Welcome to Intrusion Inc's Second Quarter 2023 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 is being recorded. An audio replay of the conference call will be available to the company's website within a few hours after this call. I would now like to turn the call over to Josh Carroll with Investor Relations. Please proceed.
Thank you, and welcome everyone. Joining me today are Tony Scott, Chief Executive Officer, and Kimberly Pinson, Chief Financial Officer. This call is being webcasted 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 the statements made during this conference call relating to the company's expected future performance, future business prospects, and 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 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 the 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, I'll now turn the call over to Tony for a few opening remarks.
Well, thank you, Josh. good afternoon, and thank you all for joining us today. In today's call, I'll cover our high-level Q2 financial results and provide an update on our product offerings, our traction in the market, our pipeline. I'll talk about our recent S-1 filing, and other highlights from Q2, as well as provide some early visibility into Q3 and beyond. When I joined Intrusion in November of 2021, I knew that we were facing an uphill battle for some period of time as we reoriented our products, dealt with several daunting legal battles, changed our sales and marketing approach, and raised capital and took on debt in order to survive as a company.
I joined Intrusion because of my firm belief that Intrusion possessed unique intellectual property, had the right talent to continue to innovate and grow that valuable base, and that there was a need in the marketplace for the kind of solutions that Intrusion could offer. As I've said on previous calls, those fundamental beliefs remain true today and have strengthened as we march down the path towards our future. Clearly, it's not been easy, nor has everything gone as hoped or as planned, I believe that this quarter should be viewed as an early indicator of the turnaround in Intrusion's business and a reflection of the hard work that we've been doing for more than a year. As you will hear from Kim later, and in more detail, total revenue for the second quarter was $1.5 million, an increase of $0.2 million sequentially.
As we announced in our preliminary results, press release last month, Shield revenues for the second quarter were $0.4 million. We anticipate that we will see additional growth in Intrusion Shield revenue during the second half of the year as a result of our existing sales efforts and our robust pipeline, which gives us confidence that our Shield family of products is, and will continue to gain traction in the highly competitive cybersecurity marketplace. Having said that, I'd like to add a little more color and some context regarding sales, bookings, and the current pipeline for Shield. As you've heard me describe on previous calls, we sensed a pretty significant and growing level of interest in our Shield offerings early in the year, which, by the way, continues. We were not seeing that interest translate into signed contracts.
Many potential customers told us that they were highly interested in our solutions, but were cautiously watching their budgets and holding back on much of their new cybersecurity and IT project spending in anticipation of potential business downturns and the threat of unplanned budget cuts. I know from my own experience as a CIO, that the IT and cybersecurity context is not independent from the overall business environment. I always wanted to have some padding in my budget if the CFO were to call and demand a 10% or 20% budget cut. I sensed that our customers were acting in a similar way. Mid to late Q2, we began to sense a moderation of this cautious approach, and we were able to finally close on opportunities that had been in the pipeline for more than two quarters.
Continuing into Q3, we've been informed that we won on several relatively long-standing quotes and RFP responses, which date back to Q4 2022 and Q1 of 2023. We've now finalized some of these, and others are in the last stages of the formal contract process, which when complete, will lead to increased Shield revenue in Q3 and beyond. I'm not going to provide specific guidance relative to revenue and the timing associated with these contracts, because we do not have complete clarity in terms of the delivery schedules and operational timing of at least one large contract, and there are others that have closed or will close shortly, that are planned to start small in Q3, and then are expected to grow in Q4 and beyond.
Our consulting business experienced a 5% increase in Q2 quarter-over-quarter, is showing steady continued growth thus far into Q3. Of note, in late Q2, we signed a well-known customer in the travel and leisure industry, revenue from that contract will show up in Q3 and beyond. As you hear almost every day in the news, cyberattacks on our nation and our critical infrastructure are continuing at an unprecedented pace. Rest assured, Intrusion is engaging with our government and critical infrastructure institutions to provide the needed tools to identify, deflect, and eliminate these cyber threats. We do expect to see increased revenue from these efforts as well. Kim will cover all of our financial highlights in a lot more detail in a few minutes, I wanted to address a few more topics before we go to Kim.
On Friday, August 11, 2023, we filed an initial S-1 registration with the SEC to sell up to $8.5 million in stock and warrants. The intended use of the proceeds from this public offering will be for general corporate purposes, potential acquisitions, and may include the reduction of up to $1 million of our outstanding debt. Coupled with the recent restructuring of our outstanding debt, Intrusion will have the necessary financial resources to execute our business plans for the remainder of 2023 and the first half of 2024 at a minimum, and longer as increases in revenue occur. Our product development efforts have continued even in the face of reduced levels of engineering resources.
In particular, this month, we will go to general availability on Version 9.1 of our Shield software, which has many improvements over prior versions, including enhancements to reporting, additional threat monitoring capabilities, improvements to our renderer software, and significant changes to Shield's management interface. We are also nearing completion of our integration of Shield technology into the pfSense firewall from Netgate, and we will shortly introduce a cloud dashboard, which will allow customers to consolidate reporting across multiple Shield and pfSense instances. Our previously announced partnerships with SAIC, Netgate, and others remain strong and are leading to new opportunities to showcase our technology and generate new business. One of our newer partners, First Advisory Health Services, has been including Intrusion in their RFP responses and consulting proposals, one of which we've recently won, with multiple others in the queue for a decision.
As many of you know, the healthcare sector has been particularly hard hit, and we believe that partnerships with leading cybersecurity organizations like First Advisory Health Services, will provide great growth opportunities for Intrusion. Finally, with some growing evidence in hand of traction in the marketplace for Intrusion Shield technology, we will once again explore more strategic technology partner relationships. We've heard over and over again that Intrusion technology is unique, but the big technology players have routinely looked for evidence of customer adoption. We believe that in the next 2 quarters, we can begin to show those proof points that the larger technology players have been looking for. With that said, I'd now like to turn the call over to Kim for a detailed review of our second quarter financials. Kim?
Thanks, Tony. Financial results for our second quarter show marked improvement over Q1. To share a few highlights, revenues grew 12%. Gross margin increased 2.4%. We realized 30% savings or $1.5 million as a result of Q1 cost reductions, all of these resulting in improved earnings per share and reduced cash burn. Providing more color and detail surrounding the quarter performance. Revenues for the second quarter of 2023 were $1.5 million, an increase of $0.2 million, or 12% sequentially, with both Shield and consulting revenues showing growth. Second quarter Shield revenue totaled $0.4 million, an increase of $0.1 million sequentially over prior quarter. The increase in Shield revenues is a result of both new customer growth and increased utilization by existing customers.
Consulting revenue in the second quarter totaled $1.1 million, representing a 5% increase sequentially. Revenues for the six months ended June 30, 2023, totaled $2.8 million, a decline of $1.1 million, or 29%, when compared to the 2022 period. The decline is a result of decreased consulting revenues of $1.3 million, related to the loss of a contract in the fourth quarter, in which Intrusion's prime sponsor chose not to renew the final option year of a contract. This loss was partially offset by increased Shield revenues of $0.2 million. As disclosed in prior quarters, while the loss of the consulting contract significantly impacted Intrusion's top-line revenues. The gross margin on this contract was 14%, and as a result, had marginal impact on profitability.
Gross profit margin was 79% for the second quarter of 2023, compared to 56% in the second quarter of 2022. The increased margin in the current quarter is a result of our product mix, with Shield revenues representing a higher percentage of revenues and the loss of the low-margin consulting contract as previously mentioned. Shield revenues currently represent 29% of our revenues. In late March, we implemented cost reduction measures we estimated would result in cash savings of approximately $1.5 million per quarter on a go-forward basis. These measures included the voluntary reduction in salaries of certain of our executive officers for a six-month period, reduction of 16 full-time positions, and reduction in the use of contractors. Many of these reductions were in research and development, which impact the number and frequency of product releases.
I am pleased to report that we did indeed realize $1.5 million in savings during the second quarter. Operating expense in Q2 2023 totaled $4.1 million, a decrease of $1.0 million sequentially from Q1 2023. When adjusted for increased non-cash share-based compensation, net operating expense savings totaled $1.2 million. Additionally, during the quarter, we spent $0.3 million less on capitalized internally developed software. As a reminder, as we grow our customer base and increase revenues, we may choose to accelerate our product development in future periods, which will result in increased spending. We will, and are continuing to evaluate each spend decision while also making prudent investments in our long-term profitable growth.
The net loss for the second quarter of 2023 was $3.1 million, or $0.15 per share, compared to a loss of $4.7 million or $0.22 per share for Q1 2023. When compared to the same periods in 2022, earnings per share improved $0.06 per share from a loss of $0.21 per share for the quarter and improved $0.05 per share for the six months. Turning to the balance sheet, on June 30th, we had cash and cash equivalents of $0.3 million, down from $3 million at year-end. On Friday, August 11th, we filed a preliminary registration statement on Form S-1 to raise up to $8.5 million in gross proceeds from the sale of common stock and warrants.
Also, in August, we entered into a forbearance and standstill agreement with Streeterville Capital to extend the maturity dates on each of the two notes by 12 months. Under this new agreement, the maturity dates are now September 10th, 2024, and December 29th, 2024. Both the S-1 filing and the amendment to the Streeterville notes, I believe, are positive steps towards providing the liquidity and runway needed to execute our plan to grow the business. With that financial overview, I'd like to now turn the call back over to Tony for a few closing comments. Tony?
Thanks, Kim. To conclude, we're continuing to make solid progress on overcoming our short-term liquidity issues to ensure that the company has the funds it needs to propel our growth. As we look forward to the second half of the year, the growing interest in our Shield family of products gives us confidence that we are heading in the right direction as we continue to focus on satisfying our customers' needs with cost-effective cybersecurity solutions for their enterprise. I look forward to sharing the next steps in our journey with all of you, and I want to personally thank our investors and financial partners for their continued patience and support as we execute our strategy. This concludes our prepared remarks, and I'll now turn the call over to the operator for our Q&A session. Thanks very much.
We will now begin the Q&A session. If you would like to ask a question, please press star followed by one on your touchtone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate in queue. The first question comes from the line of Aaron Warwick with Breakout Investors. Please proceed.
Hey, guys, thanks for all of that commentary, Tony. Sounds like things are starting to change in the macro environment for you guys, as well as at the company level, so that's good to hear. Wondering if we could get an update, what your expectation is for the SEC investigation to close, and also a commentary if you feel that that's with a partner like SEI, if that's slowed down potentially, some of the progress you could make there since they're serving a lot of the investment, world?
Well, let me, let me take each of those separately. On the SEC front, well, there's a few things that we know, and then there's a few things that we don't know. What we know or what we've been told, is that the investigative part of the journey is largely over. There's no more witnesses that we know of that need to be called. We've answered all the questions, submitted all the materials, all of the things that the SEC has asked us to submit. We've been told that we're kind of at the end of that process.
We now need to wait for the final adjudication, I guess, or ruling from the SEC. We're expecting it to be, you know, largely favorable to the company. What we're told is that it needs to undergo review not only at the local office, but back in Washington, which should be going on kind of simultaneously now. We're hoping to have a final judgment sometime in the September, October, early October kind of timeframe.
That, that's about all I can say at this point, but I think that that long journey is now behind us, and we're looking forward to the day when we no longer even have to talk about it. On the SAIC front, you know, we continue to work with them. We continue to engage in, you know, customer conversations. Obviously, they're trying to build their business, as we are, and, you know, anecdotally, I think they've been subject to some of the same kinds of challenges that we've, we've had. I think they also sense a bit of thawing, and we're really looking forward to continuing to work with them and, and our other partners as well, as we mutually try to grow our businesses.
Love those guys, love the work they're doing, and, you know, we'll, we'll see what, you know, what business, what business we can do together.
Okay, thank you for that. It sounds good on the SEC front. We I think, I don't know if it was right after the beginning of the year or before the beginning of the year, and I don't think you named the customer, but there was a sizable customer. You were part of some sort of like a competition or down selection or something that you guys were selected, and I don't know if that's been implemented, that contract. I haven't heard you say anything about it, but it sounded like it was quite sizable to the extent that it certainly doesn't appear to be in your Q2 numbers. I'm wondering what the status of that contract is?
Yeah, this, this one in particular has been, unlike any other business transaction I've ever experienced in my now long career. This opportunity, as you correctly said, you know, kind of we thought was gonna be late Q4 or maybe early Q1. There was a series of delays and, you know, I wouldn't call it go fetch another rock exercise, but a series of presentations and decisions, more presentations and so on. Without any real end in sight, other than, "We really like your stuff, and we've put it in our budget, and it's gonna get approved," and all those kinds of things. In the July kind of timeframe, we began to see more direct signs that this particular organization was serious.
That has now continued, and we have some confidence that that one is actually gonna close. At the same time, given our history, I can't tell you exactly when. but we are seeing very positive signs that it's moving towards a, a close. We were actually the sole source supplier on this particular contract. If it happens, it's gonna be us.
Good. Good, glad to hear. I think I heard you mention something about the capital raise you said for general corporate purposes, and you mentioned something about potential acquisitions. What, what kind of acquisitions are you looking at? What, what might we expect to see on that front?
Well, we're always looking for combinations of our technology and others that are, are creative and would add value in the, in the marketplace. Similar to, you know, some of the partnership deals that we've done, we're always, looking at the market, eyes wide open. We get approached from time to time with novel and interesting, technology, and, if it's the right match and the right fit and, and so on, we, we certainly consider, you know, acquisitions. It's not our primary, thing that we're trying to do. We're trying to just grow Shield and make that successful and, and along with all the other initiatives that we've already talked about. If the right thing comes along, we'd certainly move quickly to, try to, capture innovative technology that would work well for us.
Okay, final one for me, may hop back in the queue. Anyway, wanted to ask, you said something about you're close to the full integration with Netgate pfSense. What's, what's sort of the, the thought or, or plan there when, when that happens? I know that was an opportunity you guys were pretty excited about when you first announced it.
So just by way of background, for those that haven't followed, this story in its entirety. Because of the nature of what we do, a lot of customers actually confuse us with firewall technology. We say very clearly, you know, when we're in a customer conversation, we're not a firewall. We're a companion piece of software that can help make your firewall better, no matter whether it's, you know, a Palo Alto firewall or a Cisco firewall or, you know, anybody else's firewall. We also, once customers understand our technology, often say, "Well, what firewall would you recommend?" They're thinking about switching a firewall. We also discovered that many of our customers actually use pfSense from Netgate as their firewall.
We made the determination several months ago to try to more fully integrate our capability as a plugin to the pfSense firewall. That work has been going on in the engineering organization for about three months, since we first announced the partnership with Netgate, and that work is now nearing completion. Of, of the various manifestations of that, I'm most excited about the integration in the cloud so that we can serve an emerging and growing number of customers who are looking for better protection for their workloads in, in the cloud. So that's where our, you know, most of our efforts have been to make that a really good experience.
I mentioned on the call, as a part of that work, we also have developed a cloud dashboard, which will allow consolidated reporting across multiple Shield instances. If you have on-prem Shield or Shield in the cloud, or Shield on the endpoint, you'll be able to get consolidated threat reporting across all of our products and the pfSense firewall as well. Pretty exciting development, and we think that's gonna have a nice impact with both existing customers, as well as open some new opportunities for us.
Thank you. The next question comes from the line of Zach Cummins with B Riley Securities. Please proceed.
Yep. Hi, good afternoon, Tony and Kim. Thanks for taking my questions. Tony, in terms of incremental traction with Shield, I mean, can you just talk about which product lines that, that you're really seeing the most interest from customers, and, and which you believe will, will be kind of the key driver for, for near term growth for, for Shield in, in the next couple of quarters?
Yeah, it's really, kind of a bifurcated thing at the moment. You know, our most mature product is obviously the Shield on-prem, the, the hardware-based version of Shield. That's, among existing customers, been the biggest-selling product that we have for Shield. Increasingly, what we're getting from an inbound perspective is interest in cloud. I'll also say, and this is something we've been working on, the hybrid model. I've got some workloads in the data center, I've got some workloads in the cloud. I want to protect both, but I want a single dashboard to be able to do reporting across, you know, whatever I have in my environment. That's where we're positioned for the future.
I think that, over time, a lot of that will more than likely shift to cloud, but I don't think, you know, the data center, or on-prem workloads are ever gonna completely go away, so we need to be in both. The other thing that's happened, and we do see a pattern here, is there's a lot of companies that are pretty distributed in terms of having lots of branch offices or remote locations or things like that, and they can't afford really expensive, you know, firewalls and really expensive cyber protection technology if they're, you know a distributed sort of organization like that. So they come to us looking for, you know, more low-cost but effective solutions.
That's where we think the pfSense and Intrusion together can not only offer better protection than you would get from classic firewalls, but probably do it at a, you know, a much better cost than exists anywhere else today. We're pretty excited about that space. The cloud workloads will, as I said earlier, continue to grow. You know, everybody's moving whatever they can to the cloud, and, so over time, I expect that to be, you know, probably the more dominant space just because of the amount of workloads that go there.
Understood. That's, that's helpful. My follow-up question is, is really just geared towards expenses. Great to see the sequential reduction here in Q2 versus Q1, but with the pending offering outstanding, I mean, can you give us a sense of where you would be looking to put incremental investment dollars really to, to drive accelerated traction across your Shield product line?
I t's a combination of marketing. We've got to do a better job of getting word out and supporting our partner ecosystem. Then we've got to, obviously, if we have the ability to, I would invest more in our engineering to accelerate product development. As I've mentioned on previous calls, we've got a multiyear roadmap of things we can do. We're certainly getting great input from customers on things they would like to see us do, and all of that is a function of just how much engineering resource you can put into it, or, as we talked earlier, that you could buy commercially on the outside.
You know, we're always trying to keep a good balance between, you know, how we spend money and the value it delivers to the customers and enhancing our marketability. I don't know that there's a magic formula there, but that's what we're what we're trying to manage.
Great. Well, thanks for taking my questions, and best of luck with the rest of the quarter.
Thank you.
Thank you. The next question goes to the line of Ed Woo with Ascendiant Capital. Please proceed.
Yeah, thank you for taking my question. My question is just on the general state of, you know, businesses and government spending on IT, has it changed significantly in, in the past quarter? You know, it seems as regardless of the economy, it seems like, you know, cyberattacks and tech stuff just keep rising. Does it insulate you guys from, you know, the fluctuations in, you know, budget spending? Thank you.
Yeah, I think there's an interesting set of things that I alluded to a little bit. You know, during the first quarter of this year, it seemed like there were, I'll say, fewer headline, you know, attention-grabbing things about cyber, and then in Q2, it accelerated again, and we've seen it now again in Q3. You know, as a practical matter, cybersecurity spending is a function of what the board of directors of public companies and legislators and what have you, you know, for the public sector, believe they should be spending their money on. When it's a relatively quiet period, there's less noise and energy towards spending on cybersecurity.
Then when, you know, there's a bunch of very public, sorts of attacks, then the noise level goes up, and people pay a lot more attention, and it seems like, you know, the budgets get lifted, you know, to go address those kinds of things. In the last, two or three months, you've seen healthcare get attacked really heavily. You've seen state and local governments, our, our local community here in Dallas, you know, had a big breach. Then, you know, that gets attention, and then that starts the budget dollars flowing.
We definitely saw a lot more interest, as I said on the, on the earlier remarks, you know, late Q2 and in Q3, seems like the attention level and the nervousness, frankly, about cybersecurity status got elevated, and we think that'll translate into good revenue for Intrusion over time.
Great. Well, thanks for answering my questions, and I wish you guys good luck. Thank you.
Thank you.
Thank you. The next question comes from the line of Scott Buck with HC Wainwright. Please proceed.
Hi, good afternoon, guys. Apologies if some of these have been covered. I got on the call a little bit late. Tony, could you talk a little bit about where the gains in consulting are coming from in the beginning of the second half of the year? Is that completely new business, or is that business you're, you know, coming back to or business you're re-upping at a higher price point? Just kinda curious what the dynamics are there.
Yeah. In terms of reported revenue for Q2, it largely was increases in existing customer relationships, where they're sending more work our way. As, as we mentioned on the call, we did sign a large provider of leisure services that we'll see revenue in Q3 and beyond for. So that was a new logo and a brand-new customer. The rest of it right now is from existing customers, and frankly, and, and we expect that to continue to grow. Of course, the only caveat with government spending is we start a new fiscal year, October 1. If there's a CR or any, you know, perturbation in that process, it could have the usual impact on us.
Right now, for existing contracts, we see, you know, moderate, moderate growth continuing to occur.
Okay, that, that's helpful. Following up a little bit on your Q&A with Zach. On the cost-cutting one, I guess, is there any additional room where you think you may have a little, have the ability to cut a little bit more? Two, you know, where you cut to, does that give you, you know, do you still have the cost infrastructure in place to be able to support a real ramp in, in growth, if we should see one over the next few quarters?
I do think there's a little room. Remember, we're burning off some things. Like any company, we signed some contracts that, you know, are difficult to negate. You know, your contracts are committed to spend money on things, whether you're actually using the services or not. There's a few areas where, as those contracts expire, we won't renew, and we'll, you know, be able to take, you know, savings that'll show up in the quarter-over-quarter announcements or reports that we issue. Largely, I think, you know, we're probably as low as, you know, we feel comfortable. And, you know, with some additional revenue coming in, you know, we need to really focus on those areas we need to invest in to propel growth even faster.
Great. That's helpful. Last one, did you guys say what Shield revenue was in the quarter?
I think we did. Yes, do you wanna-
Yeah, it was...
Yeah.
It was, $400,000 or $0.4 million.
Okay, perfect. Thanks a lot, guys. That's it for me.
Thank you.
Thank you. The next question comes from the line of Ross Taylor with ARS Investment Partners. Please proceed.
Just a couple quick questions, Tony. First, in the past, the company has at times benefited from end-of-the-year budget allocation. You know, the idea that in the federal government, if you have money left over at the end of the year, you sure don't want to return it to the pool. One is, would we expect to see that benefit us this year? If so, would that be in the consulting side? Then the second question, which you can address in perhaps the same flow of consciousness, is one of the areas I 've been probably most frustrated with is the fact that we have not seen any kind of meaningful uptake from the government. You know, the DOD, the intelligence services, and the like. It's quite clear from things we're seeing that we're being hacked aggressively, that they're penetrating things.
I would think that given your relationship with some of these agencies and some of the three-letter agencies and the like, that this would be a product that we would be seeing.
Yeah, great questions, Ross. We are talking about to our government customers about year-end money. I can never count on it, but I'm quite hopeful that we're gonna be able to mine that to some degree. We also have submitted proposals for the new budget year that begins October 1 to address exactly some of these problems that you're seeing in the headlines and what have you. We have gotten pretty positive response on those. You know, as with anything government, stay tuned. We'll see what, what happens. From my perspective, it's a more positive conversation than at any other time that I've been here, at least. I'm keeping my fingers crossed that we can both help, but also generate some great revenue from that.
Whether it comes at year-end or becomes part of a, you know, regular ongoing program, you know, remains to be seen. Stay tuned, we'll, we'll, you know, see what happens. I think the second part of your question was adoption of Shield by public agencies. We, we haven't done, I would say, as good a job as I would like us to do, in terms of marketing Shield to the public sector. We've, we've got a few resellers in that space, and they're starting to, you know, make some, some noise that we'll benefit from. It is an area where we could probably, with a little more marketing dollars and leveraging some of the relationships we have, do a little bit better. Again, stay tuned on that.
It's an area that I would expect we'll make some progress in.
Thank you. I will now hand back the call over to Tony for closing remarks.
All right. Well, thanks for the, for the questions. We really appreciate everyone's tuning in today. As I said in the beginning, you know, this has been a very interesting journey. I'm a year and a half or so into it, and we knew it was gonna be a bit of a uphill battle. I'm proud to be here, and I'm very happy with the team that I work with. I think that we're gonna have a really exciting second half of this year, and I look forward to speaking with you, if not before, as we report our Q3 earnings. As I said in the beginning, I think this now marks a turnaround point for Intrusion, and I see a great future in front of us.
Look forward to sharing that with you on future calls and appreciate all the patience and, and also valuable input that we've gotten from our long-term shareholders. It really is helpful, and, and I appreciate the time you spend with us and the interest you've put in us. Thanks very much, and we'll talk to you all soon.
That concludes today's conference call. Thank you. You may now disconnect your line.