Investment Thesis
Intrusion Inc faces critical financial distress with substantial operating losses of -$3.6M against minimal revenue of $888K, coupled with negative free cash flow of -$1.9M and inadequate liquidity (current ratio 0.69x). At the current burn rate, the company's $1.4M cash position provides insufficient runway, making the business model unsustainable without major operational restructuring or capital infusion.
Strengths
- Strong gross margin of 74.2% indicates viable underlying product economics
- Zero long-term debt reduces balance sheet insolvency risk
- Modest asset base ($7.9M) limits downside loss exposure for equity holders
Risks
- Critical liquidity crisis: current ratio of 0.69x with -$1.8M operating cash burn against $1.4M available cash
- Unsustainable cost structure: -$3.6M operating loss on $888K revenue with deteriorating profitability (-16.3% YoY net income decline)
- Negative free cash flow of -$1.9M creating imminent solvency risk within 2-3 quarters at current burn rate
- Declining revenue (-1.1% YoY) indicates contracting market relevance or competitive losses
- Severely negative returns (ROE -96.3%, ROA -44.9%) destroying shareholder value rapidly
Key Metrics to Watch
- Operating cash flow trajectory and monthly cash burn rate relative to remaining liquidity
- Revenue trend and customer concentration/retention indicators
- Operating expense reduction progress and timeline to cash flow breakeven
Financial Metrics
Revenue
888.0K
Net Income
-3.6M
EPS (Diluted)
$-0.18
Free Cash Flow
-1.9M
Total Assets
7.9M
Cash
1.4M
Profitability Ratios
Gross Margin
74.2%
Operating Margin
-402.3%
Net Margin
-401.2%
ROE
-96.3%
ROA
-44.9%
FCF Margin
-211.1%
Balance Sheet & Liquidity
Current Ratio
0.69x
Quick Ratio
0.69x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
-178.60x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-15T06:52:57.078874 |
Data as of: 2026-03-31 |
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