Intrusion Inc.

second quarter 2024 earnings conference call and webcast. At this time, all participant lines are in a listen-only mode. For those of you participating in the conference call, there will be an opportunity for your questions at the end of today's prepared comments. Please note this conference is being recorded. An audio replay of the conference call will be available on the company's website within a few hours after this call. I would now like to turn the call over to Josh Carroll with Investor Relations.

Thank you and welcome. Joining me today are Tony Scott, Chief Executive Officer, and Kimberly Pinson, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Before I turn the call over to Tony, I'd like to remind everyone that statements made during this conference call relating to the company's expected future performance Future business prospects, future events, or plans may include forward-looking statements as defined of the Private Securities Litigation Reform Act 1995. Please refer to our SEC filings for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in today's conference call. Any forward-looking statements that we make on this call are based upon information that we believe, as of today, we undertake no obligation to update these statements as a result of new information or future events. In addition to US GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. During the call, we may use non-GAAP measures if we believe it is useful to investors or if we believe it will help investors better understand our performance or business trends. With that, let me now turn the call over to Tony for a few opening remarks.

Thank you, Josh, and good afternoon, and thank you all for joining us today. Our second quarter results reflect a positive improvement from a revenue standpoint as both our suite of shield technologies and our consulting business regain momentum. And with the previous challenges that we've been facing over the past two years behind us, we've now been able to focus solely on positioning Intrusion for growth. And we believe that we are beginning to see the early stages of those efforts materialize. Now, as many of you know, I've personally invested over $1.5 million into intrusion. And like many of our investors, I invested a significant portion of this when our share price was trading at a higher level and is now at a loss compared to today's share price. And I understand how frustrating this is. And while we still have a lot of work ahead of us, I believe that we are on the right path forward toward creating sustainable growth and a share price that's commensurate with improved results. Now, transitioning to some of our recent sales activity. Since we last spoke, we signed an additional five new logos, bringing our total new logo count year to date to 14. We see positive momentum for our suite of Shield technology among a wide range of customers. in different industries as our pipeline continues to grow. And over the next few quarters, as we continue to deploy our technology to these new logos, we will begin to see additional improvements in our financial results, which we believe will help drive revenue growth in 2024 and beyond. As we mentioned during our first quarter earnings call, we've been awarded two new orders for Intrusion Shield, from our traditional government customer base, which marked an important milestone for Intrusion, as these are the first large-scale adoption of our Shield technology with government customers. We began servicing one of these awards during the second quarter that included both Shield services and consulting work, which helped improve both our Shield and consulting revenue during the quarter. The second contract will begin contributing to revenues for both SHIELD and consulting throughout the remainder of the year and beyond. I'd like to give you an update on our recent partnership activity. We've been seeing strong momentum in the Philippines with the signing of multiple contracts in the region, including the I-1 resources contract to help protect the cybersecurity and integrity of national elections in the Philippines. and our recent partnership with TIM to provide our advanced threat detection and prevention solutions to ORCA cold chain solutions and multiple other agreements with customers spanning across different sectors of the Philippines economy. As a result of this momentum and our strong pipeline in the region, I personally traveled to the Philippines earlier this month to speak with both current and potential customers to discuss our unique technology. These meetings were very positive, and the enthusiasm for our SHIELD technology is quite high given the nature of the cyber threats in that region of the world. We plan to announce additional agreements and expansions of current deployments in the region in the near future, and also to help meet this growing demand in the Philippines and to better serve our expanding customer base in the region, we've officially opened a wholly owned subsidiary in the Philippines. As for our go-to-market strategy, we've been selling our products through managed service providers and managed security service providers, as well as more traditional reseller channels. I'm pleased to report that in each of these cases, we're beginning to see growth and increased pipeline as these organizations develop confidence in our products and services. And additionally, our renewals remain strong with near zero churn for the quarter. With respect to our product development efforts, we've continued to focus on adding new capabilities to increase the efficacy of our products. The work we do with our government customers often leads to useful insights into some of the most difficult challenges in the cybersecurity space. And we leverage those insights into new and novel approaches to advancing the cause of better cybersecurity in our products. We're always mindful that the cybersecurity space is very fluid, and yet many of the breaches and incidents that occur are the result of the failure of basic principles and practices. The recent CrowdStrike incident, which crippled systems all over the world, is a testimony to the degree to which we become dependent on widely used software to run our businesses, government, and critical infrastructure, and that the fragility of these ecosystems when a key component fails is paramount. Since our products are often the last line of defense against the most sophisticated acts and actors in the cyber world, we take our responsibility seriously. and invest in our product development efforts to ensure that we can live up to our customers' expectations. On the leadership front, we recently announced that we appointed Dion Hinchcliffe to our board of directors. And I'd like to add a little more color to that announcement. Dion brings extensive experience in information technology, business strategy, next generation enterprises, and AI, and having consulted Fortune 1000 companies, the federal government, and the internet startup community, his expertise will help us further our go-to-market strategy, our partnerships with strategic players in the industry, and aid in our mission to provide our customers with highly effective cybersecurity solutions for their enterprise. Diane is widely known in the technology community for his insights into emerging trends in the technology space, and we look forward to his contributions to our mission. Now, briefly onto our financials. As you will hear from Kim later in greater detail, total revenue for the second quarter was $1.5 million, representing an increase of 29% sequentially. This increase in revenue during the second quarter was driven largely by the addition of a government contract for our SHIELD and consulting services as well as the several new logos that we've signed over the past few quarters. As I mentioned earlier, our churn for the quarter was near zero, and these new contracts have, for all practical purposes, filled the gaps that were created by churn in prior quarters. We believe that these government contracts are recently added new logos, and the deals we currently have in our pipeline will continue to drive growth, and further diversify our customer base. Now, before I turn the call over to Kim, I'd like to discuss our efforts to improve our balance sheet and ensure that we have the funds needed to propel our growth and support our customers' needs. As we previously discussed in our last earnings call, we successfully closed on a private offering in April, which resulted in net proceeds to intrusion of $2.6 million. This private offering was a key final step towards helping us achieve compliance with NASDAQ's minimum equity standard. In addition to the private offering, we also secured $0.6 million during the second quarter through a warrant inducement program. The funds from both of these financing efforts are being used for working capital and general corporate purposes. And finally, on July 3rd, we entered into a standby Equity Purchase Agreement, or SEPA, with Street of Real Capital to sell the firm 10 million of our common stock. In order to have full access to the 10 million facility, pursuant to applicable NASDAQ rules, we are seeking shareholder approval at our annual meeting on August 27th to allow for the sale, issuance, or potential issuance of common stock in excess of 20% of the common share is outstanding. We believe that the SEPA will allow us to be more strategic with how we access and deploy capital to support our future growth as our solutions continue to gain traction. With that, I would now like to turn the call over to Kim for a more detailed review of our second quarter financials. Kim?