Intrusion Inc.

Good day ladies and gentlemen and welcome to Intrusion Inc's first quarter 2026 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 call 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 Mr. Josh Carroll with Investor Relations. Josh, the floor is yours.

Thank you and 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 the 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 to Tony for a few opening remarks.

Thank you, Josh, and good afternoon, and thank you all for joining us today. Our first quarter results reflect the negative impact of the previously disclosed delay in an anticipated contract extension with the Department of War, and I'll discuss that in more detail in a moment. But while these short-term headwinds to our financial results have been We remain optimistic that our financial results will see an improvement throughout the remainder of the fiscal year. And this is supported by strengthening sales momentum that's already visible in the second quarter, including broader adoption of the POSSE program through our partnership with Port Nexus and growth in our Shield installed base. As I mentioned during our fourth quarter earnings call, we have been enhancing our federal, state, and local sales efforts and broader go-to-market strategy. And we're beginning to see the early signs of these efforts paying off. Last week, we signed a significant new customer contract, a $4 million annually contract to deliver our cyber threat intelligence and critical infrastructure protection to the state of Texas. The contract was awarded in recognition of Intrusion's unique capabilities and reflects the growing demand for our intelligence-driven approach to cybersecurity. The performance period for this contract is 12 months, during which we will work closely with the customer to deliver high standards of cybersecurity protection and operational responsiveness. Importantly, we believe that this engagement establishes a strong framework that can be replicated across other U.S. states and territories. Now, I'd like to address the delayed contract extension of our critical infrastructure technology with the Department of War. Our revenues during the first quarter were once again impacted by delays in finalizing an expected contract extension with the Department of War. And as noted on our fourth quarter earnings call, These delays were driven by operational and administrative constraints stemming from the U.S. government shutdown, which limited agencies' ability to initiate and process contract actions, as well as ongoing geopolitical developments related to the conflict with Iran. Despite this delay in funding, we've continued to support the already deployed critical infrastructure technology, which is reflected in our operating expenses. We expect to recognize revenue from this effort in a future quarter and remain confident in expanding our solution across additional regions with the Department of War throughout 2026. And while the Department of War is heavily focused on the war in Iran, the threats in the Asia-Pac region have not gone away, and we believe the situation will normalize in the next few months. Now I'd like to address some of the other opportunities that will help support future financial growth for Intrusion. The expansion of our Shield Cloud solution on both the AWS Marketplace and the Microsoft Azure platform have begun to show some promising signs in helping us expand our customer pipeline. While both expansion efforts are still in the early stages, we believe that we will see an uptick in revenue contribution from having our solution available on these two platforms over the next several quarters. As you may recall, we also expanded our partnership with Port Nexus in February with the launch of the POSSE program, which leverages our SHIELD on-premise technology to help protect law enforcement from cyber threats. The program continues to progress well with ongoing deployments and strong engagement across Texas, Missouri, Oklahoma, and Iowa. And we expect to see further adoption as additional law enforcement agencies recognize the value of intrusion shield technology in identifying and stopping active cyber threats. We're beginning to see the benefit of this partnership reflected in our second quarter results. And we anticipate that we'll see further financial growth from this program over the next few quarters. As I've discussed on previous earnings calls and with many of you during our one-on-one meetings, AI is rapidly reshaping the cybersecurity landscape. Its growing adoption has significantly reduced the cost, the technical expertise, and the time required to develop and execute highly sophisticated and scalable attacks. At the same time, customers are seeking cybersecurity solutions capable of keeping pace with these rapidly evolving threats. And that's where our AI-assisted platform comes in, which can help catch malicious actors before they can cause any harm. As we enter the commercial space in a meaningful way, we believe this AI-assisted platform will help support our customer base expansion efforts and further improve our top-line growth. Now briefly onto our financials for the quarter. Total revenues for the first quarter was 0.9 million, a decrease of 40% sequentially, which was directly the result of the delay in the incremental funding of the Department of Work contract that I noted earlier on in our call. Our operating expenses also saw a slight increase during both the quarter and as compared to last quarter. This increase in our expense reflects deliberate strategic investments to strengthen our business and position us to achieve our goal of creating sustainable growth and long-term profitability, as well as the costs associated with the critical infrastructure deployment and operation. With that, I'd like to now turn the call over to Kim for a more detailed review of our first quarter, 2026. Kim?