Virtual MicroCap Conference, and thank you for joining us. I'm Anja Soderstrom, a Senior Equity Analyst here at Sidoti. As I mentioned, next up we have Intrusion Inc., which trades under the ticker INTC. I have with me today Tony Scott, the CEO, and Kimberly Pinson, the CFO. This is going to be conducted as a presentation followed by Q&A. The presentation is accessible on the company's website if you want to follow along with the slides. If you would like to submit a question for the Q&A, you can do so at the Q&A function at the bottom of your screen. With that, I'm happy to hand it over to you, Tony. Great, thanks. I apologize for being late. I was interviewing a salesperson that we are interested in for our company. 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's running the slides for us? I think it's coming up. There we go. 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. What we do is pretty simple. We're an 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. 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. Similarly, you may have conversations or network connections that are started by devices or people inside your network bound for bad places on the internet. We also look at that traffic. That's what we do. We're this more fine-grained filter. We've been building this for over 30 years. Our CTO, who's still with us, decided early on when the internet started that reputation on the internet was going to be something that was important. 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 an internet connection. Our database today is over 8.5 billion IPs that has this history of IP addresses and host names and so on. 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 going to 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. 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-2021, and I joined in the fall of 2021. More recently, in 2023 and 2024, we introduced additional capabilities for the cloud and for endpoints. The first product was just an appliance that would go in the data center. In 2025, 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, Microsoft, and the Walt Disney Company, and CTO at General Motors and CIO at VMware. The reason I'm here and the reason I decided to join Intrusion is, as CEO, 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 startup phase to a 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. Andrew, Blake, and Mike together have decades of experience in the cybersecurity space, much of that work working on some of the hardest problems that the U.S. Department of Defense and some of our other government customers have had to deal with. We've given you a list of reasons why we think we're a good investment at this particular point. We're not trying to raise capital at the moment, and we don't see a need to do so for probably the next year at least. We do want to create some awareness of who we are 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. We think that approach allows us to scale sales without scaling expenses in disproportion. A couple of recent highlights: we just announced a $3 million contract with the U.S. Department of Defense, protecting critical infrastructure in the Pacific Rim. These are things like utilities for water and communications and electricity and so on. As I mentioned earlier this year, we had a fortuitous market event that allowed us to retire debt 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 cost of cybercrime just keeps escalating, and the space that we're targeting, small and 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. We think we're in a particularly good space. There are a bunch of things going on in our industry that we 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. The quantity and efficacy of attacks keeps increasing. 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. It's a big, big ask, a big problem that they face. As I mentioned, the complexity of these attacks is also going up. We are 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. In terms of growth, we think critical infrastructure is probably the biggest opportunity that we have at the moment. These others are certainly places where we both have experience and have customers as well. 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. 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. 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. We are like an elephant. We never forget anything. 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. What we're seeing in our space in particular is that the bad guys resurrect these things, and as soon as everybody's looking the other way, they bring them back. We think it's important to never, ever forget anything that we've already learned about these threats. That's all in our database. Let's go to the next slide. 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. It has different categories. It could be malvertising. It could be known threats that 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 enforce mode or observe mode. If you're in enforce mode, then we would automatically block these things. Frankly, it lightens the load of the security operations team if you're in enforce mode. In observe mode, we just report the information to you, and then the customer can decide what they want to do. There are summary charts that show you by country and by type of traffic what we've seen and why we killed it and so on. All of this is useful for customers to decide what they want to prioritize. 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. Again, this helps lighten the load on the security operations team. This is a pictorial diagram of all the various versions of Shield that we have. 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 Shield Cloud that protects your assets in the private, public, and hybrid cloud environments. Then we have Endpoint Shield, which is iOS, Android, and Windows clients that provide protection for those devices. 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. 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. Uniquely, one of the things that we do is we also look at, as I mentioned before, outbound traffic. 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. Eventually, bad things inside your network that are infected and want to 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. That's kind of a summary of what we are and what we do, and happy to take any questions. Thank you, Tony. That was a good overview. To the audience, if you have any questions, you can submit it in the Q&A function at the bottom of your screen. I'll kick it off with a couple of questions here. Tony, you said you joined the company a couple of years ago. What led you to join Intrusion and what was sort of your vision when you joined? 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. 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 technology in the cybersecurity space. When I saw Intrusion, I thought this was the most unique thing I had run across in a couple of years. I thought I could make a contribution in terms of guiding the team and the firm forward. That was the reason, and I think even more about that today. Yeah. You recently reported your results. You had a very strong, another quarter, very strong revenue growth. How sustainable is that trajectory, you think? It seems like it's very heavily weighted towards the defense and government. What steps are you taking to sort of diversify your customer? Yeah. 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 the DOD and the intelligence community, all based on the same IP that I talked about earlier. These other tools came with labor and analysts 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 work. The way I think about our business today is we have this great history with the DOD, and we continue to do that work. I view it as sort of free R&D because we're working on some of the hardest problems the government has. We can take what we learn there and build it into the commercial product. That's the piece that we think has the biggest opportunity for growth. 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 biggest potential. Have you had to make any changes then to your go-to-market or sales team? Yeah, for sure. We're going to be at AWS Marketplace. We are in beta form today, limited beta, but shortly we'll be publicly available in Amazon Marketplace. Later this year, we'll be in Azure Marketplace. We think that's got big legs. We're also licensing our technology to other solution providers who embed Intrusion technology in their ultimate solution. We think that's got great potential as well. We've got a lot of different irons in the fire, but these all look to us like great opportunities to ramp sales in an inorganic sort of way. Yeah, in terms of the revenue, what level do you need to get break-even? It's a common question here. Yeah, I think somewhere around ±$12 million, is kind of where we think we would hit that mark. It's certainly our objective to get there as quickly as we can. What does the pipeline look like, and also the sales motion in this kind of economic environment? Has it changed at all for you? 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 other emerging threats, because of, in some cases, the work we do with the government and in other cases, because of unique capabilities that we have, allow us to defend against those things better than other solutions. We're pretty future-focused, and we think we'll see an increasing pipeline as a result of those capabilities. What does the competitive landscape look like? Is there any specific competitor you are going head-to-head with most? It's kind of a sore spot for me, Anja. 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 an 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 going to go away. We don't think that's the case, but we do think you need to supplement firewalls with other technology because most networks are getting more and more complex. 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. Firewalls were really designed for when there was one door or a small number of doors. Now we got windows and vents and, you know, all kinds of other things that are places where things can come in and go out that we need to protect. We think we're well suited to help in that more complex environment. Is that a very unique thing? Are there other players that do the same thing as you or that work as a complement to the firewall guys? Yeah, I think there are pieces, but we haven't been able to find anybody whose 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 relatively easily identifiable. It's kind of like I use the analogy, 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. A lot of cybersecurity technology is that way. It's protecting against known bad, easily identifiable adversaries. The problem is the bad guys have gotten a lot better at hiding their identities and obfuscating the methods and tools that they use. Our reputation inferencing engine allows us to see through a lot of that where just that fingerprint model wouldn't be sufficient. We think we have a leg up because of that unique capability that we have. Okay. I'm going to add a couple of minutes since we were late. Hopefully, people can stay with us. There's a recurring question here in terms of your balance sheet, your funding, and your burn rate. You cleaned up your balance sheet, I know, but maybe you can talk about your funding and how long you're going to last with what you currently have on your balance sheet. I'm going to give those hard questions to Kim to answer. As Tony mentioned, 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 and bring cash in the door. We just published our Q2 results, and with that, we had $8.4 million in cash and cash investments on our balance sheet. On average, our cash burn will fluctuate from quarter- to- quarter because we have a number of large contracts that prepay. Changes in working capital will dramatically impact our cash burn. On average, I would say we're burning approximately $2 million a quarter. As we grow our revenues, that will stretch the timeframe in which we need to raise capital. At our current revenue level, we would be looking to raise capital. We don't want to do it when we need cash, but in advance of that, so that we can be selective and have a few more opportunities. We will likely be looking to raise capital absent significant increases in revenues, which we have had five consecutive quarters of revenue growth. We'll be looking to raise capital, I would say, probably in the second quarter of next year. Oh, okay. Thank you. In terms of M&A, are you all looking at that or in terms of maybe adding other functions or anything to expand your revenue with or leverage your customer base? Yeah, I mean, we're open to all kinds of possibilities at this point. As I mentioned, we are licensing our technology to other partners. PortNexus is the one that we've probably talked the most about. I do think as we grow, there will be interest in us from other technology partners, whether it's go-to-market or something more. We're not counting on that, but I wouldn't be surprised if that were the case. We're not outwardly shopping at this particular point. Let's put it that way. Okay, thank you. And by the way, we have a robust development roadmap. There's 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. I'm not worried about running out of runway on that front. Okay. Sounds good. I think it's time to conclude so people can take a quick break before their next meetings. This has been very informative. I want to thank everyone who tuned in and participated. Tony and Kim, thank you for joining us today. I know you have a pretty full one-on-one schedule. If anyone would like to catch up with the management team, you can reach out to us at Sidoti. We'll put you in touch or to the company directly. With that, I'll hand it over to you, Tony, for some closing remarks. Great. 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. Thanks, Anja, and we'll talk to you soon. Thank you. Thank you, everyone.