have at the moment, but these others are certainly places where we both have experience and and and have customers as well.

So what makes this thing different? I think there’s a couple of things. I won’t read the whole slide. But as I mentioned, we’ve been collecting this data for a really long time, and we’ve been using algorithms and machine learning and now AI to continue to perfect this data that we have in our threat intelligence database. And what’s important about that is we’ve learned as much as you can possibly learn about what not to do as well as the things that actually work.

And we have we’re like an elephant. We never forget anything. And what you’ll find in competitive products or theoretically competitive products is their memories are typically about three or four years old, and they’ve devalued the information and the threats that are somewhat older than that. And what we’re seeing in our space in particular is that the bad guys resurrect these things, and soon as everybody’s looking the other way, they bring them back. And so we think it’s important to never ever forget anything that we’ve already learned about, you know, these threats, and that’s all in our database.

Alright. Let’s go to the next slide. So what this is an example of our dashboard. We show our customers all the inbound and outbound traffic that we think is dangerous or should be blocked. And it has different categories.

It could be malvertising. It could be known, you know, threats that are everybody sort of should know about. We rate these based on risk level, and we give you all the information that a security operations center analyst would need to make a decision about whether something should be blocked or not. This is whether you’re in enforced mode or or observed mode. If you’re in enforced mode, then we would automatically block these things.

And, frankly, it lightens the load of the security operations team if you’re in enforced mode. In observed mode, we just report the information to you, and then the customer can decide what they wanna do. And then there’s summary charts that show you by country and and by type of traffic, you know, what what we’ve seen and and why we killed it and so on. And so all of this is useful for customers to decide what they wanna prioritize. And more recently, we’ve added this AI insights summary to our engine so that we use AI technology to help focus efforts on the most important things that our security analysts should be paying attention to.

And, again, this helps lighten the load on on the security operations team. This is kind of a pictorial diagram of all the various versions of Shield that we have. So on the left hand side, you have on premise Shield, which is typically sitting in a data center or behind the firewall on a physical facility. We also have ShieldCloud that protects your assets in the private and public and hybrid cloud environments. And then we have Endpoint shield, which is iOS, Android, and Windows clients that provide protection for those devices.

And all of them come together in our cloud dashboard that allow you to manage these all collectively. Another pictorial, but the point of this slide is you’ve got a lot of things in your network potentially that are trying to provide protection from bad actors. You have firewalls, IDS, IPS, NDR technologies, and so on. And yet in case after case, what we see when we put Shield on somebody’s network is there’s a whole bunch of things that all of these technologies miss that are potentially harmful if they get into your network. And then uniquely, one of the things that we do is we also look at, as I mentioned before, outbound traffic.

And in today’s world, there’s a bazillion different ways that things inside your network can get infected. It doesn’t have to come in from the Internet. It could be equipment that’s already shipped with bad stuff in it. It could be employees bringing devices in and plugging them into the network and a host of other things. But eventually, bad things inside your network that are infected and wanna make a call home to a command and control server somewhere on the Internet, and those are the things that we’re exceptionally good at blocking.

So that’s kind of a summary of what we are and what we do, and happy to take any questions.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Thank you, Tony. It was a good overview. And to the audience, if you have any question, you can submit it in the q and a function at the bottom of your screen. So I’ll kick it off with a couple of questions here. So, Tony, you said you joined the company a couple of years ago.

What led you to join Intrusion, and and what was sort of your vision when you joined?

Tony Scott, CEO, Intrusion: Well, I joined because as soon as I was exposed to what Intrusion was doing from a cybersecurity perspective, I thought it was the most unique, impactful thing I had seen in a really, really long time. And my recent history before that is I had been acting as a front end for some family funds and so on who were interested in investing in early stage startup, you know, tech technology in the cybersecurity space. And when I saw Intrusion, I thought this was the most unique thing I had run across in a couple of years. And I thought I could make a contribution in terms of, you know, guiding the the team and and the and the firm forward. So that was the reason, and I think even more about that today.

So

Anya Soderstrom, Senior Equity Analyst, Sidoti: Yeah. And you recently reported your results. You had a very strong another quarter of very strong revenue growth. And and how sustainable is that trajectory you think? And and also, it seems like it’s very heavily weighted towards the the defense and government.

And what steps are you taking to sort of diversify your customer?

Tony Scott, CEO, Intrusion: Yeah. So hidden behind the numbers is, historically, much of our government revenue was what we call consulting work where we use some other tools that we have other than shield along with people with high security clearances to do forensic work and investigative work for DOD and the intelligence community, all based on the same IP that I talked about earlier. But these other tools came with labor and analysts and and so on. When we created Shield, we wanted a technology that anybody could install and didn’t require this heavy, you know, analyst presence to do the do the work. So the the way I think about our business today is we have this great history with DOD, and and and we continue to do that work.

I view it as sort of free r and d because we’re working on some of the hardest problems the government has. But we can take what we learn there and build it into the commercial product. And that’s the piece that we think has the biggest opportunity for growth. And so more and more of our, you know, demand gen and sales work and so on will be focused on shield because we think that has the the biggest potential.

Anya Soderstrom, Senior Equity Analyst, Sidoti: So have you had to make any changes then to your go to market Or

Tony Scott, CEO, Intrusion: For sure. Yeah. We’re we’re gonna be at AWS Marketplace. We are we are in beta form today, limited beta, but shortly, we’ll be a public publicly available in Amazon Marketplace, and later this year, we’ll be in Azure Marketplace. We think that’s got big legs.

And then we’re also licensing our technology to other solution providers who embed intrusion technology in their ultimate solution, and we think that’s got great potential as well. So got a lot of different irons in the fire, but these all look to us like, you know, great opportunities to, you know, ramp sales in a inorganic sort of way.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Yeah. And in terms of the revenue, what level do you need to get breakeven? It’s a common question here.

Tony Scott, CEO, Intrusion: Yeah. I think somewhere around 12,000,000 plus or minus is kind of where we think we we would hit that mark, and it’s certainly our objective to get there as quickly as we can.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Yeah. And and what does the pipeline look like and sort of and also the sales motion in this kind of economic environment, has you has it changed at all for you? Or

Tony Scott, CEO, Intrusion: No. Not really. I mean, I guess the good news, bad news is cybersecurity is making headlines every day or every other day. New things keep coming along that we think we’re exceptionally good at protecting against when they occur, the so called zero days and and other emerging threats because of some cases, work we do with the government and other cases, because of unique capabilities that we have allow us to defend against those things better than other solutions. So we’re pretty future focused, and and we we think we’ll see increasing pipeline as a result of those capabilities.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Okay. And what does the competitive landscape look like? Is there any specific competitor you’re going head to head with most

Tony Scott, CEO, Intrusion: Well, it’s kind of a sore spot for me, and Everybody confuses us with a firewall to start with because it kind of sounds like we walk like, talk like, quack like a firewall, if you get the reference. But we’re not really a firewall. We don’t tell people get rid of your firewall. We think of ourselves as a extra layer of protection that gives you protection above and beyond what you get with just a firewall in place or with just some of the other technologies that you have. There are some people who think that, you know, firewalls are obsolete and are gonna go away.

We don’t think that’s the case, but we do think you need to supplement firewalls with other technology because most most networks are getting more and more complex. You’re you’re hooked up to customers, suppliers, go to market partners, your bank. You know, you’re hooked up to everybody on your network. There’s not one door in or door out anymore as it used to be. And firewalls were really designed for when there was one door or a small number of doors.

But now we got windows and vents and, you know, all kinds of other things that places where things can come in and go out that we need to protect. And we think we’re well suited to to help in that more complex environment.

Anya Soderstrom, Senior Equity Analyst, Sidoti: So is that a very unique then, or are are there other place that do the same thing as you or does works as a complement to the firewall guys? Yeah.

Tony Scott, CEO, Intrusion: Yeah. I well, I I think there are pieces, but we haven’t been able to find anybody who’s reputation based like we are. Most other technologies, even if they have, say, endpoint or cloud properties or, you know, appliance like we do, rely on some sort of known footprint or signature or something that’s easily identifiable. It it’s kind of like I use the analogy, but if the police only were hunting for people that were known criminals, you know, their faces on the FBI 10 most wanted list, they wouldn’t be very good at their job. You know?

And a lot of cybersecurity technology is that way. It’s protecting against known bad, easily identifiable adversaries. And the problem is the bad guys have gotten a lot better at hiding their identities and obfuscating the methods and tools that they use, And our reputation inferencing engine allows us to see through a lot of that where just that fingerprint model wouldn’t wouldn’t be sufficient. So we think we have a leg up because of that unique capability that we have.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Okay. I’m gonna add a couple of minutes since we were late. Hopefully, people can stay with us. Yeah. A recurring question here in terms of your balance sheet and and your and your funding and your burn rate.

You cleaned up your balance sheet, I know, but maybe you can talk about your funding and and how long you’re gonna last with what you currently have on your balance sheet.

Tony Scott, CEO, Intrusion: I’m gonna give those hard questions to Kim to answer.

Kimberly Pinson, CFO, Intrusion: As Tony mentioned, you know, we it would it was very fortuitous that we had a run up in our share price, late December, early January. It allowed us to pay off some debt, bring cash in the door. And we just, published our q two results. And with that, we had $8.8400000.0 in cash and cash investments on our balance sheet. And, you know, we on average, our our cash burn will fluctuate from quarter to quarter because we have a number of large contracts that prepay.

So changes in working capital will dramatically impact our cash burn. But on average, would say we’re burning approximately $2,000,000 a quarter. And, you know, as we as we grow our revenues, that will, you know, stretch our you know, the time frame in which we need to raise capital. But we, you know, at our current revenue level, we would be looking to raise capital. We don’t wanna do it when we need cash, but in advance of that, so that we can be, selective and have a few more opportunities.

So we will likely be looking to raise capital absent significant increases in revenues, which we have had five consecutive quarters of of revenue growth. But we’ll be looking to raise capital, I would say, you know, probably in the second quarter of next year.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Okay. Thank you. And, also, in terms of m and a, are you all looking at that or in terms of maybe adding other functions or anything to to expand your your revenue with or leverage your your customer base?

Tony Scott, CEO, Intrusion: Yeah. We’re I mean, we’re open to all kinds of possibilities at this point. We as I mentioned, we are licensing our technology to other, you know, partners. PortNexus is the one that we’ve probably talked the most about. And I do think as we grow, there will be interest in us from other technology partners, whether it’s, you know, go to market or something more.

We’re not counting on that, but I wouldn’t be surprised if that, you know, were were the case. But we’re not out outwardly shopping at this particular point. Let’s put it that way.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Okay. Thank you.

Tony Scott, CEO, Intrusion: And by the way, we have a robust development road map. There’s, you know, more than a year’s worth of things that we think we can do to add capabilities and functionality to our existing suite of products. So I’m not worried about, you know, running out of runway on that front. So

Anya Soderstrom, Senior Equity Analyst, Sidoti: Okay. Sounds good. Well, I think it’s time to conclude so people can take a quick break before their next meetings. But this has been very informative, and I wanna thank everyone who tuned in and participated. And, Tony and Kim, thank you for joining us today.

I know you have a pretty full one on one schedule, but if anyone would like to catch up with the management team, you can reach out to to us at Sidoti. We’ll put you in touch or to the company directly. And with that, I’ll hand it over to you, Tony, for some closing remarks.

Tony Scott, CEO, Intrusion: Great. Well, thanks, everybody. I appreciate the time you’ve spent with us. We’re happy to have contact or answer any other questions that we might not have gotten to. But thanks, Anja, and we’ll talk to you soon.

Anya Soderstrom, Senior Equity Analyst, Sidoti: Thank you. Thank you, everyone.

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