Intrusion (INTZ) risk factors, FY2025 10-K

Intrusion's FY2025 10-K, filed Mar 25, 2026, lists 27 risk factors in 3 groups. Against the prior year's 25: 3 new, 1 dropped, 4 substantially reworded.

Risk factors listed
273 groups
New this year
3vs 25 last year
Dropped
1since the prior 10-K
Substantially reworded
4of those kept
Section length
5k wordsItem 1A

What the changes say

  • Severe going concern doubt, low cash of $3.6 million, and dropping public float to $20.1 million threaten survival.
  • Net loss widened to $9.1 million and accumulated deficit reached $127.1 million in 2025.
  • TraceCop cybersecurity solution generates 43.2% of revenues, highlighting customer concentration.

What changed since the prior 10-K

New

  • NewRisks Related to our Financial Position and Liquidity

    The Company’s ability to implement its current business plan is dependent on our ability to raise additional funds through additional public or private financings, which raises substantial doubt that the Company may not be able to continue as a going concern

    The company faces going concern doubts with $3.6 million in cash as of December 31, 2025, and requires additional public or private financing to survive.

  • NewBusiness and Operational Risks

    You may experience dilution as a result of future equity offerings

    Future equity offerings may dilute existing stockholders' holdings and depress the market price of common stock.

  • NewBusiness and Operational Risks

    We are a “smaller reporting company,” and reduced disclosure requirements may make our common stock less attractive

    Reduced public disclosures as a smaller reporting company may make common stock less attractive to investors.

Dropped

  • DroppedBusiness and Operational Risks

    Nasdaq may delist our common stock from trading on its exchange, which could limit stockholders’ ability to trade our common stock

Reworded

  • 57% rewrittenRisks Related to our Financial Position and Liquidity

    We are subject to certain regulatory limitations that may affect our ability to consummate future financings

    Public float dropped from $112.9 million on February 25, 2025, to $20.1 million on March 24, 2026, triggering strict Form S-3 primary offering limitations.

    Was: Certain regulatory limitations may affect our ability to consummate future financings

  • 47% rewrittenBusiness and Operational Risks

    Most of our current revenues are generated from one family of solutions with a limited number of customers, and the decrease of revenue from sales of this family of solutions could materially harm our business and prospects

    TraceCop revenue contribution decreased from 50.4% ($2.9 million) in 2024 to 43.2% ($3.1 million) in 2025.

  • 39% rewrittenRisks Related to our Financial Position and Liquidity

    We must increase revenue levels in order to finance our current operations and to implement our business strategies

    Net loss worsened from $7.8 million in 2024 to $9.1 million in 2025, expanding the accumulated deficit to $127.1 million.

  • 35% rewrittenBusiness and Operational Risks

    We experience volatility in the market for our common stock, particularly with respect to swings in the market price as well as volatility in the trading of our common stock

    Stock price range shifted from $7.34-$0.35 in 2024 to $5.20-$0.71 in 2025, adding a warning about dilution from share issuances.

All 27 risk factors

Headings as the filing states them, in filing order.

Risks Related to our Financial Position and Liquidity

  1. 01The Company’s ability to implement its current business plan is dependent on our ability to raise additional funds through additional public or private financings, which raises substantial doubt that the Company may not be able to continue as a going concernNew
  2. 02We are subject to certain regulatory limitations that may affect our ability to consummate future financings57% rewritten
  3. 03We must increase revenue levels in order to finance our current operations and to implement our business strategies39% rewritten

Business and Operational Risks

  1. 04Most of our current revenues are generated from one family of solutions with a limited number of customers, and the decrease of revenue from sales of this family of solutions could materially harm our business and prospects47% rewritten
  2. 05We may not be successful in our efforts to broaden the marketing and sale of the INTRUSION Shield
  3. 06The current geo-political climate may add uncertainty in the dealings of our customers and could cause them to delay indefinitely certain cybersecurity initiatives or to determine not to introduce or implement any new or innovative cyber-solution products into their information networks
  4. 07A large percentage of our current revenues are received from U.S. government entities, and the loss of these customers or our failure to widen the scope of our customer base to include general commercial enterprises could negatively affect our revenues
  5. 08A decline in federal, state, or local government spending would likely negatively affect our product revenues and earnings
  6. 09We are highly dependent on sales of our current solutions through indirect channels, the loss of which would materially adversely affect our operations
  7. 10Our business depends on the continued service of our key management and technical personnel
  8. 11We could experience damage to our reputation in the cybersecurity industry in the event that our INTRUSION Shield solution fails to meet our customers’ needs or to achieve market acceptance
  9. 12If we fail to respond to rapid technological changes in the network security industry, we may lose customers, or our solutions may become obsolete
  10. 13We must expend time and resources addressing potential cybersecurity risks, and any breach of our information security safeguards could have a material adverse effect on the Company
  11. 14A breach of network security could harm public perception of our cybersecurity solutions, which could cause us to lose revenues
  12. 15If our solutions do not interoperate with our customers’ networks, installations will be delayed or cancelled and could harm our business
  13. 16We face intense competition from both start-up and established companies that may have significant advantages over us and our solutions
  14. 17If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports, and the market price of our common stock may decline
  15. 18Scarcity of products and materials in the supply chain could hinder or prevent the deployment of our INTRUSION Shield for our customers who elect to use the wired version of our solution
  16. 19We incur significantly increased costs because of operating as a public company, and our management is required to devote substantial time to compliance matters and initiatives
  17. 20We experience volatility in the market for our common stock, particularly with respect to swings in the market price as well as volatility in the trading of our common stock35% rewritten
  18. 21Shares eligible for future sale may adversely affect the market
  19. 22You may experience dilution as a result of future equity offeringsNew
  20. 23We have never paid dividends on our common stock and have no plans to do so in the future
  21. 24We are a “smaller reporting company,” and reduced disclosure requirements may make our common stock less attractiveNew

Risks Related to our Intellectual Property

  1. 25We must adequately protect our intellectual property to prevent loss of valuable proprietary information
  2. 26We may incur substantial expenses defending ourselves against claims of infringement
  3. 27Our solutions are highly technical and if they contain undetected errors, our business could be adversely affected, and we might have to defend lawsuits or pay damages in connection with any alleged or actual failure of our solutions and services

Other Intrusion 10-Ks

  • FY2024 10-K risk factors
    25 risks

    Heavy reliance on TraceCop and U.S. government customers creates significant revenue concentration risks. Persistent net losses and accumulated deficits threaten ongoing operations and expansion. Nasdaq listing compliance and stock price volatility pose continuous financial pressures.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.