Q3 2025 Intrusion Inc Earnings Call

Operator: 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 Josh Carroll with Investor Relations.

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 Josh Carroll with Investor Relations.

Thank you welcome joined me today, Tony Scott, President and Chief Executive Officer, and Kimberly Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website.

Josh Carroll: 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 would 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.

Before I turn the call over to Tony I would 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 1095.

Please refer to our SEC filings for more information on 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.

Josh Carroll: 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 over to Tony for a few opening remarks.

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 over to Tony for a few opening remarks.

Thank you Josh.

And good afternoon, and thank you all for joining us today.

Tony Scott: Thank you, Josh, and good afternoon, and thank you all for joining us today. I'm pleased to report that during Q3 2025, we continued on our path toward achieving our goal of creating sustainable growth and long-term profitability. A few of our highlights of our progress in Q3 include our sixth consecutive quarter of sequential top-line growth, demonstrating consistent execution and increasing demand for our products. Continued near zero customer churn, which we view as a testament to the value of our offerings. The expansion of our Shield technology offering through the launch of Shield Cloud on the AWS Marketplace. I'd also highlight the ongoing rollout of our critical infrastructure solutions, reinforcing the demand that we see to help protect these essential assets from cyber threats.

I am pleased to report that during the third quarter of 2025, we continued on our path toward achieving our goal of creating sustainable growth and.

The long term profitability.

In a few of our highlights of our progress in Q3 include.

Our sixth consecutive quarter of sequential topline growth demonstrating.

Demonstrating consistent execution and increasing demand for our products.

Continued near zero customer churn, which we view as a testament to the value of our offerings.

And the expansion of our shield technology offering through the launch of shield cloud.

On the AWS marketplace.

I'd also highlight the ongoing rollout of our critical infrastructure solutions reinforcing the demand that we see to help protect these essential assets from cyber threats.

And finally, the strong momentum we are seeing from our solution partner Port Nexus as they continue to deploy the my flare or platform.

Tony Scott: Finally, the strong momentum we are seeing from our solution partner, PortNexus, as they continue to deploy the MyFlare Alert platform. Now, none of what we achieved this quarter would be possible without our incredible team, and I'm deeply grateful for the passion and the commitment our employees show every day in serving our customers and advancing our mission. I'd like to provide some additional context on a few of these highlights, all of which are aimed at positioning Intrusion for sustained growth. First, we're really excited about the launch of our Shield Cloud offering on the AWS Marketplace, which we believe will help drive long-term growth for our business. By making Shield Cloud available on the AWS Marketplace, we're not only expanding the opportunity for customers to access our Shield technology, but we're also positioning our cybersecurity engine directly where innovation is taking place.

Now none of what we achieved this quarter would be possible without our incredible team and I'm deeply grateful for the passion and the commitment of our employees show every day in serving our customers and advancing our mission.

I'd like to provide some additional context on a few of these highlights.

All of which are aimed at positioning intrusion for sustained growth.

First we're really excited about the launch of our shield cloud offering on the AWS marketplace.

Which we believe will help drive long term growth for our business by.

By making shield cloud available on the AWS marketplace, we're not only expanding the opportunity for customers to access our shield technology, but we're also positioning our cyber security engine directly where innovation is taking place.

Although still in the early stages, we are already seeing encouraging traction with new potential customers, which we believe will begin contributing positively to our financial results in the fourth quarter and throughout fiscal year 2026.

Tony Scott: Although still in the early stages, we're already seeing encouraging traction with new potential customers, which we believe will begin contributing positively to our financial results in Q4 and throughout fiscal year 2026. In addition to AWS, we're also preparing for the launch of our Shield Cloud offering on Microsoft's Azure Cloud platform later this quarter or early in Q1 2026. This launch will further expand our ability to reach new potential customers. Next, I wanted to mention that we're continuing to make progress with the rollout and adoption of our Shield Critical Infrastructure offering. At the end of Q3, we shipped over 230 units of this critical infrastructure device as a part of our previously announced contract with the Department of Defense.

In addition to AWS. We're also preparing for the launch of our shield cloud offering on Microsoft's Azure cloud platform later this quarter or early in the first quarter of 2026.

This launch will further expand our ability to reach new potential customers.

Next I wanted to mention that we're continuing to make progress with the rollout and adoption of our shield critical infrastructure offering.

And at the end of the third quarter, we shipped over 230 units of this critical infrastructure device as a part of our previously announced.

Contract with the department of Defense.

And as we've previously noted this represents a promising opportunity for intrusion driven by the growing need to protect critical infrastructure from evolving cyber threats.

Tony Scott: As we've previously noted, this represents a promising opportunity for Intrusion Inc., driven by the growing need to protect critical infrastructure from evolving cyber threats. We're actively pursuing additional contracts in the private sector as well at both the federal, state, and local government levels, and we remain optimistic about closing new agreements in the near future. As for our partnership with PortNexus, we're continuing to see strong demand for Shield Endpoint that's embedded within their MyFlare solution. That solution provides enhanced security for education and law enforcement customer endpoints. As some of you may have heard me say during recent discussions, the sales cycle for this solution has been one of the shortest I've ever seen.

We're actively pursuing additional contracts in the private sector as well at both the federal state and local government levels and we remain optimistic about closing new agreements in the near future.

As for our partnership with Port Nexus, we're continuing to see strong demand for shield endpoint, that's embedded within there my flare solution.

And that solution provides enhanced security for education and law enforcement customer endpoints.

As some of you may have heard me say during recent discussions the sale cycle for this solution has been one of the shortest I've ever seen.

The demand for this solution, especially amongst school districts is strong and we anticipate that we will see further adoption of this offering in coming quarters.

Tony Scott: The demand for this solution, especially among school districts, is strong, we anticipate that we will see further adoption of this offering in coming quarters. Now briefly onto our financials for the quarter. Total revenues for the Q3 were $2.0 million, representing a 5% increase compared to the previous quarter and a 31% increase on a year-over-year basis. This was largely driven by the contract expansion with the Department of Defense that we previously discussed. Our operating expenses increased modestly this quarter, primarily reflecting the continued strategic investments that we're making in the business to drive growth. As we've noted in the past, we remain committed to disciplined spending as we invest to support our growth over the coming quarters. Now, before I turn the call over to Kim, I'd like to address the current government shutdown.

Now briefly on to our financials for the quarter total revenues for the third quarter were 2.1 million, representing a 5% increase compared to the previous quarter and a 31% increase on a year over year basis.

This was largely driven by the contract expansion with the department of defense that we previously discussed.

And our operating expenses increased modestly this quarter, primarily reflecting the continued strategic investments that we're making in the business to drive growth.

As we've noted in the past we remain committed to disciplined spending as we invest to support our growth over the coming quarters.

Now before I turn the call over to Kim I would like to address the current government shutdown.

You all know the current government shutdown has impacted businesses across the board.

Tony Scott: You all know the current government shutdown has impacted businesses across the board. For Intrusion, we've not yet seen any meaningful effect on our business, and it looks like the situation is on a path to resolution, thankfully. Most of the government contract conversations are still occurring, and we expect that we will be able to see additional government contracts once this situation has been resolved in Washington. In the meantime, we're continuing to see our pipeline of non-government opportunities expand, and we remain excited about the future here at Intrusion as the demand for our products continues to grow. I'd now like to turn the call over to Kim for a more detailed review of our Q3 financials. Kim.

For intrusion, we've not yet seen any meaningful effect on our business.

And it looks like the situation is on a path to resolution thankfully.

Now briefly onto our financials for the quarter total revenues for the third quarter were 2.1 million, representing a 5% increase compared to the previous quarter and a 31% increase on a year over year basis.

But most of the government contract conversations are still occurring and we expect that we will be able to see additional government contracts.

Once this situation has been resolved in Washington.

This was largely driven by the contract expansion with the department of defense that we previously discussed.

In the meantime, we're continuing to see our pipeline of nongovernment opportunities expand.

And we remain excited about the future here at intrusion.

Our operating expenses increased modestly this quarter, primarily reflecting the continued strategic investments that we're making in the business to drive growth.

The demand for our products continues to grow.

With that I'd now like to turn the call over to Kim for a more detailed review of our third quarter financials Jim.

As we've noted in the past we remain committed to disciplined spending as we invest to support our growth over the coming quarters.

Thanks, Tony and good afternoon, everyone.

Kimberly Pinson: Thanks, Tony. Good afternoon, everyone. Q3 2025 revenue was $2 million, up 5% sequentially and 31% year over year. Growth was driven by expansion of work performed under the contract with the United States Department of Defense, which utilizes both Shield technology and consulting services. Consulting revenue of $1.5 million is up $0.1 million sequentially and $0.4 million year over year. Shield revenues in Q3 totaled $0.5 million, which was relatively flat sequentially, but up approximately $0.1 million year over year. The increase in Shield revenue primarily reflects the work performed under the previously noted DoD contract award. As Tony mentioned, we are continuing to see strong demand for our services with both governmental and commercial customers and anticipate a deeper penetration in both sectors, which will result in further changes to our customer mix.

Third quarter 2020 revenue <unk> from Stifel.

Now before I turn the call over to Cameron I'd like to address the current government shutdown.

Sequentially and 31%.

No.

You all know the current government shutdown has impacted businesses across the board for.

The flagstone and <unk> you asked about.

It's utilizing our technology.

For intrusion, we've not yet seen any meaningful effect on our business.

Okay.

Consulting revenue of $1 $5 million.

And it looks like the situation is.

Thank you Lee.

On a path to resolution thankfully.

Year over year.

But most of the government contract conversations are still occurring and we expect that we will be able to see additional government contracts.

Sure.

The third quarter totaled $5 million, which was relatively flat sequentially.

One right here.

Once the situation has been resolved in Washington.

The increase in revenue primarily reflects the work performed.

In the meantime, we're continuing to see our pipeline of nongovernment opportunities expand and we remain excited about the future here at intrusion as the demand for our products continues to grow.

Randy.

Comstock to Hawaii.

I'll first mentioned, we are continuing to see solid demand for our services with both government and commercial customers.

Anticipated deeper penetration in both sectors, which will result in further.

And with that I'd now like to turn the call over to Kim for a more detailed review of our third quarter financials Jim.

Thank you.

Third quarter gross profit margin was 77%.

Kimberly Pinson: Q3 gross profit margin was 77%, down 58 basis points year over year, which is consistent with expected variability based on product and service mix. Operating expenses in Q3 2025 totaled $3.6 million, an increase of $0.1 million sequentially and $0.4 million year over year. The increase sequentially was largely driven by an increase in sales and marketing expense related to increased participation in trade shows and programs to generate brand awareness and concise product marketing messaging. We may continue to further increase our investment in both product development and sales and marketing to accelerate the growth of our customer base, which will result in higher operating expenses.

Thank you Fermi and good afternoon, everyone.

The eight basis points year over year, which is consistent with it.

Third quarter 2025 revenue.

Thank you Dan is already based on.

<unk>, 5% sequentially and 31 Crystal ball.

Yes.

Operating expenses in the third quarter of 2020 totaled $3 $6 million increased one nine sequentially.

Sure.

Well, it's less driven by expansion of work performed under the contract with the U S Department of defense.

Utilizing our technology.

Technology Okay.

In a break here.

Okay.

The increase sequentially with license.

Consulting revenue of $1 $5 million is not quite running Arlen. Thank you Lee.

This is Catherine marketing expense related to increased participation location.

Year over year.

<unk> okay.

So was there any in the third quarter totaled $5 million, which was relatively flat sequentially.

Marketing messaging.

We may continue to further increase our platform.

Development and marketing to accelerate the growth of our customer base with really helpful.

One right here.

The increase in short revenue primarily reflects the work.

Great.

The increase over the prior year period at $40 million is primarily due to higher share based compensation from operating cash flow during the first quarter.

Thank you.

D capital y.

Kimberly Pinson: The increase over the prior year period of $0.4 million is primarily due to higher share-based compensation from equity grants made in Q1, timing of merit increases, and minor changes to staffing. Net loss for Q3 2025 was $2.1 million, or $0.10 per share, compared to a net loss of $2.1 million for Q3 2024. Turning to the balance sheet from a liquidity perspective, on 30 September 2025, we had cash and cash equivalents of $2.5 million and short-term investments in US Treasuries of $2 million.

As Terry mentioned, we are continuing to see strong demand for our services with both government and commercial customers.

Hello, I have learned in PC and Lansing.

A deeper penetration in both sectors, which will result.

Net loss for the third quarter of 2012 with $2 $1 million 12 per share.

There are changes.

Thanks.

Sure.

Profit margin was 77%.

<unk> a lot loss of $2 1 million.

58 basis points year over year, which is consistent with expected variability based on quality is there.

Quarter 2012, Florida.

Turning to the balance sheet from a liquidity perspective on September 32012, we had cash cash equivalent to <unk> also accounted for $22 million.

Yes.

Operating expenses in the third quarter of 2025 total.

Total $3 $6 million increase sequentially.

Sequentially.

Year over year.

Subsequent to quarter end, we received three more cash related to the Doj contract extension, which increased our cash position inclusive of short term investments.

The increase sequentially with largely driven by increases in marketing expenses to increase participation.

Kimberly Pinson: Subsequent to quarter end, we received $3 million in cash related to the DoD contract extension, which increased our cash position inclusive of short-term investments to $7.5 million, which we believe is sufficient to fund operations through the remainder of 2025 and into early 2026. With that, I'd now like to turn the call back over to Tony for a few closing comments. Tony.

Okay.

Okay, perfect marketing muscles.

$5 million, which we believe is sufficient to fund operations into remainder of 'twenty.

We may continue to further increase our investment in both product development and marketing to accelerate the growth of our customer base, which will result in higher operating expenses.

And into early 'twenty.

With that I'd now like to turn the call back over to terminal four our key clinical programs.

The increase over the prior year period.

<unk>.

This is primarily due to higher share based compensation from equity grants made in the first quarter.

Thank you Kim and I think the third quarter was another step in the right direction for intrusion is we're continuing to make great progress towards achieving our goal of generating sustainable growth and long term profitability and.

Tony Scott: Thank you, Kim. I think Q3 was another step in the right direction for Intrusion Inc. as we are continuing to make great progress towards achieving our goal of generating sustainable growth and long-term profitability. While we're proud of the progress we've made, we're not satisfied with our overall financial results. We know there's still more work to do, and we're confident that we can and will deliver stronger performance over time. Achieving this will require continued discipline and time, we believe our ongoing investments in the business, the strength of our expanding pipeline, and the improved engagement we're seeing with both customers and partners has positioned us well to drive enhanced financial results. Now this concludes our prepared remarks, and I'll now turn the call over to the operator for Q&A.

You have merit increases and minor changes.

Net loss for the third quarter of 2025, with $2 $1 million or <unk> per share.

And while we're proud of the progress we've made we're not satisfied with our overall financial results. We know there's still more work to do.

Okay.

Loss of $2 1 million.

Third quarter 2012 in Florida.

We're confident that we can and will deliver stronger performance over time achieve.

Turning to the balance sheet liquidity perspective on September 32020, we had cash cash equivalent to $2 odd million dollars.

Achieving this will require continued discipline and time, but we believe our ongoing investments in the business the strength of our expanding pipeline and the improved engagement, we're seeing with both customers and partners has positioned us well to drive enhanced financial results.

And short term investments in U S treasuries at $2 million.

Yes.

Subsequent to quarter end, we received three Marino cash related to the Doj contract extension, which increased our cash position inclusive of short term investments.

Now this concludes our prepared remarks, and I'll now turn the call over to the operator for Q&A.

$9, which we believe is sufficient to fund operations.

The remainder of 2020.

Thank you at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset.

<unk>.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or comment. The first question comes from Scott Buck with H.C. Wainwright. Please proceed.

Thanks.

With that I'd now like to turn the call back over to Tony for a key question.

Hello.

Thank you Kim and I think the third quarter was another step in the right direction for intrusion is we're continuing to make great progress towards achieving our goal of generating sustainable growth and long term profitability.

Said before pressing the star keys, one moment, please while we poll for questions.

Again, Please press star one if you have a question.

And while we're proud of the progress we've made we're not satisfied with our overall financial results. We know there's still more work to do.

The first question comes from Scott Buck with H C. Wainwright. Please proceed.

And we're confident that we can and will deliver stronger performance over time, achieving this will require continued discipline and time, but we believe our ongoing investments in the business the strength of our expanding pipeline and the improved engagement, we're seeing with both customers and partners.

Hey, good afternoon, guys. Thanks for taking my questions. Tony I think you touched on it a little bit in the prepared remarks, but wanted to kind of dig in a little bit deeper on the infrastructure work with the Doj.

Scott Buck: Hi. Good afternoon, guys. Thanks for taking my questions. Tony, I think you touched on it a little bit in the prepared remarks, but wanted to kind of dig in a little bit deeper on the infrastructure work with the DoD. When do you get far enough along the process or prove yourself enough that maybe you open the door to some additional work of a similar nature with them?

When do you get far enough along the process or prove yourself enough that maybe you opened the door to some additional work.

Has positioned us well to drive enhanced financial results.

Similar in nature with them.

Now this concludes our prepared remarks, and I'll now turn the call over to the operator for Q&A.

Already in progress.

Tony Scott: Already in progress. With this, first project, it's opened the doors for us to have conversations about deployment in other locations. Right now we're in one island location in the Pacific Rim, but there's lots of islands there. There's also domestic opportunities for this from a government perspective, and then there's, we think, even more opportunities from a private sector or commercial perspective. I'm particularly excited about this product.

So with this.

Thank you at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset.

First project.

It's opened the doors for us too.

Have conversations about deployment in other locations right now we're in.

One island location in the Pac rim, but there's lots of islands there.

For pressing the star Keys, one moment, please while we poll for questions. Once again. Please press star one if you have a question.

Theres also.

Domestic opportunities for this.

From a government perspective.

Comment.

Next question comes from Scott Buck with H C. Wainwright. Please proceed.

Then there is we think even more opportunities from <unk>.

Hey, good afternoon, guys. Thanks for taking my questions. Tony I think you touched on it a little bit in the prepared remarks, but wanted to kind of dig in a little bit deeper on the infrastructure work with the D O D.

Private sector, our commercial perspective, so I'm, particularly excited about this product.

Product.

These are.

Tony Scott: You know, these are, like we've seen in this particular case, it's, you know, a big dollar sale when it happens, and we think we have an opportunity for, you know, many more of these during, you know, not only the next quarter, but next year or so. It's a big area, a big opportunity for us. We gotta close them. We gotta get, you know, government funding squared away, which, you know, as we've all experienced, is a daily up and down, you know, sort of situation. I think the potential is big for this product. It is our most successful, you know, you know, product at this particular point. We're gonna bet on it and get all we can.

Like like we've seen in this particular case.

When do you get far enough along the process or prove yourself enough that maybe you opened the door to some additional work.

It's a big dollar sale when it happens and we think we have an opportunity for.

Many more of these during.

Listen we're in Asia with them.

Not only the next quarter, but next year or so.

Already in progress.

It's a big a big area of big opportunity for us that we got to close them, we gotta get government funding.

So with this.

First project.

It's opened the doors for us to have.

Squared away, which.

Conversations about deployment in other locations right now we're in.

We've all experienced as a daily up and down.

Sort of situation, but.

One island location in the Pac rim, but there's lots of islands there.

I think the potential is.

Big for this.

It is our most successful.

There is also <unk>.

Domestic opportunities for this.

And our product at this particular point.

From a government perspective, and then there is we think even more opportunities from a private sector or commercial perspective, so I'm, particularly excited about this product.

No.

We're going to bet on it.

<unk>.

Get all we can.

No that's great to hear now Kim you need to add heads or.

Scott Buck: No, that's great to hear. Now, Kim, do you need to add heads or any kind of other support to kind of press on those opportunities?

Any kind of other.

Product.

Supports.

These are.

<unk>.

Kind of pressed on those opportunities.

Like like we've seen in this particular case.

It's a big dollar sale when it happens and we think we have an opportunity for.

And now there is a.

Tony Scott: No. There's a fairly small capital investment because there is a device that goes with this infrastructure monitoring. Otherwise, we don't expect or anticipate having to add heads or increase our operating expenses to any large degree.

Fairly small capital investment because there is a device that goes with this infrastructure monitoring and but otherwise, we don't expect or anticipate having to add head or increase our operating expenses too.

Many more of these during.

You know not only the next quarter, but next year or so.

It's a big a big area of big opportunity for us that we got to close them, we gotta get government funding.

Large degree.

Squared away, which.

Alright, perfect and then Tony I wanted to ask I know it hasn't been very long right, but I'm curious what the experience has been like so far on AWS.

We've all experienced as a daily up and down.

Scott Buck: All right. Perfect. Tony, I wanna ask, I know it hasn't been very long, right, but I'm curious what the experience has been like so far on AWS, where, you know, you may be seeing some interest, and any kind of initial feedback you guys are getting I think would be helpful.

Sort of situation, but.

I think the potential is as big for this product it is our most successful.

Where you may be seeing some interest in any kind of initial feedback you guys are getting I think would be helpful.

Yeah.

And our product at this particular point.

Yeah.

So we're going to we're going to bet on it.

We've gone through we've actually been in Navy it excuse me AWS four.

Tony Scott: Yeah. It's, you know, we've actually been in AWS for the bulk of the Q3, and now into the Q4, we've already done a couple of updates to make it easier to configure and install. We have 1 more big update coming shortly that I think will make it even easier, and this is all based on feedback we've gotten from our initial beta customers and so on. I think with these changes, it'll, you know, significantly make it easier for people to adopt. A lot of excitement around it. You know, the numbers aren't huge at the moment, but we're on our plan.

And.

Get all we can.

No that's great to hear now Kim you need to add or.

The bulk of the third quarter.

And now into the fourth quarter and we've already done a couple of updates to make it easier to configure and install and we have one more big update coming.

And any kind of other.

Ports too.

Kind of pressed on on those opportunities.

And no there is a.

Shortly that I think will make it even easier and this is all based on feedback we've gotten from our.

Fairly small capital investment because there is a device that goes with this infrastructure monitoring.

Our initial beta customers and so on.

But otherwise, we don't expect or anticipate having to add heads or increase our operating expenses too.

And I think with these changes.

It will.

Significantly.

Make it easier for people to adopt so.

Large degree.

A lot of excitement around it.

Alright, perfect and then Tony I wanted to ask I know it hasn't been very long right, but I'm curious what the experience has been like so far on AWS.

The numbers arent huge at the moment, but we're on our plan.

Starting to do the marketing and advertising work that I think we've talked about.

Tony Scott: We're starting to do the marketing and advertising work that I think we've talked about on prior calls. Our expectation is that that's gonna pay off. The lessons we've learned from this will also apply as we get into the Azure Marketplace on the Microsoft platform. I'm expecting that, you know, the acceleration there can go even quicker than what we've experienced in the AWS environment.

Where you may be seeing some interest in any kind of initial feedback you guys are getting I think would be helpful.

On prior calls and in our expectation is that that's going to pay off.

Yeah.

And the lessons we've learned from this will also apply as we get into the Azure.

We've gone through we've.

Actually Ben and Navy it excuse me AWS for.

Marketplace on the Microsoft platform, and so I am expecting that.

The bulk of the third quarter.

And now into the fourth quarter and we've already done a couple of updates to make it easier to configure and install and we have one more big update coming.

The acceleration there Kevin go even quicker than what we've experienced.

The AWS environment.

Yes.

Partly that I think will make it even easier and this is all based on feedback we've gotten from.

Very positive about it.

Scott Buck: Yeah

Tony Scott: I'm very positive about it.

Okay now that makes makes sense and on Azure it sounds like it could be end of this quarter could be getting it.

Scott Buck: Good. No, that makes sense. On Azure, it sounds like could be end of this quarter, could be beginning of 2026. What steps do you have left there to get up and active?

Our initial beta customers and so on.

Uh huh.

26, what steps do you have left there to get up and an active.

And I think with these changes.

It'll it'll.

It significantly.

Well, we created a new.

Make it easier for people to adopt so.

Tony Scott: Well, we created a new, kind of built from scratch variant of Shield for the cloud that makes it much easier to deploy in these virtual environments, and that's the one that we're gonna target for Azure as well. Easier for a better build for us, easier for the customer to adopt. The current AWS one has, is coupled with, pfSense, the open source firewall.

Kind of golf from scratch variant of <unk>.

A lot of excitement around it.

<unk> for the cloud that makes it much easier to deploy in these virtual environments and thats. The one that we're going to target for.

The numbers arent huge at the moment, but we're on our plan.

Starting to do the marketing and advertising work that I think we've talked about.

For Azure as well.

On prior calls and.

So easier.

Our expectation is that that's going to pay off.

Build for us easier for the customer to adopt.

And the lessons we've learned from this will also apply as we get into the Azure.

The current AWS one has.

This coupled with.

<unk> place on the Microsoft platform, and so I am expecting that.

<unk> the open source firewall and new versions that will go into.

Now the acceleration there Ken go even quicker than what we've experienced.

Tony Scott: The new versions that'll go into AWS shortly and also Azure are just Shield and not coupled to pfSense. We think that's gonna attract a broader set of customers. We'll still offer the pfSense version in AWS, so we'll actually have two properties in AWS, one with pfSense and one standalone. Probably in Azure.

AWS shortly and also Azure are just shield and not coupled to PFS and we think thats going to.

Okay.

The AWS environment.

Yes.

<unk>.

Very positive about it.

A broader set of.

Customers will still offer the <unk> version.

Okay now that makes makes sense and on Azure it sounds like it could be end of this quarter could be getting.

AWS, so I actually have two properties in AWS, one with PFS and one standalone.

20.

26, what steps do you have left there to get up and an active.

And probably an agile below your pricing Rooney.

Well, we created a new.

Scott Buck: Does that change the way you price it, Tony?

Pardon me.

Kind of Gulf from scratch variant of.

Does that change the price that you price it yeah.

Tony Scott: Pardon me?

Scott Buck: Sorry.

Shield for the cloud that makes it much easier to deploy in these virtual environments and that's the one that we're going to target for.

Tony Scott: Does it change the pricing?

Scott Buck: Does that change the way you price it? Yeah.

But not a whole lot because the PFS senses open source.

Tony Scott: Not a whole lot because the pfSense is open source. There's no royalties or anything like that associated with it. What we heard from customers is some of them want choice around which firewall they use. While they like our technology, they, you know, had a different choice for firewall than what we chose, which was pfSense. This will give customers broader choice. If they don't have a firewall and want one and like open source, they can use that. If they want to choose something else but still want our technology, they can have that choice as well.

So theres no royalties or anything like that associated with it.

For Azure as well.

So easier for a better build for us easier for the customer to adopt.

What we heard from customers is some of them want choice around which firewall they use.

The current AWS one has.

And while we like our technology.

This coupled with.

Had a different choice for firewall then.

Pfsense the open source firewall and the new versions that will go into.

What we chose which was PFS. So this will give customers broader choice. If they don't have a firewall on and like open source. They can use that if they wanted to something else, but still want our technology. They can have that choice as well.

AWS shortly and also Azure are just shield and not coupled to PFS sentence, and we think thats going to.

Track.

A broader set of.

Customers will still offer the <unk> version.

Okay perfect. That's all I had guys I appreciate the time, thank you very much and congrats on the progress next quarter.

And AWS, so I actually have two properties in AWS, one with PFS and one standalone.

Scott Buck: Okay. Perfect. Well, that's all I had, guys. I appreciate the time. Thank you very much, and congrats on the progress this quarter.

Thanks.

The next question comes from Ed Woo with <unk> capital. Please proceed.

Tony Scott: Thanks.

Operator: The next question comes from Ed Wu with Ascendant Capital. Please proceed.

And probably in Azure and below your pricing Rooney.

Yes, congratulations on the progress My question is on your channel partner Port access or what.

Pardon me.

Ed Wu: Yeah. Congratulations on the progress. My question is on your channel partner, PortNexus. What are you able to do there that is, you know, able to give you the successes? Is this able to be translated to other channel partners?

The price that you price it yeah.

But not a whole lot because the PFS senses open source.

Are you able to do there that is.

To give you the successes.

Is that able to be translated to other channel partners.

So theres no royalties or anything like that associated with it.

Yes so.

What we heard from customers is some of them want choice around which firewall they use.

What we are providing support Nexus is.

Tony Scott: What we're providing to PortNexus is endpoint security for their solution that's deployed in classrooms and other public sort of places. That endpoint security is important so that the devices are effectively tamper-proof and, you know, safe from hacking and so on. I'm excited about it because as we've done trade shows with PortNexus, and school administrators come by and see the demo and understand the capability, they get pretty excited. As I kind of hinted, the sales cycle looks like it's pretty short. The feedback is, I want this now, kind of thing, which with other solutions, you know, there's a much longer conversation that ordinarily takes place. We're in a couple of school districts already.

Endpoint security for their solution, that's deployed in classrooms, and other public sort of places.

And while we like our technologies.

I had a different choice for firewall then.

And that endpoint security is important so that the devices are effectively tamperproof an and.

What we chose which was PFS. So this will give customers broader choice. If they don't have a firewall and what one and like open source. They can use that if they wanted to do something else, but still want our technology. They can.

Safe from hacking and so on.

I am excited about it because as we've done tradeshows with Port Nexis.

They have that choice as well.

Cool administrators come by and see the demo and understand.

Okay perfect well, that's all I had guys I appreciate the time, thank you very much and congrats on the progress next quarter.

<unk> ability they get pretty excited and.

Thanks.

I kind of hinted the sales cycle looks like it's pretty short.

The next question comes from Ed Woo with <unk> capital. Please proceed.

The feedback is I want this now.

Yes, congratulations on the progress My question is on your channel partner portal access what.

Kind of thing, which with other <unk>.

Solutions, there's a much longer conversation.

Are you able to do that they are that is.

Ordinarily takes place.

But to give you the successes.

So.

Is that able to be translated to other channel partners.

We're in a couple of school districts already.

And I think his experience with this product grows.

Yes so.

Tony Scott: And I think as experience with this product grows, you know, the excitement's gonna only accelerate. We're attending all the right trade shows with PortNexus, but also word of mouth is beginning to get out that this is a pretty cool solution. At the end of the day, we've got, you know, great expectations for this.

What we're providing.

Nexus is.

The excitement is going to only accelerate.

Endpoint security for their solution, that's deployed in classrooms, and other public sort of places.

Hum.

We're attending all the right trade shows with <unk>, but also word of mouth is beginning to get out that this is a pretty cool solution. So the end of the day we've got.

And that endpoint security is important so that the devices are.

Effectively tamperproof an and.

Great expectations for this.

Save from hacking and so on.

Can you translate these opportunity to other channel partners or is this very specific just to <unk>.

I am excited about it because as we've done tradeshows with Port Nexus and school administrators come by and see the demo and understand the capability they get pretty excited and.

Ed Wu: Can you translate these opportunities to other channel partners, or is this very specific just to Port Nexus?

Yes.

Well, we can certainly ported to or extended to other.

Tony Scott: Well, we can certainly port it to or extend it to other, endpoint kinds of solutions where, you know, network security is of paramount importance, and we are looking for those opportunities. I'd say, you know, the success with PortNexus will certainly be a good indicator for other potential partners as well. Yes, I think it can extend, and we are looking for those kinds of opportunities.

Endpoint kinds of solutions, where.

I kind of hinted the sales cycle looks like it's a pretty short.

Network security is of Paramount.

Importance and we are looking for those opportunities I'd say.

The feedback is I don't want this now.

Kind of thing, which with other <unk>.

The success with Port Nexus will.

Solutions, there's a much longer conversation.

Certainly be a good indicator for us.

Ordinarily takes place.

Other potential partners as well so yes.

So.

We're in a couple of school districts already.

I think it can extend and we are looking for those.

And I think his experience with this product grows.

Kind of opportunities.

Great and my last question is as you rolled out and AWS.

The excitement is going to only accelerate.

Ed Wu: Great. My last question is, you know, as you rolled out in, you know, AWS, then also on the Azure platform soon, do you care where your customer buys it? Is there any difference in profitability and R&D costs?

We're attending all the right trade shows with <unk>, but also a word of mouth is beginning to get out that this is a pretty cool solution. So the end of the day we've got.

And then also on the Azure platform soon do you care what are your customers Baidu is there any difference in profitability.

R&D costs.

No impact in R&D costs.

Great expectations for this.

Tony Scott: No impact on R&D costs. We're only at this point, extending it to US customers. We're not in the global marketplaces, so that, you know, kind of by definition restricts, you know, where it's for sale. It doesn't really impact our costs one way or the other.

We're only at this point extending it to U S customers, who are not in the global marketplaces, so that.

Can you translate these opportunity to other channel partners or is this very specific just to put in excess.

Kind of by definition restricts where its for sale but.

Well, we can certainly ported to or extended to other.

It doesn't really impact our costs, one way or the other.

Endpoint kinds of solutions, where.

Network security is of Paramount.

And you don't really care what are your first broke ethic is the profitability margins are about the same.

Importance and we are looking for those opportunities I'd say.

Ed Wu: You don't really care where your customer gets it because the profitability margins are about the same?

Yes, correct.

The success with port and excess will.

Tony Scott: Yes. Correct.

Great well, thanks for answering my questions and I wish you guys. Good luck. Thank you.

Ed Wu: Great. Well, thanks for answering my questions, and I wish you guys good luck. Thank you.

Certainly be a good indicator for.

Other potential partners as well so yes.

Well, Thank you Ed question.

Once again, if you have a question or a comment please indicate so by pressing star one. The next question comes from Howard <unk> with Wellington Shields. Please proceed.

Tony Scott: Thank you.

Operator: Once again, if you have a question or a comment, please indicate so by pressing star 1. The next question comes from Howard Brous with Wellington Shields. Please proceed.

I think it can extend and we are looking for those kinds of opportunities.

Thank you.

Great and my last question is you know as you rolled out and AWS.

Tony and congratulations on the increase quarter over quarter over quarter.

Howard Brous: Thank you. Tony, congratulations on the increased quarter-over-quarter-over-quarter. I have a couple of questions. Can you discuss the revenue opportunity with OT Defender, as an example?

I have a couple of questions.

And then also on the Azure platform soon do you care what are your customer buys or is there any difference in profitability.

Can you discuss a revenue opportunity with Ot defender as an example.

I can talk about it generally I mean, I think the nice thing about these is.

R&D costs.

Tony Scott: I can talk about it generally. I mean, I think the nice thing about these is, as compared to our Shield or PortNexus deals that tend to be smaller, these tend to be bigger sales, $100,000, $200,000, above, kind of opportunities. As you get one of these, there's a more meaningful impact in terms of revenue and overall sales. Obviously that's important in terms of the revenue opportunity. The second thing is it's pretty widely recognized at this point that the OT environment is probably the biggest area of underinvestment from cybersecurity perspectives.

No impact in R&D costs.

As compared to our shield or CT nexis deals that tend to be smaller these tend to be bigger sale.

We're only at this point extending it to U S customers, who are not in the global marketplaces, so that.

100 200.

Kind of by definition restricts words for sale, but.

Above kind of opportunities.

It doesn't really impact our costs, one way or the other.

And so as you get one of these is a more meaningful impact in terms of revenue and.

And you don't really care what are your first broke gets it because the profitability margins are about the same.

And overall sales.

So so obviously that's important.

Yes, correct.

Great well, thanks for answering my questions and I wish you guys. Good luck. Thank you.

In terms of the revenue opportunity.

The second thing is.

Once again good question.

Pretty widely recognized at this point that the Ot environment is probably the biggest area of.

Once again, if you have a question or a comment please indicate so by pressing star one. The next question comes from Howard to browse with Wellington Shields. Please proceed.

Underinvestment from cyber security perspective.

Thank you.

Tony and congratulations on the increase quarter over quarter over quarter.

And it also happens to be one of the biggest targets for nation state actors, who in anticipation of some sort of.

Tony Scott: It also happens to be one of the biggest targets for nation-state actors who, in anticipation of some sort of, you know, aggressive activity, would love to take out water systems and the electrical grid and communication systems and the things that are necessary to sustain life in most places around the world. A lot of the environment in these OT spaces is old gear that over time got hooked up to networks, but were never ever designed to fend off the kinds of attacks and threats that, you know, are just a part of our modern-day world. You know, the reality is we've, as a nation and even internationally, we've been a little slow to wake up to this aspect of cybersecurity, this particular kind of threat.

I have a couple of questions.

Can you discuss a revenue opportunity with Ot defender as an example.

Yeah.

I can talk about it generally I mean, I think the nice thing about these is.

Aggressive activity would love to take out water systems.

As compared to our shield or CT nexis deals that tend to be smaller these tend to be bigger sales.

The electrical grid and communication systems, and the things that are necessary to sustain life.

Most places around the world.

Yeah.

<unk> thousand 200.

A lot of the environment in these ot space as old gear that overtime got hooked up to networks, but we're never ever designed to.

Above kind of opportunities.

And so as you get one of these is a more meaningful impact in terms of revenue and.

And overall sales.

<unk>.

Fend off the kinds of attacks and threats.

So obviously that's important.

And are just a part of our modern day World and.

In terms of the revenue opportunity.

The reality is we've.

The second thing is.

Pretty widely recognized at this point that the Ot environment is probably the biggest area of.

As a nation and even internationally, we've been a little slow to wake up to this.

Underinvestment from cyber security perspective.

Aspect of cyber security. This particular kind of threat. So we think the market opportunities are.

And it also happens to be one of the biggest targets for nation state actors who.

Tony Scott: We think the market opportunities are, you know, really big, and we think we have a very cost-effective and now proven solution, you know, to this particular problem, and we're gonna do everything we can to let everybody know what we've got and what its capabilities are. I think, you know, I'm pretty bullish on this. It's gonna take work, but I'm excited. Not just from a revenue perspective for Intrusion, but I'm excited for the protection I think this can bring to some very vulnerable environments in our cities and states and critical infrastructure generally. As I mentioned on the call, it also applies to commercial environments, shop floors, and other manufacturing environments and so on.

Really big and we think we have a very cost effective.

In anticipation of some sort of.

Yeah.

And now proven solution.

Aggressive activity would love to take out water systems.

And up to this particular problem and we're going to do everything we can to let everybody know.

The electrical grid and communication systems, and the things that are necessary to sustain life and <unk>.

What we've got and what its capabilities are.

So I think.

I'm pretty bullish on this it's going to take work.

Most places around the world.

But.

A lot of the environment in these ot spaces is old gear that overtime got hooked up to networks, but we're never ever designed.

I'm excited.

Not just from a revenue perspective for intrusion, but I'm excited for the protection I think this can bring to some very vulnerable.

Environments.

To.

In our cities.

Fend off the kinds of attacks and threats.

And in states.

Or just a part of our modern day world.

And critical infrastructure generally.

The reality is we've.

And then as I mentioned on the call. It also applies to commercial environment shop floors.

Yep.

As a nation and even internationally, we've been a little slow to wake up to this.

And other manufacturing.

Aspect of cyber security. This particular kind of threat. So we think the market opportunities are.

Environments and so on.

And in all of those are.

Tony Scott: And all of those are, you know, pretty vulnerable at this particular point. If you can disrupt manufacturing or disrupt, you know, the production of goods, that's got a pretty serious economic impact. I think our technology is good to help protect those environments as well. A pretty broad-based market or, you know, surface for us to go after.

Pretty vulnerable at this particular point, if you can disrupt manufacturing or disrupt.

Really big and we think we have a very cost effective.

The production of goods.

And now proven solution.

Got a pretty serious economic impact them.

And up to this particular problem and we're going to do everything we can to let everybody know what we've got and what its capabilities are.

I think our technology is good.

Help protect those.

Those environments as well so pretty broad based.

So I think you know.

Market or.

I'm pretty bullish on this it's going to take work.

Surface for for Us to go after.

But.

I'm excited.

So the second question. The same question with revenue opportunity on put Nexus school safety offering.

Not just from a revenue perspective for intrusion, but I'm excited for the protection I think this can bring to some very vulnerable.

Howard Brous: The second question, the same question with revenue opportunity on PortNexus school safety offering, which I, you know, from my understanding is should be critical with every school in the country.

My understanding is should be critical with every school in the country.

Environments.

In our cities.

Yes that one is probably not as big as the critical infrastructure stuff.

And states.

Tony Scott: Yeah. That one is probably not as big as the Critical Infrastructure stuff. You know, this is one of those things where, once you see it, you can't unsee it. As we've experienced at trade shows, the school administrators love the simplicity of it and also the sort of capability that the PortNexus solution provides. The critical thing there is visibility in that first, you know, 1 to 5 minutes of an incident where you have really good or, and better situational awareness than you do with any other solution that's out there. The first responders call that the critical first few minutes. If you can understand what's going on and have situational awareness, you can have a much better response, that's what the PortNexus solution provides.

And critical infrastructure generally.

But.

Okay.

This is one of those things were.

And then as I mentioned on the call. It also applies to commercial environment shop floors.

Once you see it you can't Unsee, it and as we've experienced at Tradeshows. The school administer administrators love the simplicity of it and also the.

And the other manufacturing.

Environments and so on.

And in all of those are.

The sort of capability.

Pretty vulnerable at this particular point, if you can disrupt manufacturing or disrupt.

<unk> solutions provide.

And the critical thing there is visibility in that first.

The production of goods.

Got a pretty serious economic impact them.

One to five minutes.

Of an incident, where you have really good.

And I think our technology is good.

Protect.

And better situational awareness than you do with any other solution that's out there in the first responders call that the critical first few minutes. If you can understand what's going on and have situational awareness you can have a much better response and thats what the <unk>.

Those environments as well so.

Pretty broad based.

Market or.

Surface for for Us to go after.

So the second question. The same question with revenue opportunity on Port next school safety offering which I.

My understanding is should be critical with every school in the country.

<unk> <unk> solution provides so we're happy happy to be a part of that.

Tony Scott: We're happy, you know, happy to be a part of that, clearly. I think, you know, just like you've seen police departments all over have body-worn cameras, I think ultimately this is gonna be a required thing in every school classroom or at least public school classroom in the country, because it's just such a good solution. We're happy to partner with PortNexus on that journey.

Yes that one is probably not as big as the critical infrastructure stuff.

Clearly.

And I think.

Just like you've seen police departments, all over have body worn cameras.

But.

This is one of those things were.

Once you see it you can't Unsee, it and as we've experienced at Tradeshows. The school administer administrators love the simplicity of it and also the.

Think ultimately this is going to be a required thing in every school classroom or at least public school classroom in the country.

Because it's just such a good solution so.

The sort of capability that port and exit solution provides.

We're happy to partner with important axis on that journey.

So my last question well, let me, let me come back to the put Nexus.

And the critical thing there is visibility in that first one to five minutes.

Howard Brous: My last question, Well, let me come back to the PortNexus. Any sense for 2026 of a revenue opportunity?

Any sense for 2026 have a revenue opportunity.

Of an incident, where you have really good and better situational awareness than you do with any other solution. That's out there in the first responders call that.

I'd be.

Wildly guessing at this point Howard but.

Tony Scott: I'd be wildly guessing at this point, Howard, but, you know, our eyes are towards up and onward from a revenue perspective. We're, I think, genuinely excited about the opportunity. Clearly, we've got to execute. Clearly, you know, we've got to get in front of customers, make the case, and go forward. I think we have all the right things in our, you know, briefcase to go sell, and we're as excited as I've ever been about it.

Our our eyes are towards up and onward from a.

Revenue perspective so.

Critical first few minutes, if you can understand what's going on and have situational awareness you can have a much better response and that's what the Port Texas solution provides so we're happy happy to be a part of that.

We are.

Sure.

I think genuinely excited about the opportunity clearly we've got to execute.

Clearly, we've got to get in front of customers make the case.

And go forward, but I think we have all the right.

Clearly and.

Things in our in our.

And I think.

Briefcase to go sell in and.

Just like you've seen police departments over have body worn cameras.

As excited as I've ever been about it.

I think ultimately this is going to be a required thing in every school classroom or at least public school classroom.

My last question and then one comment afterwards shield cloud revenue opportunity.

Howard Brous: My last question, then one comment afterwards. Shield Cloud revenue opportunity?

The country.

Again as I said on the call that's the place where innovation is happening and so.

Because it's just such a good solution so.

Tony Scott: Again, as I said on the call, that's the place where innovation is happening. You know, the growth in, you know, small, medium business, they've moved to the cloud and are moving to the cloud, and that's where the economy is growing the fastest. It's probably the biggest opportunity, you know, from a tech standpoint, for that part of the market. We'll see. Again, we've gotta execute. We've gotta continue to work our marketing plan and demand gen plan. We've seen a lot of other companies do it, and we're gonna be a fast follower in terms of all of the things that we've seen work on that journey. Hard to exactly predict, but we have, I would say, great expectations.

We're happy to partner with important axis on that journey.

The growth in.

So my last question well, let me, let me come back to the put Nexus any sense for 2026 have a revenue opportunity.

<unk>.

Small medium business.

They've moved to the cloud and are moving to the cloud and Thats, where the economy is growing the fastest it's probably the biggest opportunity.

I'd be.

Wildly guessing at this point Howard but.

From a tech standpoint.

Our our eyes are towards up and onward from a revenue perspective so.

For that part of the market and.

And we will see again, we've got to execute we've got to continue to work our marketing plan and demand Gen plan, but.

We are.

Sure.

I think genuinely excited about the opportunity clearly we've got to execute clearly we've got to get in front of customers make the case.

We've seen a lot of other companies do it and we're going to be a fast follower in terms of all of the things that we've seen work.

And go forward, but I think we have all the right things in our in our.

And that journey so.

Hard to hard to exactly predict but we have I would say.

Briefcase to go sell in.

Great expectations.

And.

We're as excited as I've ever been about it.

What level last question what level of revenue per contract would you make a public announcement.

My last question and then one comment afterwards shield cloud.

Howard Brous: Last question. What level of revenue per contract would you make a public announcement? $100,000? $1 million?

Revenue opportunity.

It is not known looks like.

Again as I said on the call that's the place where innovation is happening and so.

Well, it's not so much in some cases Howard it's not.

Tony Scott: It's not so much.

Howard Brous: Go ahead.

Tony Scott: Well, it's not so much In, in some cases, Howard, it's not the level of the dollar amount that would determine whether we can make an announcement. We actually signed some deals in Q3 that, you know, didn't produce revenue in Q3, but it'll produce revenue in Q4, that by contract we were prohibited from announcing. The only way you'll see them is when revenue shows up, you know, after the end of a quarter. That's not uncommon in the cybersecurity space. We'll announce whatever we can when we can, if it's significant. I'm not gonna announce, you know, a $5,000 deal or a $10,000 deal or something like that. If it's, you know, a $100K or $400K or $1 million, I'll certainly announce it if I'm allowed to.

The growth in yen.

The level of the dollar amount that would determine whether we can make an announcement, we actually signed.

Small medium business.

They've moved to the cloud and are moving to the cloud and that's where the economy is growing the fastest it's probably the biggest opportunity.

Some deals in Q.

Q3.

That didn't produce revenue in Q3, but will produce revenue in Q4.

From a tech standpoint.

For that part of the market and.

By contract we were prohibited from announcing.

And we will see again, we've got to execute we've got to continue to work our marketing plan and demand Gen plan, but.

So the only way you'll see them as win revenue shows up.

At the end of the quarter.

And.

That's not uncommon in the cyber security space will announce whatever we can when we can if it's significant I'm not going to announce.

We've seen a lot of other companies do it and we're going to be a fast follower in terms of all of the things that we've seen work.

And that journey so.

Hard to hard to exactly predict but we have I would say.

$5000 deal or $10000 deal or something like that but if it's.

Great expectations.

100, K or 400, K or a million I'll certainly announce it if I'm allowed to.

What level last question what level of revenue per contract would you make a public announcement.

Tony.

Thank you.

100009 months Blake.

Howard Brous: Tony, best of luck. Thank you.

Thank you.

Well, it's not so much in some cases Howard it's not.

The next question comes from Jerry Janowitz with he's a private investor Geri. Please proceed.

Tony Scott: Thank you.

Operator: The next question comes from Jerry Yanowitz with He is a private investor. Jerry, please proceed.

The level of the dollar amount that would determine whether we can make an announcement, we actually signed.

Tony do you believe your intellectual property alone could be worth multiples of your current stock price and I'm, just looking for a simple, yes or no answer.

Jerry Yanowitz: Tony, do you believe your intellectual property alone could be worth multiples of your current stock price? I'm just looking for a simple yes or no answer.

Some deals in Q.

Yes.

Q3.

And thank you and based on your knowledge in the cyber security market deeply your products could integrate well with a larger cyber securities company suite of products.

That didn't produce revenue in Q3, but it'll produce revenue in Q4.

Tony Scott: Yes.

Jerry Yanowitz: Thank you. Based on your knowledge in the cybersecurity market, do you believe your products could integrate well with a larger cybersecurity company's suite of products? Yes or no.

By contract we were prohibited from announcing.

So the only way you'll see them as win revenue shows up you know after the end of the quarter.

Yes, yes.

This is actually yes.

Tony Scott: Yes.

Jerry Yanowitz: Just a simple yes or no.

Yes, I do.

Tony Scott: Yeah, I do. It may not always be the obvious, you know, first names that come to mind, but the answer is yes. It's, you know, I think obvious that could be very interesting and exciting for us.

And.

It may not always be the.

That's not uncommon in the cyber security space will announce whatever we can when we can if it's significant I'm not going to announce.

Obvious.

First names that come to mind.

The answer is yes.

Yeah.

I think obvious that.

$5000 deal or $10000 deal or something like that but if it's.

That could be very interesting and exciting for us.

Great. Thank you that's all I had.

100, K or 400, K or a million I'll certainly announce it if I'm allowed to.

Jerry Yanowitz: Great. Thank you. That's all I had.

Okay.

Thank you.

At this time there are no other questions in the queue I'll turn the call back over to our host Mr. Tony Scott for any closing remarks.

Operator: Thank you. At this time, there are no other questions in the queue. I'll turn the call back over to our host, Mr. Tony Scott, for any closing remarks.

Tony.

Thank you.

Thank you.

The next question comes from Jerry Janowitz with he's a private investor Geri. Please proceed.

Well thankfully the it looks like the government shutdown is close to coming to an end and I think we all breathe a sigh of relief.

Tony Scott: Well, thankfully, it looks like the government shutdown is close to coming to an end. I think we all breathe a sigh of relief in that regard. We're looking forward to, you know, working with our government partners, as we've talked about at some length already today. You know, this is the opportunity that's in front of us right now is, you know, doing better protection for critical infrastructure, whether it's public sector or private sector. It's the biggest cybersecurity opportunity I think there is out there. With the shutdown behind us, I think it, you know, opens the door for us to move ahead. We'll let you know when we can and as soon as we can, when anything has developed.

Tony do you believe your intellectual property alone could be worth multiples of your current stock price and I'm, just looking for a simple, yes or no answer.

In that regard.

We're looking forward to working with our government partners.

Yes.

And thank you and based on your knowledge in the cyber security market deeply your products could integrate well with a larger cyber securities company's suite of products.

As we've talked about.

At some length already today.

This is the.

Opportunity.

Yes, yes.

In front of Us right now.

This is actually.

Doing better protection for critical infrastructure, whether it's public sector or private sector.

Yeah I do.

It may not always be the <unk>.

Obviously <unk>.

First names that come to mind.

The biggest cyber security opportunity I think there is out there.

The answer is yes, it's it's.

And so with the shutdown behind Us I think.

I think obvious that.

That could be very interesting and exciting for us.

Opens the door for us to move ahead.

Great. Thank you that's all I had.

We will let you know is when we can and <unk>.

Okay.

As soon as we can when anything has developed.

Thank you.

At this time there are no other questions in the queue I'll turn the call back over to our host Mr. Tony Scott for any closing remarks.

But as I said earlier I'm pretty excited about the opportunity.

Tony Scott: As I said earlier, I'm pretty excited about the opportunity and look forward to having this call with you for the next quarter in our annual results. Thanks everybody for your patience. We're working hard. We got a great team on this, and I think we're making great progress. Talk to you all soon. Thanks.

Look forward to having this call with you.

For the next quarter and our.

Well thankfully the it looks like the government shutdown is close to coming to an end and I think we all breathe a sigh of relief.

Annual results. So thanks, everybody for your patience, we are working hard we've got a great team on this.

And I think we're making great progress.

In that regard.

We're looking forward to working with our government partners.

Talk to you all soon.

<unk>.

As we've talked about.

Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

At some length already today.

Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

This is the.

Opportunity.

It's in front of US right now is.

Doing better protection for critical infrastructure, whether it's public sector or private sector. It's the biggest cyber security opportunity I think there is out there.

And so with the shutdown behind Us I think.

Opens the door for us to move ahead.

We'll let you know is when we can and <unk>.

As soon as we can when anything has developed.

But as I said earlier I'm pretty excited about the opportunity and look forward to having this call with you.

For the next quarter and our.

Annual results. So thanks, everybody for your patience, we're working hard we've got a great team on this.

And I think we're making great progress.

Talk to you all soon thanks.

Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.