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Note 1. Description of Business
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Nature of Operations [Text Block]
1.
Description of Business
 
We develop, market, and support a family of entity identification, data mining, regulated information compliance and data privacy protection. Our product families include: TraceCop for identity identification, Savant for data mining and advanced persistent threat detection and Compliance Commander for regulated information and data privacy protection. Intrusion’s products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks.
 
We market and distribute our products through a direct sales force to end-users, distributors and numerous system integrators, managed service providers and value-added resellers. Our end-user customers include banks, credit unions, other financial institutions, U.S. federal government entities, foreign government entities, hospitals and other healthcare providers. Essentially, our end-users can be defined as end-users requiring network security solutions for protecting their mission critical data.
 
We were organized in Texas in
September
 
1983
and reincorporated in Delaware in
October
 
1995.
For more than
15
 years, we provided local area networking equipment and were known as Optical Data Systems or ODS Networks. On
April
 
17,
2000,
we sold, or otherwise disposed of, our networking divisions, which included our Essential Communications division and our local area networking assets. On
June
 
1,
2000,
we changed our name from ODS Networks, Inc. to Intrusion.com, Inc., and our ticker symbol from ODSI to INTZ to reflect our focus on intrusion prevention and detection solutions, along with information compliance and data privacy protection products. On
November
 
1,
2001,
we changed our name from Intrusion.com, Inc. to Intrusion Inc.
 
Our principal executive offices are located at
1101
East Arapaho Road, Suite 
200,
Richardson, Texas
75081,
and our telephone number is
(972)
 
234
-
6400.
Our website URL is www.intrusion.com.
 
References to the “Company”, “we”, “us”, “our”, “Intrusion” or “Intrusion Inc.” refer to Intrusion Inc. and its subsidiaries. Compliance Commander™ and TraceCop™ are registered trademarks of Intrusion Inc.
 
As of
December
31,
2016,
we had cash and cash equivalents of approximately
$64,000,
down from approximately
$102,000
as of
December
31,
2015.
We generated a net loss of
$1,552,000
for the year ended
December
31,
2016
compared to net loss of
$1,249,000
for the year ended
December
31,
2015.
As of
February
9,
2017,
in addition to cash and cash equivalents
,
$515,000
of funding is available from a promissory note to borrow up to
$3.4
million from G. Ward Paxton, the Company’s Chief Executive Officer. We are obligated to make payments of accrued dividends on all our outstanding shares of preferred stock that will reduce our available cash resources. Based on projections of growth in revenue and net income in the coming quarters, and the borrowings available previously mentioned, we believe that we will have sufficient cash resources to finance our operations and expected capital expenditures through
March
31,
2018.
We expect to fund our operations through anticipated Company profits, borrowings from the Company’s CEO, and possibly additional investments of private equity and debt, which, if we are able to obtain, will have the effect of diluting our existing common stockholders, perhaps significantly. Any equity or debt financings, if available at all,
may
be on terms which are not favorable to us and, in the case of equity financings,
may
result in dilution to our stockholders. If our operations do not generate positive cash flow in the upcoming year, or if we are not able to obtain additional debt or equity financing on terms and conditions acceptable to us, if at all, we
may
be unable to implement our business plan, fund our liquidity needs or even continue our operations.