INTRUSION INC

Company Overview

INTRUSION INC (INTZ) is a Plano, Texas–based cybersecurity firm that commercialized products in 2021 after >20 years of building a threat‑enriched big data repository (TraceCop). Its product set centers on INTRUSION Shield (reputation/behavior‑based network protection delivered as on‑premise hardware, cloud and endpoint) and INTRUSION Savant (real‑time monitoring and forensics), supported by TraceCop’s historical IP/DNS/ASN/domain datasets and a small patent portfolio. The company is small‑scale (≈50 employees) and highly concentrated in U.S. government business (83.8% of 2024 revenue, rising to ~94–96% in 2025), with modest commercial/ export sales and a history of one or a few customers making up material portions of Shield revenue. Financially it remains unprofitable (2024 revenue $5.77M, net loss ~$7.8M), with tight liquidity managed via ATM/private placements and a new shelf/ATM facility.

Executive Compensation Practices

Given the company’s stage and filing disclosures, compensation likely mixes modest base salaries with meaningful equity‑linked pay (options/RSUs, preferred/common conversions) and variable pay tied to product adoption, contract awards and cash preservation. Management has recently reduced total operating payroll and share‑based compensation (2023–2024 cost cuts) but increased share‑based compensation again in 2025 alongside strategic hires and R&D ramp—suggesting equity grants are used both for retention and to conserve cash. Performance metrics that probably drive bonuses and long‑term awards are Shield bookings/commercial customer wins, government contract awards and renewals, revenue growth (consulting and Shield), gross margin stability (~76–77%) and liquidity milestones (successful financings, ATM/registered offerings). The material use of debt‑for‑equity exchanges and warrant exercises in 2024–2025 also implies executives and early investors hold convertible instruments and preferred shares, increasing the role of equity dilution dynamics in pay outcomes.

Insider Trading Considerations

Insiders at INTZ are likely to trade for common liquidity reasons (option exercises, tax liability from equity vesting) and aligned with corporate financings (ATM draws, registered direct offerings, warrant exercises and debt‑for‑equity conversions) — watch Form 4 activity clustered around those events. Because a few government customers historically accounted for a large share of Shield revenue, material contract awards, cancellations or budget appropriation signals can be material non‑public information; insiders should and often will observe strict blackout periods around earnings and major contract developments. Regulatory and industry considerations (government contracting rules, export/security controls and restricted‑share transfer rules) can further constrain timing and disclosure of insider transactions; given high insider ownership typical in small cybersecurity firms, purchases by insiders can be a stronger signal of confidence than routine option sales to cover taxes. Researchers and traders should monitor insider sales following financings, spikes in option exercise activity, and any trades proximate to contract award announcements or debt restructurings.