Intrusion Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing mixed performance in revenue and significant improvements in net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, Intrusion generated revenue of $1.5 million, a 2.5% increase from $1.5 million in the same period in 2023. However, for the nine months ended September 30, 2024, revenue decreased by 3.5% to $4.1 million from $4.2 million in the prior year. The company’s consulting revenue for the third quarter rose to $1.1 million from $1.0 million year-over-year, while sales to U.S. government entities surged to $1.3 million, accounting for 86% of total revenues, compared to $600,000 or 43% in the same quarter of 2023.

Gross profit for the third quarter of 2024 was $1.2 million, representing 77.1% of revenues, slightly down from 77.9% in the same quarter of 2023. Operating expenses decreased by 17% to $3.2 million for the third quarter, contributing to a reduced operating loss of $(2.0) million, down from $(2.7) million in the same period last year. The net loss for the third quarter was $(2.1) million, a significant improvement from $(3.2) million in 2023.

For the nine-month period, the net loss narrowed to $(5.8) million from $(11.1) million in the previous year. The company’s net cash used in operating activities increased to $(6.1) million, compared to $(4.8) million in 2023, primarily due to the net loss. However, net cash provided by financing activities rose to $8.1 million, up from $3.0 million in the prior year, driven by proceeds from stock offerings.

As of September 30, 2024, Intrusion's cash and cash equivalents stood at $1.1 million, a notable increase from $0.2 million at the end of 2023. The company also reported total assets of $7.4 million, up from $6.2 million at the end of the previous year, while total current liabilities significantly decreased to $3.5 million from $14.3 million.

Strategically, Intrusion has focused on enhancing its product offerings, including the INTRUSION Shield, a Zero Trust security solution. The company has also engaged in various financing activities, including a $10 million Standby Equity Purchase Agreement with Streeterville Capital, aimed at bolstering its capital structure. Despite these efforts, the company continues to face substantial doubt regarding its ability to continue operations within the next year, as indicated in its audit opinion.