Intrusion Inc.

Good day, everyone, and welcome to the Intrusion Second Quarter 2025 Financial Results Conference Call. At this time, all participants are on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Josh Carroll, Investor Relations. Sir, the floor is yours.

Thank you, and welcome. Welcome. Joining me today are Tony Scott, President and 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 under Private Securities Litigation Reform Act of 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 and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. 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. Tony?

Thank you, Josh, and good afternoon, and thank you all for joining us today. The second quarter of 2025 marked another positive step forward for Intrusion as we continue to make progress toward our goal of of achieving sustainable growth and profitability. A few key highlights in the second quarter were yet another quarter of consistent revenue growth, with Q2 marking the fifth quarter in a row of delivering sequential top-line growth, near-zero customer churn, which we view as a testament to the value of our offerings, the operational deployment of our Shield critical infrastructure monitoring and protection capability, which expands the breadth and use of our core technology. We completed development work for our release of Intrusion Shield technology into the AWS marketplace. We've seen encouraging results from our Q2 efforts on social media and other platforms of awareness and engagement. and enthusiastic reception for our technology with our solution partner, PortNexus, with respect to my flare alert, the next generation solution for improving response to safety incidents in schools and other vulnerable public institutions. Now, as we discussed during our first quarter call, critical infrastructure is was one of the key areas in which we are making strategic investments to strengthen our portfolio of product capabilities and ensure that our solutions are evolving and addressing the fast-moving cybersecurity landscape. Our progress in growing this portion of our portfolio was recently highlighted by the $3.0 million extension and expansion of our contract with the Department of Defense, and that's already generating incremental revenue for us. We continue to see critical infrastructure protection of operational technology environments as a highly promising market opportunity for intrusion. As Homeland Secretary Kristi Noem recently highlighted in her May 14, 2025 testimony before the House Homeland Security Committee, critical infrastructure sectors like water, energy, transportation, and communications utilities continue to be and have been prime targets for nation-state cyber actors. Through our ongoing government sales activities, we'll be spending additional effort to communicate and ultimately sell and deploy Intrusion's unique capabilities in this most important area of focus. Now for an update on a few of our other strategic initiatives that we have underway, all of which are aimed at helping position Intrusion for future growth. As I mentioned, we're on track with our previously announced plans to make our Shield Cloud product generally available on the AWS marketplace and anticipate product launch later this month. With full and robust marketing and sales support activities, that are critical to our success in this important space. We have an active beta release in the AWS Marketplace today and reporting our own website to use this release as we speak. Additionally, we also plan to make Shield Cloud available on the Microsoft Azure Marketplace later this year. And while it will take some time for meaningful customer traction to be seen in our financial results, we do believe that offering our products through these two marketplaces will help drive long-term growth and incremental revenue for our business. As for our partnerships, we are continuing to work closely with PortNexus to sell our Shield endpoint with their MyFlare and PledgePlus solutions. As we noted last quarter, our solutions will help provide enhanced security on the endpoints used by Portnexus customers. Some of the use cases for the MyFlare product include schools and courthouses where the solution provides for a panic button that in turn gives a near instantaneous video feed to law enforcement authorities. And that provides greater situational awareness and helps cut down on the response time during an emergency. We're proud to be a part of a critical technology solution that we believe is well-positioned to generate strong market demand and revenue. Now, briefly on to our financials for the quarter. Total revenues for the second quarter were $1.9 million, representing a 6% increase compared to the previous quarter and a 28% increase on a year-over-year basis. This was largely driven by work performed under the Department of Defense contract awarded in the second half of 2024. Our operating expenses were up slightly during the quarter, and this was largely due to the continued investment in our business, both product and sales and marketing, which we will continue to do in a disciplined manner over the next few quarters to help support our growth. Finally, we were pleased to see the passing of the spending bill on July 4th. And while our pipeline of non-government opportunities remains strong, a new federal budget will help open the door for the expansion of our products into new government contracts. We continue to remain excited about the future here at Intrusion, and the demand for our products continues to grow. And with that, I'd now like to turn the call over to Kim for a more detailed review of our second quarter financials. Kim?