0001104659-16-120858.txt : 20160513 0001104659-16-120858.hdr.sgml : 20160513 20160513151825 ACCESSION NUMBER: 0001104659-16-120858 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20160331 FILED AS OF DATE: 20160513 DATE AS OF CHANGE: 20160513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTRUSION INC CENTRAL INDEX KEY: 0000736012 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 751911917 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20191 FILM NUMBER: 161647945 BUSINESS ADDRESS: STREET 1: 1101 ARAPAHO ROAD CITY: RICHARDSON STATE: TX ZIP: 75081 BUSINESS PHONE: 9722346400 MAIL ADDRESS: STREET 1: 1101 ARAPAHO ROAD CITY: RICHARDSON STATE: TX ZIP: 75081 FORMER COMPANY: FORMER CONFORMED NAME: INTRUSION COM INC DATE OF NAME CHANGE: 20000601 FORMER COMPANY: FORMER CONFORMED NAME: ODS NETWORKS INC DATE OF NAME CHANGE: 19970507 FORMER COMPANY: FORMER CONFORMED NAME: OPTICAL DATA SYSTEMS INC DATE OF NAME CHANGE: 19950517 10-Q 1 a16-6610_110q.htm QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(D)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-20191

INTRUSION INC.

(Exact name of registrant as specified in its charter)

Delaware		75-1911917
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1101 East Arapaho Road, Suite 200, Richardson, Texas 75081

(Address of principal executive offices)

(Zip Code)

(972) 234-6400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

* * * * * * * * * *

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer o

Non-accelerated filer o		Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes o No x

The number of shares outstanding of the Registrant’s Common Stock, $0.01 par value, on April 29, 2016 was 12,747,836.

Table of Contents

INTRUSION INC.

INDEX

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Unaudited Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015

Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2015

Notes to Unaudited Condensed Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 4. Controls and Procedures

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 6. Exhibits

Signature Page

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

INTRUSION INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value amounts)

	March 31, 2016			December 31, 2015
ASSETS
Current Assets:
Cash and cash equivalents	$	246		$	102
Accounts receivable	743			580
Inventories	45			45
Prepaid expenses	101			69
Total current assets	1,135			796
Property and equipment, net	412			486
Other assets	42			43
TOTAL ASSETS	$	1,589		$	1,325

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:
Accounts payable and accrued expenses	$	931		$	840
Dividends payable	195			160
Line-of-credit	364			—
Obligations under capital lease, current portion	178			197
Deferred revenue	119			386
Total current liabilities	1,787			1,583

Loan payable to officer	2,055			1,530
Obligations under capital lease, noncurrent portion	108			139

Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.01 par value: Authorized shares — 5,000
Series 1 shares issued and outstanding — 200 Liquidation preference of $1,075 in 2016 and $1,063 in 2015	707			707
Series 2 shares issued and outstanding — 460 Liquidation preference of $1,227 in 2016 and $1,212 in 2015	724			724
Series 3 shares issued and outstanding — 289 Liquidation preference of $673 in 2016 and $665 in 2015	412			412
Common stock, $0.01 par value:
Authorized shares — 80,000
Issued shares — 12,758 as of March 31, 2016 and 12,622 as of December 31, 2015 Outstanding shares — 12,748 as of March 31, 2016 and 12,612 as of December 31, 2015	127			126
Common stock held in treasury, at cost — 10 shares	(362		)	(362		)
Additional paid-in capital	56,629			56,520
Accumulated deficit	(60,491		)	(59,947		)
Accumulated other comprehensive loss	(107		)	(107		)
Total stockholders’ deficit	(2,361		)	(1,927		)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,589		$	1,325

See accompanying notes.

Table of Contents

INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Three Months Ended
	March 31, 2016			March 31, 2015
Net product revenue	$	1,511		$	1,704
Net customer support and maintenance revenue	—			10
Total revenue	1,511			1,714
Cost of product revenue	539			629
Cost of customer support and maintenance revenue	—			3
Total cost of revenue	539			632

Gross profit	972			1,082

Operating expenses:
Sales and marketing	428			498
Research and development	730			538
General and administrative	327			331

Operating loss	(513		)	(285		)

Interest expense, net	(31		)	(25		)

Net loss	$	(544	)	$	(310	)

Preferred stock dividends accrued	(35		)	(34		)

Net loss attributable to common stockholders	$	(579	)	$	(344	)

Net loss per share attributable to common stockholders:
Basic	$	(0.05	)	$	(0.03	)
Diluted	$	(0.05	)	$	(0.03	)

Weighted average common shares outstanding:
Basic	12,703			12,555
Diluted	12,703			12,555

See accompanying notes.

Table of Contents

INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Three Months Ended
	March 31, 2016			March 31, 2015
Operating Activities:
Net loss	$	(544	)	$	(310	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	74			74
Stock-based compensation	42			68
Penalties and waived penalties on dividends	4			—
Changes in operating assets and liabilities:
Accounts receivable	(163		)	29
Prepaid expenses and other assets	(31		)	16
Accounts payable and accrued expenses	91			114
Deferred revenue	(267		)	(408		)
Net cash used in operating activities	(794		)	(415		)

Investing Activities:
Purchases of property and equipment	—			(44		)

Financing Activities:
Proceeds from line-of-credit	364			—
Borrowings on loan from officer	525			—
Proceeds from stock options exercised	99			66
Principal payments on capital leases	(50		)	(53		)
Net cash provided by financing activities	938			13

Net increase (decrease) in cash and cash equivalents	144			(446		)
Cash and cash equivalents at beginning of period	102			1,006
Cash and cash equivalents at end of period	$	246		$	560

SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES:

Preferred stock dividends accrued	$	35		$	34
Purchase of leased equipment under capital lease	$	—		$	154

See accompanying notes.

Table of Contents

INTRUSION INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business

We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. Our product families include:

· TraceCop™ for identity discovery and disclosure,

· Savant™ for network data mining and advanced persistent threat detection.

We market and distribute our products through a direct sales force to:

· end-users,

· value-added resellers,

· system integrators,

· managed service providers, and

· distributors.

Our end-user customers include:

· U.S. federal government entities,

· local government entities,

· banks,

· airlines,

· credit unions,

· other financial institutions,

· hospitals and other healthcare providers, and

· other customers.

Essentially, our end-users can be defined as any 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. 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. TraceCop and Savant are trademarks of Intrusion Inc.

2. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Item 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The December 31, 2015 balance sheet was derived from audited financial statements, but does not include all the disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented not misleading. In our opinion, all the adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. The results of operations for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be achieved for the full fiscal year or for any future period. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 29, 2016.

The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of the line of credit payable approximates fair value since this instrument bears market interest rates. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third party financing, and as such cannot estimate the fair value of the loans payable to officer. None of these instruments are held for trading purposes.

Table of Contents

3. Inventories (In thousands)

4. Loan Payable to Officer

On February 5, 2015, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2016.

On February 4, 2016, the Company renewed the CEO note described above on the same terms, with the Company being able to borrow, repay and reborrow on the note as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2018.

Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% at March 31, 2016). All outstanding borrowings and accrued but unpaid interest is due on March 31, 2018. As of March 31, 2016, the borrowings outstanding totaled $2,055,000 and accrued interest totaled $99,000.

5. Line of Credit

On March 29, 2006, we entered into a Loan and Security Agreement with SVB’s to establish a $1.0 million line of credit (the “2006 Credit Line”). On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 23, 2015, we entered into the Seventh Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”). Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property. In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit. Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”). SVB may make an Advance of up to eighty percent (80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion. As of March 31, 2016, we had $78,000 in funding available. Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%. Finance charges are payable at the same time its related Advance is due. Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement. The collateral handling fee is payable at the same time its related Advance is due. Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account. We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement. On June 21, 2016, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents. As of March 31, 2016, we had $364,000 net borrowings outstanding under the Current Line of Credit and are within limits of all debt covenants. As of March 31, 2015, we had no borrowings outstanding under the current Line of Credit. The Company expects to renew the Loan Agreement before the termination date but can provide no assurance that this will occur.

6. Accounting for Stock-Based Compensation

During the three month periods ended March 31, 2016 and 2015, the Company granted none and 13,000 stock options, respectively, to employees and contractors. The Company recognized $42,000 and $68,000, respectively, in stock-based compensation expense for the three month periods ended March 31, 2016 and 2015. This expense is allocated to the appropriate employee department.

During the three month period ended March 31, 2016, 136,000 options were exercised under the 2005 Plan compared to 150,000 in the previous year comparative quarter.

Table of Contents

Valuation Assumptions

The fair values of employee and director option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions:

	For Three Months Ended March 31, 2016	For Three Months Ended March 31, 2015

Weighted average grant date fair value	—	$	2.44
Weighted average assumptions used:
Expected dividend yield	—	0.0		%
Risk-free interest rate	—	1.5		%
Expected volatility	—	188.0		%
Expected life (in years)	—	5.0
Forfeiture rate	—	4.0		%

Expected volatility is based on historical volatility and in part on implied volatility. The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior. The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. Options granted to non-employees are valued using the fair market value on each measurement date of the option.

7. Net Loss Per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. Our common stock equivalents include all common stock issuable upon conversion of preferred stock and the exercise of outstanding options and warrants. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three month periods ending March 31, 2016 and 2015 are 3,572,933 and 3,922,202, respectively.

8. Concentrations

Our operations are concentrated in one area—security software/entity identification. Sales to the U.S. Government through direct and indirect channels totaled 65.2% of total revenues for the first quarter of 2016 compared to 64.0% of total revenues for the first quarter of 2015. During the first quarter of 2016, approximately 65.2% of total revenues were attributable to four government customers compared to approximately 48.0% of total revenues attributable to three government customers in the first quarter of 2015. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to 23.5% of total revenue to two individual commercial customers for the same period in 2015. Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering.

9. Commitments and Contingencies

We are subject from time to time to various legal proceedings and claims that arise during the ordinary course of our business. We do not believe that the outcome of those “routine” legal matters should have a material adverse affect on our consolidated financial position, operating results or cash flows; however, we can provide no assurances that legal claims that may arise in the future will not have such a material impact on the Company.

10. Dividends Payable

During the quarter ended March 31, 2016, we accrued $12,000 in dividends payable to the holders of our 5% Preferred Stock, $15,000 in dividends payable to the holders of our Series 2 5% Preferred Stock and $8,000 in dividends payable to the holders of our Series 3 5% Preferred Stock. As of March 31, 2016, we have $195,000 in accrued and unpaid dividends included in current liabilities.

Delaware law provides that we may only pay dividends out of our capital surplus or, if no surplus is available, out of our net profits for the fiscal year the dividend is declared and/or the preceding fiscal year. We currently have dividend payments that are past due because we do not currently have a capital surplus or fiscal year net profits. We cannot assure you that our net assets will exceed our stated capital or that we will have sufficient net profits in order to pay these dividends in the future. These dividends continue to accrue on all our outstanding shares of preferred stock, regardless of whether we are legally able to pay them. If we continue to be unable to pay dividends on our preferred stock, we will be required to accrue an additional late fee penalty of 18% per annum on the

Table of Contents

unpaid dividends for the Series 2 Preferred Stock and Series 3 Preferred Stock. Our CEO, CFO and one outside board member who are invested in Series 2 and Series 3 Preferred Stock have waived any possible late fee penalties. In addition to this late penalty, the holders of our Series 2 Preferred Stock and Series 3 Preferred Stock could elect to present us with written notice of our failure to pay dividends as scheduled, in which case we would have 45 days to cure such a breach. In the event that we failed to cure the breach, the holders of these shares of preferred stock would then have the right to require us to redeem their shares of preferred stock for a cash amount calculated in accordance with their respective certificates of designation. If we were required to redeem all shares of Series 2 Preferred Stock and Series 3 Preferred Stock as of February 29, 2016 the aggregate redemption price we would owe would be $2.0 million.

Table of Contents

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This Quarterly Report on Form 10-Q, including, without limitation, the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements are generally accompanied by words such as “estimate,” “expect,” “believe,” “should,” “would,” “could,” “anticipate,” “may” or other words that convey uncertainty of future events or outcomes. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations, which we describe in more detail elsewhere in this Quarterly Report on Form 10-Q in Part II Item 1A “Risk Factors”, and in our 2015 Annual Report on Form 10-K in Item 1A “Risk Factors” include, but are not limited to:

· insufficient cash to operate our business and inability to meet our liquidity requirements;

· loss of revenues due to the failure of our newer products to achieve market acceptance;

· our need to increase current revenue levels in order to achieve sustainable profitability;

· concentration of our revenues from U.S. government entities or commercial customers and the possibility of loss of one of these customers and the unique risks associated with government customers;

· our dependence on sales made through indirect channels;

· our dependence on equity or debt financing provided primarily by our Chief Executive Officer in order to meet our cash flow requirements;

· the adverse effect that payment of accrued dividends on our preferred stock would have on our cash resources and the substantial dilution upon the conversion or redemption of our preferred stock;

· the consequences of our inability to pay scheduled dividends on shares of our preferred stock;

· the potentially detrimental impact that the conversion of preferred stock would have on the price of our common stock;

· the ability of our preferred stockholders and lenders to hinder additional financing; and

· the influence that our management and larger stockholders have over actions taken by the Company.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. These forward-looking statements and other statements made elsewhere in this report are made in reliance on the Private Securities Litigation Reform Act of 1995. Any forward-looking statement you read in this Quarterly Report on Form 10-Q or our Annual Report on Form 10-K reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The section below entitled “Factors That May Affect Future Results of Operations” sets forth and incorporates by reference certain factors that could cause actual future results of the Company to differ materially from these statements.

Table of Contents

Results of Operations

The following table sets forth, for the periods indicated, certain financial data as a percentage of net revenues. The period-to-period comparison of financial results is not necessarily indicative of future results.

	Three Months Ended
	March 31, 2016		March 31, 2015
Net product revenue	100.0	%	99.4	%
Net customer support and maintenance revenue	—		0.6
Total revenue	100.0		100.0
Cost of product revenue	35.7		36.7
Cost of customer support and maintenance revenue	—		0.2
Total cost of revenue	35.7		36.9
Gross profit	64.3		63.1
Operating expenses:
Sales and marketing	28.3		29.1
Research and development	48.3		31.3
General and administrative	21.6		19.3

Operating loss	(33.9	)	(16.6	)

Interest expense, net	(2.1	)	(1.5	)
Loss before income tax provision	(36.0	)	(18.1	)

Income tax provision	—		—

Net loss	(36.0	)%	(18.1	)%
Preferred stock dividends accrued	(2.3	)	(2.0	)

Net loss attributable to common stockholders	(38.3	)%	(20.1	)%

	Three Months Ended
	March 31, 2016		March 31, 2015
Domestic revenues	100.0	%	100.0	%
Export revenues	—		—

Net revenues	100.0	%	100.0	%

Net Revenues. Net revenues for the quarter ended March 31, 2016, were $1.5 million, compared to $1.7 million for the same period in 2015. Product revenues decreased $0.2 million for the quarter ended March 31, 2016, compared to the same period in 2015. Decreased product revenues are due to a decrease in sales for our Savant product line. TraceCop revenues were $1.5 million for the quarter ended March 31, 2016, compared to $1.5 million for the same quarter in 2015. Savant revenues were $0.1 million for the quarter ended March 31, 2016, compared to $0.2 million for the same quarter in 2015. Substantially all of our revenue for the quarters ended March 31, 2016 and 2015 were derived from TraceCop/Savant sales. Customer support and maintenance revenue had no revenue for the quarter ended March 31, 2016; compared to $10 thousand for the same period in 2015. This decrease was due to the expiration of maintenance contracts at the year-end of 2015.

Concentration of Revenues. Revenues from sales to various U.S. government entities totaled $1.0 million, or 65.2% of revenues, for the quarter ended March 31, 2016, compared to $1.1 million, or 64.0% of revenues, for the same period in 2015. Although we expect our concentration of revenues to vary among customers in future periods depending upon the timing of certain sales, we anticipate that sales to government customers will continue to account for a significant portion of our revenues in future periods. Sales to the government present risks in addition to those involved in sales to commercial customers which could adversely affect our revenues, including, without limitation, potential disruption to appropriation and spending patterns and the government’s reservation of the right to cancel contracts and purchase orders for its convenience. Although we do not anticipate that any of our revenues with government customers will be renegotiated, a large number of cancelled or renegotiated government orders could have a material adverse effect on our financial results. Currently, we are not aware of any proposed cancellation or renegotiation of any of our existing arrangements with government entities and, historically, government entities have not cancelled or renegotiated orders which had a material adverse effect on our business. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to 23.5% of total revenue to two individual commercial customers for the same period in 2015.

Table of Contents

Gross Profit. Gross profit was $1.0 million or 64.3% of net revenues for the quarter ended March 31, 2016, compared to $1.1 million or 63.1% of net revenues for the quarter ended March 31, 2015. Gross profit on product revenues for the quarter ended March 31, 2016, trended to 64.3% from 63.1% for the quarter ended March 31, 2015, mainly due to a favorable TraceCop/Savant product mix. As noted previously, all current maintenance contracts expired at 2015 year-end. Gross profit as a percentage of net revenues is impacted by several factors, including shifts in product mix, changes in channels of distribution, revenue volume, pricing strategies, and fluctuations in revenues of integrated third-party products.

Sales and Marketing. Sales and marketing expenses decreased to $0.4 million for the quarter ended March 31, 2016, compared to $0.5 million for the quarter ended March 31, 2015 primarily due to decreases in marketing personnel and associated expenses. Sales and marketing expenses may vary in the future. We believe that these costs will increase through the end of 2016, if we achieve anticipated increases in revenue.

Research and Development. Research and development expenses increased to $0.7 million for the quarter ended March 31, 2016, compared to $0.5 million for the quarter ended March 31, 2015. Research and development costs are expensed in the period incurred. Research and development expenses may vary in the future; however, we believe that these costs will remain relatively constant through the end of 2016, although expenses may be increased if we achieve anticipated increases in revenue.

General and Administrative. General and administrative expenses remained constant at $0.3 million for the quarters ended March 31, 2016 and 2015. It is expected that general and administrative expenses will remain relatively constant throughout the remainder of 2016, although expenses may be increased if we achieve anticipated increases in revenue.

Interest. Net interest expense increased to $31 thousand for the quarter ended March 31, 2016 compared to $25 thousand interest expense for the same period in 2015. Net interest expense may vary in the future based on our level of borrowing, which will be affected by our cash flow, operating income and capital expenditures.

Liquidity and Capital Resources

Our principal source of liquidity at March 31, 2016, was approximately $246 thousand of cash and cash equivalents. At March 31, 2016, we had a working capital deficiency of $0.7 million compared to a $1.4 million deficiency at March 31, 2015.

Net cash used in operations for the three months ended March 31, 2016, was $794 thousand due to a net loss of $544 thousand and the following uses of cash: $267 thousand decrease in deferred revenue, a $163 thousand increase in accounts receivable, and a $31 thousand increase in prepaid expenses and other assets. This was partially offset by the following sources of cash and non-cash items: a $91 thousand increase in accounts payable and accrued expenses, $42 thousand in stock-based compensation, $74 thousand in depreciation expense, and $4 thousand in penalties and waived penalties on dividends. Net cash used in operations for the three months ended March 31, 2015, was $415 thousand due to a net loss of $310 thousand and cash used related to working capital balances and other assets of $247 thousand. This was offset by non-cash expenses of $142 thousand. Future fluctuations in working capital balances will be dependent upon several factors, including, but not limited to, quarterly sales volumes and timing of invoicing, and the accuracy of our forecasts of product demand and component requirements.

The Company had no investing activities for the three months ended March 31, 2016, compared a use of cash of $44 thousand for net purchases of property and equipment used in investing activities for the three months ended March 31, 2015.

Net cash provided by financing activities for the three months ended March 31, 2016, was $938 thousand, because of proceeds of $525 thousand from an officer’s loan, proceeds of $364 thousand from the line of credit, and $99 thousand on the exercise of stock options. This was offset by a provision of cash for $50 thousand payment on the principal of capital leases. Net cash provided by financing activities for the three months ended March 31, 2015, was $13 thousand, because of $66 thousand provision from the exercise of stock options that was offset by a $53 thousand payment use on the principal of capital leases.

At March 31, 2016, the Company did not have any material commitments for capital expenditures.

During the three months ended March 31, 2016, the Company funded its operations through the use of cash and cash equivalents, borrowing against our line of credit and advances on the loan from our Chief Executive Officer. On March 29, 2006, we entered into a Loan and Security Agreement with SVB to establish a $1.0 million line of credit (the “2006 Credit Line”). On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 23, 2015, we entered into the Seventh Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”). Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property. In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit. Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”). SVB may make an Advance of up to eighty percent

Table of Contents

(80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion. As of March 31, 2016, we had $78,000 in funding available. Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%. Finance charges are payable at the same time its related Advance is due. Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement. The collateral handling fee is payable at the same time its related Advance is due. Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account. We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement. On June 21, 2016, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents. As of March 31, 2016, we had $364,000 net borrowings outstanding under the Current Line of Credit and are within limits of all debt covenants. As of March 31, 2015, we had no borrowings outstanding under the current Line of Credit. The Company expects to renew the Loan Agreement before the termination date but can provide no assurance that this will occur.

As of March 31, 2016, we had cash and cash equivalents of approximately $246,000, up from approximately $102,000 as of December 31, 2015. We generated a net loss of $544,000 for the quarter ended March 31, 2016 compared to a net loss of $310,000 for the quarter ended March 31, 2015. As of March 31, 2016, in addition to cash and cash equivalents of $246,000, we had $78,000 in funding available under our $0.625 million line of credit at SVB and $145,000 funding available from a promissory note to borrow up to $2.2 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 for the next twelve months. We expect to fund our operations through anticipated Company profits, our line of credit, 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.

We may explore the possible acquisitions of businesses, products and technologies that are complementary to our existing business. We are continuing to identify and prioritize additional security technologies, which we may wish to develop, either internally or through the licensing, or acquisition of products from third parties. While we may engage from time to time in discussions with respect to potential acquisitions, there can be no assurances that any such acquisitions will be made or that we will be able to successfully integrate any acquired business. In order to finance such acquisitions and working capital it may be necessary for us to raise additional funds through public or private financings. 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.

Item 4. CONTROLS AND PROCEDURES

We maintain “disclosure controls and procedures,” as defined in Rule 13a-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable assurance of achieving the desired control objectives, and we necessarily are required to apply our judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.

Our management, including our principal executive officer and principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2016, and concluded that the disclosure controls and procedures were effective.

Our management, with the participation of our principal officer and principal financial officer, evaluated our “internal control over financial reporting” (as defined in Rule 13a-15(f) under the Exchange Act) as of December 31, 2015. There have not been any changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II — OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We are subject from time to time to various legal proceedings and claims that arise during the ordinary course of our business. We do not believe that the outcome of those “routine” legal matters should have a material adverse affect on our consolidated financial position, operating results or cash flows; however, we can provide no assurances that legal claims that may arise will not have such a material impact in the future.

Item 1A. RISK FACTORS

Factors That May Affect Future Results of Operations

We are providing the following information regarding changes that have occurred to previously disclosed risk factors from our Annual Report on Form 10-K for the year ended December 31, 2015. In addition to the other information set forth below and elsewhere in this report, you should consider the factors discussed under the heading “Risk Factors” in our Form 10-K for the year ended December 31, 2015. The risks described in our Quarterly Reports on Form 10-Q are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

We may not have sufficient cash to operate our business and may not be able to maintain certain liquidity requirements under our existing debt instruments. Additional debt and equity offerings to fund future operations may not be available and, if available, may significantly dilute the value of our currently outstanding common stock.

As of March 31, 2016, we had cash and cash equivalents of approximately $246,000, up from approximately $102,000 as of December 31, 2015. We generated a net loss of $544,000 for the quarter ended March 31, 2016 compared to a net loss of $310,000 for the quarter ended March 31, 2015. As of March 31, 2016, in addition to cash and cash equivalents of $246,000, we had $78,000 in funding available under our $0.625 million line of credit at Silicon Valley Bank (“SVB”) and $145,000 funding available from a promissory note to borrow up to $2.2 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 for the next twelve months. We expect to fund our operations through anticipated Company profits, our line of credit, 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.

We had a net loss of $544 thousand for the quarter ended March 31, 2016, and have an accumulated deficit of $60.5 million as of March 31, 2016. To achieve annual profitability, we must generate increased revenue levels.

For the quarter ended March 31, 2016, we generated a net loss of $544 thousand and had an accumulated deficit of approximately $60.5 million as of March 31, 2016, compared to a net loss of $310 thousand for the quarter ended March 31, 2015 and an accumulated deficit of approximately $59.0 million at March 31, 2015. We need to sustain greater revenue levels from the sales of our products if we are to achieve annual profitability. If we are unable to achieve these revenue levels, losses could happen for the near term and possibly longer, and we may not sustain profitability or generate positive cash flow from operations.

A large percentage of our revenues are received from U.S. government entities/resellers, and the loss of any one of these customers could reduce our revenues and materially harm our business and prospects.

A large percentage of our revenues result from sales to U.S. government entities/resellers. If we were to lose one or more of these key relationships, our revenues could decline and our business and prospects may be materially harmed. We expect that even if we are successful in developing relationships with non-governmental customers, our revenues will continue to be concentrated among government entities. For the quarter ended March 31, 2016, sales to U.S. government entities/resellers collectively accounted for 65.2% of our revenues, compared to 64.0% for the comparable period in 2015. The loss of any of these key relationships may send a negative message to other U.S. government entities or non-governmental customers concerning our product offering. We cannot assure you that U.S. government entities will be customers of ours in future periods or that we will be able to diversify our customer portfolio to adequately mitigate the risk of loss of any of these customers.

Table of Contents

A large percentage of our revenues are from one product line with a limited number of customers, and the decrease of revenue from sales of this product line could materially harm our business and prospects.

A large percentage of our revenues result from sales of our security product line. Savant revenues were $0.1 million for the quarter ended March 31, 2016, compared to $0.2 million for the same quarter in 2015. TraceCop revenues were $1.5 million for the quarter ended March 31, 2016, compared to $1.5 million for the same quarter in 2015. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to two individual customers at 23.5% for the same period in 2015 that exceeded 10% of total revenues for that quarter. If sales of this key product line were to decrease, our revenues could decline and our business and prospects may be materially harmed.

We are highly dependent on sales made through indirect channels, the loss of which would materially adversely affect our operations.

We derived 67.7% of revenue in the first quarter of 2016 through indirect channels of mainly government resellers, compared to 87.6% of our revenues in the quarter ended March 31, 2015. We must continue to expand our sales through these indirect channels in order to increase our revenues. We cannot assure you that our products will gain market acceptance in these indirect sales channels or that sales through these indirect sales channels will increase our revenues. Further, many of our competitors are also trying to sell their products through these indirect sales channels, which could result in lower prices and reduced profit margins for sales of our products.

You will experience substantial dilution upon the conversion or redemption of the shares of preferred stock that we issued in our private placements or in the event we raise additional funds through the issuance of new shares of our common stock or securities convertible or exercisable into shares of common stock.

On April 29, 2016, we had 12,747,836 shares of common stock outstanding. Upon conversion of all outstanding shares of preferred stock, we will have 13,815,279 shares of common stock outstanding, approximately a 8.4% increase in the number of shares of our common stock outstanding.

In addition, management may issue additional shares of common stock or securities exercisable or convertible into shares of common stock in order to finance our continuing operations. Any future issuances of such securities would have additional dilutive effects on the existing holders of our Common Stock.

Further, the occurrence of certain events could entitle holders of our Series 2 Preferred Stock and Series 3 Preferred Stock to require us to redeem their shares for a certain number of shares of our common stock. Assuming (i) we have paid all liquidated damages and other amounts to the holders, (ii) paid all outstanding dividends, (iii) a volume weighted average price of $0.48, which was the ten-day volume weighted average closing price of our common stock on April 29, 2016, and (iv) our 12,747,836 shares of common stock outstanding on April 29, 2016, upon exercise of their redemption right by the holders of the Series 3 Preferred Stock and the Series 2 Preferred Stock, we would be obligated to issue approximately 6,868,000 shares of our common stock. This would represent an increase of approximately 53.9% in the number of shares of our common stock as of April 29, 2016.

The conversion of preferred stock we issued in the private placements may cause the price of our common stock to decline.

The holders of the shares of our 5% Preferred Stock may freely convert their shares of preferred stock and sell the underlying shares of common stock pursuant to Rule 144 of the Securities and Exchange Commission. As of April 29, 2016, 800,000 shares of our 5% Preferred Stock had converted into 1,272,263 shares of common stock and 200,000 shares of our 5% preferred stock remain outstanding.

The holders of the shares of Series 2 5% Preferred Stock may freely convert their shares of preferred stock and sell the underlying shares of common stock pursuant to Rule 144 of the Securities and Exchange Commission. As of April 29, 2016, 605,200 shares of Series 2 Preferred Stock had converted into 605,200 shares of common stock and 460,000 shares of Series 2 5% preferred stock remain outstanding.

The holders of the shares of Series 3 5% Preferred Stock may freely convert their shares of Series 3 Preferred Stock and sell the underlying shares of common stock pursuant to Rule 144 of the Securities and Exchange Commission. As of April 29, 2016, 275,230 shares of Series 3 Preferred Stock had converted into 275,230 shares of common stock and 289,377 shares of Series 3 5% preferred stock remain outstanding.

For the four weeks ended on April 29, 2016, the average daily trading volume of our common stock on the OTCQB was 3,600 shares. Consequently, if holders of preferred stock elect to convert their remaining shares and sell a material amount of their underlying shares of common stock on the open market, the increase in selling activity could cause a decline in the market price of our common stock. Furthermore, these sales, or the potential for these sales, could encourage short sales, causing additional downward pressure on the market price of our common stock.

Table of Contents

You will experience substantial dilution upon the exercise of stock options currently outstanding.

On April 29, 2016, we had 12,747,836 shares of common stock outstanding. Upon the exercising of current options issued at or below the exercise price of $1.10, we will have approximately 14,907,000 shares of common stock outstanding, a 16.9% increase in the number of shares of our common stock outstanding.

Our management and larger stockholders exercise significant control over our company and have the ability to approve or take actions that may be adverse to your interests.

As of April 29, 2016, our executive officers, directors and preferred stockholders beneficially own approximately 29% of our voting power. In addition, other related parties control approximately 30% of voting power. As a result, these stockholders will be able to exercise significant control over all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions, which could delay or prevent someone from acquiring or merging with us. These stockholders may use their influence to approve or take actions that may be adverse to the interests of holders of our Common Stock. Further, we contemplate the possible issuance of shares of our Common Stock or of securities exercisable or convertible into shares of our Common Stock in the future to our Chief Executive Officer and Chief Financial Officer. Any such issuance will increase the percentage of stock our Chief Executive Officer, Chief Financial Officer and our management group beneficially holds.

Item 6. Exhibits

The following Exhibits are filed with this report form 10-Q:

31.1		Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act.
31.2		Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act.
32.1		Certification Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

Table of Contents

S I G N A T U R E S

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	INTRUSION INC.

Date: May 13, 2016	/s/ G. Ward Paxton
	G. Ward Paxton
	Chairman, President & Chief Executive Officer
	(Principal Executive Officer)


Date: May 13, 2016	/s/ Michael L. Paxton
	Michael L. Paxton
	Vice President, Chief Financial Officer, Treasurer & Secretary
	(Principal Financial & Accounting Officer)

EX-31.1 2 a16-6610_1ex31d1.htm EX-31.1

EXHIBIT 31.1

I, G. Ward Paxton, Chief Executive Officer of Intrusion Inc., certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Intrusion Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2016	/s/ G. Ward Paxton
	G. Ward Paxton
	Chief Executive Officer

EX-31.2 3 a16-6610_1ex31d2.htm EX-31.2

EXHIBIT 31.2

I, Michael L. Paxton, Chief Financial Officer of Intrusion Inc., certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Intrusion Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2016	/s/ Michael L. Paxton
	Michael L. Paxton
	Chief Financial Officer

EX-32.1 4 a16-6610_1ex32d1.htm EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO RULE 13a-14(b) OF THE EXCHANGE ACT AND 18 U.S.C. SECTION 1350, AS ENACTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Intrusion Inc. (the “Company”) on Form 10-Q, for the quarter ended March 31, 2016 (the “Report”) as filed with the Securities and Exchange Commission on the date hereof, each of the undersigned Officers of the Company does hereby certify, pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 13, 2016	/s/ G. Ward Paxton
	G. Ward Paxton
	Chief Executive Officer

May 13, 2016	/s/ Michael L. Paxton
	Michael L. Paxton
	Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

EX-101.INS 5 intz-20160331.xml XBRL INSTANCE DOCUMENT 0000736012 intz:SeriesBAndSeriesCPreferredStockMember 2016-03-31 0000736012 us-gaap:SeriesCPreferredStockMember 2016-03-31 0000736012 us-gaap:SeriesBPreferredStockMember 2016-03-31 0000736012 us-gaap:SeriesAPreferredStockMember 2016-03-31 0000736012 us-gaap:SeriesCPreferredStockMember 2015-12-31 0000736012 us-gaap:SeriesBPreferredStockMember 2015-12-31 0000736012 us-gaap:SeriesAPreferredStockMember 2015-12-31 0000736012 us-gaap:SeriesCPreferredStockMember 2016-01-01 2016-03-31 0000736012 us-gaap:SeriesBPreferredStockMember 2016-01-01 2016-03-31 0000736012 us-gaap:SeriesAPreferredStockMember 2016-01-01 2016-03-31 0000736012 us-gaap:RevolvingCreditFacilityMember us-gaap:ChiefExecutiveOfficerMember 2016-02-04 0000736012 us-gaap:LineOfCreditMember intz:SiliconValleyBankMember 2015-06-23 0000736012 us-gaap:RevolvingCreditFacilityMember us-gaap:ChiefExecutiveOfficerMember 2015-02-05 0000736012 intz:CreditLine2008Member intz:SiliconValleyBankMember 2008-06-30 0000736012 intz:CreditLine2006Member intz:SiliconValleyBankMember 2006-03-29 0000736012 us-gaap:LineOfCreditMember intz:SiliconValleyBankMember 2016-03-31 0000736012 us-gaap:RevolvingCreditFacilityMember us-gaap:ChiefExecutiveOfficerMember 2016-03-31 0000736012 us-gaap:RevolvingCreditFacilityMember us-gaap:ChiefExecutiveOfficerMember 2016-01-01 2016-03-31 0000736012 2015-01-01 2015-12-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:UnitedStatesGovernmentMember 2016-01-01 2016-03-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:UnitedStatesGovernmentMember 2015-01-01 2015-03-31 0000736012 2015-03-31 0000736012 2014-12-31 0000736012 2016-03-31 0000736012 2015-12-31 0000736012 intz:SeriesBAndSeriesCPreferredStockMember 2016-01-01 2016-03-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:GovernmentCustomerMember 2016-01-01 2016-03-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:CommercialCustomersMember 2016-01-01 2016-03-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:GovernmentCustomerMember 2015-01-01 2015-03-31 0000736012 intz:RevenuesNetMember us-gaap:CustomerConcentrationRiskMember intz:CommercialCustomersMember 2015-01-01 2015-03-31 0000736012 us-gaap:LineOfCreditMember intz:SiliconValleyBankMember us-gaap:MaximumMember 2016-01-01 2016-03-31 0000736012 us-gaap:LineOfCreditMember intz:SiliconValleyBankMember 2016-01-01 2016-03-31 0000736012 2015-01-01 2015-03-31 0000736012 2016-04-29 0000736012 2016-01-01 2016-03-31 iso4217:USD xbrli:shares iso4217:USD intz:customer intz:item xbrli:pure xbrli:shares false --12-31 Q1 2016 2016-03-31 10-Q 0000736012 12747836 Yes Smaller Reporting Company INTRUSION INC 0.040 0.005 0.80 P360D 1 0 2 3 1 4 1 P45D 0.18

840000

931000

580000

743000

-107000

56520000

56629000

68000

42000

3922202

3572933

1325000

1589000

796000

1135000

154000

197000

178000

139000

108000

1006000

560000

102000

246000

0.01

80000000

12622000

12758000

12612000

12748000

126000

127000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 8.    Concentrations   Our operations are concentrated in one area—security software/entity identification.  Sales to the U.S. Government through direct and indirect channels totaled 65.2% of total revenues for the first quarter of 2016 compared to 64.0% of total revenues for the first quarter of 2015.  During the first quarter of 2016, approximately 65.2% of total revenues were attributable to four government customers compared to approximately 48.0% of total revenues attributable to three government customers in the first quarter of 2015. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to 23.5% of total revenue to two individual commercial customers for the same period in 2015.  Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering. </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

0.235

0.480

0.640

0.256

0.652

632000

539000

629000

539000

3000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 5.    Line of Credit   On March 29, 2006, we entered into a Loan and Security Agreement with SVB’s to establish a $1.0 million line of credit (the “2006 Credit Line”).  On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 23, 2015, we entered into the Seventh Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”).  Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property.  In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit.  Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”).  SVB may make an Advance of up to eighty percent (80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion.  As of March 31, 2016, we had $78,000 in funding available.  Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%.  Finance charges are payable at the same time its related Advance is due.  Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement.  The collateral handling fee is payable at the same time its related Advance is due.  Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account.  We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement.  On June 21, 2016, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents.  As of March 31, 2016, we had $364,000 net borrowings outstanding under the Current Line of Credit and are within limits of all debt covenants.  As of March 31, 2015, we had no borrowings outstanding under the current Line of Credit.  The Company expects to renew the Loan Agreement before the termination date but can provide no assurance that this will occur. </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

0.020

0.01

prime rate

0.070

386000

119000

74000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 6.Accounting for Stock-Based Compensation   During the three month periods ended March 31, 2016 and 2015, the Company granted none and 13,000 stock options, respectively, to employees and contractors.  The Company recognized $42,000 and $68,000, respectively, in stock-based compensation expense for the three month periods ended March 31, 2016 and 2015.  This expense is allocated to the appropriate employee department.   During the three month period ended March 31, 2016, 136,000 options were exercised under the 2005 Plan compared to 150,000 in the previous year comparative quarter.   Valuation Assumptions   The fair values of employee and director option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions:   <div style="width:100%;"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width: 80.00%;margin-left:0pt;"> <tr> <td valign="bottom" style="width:62.48%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> For Three Months Ended March 31, 2016 </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> For Three Months Ended March 31, 2015 </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Weighted average grant date fair value </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.40%;background-color: #CCEEFF;padding:0pt;"> $ </td> <td valign="bottom" style="width:13.58%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>2.44  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Weighted average assumptions used: </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Expected dividend yield </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>0.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Risk-free interest rate </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>1.5  </td> <td valign="bottom" style="width:01.26%;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Expected volatility </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>188.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Expected life (in years) </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>5.0  </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Forfeiture rate </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>4.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> </table></div>   Expected volatility is based on historical volatility and in part on implied volatility.  The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior.  The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. Options granted to non-employees are valued using the fair market value on each measurement date of the option. </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

160000

195000

34000

35000

-0.03

-0.05

-0.03

-0.05

331000

327000

1082000

972000

114000

91000

-29000

163000

-408000

-267000

-16000

31000

-25000

-31000

99000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 3.Inventories (In thousands)   <div style="width:100%;"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width: 87.00%;margin-left:14.4pt;"> <tr> <td valign="bottom" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> March 31, 2016 </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> December 31, 2015 </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;"> Inventories consist of: </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;"> Finished products </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;"> Net inventory </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.30%;background-color: #CCEEFF;padding:0pt;"> $ </td> <td valign="bottom" style="width:12.44%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.30%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:12.44%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> </table></div>   </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

45000

1325000

1589000

1583000

1787000

364000

78000

0.05

1000000

2500000

2200000

625000

2200000

364000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 1.Description of Business   We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products.  Our product families include:   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       TraceCop™ for identity discovery and disclosure,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       Savant™ for network data mining and advanced persistent threat detection.</td></tr></table></div>   We market and distribute our products through a direct sales force to:   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       end-users,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       value-added resellers,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       system integrators,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       managed service providers, and</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       distributors.</td></tr></table></div>   Our end-user customers include:   <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       U.S. federal government entities,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       local government entities,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       banks,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       airlines,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       credit unions,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       other financial institutions,</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       hospitals and other healthcare providers, and</td></tr></table></div> <div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"></td><td valign="top" align="left" style="width: 17.00pt; display: inline;"> · </td><td style="width:1pt;"></td><td align="left" valign="top">       other customers.</td></tr></table></div>   Essentially, our end-users can be defined as any 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.  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.  TraceCop and Savant are trademarks of Intrusion Inc.   </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

-446000

144000

13000

938000

-415000

-794000

-310000

-544000

-344000

-579000

1530000

2055000

-285000

-513000

43000

42000

44000

0.05

34000

35000

12000

15000

8000

1063

1212

665

1075

1227

673

0.01

2000000

5000000

200000

460000

289000

200000

460000

289000

200000

460000

289000

200000

460000

289000

707000

724000

412000

707000

724000

412000

69000

101000

525000

364000

4000

66000

99000

486000

412000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> 4.    Loan Payable to Officer   On February 5, 2015, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer.  Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2016.   On February 4, 2016, the Company renewed the CEO note described above on the same terms, with the Company being able to borrow, repay and reborrow on the note as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2018.   Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% at March 31, 2016).  All outstanding borrowings and accrued but unpaid interest is due on March 31, 2018.  As of March 31, 2016, the borrowings outstanding totaled $2,055,000 and accrued interest totaled $99,000. </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

53000

50000

538000

730000

-59947000

-60491000

1704000

1511000

1714000

1511000

10000

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;"> Inventories (In thousands)   <div style="width:100%;"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width: 87.00%;margin-left:14.4pt;"> <tr> <td valign="bottom" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> March 31, 2016 </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> December 31, 2015 </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;"> Inventories consist of: </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;"> Finished products </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:13.74%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;"> Net inventory </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.30%;background-color: #CCEEFF;padding:0pt;"> $ </td> <td valign="bottom" style="width:12.44%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>45  </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:65.64%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.30%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:12.44%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:02.86%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:13.76%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:2pt double #000000 ;border-right:1pt none #D9D9D9 ;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.14%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> </table></div>   </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

<div> <div style="margin-left:0%;margin-right:0%;"></div><div style="margin-left:0%;margin-right:0%;">   <div style="width:100%;"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width: 80.00%;margin-left:0pt;"> <tr> <td valign="bottom" style="width:62.48%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> For Three Months Ended March 31, 2016 </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt;"> For Three Months Ended March 31, 2015 </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Weighted average grant date fair value </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:01.40%;background-color: #CCEEFF;padding:0pt;"> $ </td> <td valign="bottom" style="width:13.58%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>2.44  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Weighted average assumptions used: </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;padding:0pt;">   </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Expected dividend yield </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>0.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Risk-free interest rate </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>1.5  </td> <td valign="bottom" style="width:01.26%;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Expected volatility </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>188.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> <tr> <td valign="top" style="width:62.48%;padding:0pt;"> Expected life (in years) </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>5.0  </td> <td valign="bottom" style="width:01.26%;padding:0pt;">   </td> </tr> <tr> <td valign="top" style="width:62.48%;background-color: #CCEEFF;padding:0pt;"> Forfeiture rate </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td valign="bottom" style="width:15.00%;background-color: #CCEEFF;padding:0pt;"> — </td> <td valign="bottom" style="width:03.12%;background-color: #CCEEFF;padding:0pt;">   </td> <td colspan="2" valign="bottom" style="width:15.00%;background-color: #CCEEFF;;font-family:Times New Roman,Times,serif;font-size:10pt;text-align:right;" nowrap="nowrap"><div style="float:left"></div>4.0  </td> <td valign="bottom" style="width:01.26%;background-color: #CCEEFF;padding:0pt;"> % </td> </tr> </table></div>   </div><div style="margin-left:0%;margin-right:0%;"> </div><div style="margin-left:0%;margin-right:0%;"></div> </div>

498000

428000

68000

42000

0.000

P5Y

1.880

0.0150

13000

2.44

-1927000

-2361000

150000

136000

10000

362000

12555000

12703000

12555000

12703000

EX-101.SCH 6 intz-20160331.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 00100 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 00200 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS link:presentationLink link:calculationLink link:definitionLink 00300 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:calculationLink link:definitionLink 40301 - Disclosure - Inventories (Details) link:presentationLink link:calculationLink link:definitionLink 00090 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00105 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 10101 - Disclosure - Description of Business link:presentationLink link:calculationLink link:definitionLink 10201 - Disclosure - Basis of Presentation link:presentationLink link:calculationLink link:definitionLink 10301 - Disclosure - Inventories link:presentationLink link:calculationLink link:definitionLink 10401 - Disclosure - Loan Payable to Officer link:presentationLink link:calculationLink link:definitionLink 10501 - Disclosure - Line of Credit link:presentationLink link:calculationLink link:definitionLink 10601 - Disclosure - Accounting for Stock-Based Compensation link:presentationLink link:calculationLink link:definitionLink 10701 - Disclosure - Net Loss Per Share link:presentationLink link:calculationLink link:definitionLink 10801 - Disclosure - Concentrations link:presentationLink link:calculationLink link:definitionLink 10901 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 11001 - Disclosure - Dividends Payable link:presentationLink link:calculationLink link:definitionLink 30303 - Disclosure - Inventories (Tables) link:presentationLink link:calculationLink link:definitionLink 30603 - Disclosure - Accounting for Stock-Based Compensation (Tables) link:presentationLink link:calculationLink link:definitionLink 40201 - Disclosure - Basis of Presentation (Details) link:presentationLink link:calculationLink link:definitionLink 40401 - Disclosure - Loan Payable to Officer (Details) link:presentationLink link:calculationLink link:definitionLink 40501 - Disclosure - Line of Credit (Details) link:presentationLink link:calculationLink link:definitionLink 40601 - Disclosure - Accounting for Stock-Based Compensation (Details) link:presentationLink link:calculationLink link:definitionLink 40701 - Disclosure - Net Loss Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 40801 - Disclosure - Concentrations (Details) link:presentationLink link:calculationLink link:definitionLink 41001 - Disclosure - Dividends Payable (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 intz-20160331_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.LAB 8 intz-20160331_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT DEI information Document and Entity Information Abstract Statement [Table] Statement [Line Items] Statement Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Current Reporting Status Entity Filer Category Entity Common Stock, Shares Outstanding Document Fiscal Year Focus Document Fiscal Period Focus CONDENSED CONSOLIDATED BALANCE SHEETS Class of Stock [Axis] Class Of Stock [Domain] Class of Stock [Domain] Preferred Stock [Member] PREFERRED STOCK Series A Preferred Stock [Member] Series 1 Series B Preferred Stock [Member] Series 2 Series C Preferred Stock [Member] Series 3 Assets [Abstract] Assets Assets, Current [Abstract] Current Assets: Cash and Cash Equivalents, at Carrying Value Cash and cash equivalents at end of year Cash and cash equivalents at beginning of year Cash and cash equivalents Accounts Receivable, Net, Current Accounts receivable Inventory, Net Inventories Net inventory Prepaid Expense, Current Prepaid expenses Assets, Current Total current assets Property, Plant and Equipment, Net Property and equipment, net Other Assets, Noncurrent Other assets Assets TOTAL ASSETS Liabilities and Equity [Abstract] Liabilities and Stockholders' Deficit Liabilities, Current [Abstract] Current Liabilities: Accounts Payable and Accrued Liabilities, Current Accounts payable and accrued expenses Dividends Payable, Current Dividends payable Accrued and unpaid dividends Line of Credit, Current Line of credit Capital Lease Obligations, Current Obligations under capital lease, current portion Deferred Revenue, Current Deferred revenue Liabilities, Current Total current liabilities Notes Payable, Related Parties, Noncurrent Loan payable to officer Capital Lease Obligations, Noncurrent Obligations under capital lease, noncurrent portion Commitments and Contingencies Commitments and contingencies Stockholders' Equity Attributable to Parent [Abstract] Stockholders' Deficit: Preferred Stock, Value, Issued Preferred stock Common Stock, Value, Issued Common stock, $0.01 par value: Authorized shares - 80,000; Issued shares - 12,758 as of March 31, 2016 and 12,622 as of December 31, 2015; Outstanding shares - 12,748 as of March 31, 2016 and 12,612 as of December 31, 2015 Treasury Stock, Value Common stock held in treasury, at cost - 10 shares Additional Paid in Capital Additional paid-in-capital Retained Earnings (Accumulated Deficit) Accumulated deficit Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated other comprehensive loss Stockholders' Equity Attributable to Parent Total stockholders' deficit Liabilities and Equity TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT Preferred Stock, Par or Stated Value Per Share Preferred stock, par value (in dollars per share) Preferred Stock, Shares Authorized Preferred stock, Authorized shares Preferred Stock, Shares Issued Preferred stock, shares issued Preferred Stock, Shares Outstanding Preferred stock, shares outstanding Preferred Stock, Liquidation Preference Per Share Preferred stock, Liquidation preference (in dollars per share) Common Stock, Par or Stated Value Per Share Common stock, par value (in dollars per share) Common Stock, Shares Authorized Common stock, Authorized shares Common Stock, Shares, Issued Common stock, Issued shares Common Stock, Shares, Outstanding Common stock, Outstanding shares Treasury Stock, Shares Common stock held in treasury, shares CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Sales Revenue, Goods, Net Net product revenue Sales Revenue, Services, Net Net customer support and maintenance revenue Revenue, Net Total revenue Cost of Goods Sold Cost of product revenue Cost of Services Cost of customer support and maintenance revenue Cost of Goods and Services Sold Total cost of revenue Gross Profit Gross profit Operating Expenses [Abstract] Operating expenses: Selling and Marketing Expense Sales and marketing Research and Development Expense Research and development General and Administrative Expense General and administrative Operating Loss Operating loss Interest Income (Expense), Nonoperating, Net Interest expense, net Net loss Net loss Net loss Preferred Stock Dividends, Income Statement Impact Preferred stock dividends accrued Preferred stock dividends accrued during the period Net loss attributable to common stockholders Net loss attributable to common stockholders Net Loss Per Share Net loss per share attributable to common stockholders: Earnings Per Share, Basic Basic (in dollars per share) Earnings Per Share, Diluted Diluted (in dollars per share) Weighted Average Number of Shares Outstanding, Diluted [Abstract] Weighted average common shares outstanding: Weighted Average Number of Shares Outstanding, Basic Basic (in shares) Weighted Average Number of Shares Outstanding, Diluted Diluted (in shares) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] Operating Activities: Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, Depletion and Amortization Depreciation and amortization Share-based Compensation Stock-based compensation Penalties and waived penalties on dividends Penalties and waived penalties on dividends Increase (Decrease) in Operating Capital [Abstract] Changes in operating assets and liabilities: Increase (Decrease) in Accounts Receivable Accounts receivable Increase (Decrease) in Prepaid Expense and Other Assets Prepaid expenses and other assets Increase (Decrease) in Accounts Payable and Accrued Liabilities Accounts payable and accrued expenses Increase (Decrease) in Deferred Revenue Deferred revenue Net Cash Provided by (Used in) Operating Activities, Continuing Operations Net cash used in operating activities Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract] Investing Activities: Payments to Acquire Property, Plant, and Equipment Purchases of property and equipment Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract] Financing Activities: Proceeds from Lines of Credit Proceeds from line of credit Proceeds from Issuance of Unsecured Debt Borrowings on loan from officer Proceeds from Stock Options Exercised Proceeds from stock options exercised Repayments of Long-term Capital Lease Obligations Principal payments on capital lease equipment Net Cash Provided by (Used in) Financing Activities, Continuing Operations Net cash provided by financing activities Net Cash Provided by (Used in) Continuing Operations Net increase (decrease) in cash and cash equivalents Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES: Dividends, Preferred Stock Preferred stock dividends accrued Capital Expenditures Incurred but Not yet Paid Purchase of equipment through capital lease description of business Description of Business Nature of Operations [Text Block] Description of Business Basis of Presentation Basis of Presentation and Significant Accounting Policies [Text Block] Basis of Presentation Inventories Inventory Disclosure [Text Block] Inventories Loan Payable to Officer Related Party Transactions Disclosure [Text Block] Loan Payable to Officer Line of Credit Debt Disclosure [Text Block] Line of Credit Accounting for Stock-Based Compensation Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Accounting for Stock- Based Compensation Earnings Per Share [Text Block] Net Loss Per Share Concentrations Concentration Risk Disclosure [Text Block] Concentrations Commitments and Contingencies. Commitments and Contingencies Disclosure [Text Block] Commitments and Contingencies Dividends Payable Stockholders' Equity Note Disclosure [Text Block] Dividends Payable Schedule of Inventory, Current [Table Text Block] Schedule of inventories Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] Schedule of assumptions used to estimate the fair values of employee and director options awards at the date of grant using a Black-Scholes option-pricing model Represents the number of instruments held for trading purposes. Number of Instruments Held for Trading Purposes Number of instruments held for trading purposes Inventory, Current [Table] Inventory [Line Items] Inventories consist of: Inventory, Finished Goods, Gross Finished products Schedule of Related Party Transactions, by Related Party [Table] Related Party [Axis] Related Party [Domain] Related Party [Domain] Chief Executive Officer [Member] G. Ward Paxton, chief executive officer Credit Facility [Axis] Credit Facility [Domain] Credit Facility [Domain] Revolving Credit Facility [Member] Promissory note Related Party Transaction [Line Items] Borrowing from Officer Line of Credit Facility, Maximum Borrowing Capacity Maximum borrowing capacity Debt Instrument, Description of Variable Rate Basis Finance charge basis Debt Instrument, Basis Spread on Variable Rate Percentage points added in interest rate Percentage points added in daily rate of finance charge Line of Credit Facility, Interest Rate at Period End Interest rate (as a percent) Interest Payable, Current Accrued interest, related party Line of Credit Facility [Table] Represents the 2006 Credit Line of the entity. Credit Line2006 [Member] 2006 Credit Line Represents the 2008 Credit Line of the entity. Credit Line2008 [Member] 2008 Credit Line Line Of Credit [Member] Current Line of Credit Range [Axis] Range [Member] Range [Domain] Maximum [Member] Maximum Line of Credit Facility [Line Items] Line of Credit Represents the percentage of each Eligible Account for which the entity can borrow under the line of credit. Line of Credit Facility, Contingent Advances as Percentage of Each Eligible Account Contingent advances as a percentage of each Eligible Account Line of Credit Facility, Current Borrowing Capacity Borrowing Base Represents the period of annual rate for calculating daily rate of finance charge on each advance. Line of Credit Facility, Period of Annual Rate for Calculating Daily Rate of Finance Charge on Each Advance Period of annual rate for calculating daily rate of finance charge on each advance Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum Minimum interest rate (as a percent) Represents the percentage of monthly collateral handling fee on each advance of Eligible Accounts. Line of Credit Facility, Collateral Handling Fee Percentage Monthly collateral handling fee (as a percent) Line of Credit Facility, Amount Outstanding Borrowings outstanding Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Table] Share-based Compensation Arrangement by Share-based Payment Award [Line Items] Accounting for Stock-Based Compensation Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross Stock options granted (in shares) Allocated Share-based Compensation Expense Stock-based compensation expense Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period Options exercised (in shares) Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] Valuation Assumptions Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value Weighted average grant date fair value (in dollars per share) Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate Expected dividend yield (as a percent) Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate Risk-free interest rate (as a percent) Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate Expected volatility (as a percent) Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term Expected life (in years) Represents the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. Forfeiture Rate Forfeiture rate (as a percent) Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount Aggregate number of common stock equivalents excluded from the diluted loss per share calculation (in shares) Concentration Risk [Table] Concentration Risk Benchmark [Axis] Concentration Risk Benchmark [Domain] Concentration Risk Benchmark [Domain] Aggregate revenues, net during the period in the normal course of business. Revenues Net [Member] Total revenues Concentration Risk Type [Axis] Concentration Risk Type [Domain] Concentration Risk Type [Domain] Customer Concentration Risk [Member] Customer Major Customers [Axis] Name Of Major Customer [Domain] Name of Major Customer [Domain] Represents information pertaining to U.S. government, a major customer of the entity. United States Government [Member] U.S. Government Represents details pertaining to government customers who are major customers of the entity. Government Customer [Member] Government customers Concentration Risk [Line Items] Concentrations Represents the number of areas in which operations of the entity are concentrated. Number of Areas in which Operations are Concentrated Number of areas in which operations are concentrated Concentration Risk, Percentage Percentage of revenue Represents the number of major customers of the entity. Number of Major Customers Number of customers Schedule of Stock by Class [Table] Class of Stock [Line Items] Dividends Payable Preferred Stock, Dividend Rate, Percentage Dividend rate (as a percent) Represents the percentage of additional late fee penalty the entity will be required to pay on unpaid dividends for the preferred stock. Preferred Stock Unpaid Dividends Additional Late Fee Penalty Percentage Percentage of additional late fee penalty payable on unpaid dividends Represents the number of outside board members holding interest in the entity's preferred stock. Number Of Outside Board Members Holding Interest In Preferred Stock Number of outside board members invested in preferred stock Represents the period from the issuance of written notice for failure to pay dividend within which the entity must cure the breach. Period From Issuance Of Written Notice For Failure To Pay Dividend Within Which Entity Must Cure Breach Period within which entity must cure breach EX-101.PRE 9 intz-20160331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT EX-101.DEF 10 intz-20160331_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT XML 11 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information Abstract
Entity Registrant Name	INTRUSION INC
Entity Central Index Key	0000736012
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,747,836
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML 12 R2.htm IDEA: XBRL DOCUMENT

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 246	$ 102
Accounts receivable	743	580
Inventories	45	45
Prepaid expenses	101	69
Total current assets	1,135	796
Property and equipment, net	412	486
Other assets	42	43
TOTAL ASSETS	1,589	1,325
Current Liabilities:
Accounts payable and accrued expenses	931	840
Dividends payable	195	160
Line of credit	364
Obligations under capital lease, current portion	178	197
Deferred revenue	119	386
Total current liabilities	1,787	1,583
Loan payable to officer	2,055	1,530
Obligations under capital lease, noncurrent portion	$ 108	$ 139
Commitments and contingencies
Stockholders' Deficit:
Common stock, $0.01 par value: Authorized shares - 80,000; Issued shares - 12,758 as of March 31, 2016 and 12,622 as of December 31, 2015; Outstanding shares - 12,748 as of March 31, 2016 and 12,612 as of December 31, 2015	$ 127	$ 126
Common stock held in treasury, at cost - 10 shares	(362)	(362)
Additional paid-in-capital	56,629	56,520
Accumulated deficit	(60,491)	(59,947)
Accumulated other comprehensive loss	(107)	(107)
Total stockholders' deficit	(2,361)	(1,927)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	1,589	1,325
Series 1
Stockholders' Deficit:
Preferred stock	707	707
Series 2
Stockholders' Deficit:
Preferred stock	724	724
Series 3
Stockholders' Deficit:
Preferred stock	$ 412	$ 412

XML 13 R3.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	5,000	5,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	80,000	80,000
Common stock, Issued shares	12,758	12,622
Common stock, Outstanding shares	12,748	12,612
Common stock held in treasury, shares	10	10
Series 1
Preferred stock, shares issued	200	200
Preferred stock, shares outstanding	200	200
Preferred stock, Liquidation preference (in dollars per share)	$ 1,075	$ 1,063
Series 2
Preferred stock, shares issued	460	460
Preferred stock, shares outstanding	460	460
Preferred stock, Liquidation preference (in dollars per share)	$ 1,227	$ 1,212
Series 3
Preferred stock, shares issued	289	289
Preferred stock, shares outstanding	289	289
Preferred stock, Liquidation preference (in dollars per share)	$ 673	$ 665

XML 14 R4.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net product revenue	$ 1,511	$ 1,704
Net customer support and maintenance revenue		10
Total revenue	1,511	1,714
Cost of product revenue	539	629
Cost of customer support and maintenance revenue		3
Total cost of revenue	539	632
Gross profit	972	1,082
Operating expenses:
Sales and marketing	428	498
Research and development	730	538
General and administrative	327	331
Operating loss	(513)	(285)
Interest expense, net	(31)	(25)
Net loss	(544)	(310)
Preferred stock dividends accrued	(35)	(34)
Net loss attributable to common stockholders	$ (579)	$ (344)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.05)	$ (0.03)
Diluted (in dollars per share)	$ (0.05)	$ (0.03)
Weighted average common shares outstanding:
Basic (in shares)	12,703	12,555
Diluted (in shares)	12,703	12,555

XML 15 R5.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Activities:
Net loss	$ (544)	$ (310)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	74	74
Stock-based compensation	42	68
Penalties and waived penalties on dividends	4
Changes in operating assets and liabilities:
Accounts receivable	(163)	29
Prepaid expenses and other assets	(31)	16
Accounts payable and accrued expenses	91	114
Deferred revenue	(267)	(408)
Net cash used in operating activities	(794)	(415)
Investing Activities:
Purchases of property and equipment		(44)
Financing Activities:
Proceeds from line of credit	364
Borrowings on loan from officer	525
Proceeds from stock options exercised	99	66
Principal payments on capital lease equipment	(50)	(53)
Net cash provided by financing activities	938	13
Net increase (decrease) in cash and cash equivalents	144	(446)
Cash and cash equivalents at beginning of year	102	1,006
Cash and cash equivalents at end of year	246	560
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES:
Preferred stock dividends accrued	$ 35	34
Purchase of equipment through capital lease		$ 154

XML 16 R6.htm IDEA: XBRL DOCUMENT

Description of Business

3 Months Ended

Mar. 31, 2016

Description of Business

Description of Business

1.Description of Business

We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. Our product families include:

TraceCop™ for identity discovery and disclosure,

Savant™ for network data mining and advanced persistent threat detection.

We market and distribute our products through a direct sales force to:

end-users,

value-added resellers,

system integrators,

managed service providers, and

distributors.

Our end-user customers include:

U.S. federal government entities,

local government entities,

banks,

airlines,

credit unions,

other financial institutions,

hospitals and other healthcare providers, and

other customers.

Essentially, our end-users can be defined as any end-users requiring network security solutions for protecting their mission critical data.

XML 17 R7.htm IDEA: XBRL DOCUMENT

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2016
Basis of Presentation
Basis of Presentation	2.Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Item 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The December 31, 2015 balance sheet was derived from audited financial statements, but does not include all the disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented not misleading. In our opinion, all the adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. The results of operations for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be achieved for the full fiscal year or for any future period. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 29, 2016. The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of the line of credit payable approximates fair value since this instrument bears market interest rates. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third party financing, and as such cannot estimate the fair value of the loans payable to officer. None of these instruments are held for trading purposes.

XML 18 R8.htm IDEA: XBRL DOCUMENT

Inventories

3 Months Ended

Mar. 31, 2016

Inventories

Inventories

3.Inventories (In thousands)

	March 31, 2016		December 31, 2015

Inventories consist of:
Finished products	45		45

Net inventory	$	45	45

XML 19 R9.htm IDEA: XBRL DOCUMENT

Loan Payable to Officer	3 Months Ended
Loan Payable to Officer	Mar. 31, 2016
Loan Payable to Officer
Loan Payable to Officer	4. Loan Payable to Officer On February 5, 2015, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2016. On February 4, 2016, the Company renewed the CEO note described above on the same terms, with the Company being able to borrow, repay and reborrow on the note as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2018. Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% at March 31, 2016). All outstanding borrowings and accrued but unpaid interest is due on March 31, 2018. As of March 31, 2016, the borrowings outstanding totaled $2,055,000 and accrued interest totaled $99,000.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

XML 20 R10.htm IDEA: XBRL DOCUMENT

Line of Credit	3 Months Ended
Line of Credit	Mar. 31, 2016
Line of Credit
Line of Credit	5. Line of Credit On March 29, 2006, we entered into a Loan and Security Agreement with SVB’s to establish a $1.0 million line of credit (the “2006 Credit Line”). On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 23, 2015, we entered into the Seventh Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”). Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property. In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit. Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”). SVB may make an Advance of up to eighty percent (80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion. As of March 31, 2016, we had $78,000 in funding available. Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%. Finance charges are payable at the same time its related Advance is due. Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement. The collateral handling fee is payable at the same time its related Advance is due. Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account. We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement. On June 21, 2016, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents. As of March 31, 2016, we had $364,000 net borrowings outstanding under the Current Line of Credit and are within limits of all debt covenants. As of March 31, 2015, we had no borrowings outstanding under the current Line of Credit. The Company expects to renew the Loan Agreement before the termination date but can provide no assurance that this will occur.

XML 21 R11.htm IDEA: XBRL DOCUMENT

Accounting for Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

Accounting for Stock-Based Compensation

Accounting for Stock- Based Compensation

6.Accounting for Stock-Based Compensation

During the three month period ended March 31, 2016, 136,000 options were exercised under the 2005 Plan compared to 150,000 in the previous year comparative quarter.

Valuation Assumptions

The fair values of employee and director option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions:

	For Three Months Ended March 31, 2016	For Three Months Ended March 31, 2015

Weighted average grant date fair value	—	$	2.44
Weighted average assumptions used:
Expected dividend yield	—	0.0		%
Risk-free interest rate	—	1.5		%
Expected volatility	—	188.0		%
Expected life (in years)	—	5.0
Forfeiture rate	—	4.0		%

XML 22 R12.htm IDEA: XBRL DOCUMENT

Net Loss Per Share	3 Months Ended
Net Loss Per Share	Mar. 31, 2016
Net Loss Per Share
Net Loss Per Share	7.Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. Our common stock equivalents include all common stock issuable upon conversion of preferred stock and the exercise of outstanding options and warrants. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three month periods ending March 31, 2016 and 2015 are 3,572,933 and 3,922,202, respectively.

XML 23 R13.htm IDEA: XBRL DOCUMENT

Concentrations	3 Months Ended
Concentrations	Mar. 31, 2016
Concentrations
Concentrations	8. Concentrations Our operations are concentrated in one area—security software/entity identification. Sales to the U.S. Government through direct and indirect channels totaled 65.2% of total revenues for the first quarter of 2016 compared to 64.0% of total revenues for the first quarter of 2015. During the first quarter of 2016, approximately 65.2% of total revenues were attributable to four government customers compared to approximately 48.0% of total revenues attributable to three government customers in the first quarter of 2015. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to 23.5% of total revenue to two individual commercial customers for the same period in 2015. Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering.

XML 24 R14.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments and Contingencies.
Commitments and Contingencies	9.Commitments and Contingencies We are subject from time to time to various legal proceedings and claims that arise during the ordinary course of our business. We do not believe that the outcome of those “routine” legal matters should have a material adverse affect on our consolidated financial position, operating results or cash flows; however, we can provide no assurances that legal claims that may arise in the future will not have such a material impact on the Company.

XML 25 R15.htm IDEA: XBRL DOCUMENT

Dividends Payable	3 Months Ended
Dividends Payable	Mar. 31, 2016
Dividends Payable
Dividends Payable	10.Dividends Payable During the quarter ended March 31, 2016, we accrued $12,000 in dividends payable to the holders of our 5% Preferred Stock, $15,000 in dividends payable to the holders of our Series 2 5% Preferred Stock and $8,000 in dividends payable to the holders of our Series 3 5% Preferred Stock. As of March 31, 2016, we have $195,000 in accrued and unpaid dividends included in current liabilities. Delaware law provides that we may only pay dividends out of our capital surplus or, if no surplus is available, out of our net profits for the fiscal year the dividend is declared and/or the preceding fiscal year. We currently have dividend payments that are past due because we do not currently have a capital surplus or fiscal year net profits. We cannot assure you that our net assets will exceed our stated capital or that we will have sufficient net profits in order to pay these dividends in the future. These dividends continue to accrue on all our outstanding shares of preferred stock, regardless of whether we are legally able to pay them. If we continue to be unable to pay dividends on our preferred stock, we will be required to accrue an additional late fee penalty of 18% per annum on the unpaid dividends for the Series 2 Preferred Stock and Series 3 Preferred Stock. Our CEO, CFO and one outside board member who are invested in Series 2 and Series 3 Preferred Stock have waived any possible late fee penalties. In addition to this late penalty, the holders of our Series 2 Preferred Stock and Series 3 Preferred Stock could elect to present us with written notice of our failure to pay dividends as scheduled, in which case we would have 45 days to cure such a breach. In the event that we failed to cure the breach, the holders of these shares of preferred stock would then have the right to require us to redeem their shares of preferred stock for a cash amount calculated in accordance with their respective certificates of designation. If we were required to redeem all shares of Series 2 Preferred Stock and Series 3 Preferred Stock as of February 29, 2016 the aggregate redemption price we would owe would be $2.0 million.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

XML 26 R16.htm IDEA: XBRL DOCUMENT

Inventories (Tables)

3 Months Ended

Mar. 31, 2016

Inventories

Schedule of inventories

Inventories (In thousands)

	March 31, 2016		December 31, 2015

Inventories consist of:
Finished products	45		45

Net inventory	$	45	45

XML 27 R17.htm IDEA: XBRL DOCUMENT

Accounting for Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Accounting for Stock-Based Compensation

Schedule of assumptions used to estimate the fair values of employee and director options awards at the date of grant using a Black-Scholes option-pricing model

	For Three Months Ended March 31, 2016	For Three Months Ended March 31, 2015

Weighted average grant date fair value	—	$	2.44
Weighted average assumptions used:
Expected dividend yield	—	0.0		%
Risk-free interest rate	—	1.5		%
Expected volatility	—	188.0		%
Expected life (in years)	—	5.0
Forfeiture rate	—	4.0		%

XML 28 R18.htm IDEA: XBRL DOCUMENT

Basis of Presentation (Details)	3 Months Ended
Basis of Presentation (Details)	Mar. 31, 2016 item
Basis of Presentation
Number of instruments held for trading purposes	0

XML 29 R19.htm IDEA: XBRL DOCUMENT

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventories
Finished products	$ 45	$ 45
Net inventory	$ 45	$ 45

XML 30 R20.htm IDEA: XBRL DOCUMENT

Loan Payable to Officer (Details) - USD ($)	3 Months Ended
Loan Payable to Officer (Details) - USD ($)	Mar. 31, 2016	Feb. 04, 2016	Dec. 31, 2015	Feb. 05, 2015
Borrowing from Officer
Loan payable to officer	$ 2,055,000		$ 1,530,000
G. Ward Paxton, chief executive officer \| Promissory note
Borrowing from Officer
Maximum borrowing capacity	$ 2,200,000	$ 2,200,000		$ 2,200,000
Finance charge basis	prime rate
Percentage points added in interest rate	1.00%
Interest rate (as a percent)	5.00%
Loan payable to officer	$ 2,055,000
Accrued interest, related party	$ 99,000

XML 31 R21.htm IDEA: XBRL DOCUMENT

Line of Credit (Details) - SVB - USD ($)	3 Months Ended
Line of Credit (Details) - SVB - USD ($)	Mar. 31, 2016	Jun. 23, 2015	Jun. 30, 2008	Mar. 29, 2006
2006 Credit Line
Line of Credit
Maximum borrowing capacity				$ 1,000,000
2008 Credit Line
Line of Credit
Maximum borrowing capacity			$ 2,500,000
Current Line of Credit
Line of Credit
Maximum borrowing capacity		$ 625,000
Borrowing Base	$ 78,000
Period of annual rate for calculating daily rate of finance charge on each advance	360 days
Finance charge basis	prime rate
Percentage points added in daily rate of finance charge	2.00%
Minimum interest rate (as a percent)	7.00%
Monthly collateral handling fee (as a percent)	0.50%
Borrowings outstanding	$ 364,000
Current Line of Credit \| Maximum
Line of Credit
Contingent advances as a percentage of each Eligible Account	80.00%

XML 32 R22.htm IDEA: XBRL DOCUMENT

Accounting for Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting for Stock-Based Compensation
Stock options granted (in shares)	0	13,000
Stock-based compensation expense	$ 42,000	$ 68,000
Options exercised (in shares)	136,000	150,000
Valuation Assumptions
Weighted average grant date fair value (in dollars per share)		$ 2.44
Expected dividend yield (as a percent)		0.00%
Risk-free interest rate (as a percent)		1.50%
Expected volatility (as a percent)		188.00%
Expected life (in years)		5 years
Forfeiture rate (as a percent)		4.00%

XML 33 R23.htm IDEA: XBRL DOCUMENT

Net Loss Per Share (Details) - shares	3 Months Ended
Net Loss Per Share (Details) - shares	Mar. 31, 2016	Mar. 31, 2015
Net Loss Per Share
Aggregate number of common stock equivalents excluded from the diluted loss per share calculation (in shares)	3,572,933	3,922,202

XML 34 R24.htm IDEA: XBRL DOCUMENT

Concentrations (Details)	3 Months Ended
Concentrations (Details)	Mar. 31, 2016 customer item	Mar. 31, 2015 customer
Concentrations
Number of areas in which operations are concentrated \| item	1
Total revenues \| Customer \| U.S. Government
Concentrations
Percentage of revenue	65.20%	64.00%
Total revenues \| Customer \| Commercial customers
Concentrations
Percentage of revenue	25.60%	23.50%
Number of customers	1	2
Total revenues \| Customer \| Government customers
Concentrations
Percentage of revenue	65.20%	48.00%
Number of customers	4	3

XML 35 R25.htm IDEA: XBRL DOCUMENT

Dividends Payable (Details)	3 Months Ended	12 Months Ended
Dividends Payable (Details)	Mar. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)
Dividends Payable
Preferred stock dividends accrued during the period	$ 35,000	$ 34,000
Accrued and unpaid dividends	195,000	$ 160,000
Series 1
Dividends Payable
Preferred stock dividends accrued during the period	$ 12,000
Dividend rate (as a percent)	5.00%
Series 2
Dividends Payable
Preferred stock dividends accrued during the period	$ 15,000
Dividend rate (as a percent)	5.00%
Series 3
Dividends Payable
Preferred stock dividends accrued during the period	$ 8,000
Dividend rate (as a percent)	5.00%
Series 2 preferred stock and Series 3 preferred stock
Dividends Payable
Percentage of additional late fee penalty payable on unpaid dividends	18.00%
Number of outside board members invested in preferred stock \| item	1
Period within which entity must cure breach	45 days
Aggregate redemption price	$ 2,000,000

EXCEL 36 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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

J5:"J)B: MZS 9*K&1UCTBK%\1A;A60(EC]".YDSDM5SS,X-00V:?,P?#SQ^E??'N_ENQ3 M!);+\DB=7D-O(H_H>XAZA\XG"KQ)>3Q^I^(GBO2U/P%^I>DP_M6"?+$._?[? M>/ '4$L#!!0 ( &=ZK4B1"KB-/P$ &D# 1 9&]C4')O<',O8V]R M92YX;6S-DTU/PS ,AO\*ZKU+LVF3B+H> '%B$A)#(&XA\;:PYD.)IZ[_GBSK M6L:X[,:MKOT^?ATGI7!,6 _/WCKPJ"#<['5M A-NGFT0'2,DB UH'D:QPL3D MRGK-,89^31P76[X&,BZ*&=& 7'+DY #,74_,JE(*)CQPM+[#2]'CW<[7"28% M@1HT& R$CBC)JE>S-;8Q)1GT51D=USS@PDJU4B#OVJ'L,A4[(W@=CG*0??OT M]T\/*4.RKG(?5%_5-,VHF:2Z.# E[XNGEW0VN3(!N1$054$Q;!W,LU/GM\G] MP_(QJ\8%G>7%-*>3)9TR>LN*Z<=ALC-_@V'=#?%O'9\,INVBPAJNW&W2R+3< M])E $H+PRJ&RYBI&PO=&AE M;64O=&AE;64Q+GAM;.U:6W/:.!1^[Z_0>&?V;0O&-H&VM!-S:7;;M)F$[4X? MA1%8C6QY9)&$?[]'-A#+E@WMDDVZFSP$+.G[SD5'Y^@X>?/N+F+HAHB4\GA@ MV2_;UKNW+][@5S(D$4$P&:>O\, *I4Q>M5II ,,X?+&A T%116F]?(+3E'S/X%/F7/Z3H=,H%N,!M8('_.;Z?D3EJ(X53"Q,!J9S]6:\?1 MTDB @LE]E 6Z2?:CTQ4(,@T[.IU8SG9\]L3MGXS*VG0T;1K@X_%X.+;+THMP M' 3@4;N>PIWT;+^D00FTHVG09-CVVJZ1IJJ-4T_3]WW?ZYMHG J-6T_3:W?= MTXZ)QJW0> V^\4^'PZZ)QJO0=.MI)B?]KFNDZ19H0D;CZWH2%;7E0-,@ %AP M=M;,T@.67BGZ=90:V1V[W4%<\%CN.8D1_L;%!-9ITAF6-$9RG9 %#@ WQ-%, M4'RO0;:*X,*2TER0UL\IM5 :")K(@?5'@B'%W*_]]9>[R:0S>IU].LYKE']I MJP&G[;N;SY/\<^CDGZ>3UTU"SG"\+ GQ^R-;88C'(CN]WV6'WV3T=N(]>IP+,BUY1&)$6?R"VZ MY!$XM4D-,A,_")V&F&I0' *D"3&6H8;XM,:L$> 3?;>^",C?C8CWJV^:/5>A M6$G:A/@01AKBG'/F<]%L^P>E1M'V5;SC MFED)O816:I^JAS0^J!XR"@7QN1X^Y7IX"C>6QKQ0KH)[ ?_1VC?"J_B"P#E_ M+GW/I>^Y]#VATK\>WZV22$KYI9+2,6D$N!LT$DN/R+RO JQ GH9%LE" M0AMNZ5/U2I77Y:^Y*+@\6^3IKZ%T/BS/^3Q?Y[3-"S-#MW)+ZK:4OK4F.$KT ML@'37[]EUVY".E,%.70[@:0KX#;;J=W#HXGIB1N0K3 M4I!OP_GIQ7@:XCG9!+E]F%=MY]C1T?OGP5&PH^\\EAW'B/*B(>ZAAIC/PT.' M>7M?F&>5QE T%&ULK"0L1K=@N-?Q+!3@9& MH >#KU$"\E)58#%;Q@,KD*)\ M3(Q%Z'#GEUQ?X]&2X]NF9;5NKREW&6TB4CG":9@39ZO*WF6QP54=SU5;\K"^ M:CVT%4[/_EFMR)\,$4X6"Q)(8Y07IDJB\QE3ON>;G*YZ(G;ZEW?! M8/+]<,E'#^4[YU_T74.N?O;=X_INDSM(3)QYQ1$!=$4"(Y4U#VT%SU&\Z.9X!ZSAW.;>KC"1:S_6-8>^3+?.7#;.MX#7N83 M+$.D?L%]BHJ $:MBOKJO3_DEG#NT>_&!()O\UMND]MW@#'S4JUJE9"L1/TL' M?!^2!F.,6_0T7X\48JVFL:W&VC$,>8!8\PRA9CC?AT6:&C/5BZPYC0IO0=5 MY3_;U UH]@TT')$%7C&9MC:CY$X*/-S^[PVPPL2.X>V+OP%02P,$% @ M9WJM2!3JVS]) @ X@D T !X;"]S='EL97,N>&ULS59;:]LP%/XK0AFC MA1';*77I:AM&(3#8RB!YV%N1;=D1Z.+)P+&UWBU]T].GH.Y_. MD8\=U6I'\6J#L0(MH[R.X4:IZKWGU=D&,U3/186Y7BF$9$CIJ2R]NI(8Y;79 MQ*BW\/W08XAPF$2\84NF:I")AJL87O40/R]9K!]0W MAMKK4I1$A>!#IA;0 4E4/X$MHMH_,.Z9H$("I4NA-5B$(X:=QSVB))7$@ 5B MA.X!I(H@HI MA25?Z@GH[/6NTH?C@F,GTOJ=\"XEV@6+Z]$&.^BXJ9 YEGWD .ZA)**X4'J# M).7&C$I41KI02C!MY 25@B-J*/<[.D/39IC2E7E7OA83[K8 SL?4V(? J-B; M.A&=.5P#FU1OS.:XQ[3^JWA!6_0!]&Y4573W@9*2,^S$.F@INMDI^N (?1*A M/2O8"$F>M+^Y")D&L(1@BZ4BV1CY+E&UQJWJ;K#7%L<4OO;(?U/3G\_:H$9? MP7^=GO\:?%P;^QK" SW/*,5#PU(LE[8WOUS8UU MWU&/GW3X'@5I0Z@B?*\!F6_R@]%-)\UWZ.Z:,V^'QFY7%4KU#]:]U3Q'"P/^.<-.S6*AC^ZI(?4$L#!!0 ( &=Z MK4@.'MZ'%0, !X) / >&PO=V]R:V)O;VLN>&ULE951;]HP$(#_BI6G M[6&#I$!;5"H!25T8*/@601$4&.3G%N6CX(>#-6!M1[HJIQ47+A!O]L/.@YV7.I*DTSE MK(&M=]S\?GL1D)QM:27L&I(]SCL*PJ@718.&X3Y[X.Q@,- ](#2S?,_6=#,* MN@&AE54W7%BF8VK9+ZVJDLM'8 5DR[6QJ5MN_67!)2_XJ\L;1F:G#K=*\UU>)43#H G#/#=]PP>W+**CO!7,K MZ7Q82KW][W=$UIMS+#&A,B>)M$ A,]D4#[;&Y0 ?S_)Z8CWD<*-G>=AL%09- MEXMT.9_%XW42D\EX/EY,$Y+>)LDZ19 (02(O)$X6*1"\. 0Z0Z"S?V23KN%R MERS6*5G>D.4JN4>@'@+U_@LT':>W"-1'H/XI*&8FT[QTFTK4EDPJPR4S!@$& M"# X!4RHX<:%KC0S4+&/]3E'X>>GX3.YAR#PCN$Y+U#0Q6G07%%)5O2%@E/$ M*K*LCP6- )<(<.D!P")=SE/-X,_%-G6Q3MW3R'&6J0I\E(\$;"2I5=G3#]@# MEI.I*DJ,:IGI47,!=W-E#%DQ .VH9C@:*QGZG%0R@YW3S=F'([&#H4]"513< MNK_+U+\7D-QZF,S:10BQ@Z%'PICO>8[CL?: MA1[O/BU$>(Y16,'0XZ!78?(M9I9RTH0]U=V?$M8W\NJ+Q?[TW+.C9L,6Y:^>FG@+Z8>9Z/%R:?[C7=P5WXSOH^Z/ -6?HPY404WBV ME%#MNH4UY&-7O_X#4$L#!!0 ( &=ZK4B8]T?330( /,' 8 >&PO M=V]R:W-H965T&ULC579CILP%/T5BP\8L-F2$4&:I*K:ATJC M>6B?G<0): !3VPG3OZ\7PAC7*KS@A7/NN;;O4@R4O?.*$ $^VJ;CNZ 2HG\. M0WZJ2(OY$^U))_]<*&NQD$MV#7G/"#YK4MN$*(JRL,5U%Y2%WGME94%OHJD[ M\LH O[4M9G_VI*'#+H#!8^.MOE9";81E$4Z\<]V2CM>T XQ<=L$+?#[ 1$$T MXF=-!F[-@7+^2.F[6GP_[X)(^4 :Z/"-C&=(E<$3;;C^@M.-"]H^* %H M\8<9ZTZ/@_F3P)'F)Z"1@"8"ROY+B$="/!',U87&,WVN+UC@LF!T +S'ZK7A MLX0S941:!O(P7"_U=9G=>QD5X5V9F2'V!H$T DZ(4-KV"J"YP!Y9=.03.-B( M>%D@=DX0:WJLZ@0N2K(LH B7_@>1DPV MOEN>Y)MX19Y -Y%A;&M!;ZJ,F&ST!Z[1<3,>V@F-_'$V8E*#<0,MM&IL2]A5 M]QX.3O36"5-,I]VIO[T@7:,_X671XROY@=FU[C@X4B$KO2[R%TH%D4Y$3[(P M5+(#3XN&7(2:YG+.3$\R"T'[1XN=^GSY%U!+ P04 " !G>JU(E%.Q<_0# M #)$P & 'AL+W=O6DVVKX8LZZFZX<3=]6XW38O\;#N=?5 M80EJFY@G21JW5=UM=MOEW-=^MS5O8U-W^FL?#6]M6_7_[G5C+D\;MKF>^%:_ MGL;Y1+S;QK>X0]WJ;JA-%_7Z^+3YA3V6(ILEB^*O6E\&L!_-YI^-^3X?_'%X MVB2S!]WHEW%.44V;=UWJIIDS32/_8Y/^'',.A/O7[+\MTYWL/U>#+DWS=WT8 M3Y/;9!,=]+%Z:\9OYO*[MG-0<\(7TPS+;_3R-HRFO89LHK;ZL6[K;ME>UBMY M8L/H &X#^"V R?\-$#9 H(!X=;;,Z]=JK';;WERBX5S-_S9[G.3]G&3*'$V3 M&9;#I5SKV?<=E]OX?<[C2/:KA*\22E$Z"G63Q-/XI F.3/ E7JSQZ?UX@>+% M$B_7^,RUV*V36"69G6=*:4JH80F_[T,B'Q+ZR$D?JR1=))D4I ^H47ERWX=" M/A3T49 ^%!A#*M*&1^)UD2(7*7 A$M)%"H9@"2-M0$U:W+>1(1L9M$$.L<^@ M#2;HG,W'$C0EH3DY!!%-(/X[W57%<%GIYQ1"+@ M*<4Q#CG$H:178JY&49K2I_$[P2CD$(4RH.?XA_4<1*&D\6,UMF3TJJU$HA O M&(4*0@:PDV-VIISR.C!4\Q _F)X?\5#2QN$M&SZ+)504MFOB-GYUULV(O7W,$O+=A MZ(GDDZ@1&%:"P8+0JTBKL4MW3[=X17XO')5#<%". #J(#^^QXK/EP'P1,J < MSCLH?NF_EL,G\GM1N!P*E"-@L2 P"D3ZV7+@VU=D >7(P#/&]]+E%:U>8O#1 MY5R]ZC^K_K7NANC9C*-IET\W1V-&/:5*ODQE.>GJ<#MH]'&<=[-IOU^_-*T' MHSE?/YS=OM[M_@-02P,$% @ 9WJM2*6O&43% @ 7@P !@ !X;"]W M;W)K[Z,CT*< MGI.$;X^T(_R)G6@O/]FSH2-"#H=#PD\#)3L5U+4) @ G'6GZ>+50SUZ'U8*= M1=OT]'6(^+GKR/!G35MV7<8POCUX:PY',3Y(5HOD'K=K.MKSAO710/?+^ 4^ MUPB,B")^-O3*C?MHE-\P]CX.ON^6,1@=:$NW8DQ!Y.5":]JV8R8Y\^\IZ>>< M8Z!Y?\O^52U7ZF$IS5K?S4[<92V((YV=$_.K7ACUV]T6D,^)MRREJN_T?;, M!>MN(7'4D0]];7IUO>I/2C"%N0/0%(#N 3#[;T Z!:160*+-U+J^$$%6BX%= M(WXB8[7AL\2',8G,',G%<#54VZ6?7E9YOD@N8YX9LM8(4@AR$?6,^$R2R/F= M$LB20"H^TQ)X/D6O)312*00\ >B":B_D-4DMD]0T*9PF&L$: 0 X3;R0UR2S M3#+3I'2:9"%[XH6$KEEDILFE=,D-Y9; M^F^"FO"[91.I=XT+^1W^:Q^R,T M&R3.W2Z:*:;B%4ZJMBACC_TVJ55EF!IE#GA7H=W:8!90YLS8M?4Y-M[E(?]^Z"E>S'>%O)^T,=?/1#L M=#O-W_^E6/T%4$L#!!0 ( &=ZK4@4LJ$&4 , *0. 8 >&PO=V]R M:W-H965T&ULC9==;YLP%(;_"N)^Q39?IDHB-4S3=C&IZL5V M31,G006<@=-T_WY@T_38/1.^"1]YC]_W&'C JZOL7X:3$"IX:YMN6(=>5'M=U#81(R2+VJKNPLU*GWOL-RMY M44W=B<<^&"YM6_5_MZ*1UW5(P_<33_7QI*83T685W>KV=2NZH99=T(O#.GR@ M]R5+)XE6_*K%=0#[P13^6#'?AV2*8-HQ$Y-0U3CYE64HFFFD4;G/_.@ M'YY3(=Q_'_V;;G>,_UP-HI3-[WJO3F-:$@9[<:@NC7J2U^]B[D$GW,EFT+_! M[C(HV;Z7A$%;O9EMW>GMU?S#R5R&%["Y@-T*;CYX03P7Q!\%F>[4)--]?:U4 MM5GU\AH,YVJZVO1^E/?3(./(P=C,H _U=)FSKYLL6T6OTSB69&LD3$LHIBBA M(LMODFCT1T,P.\26@7J&.EB*=-DA=MJ,=7UL$O+E^L2I3W1]8NH+.V)GFC"2 MW$Q32BDF*BU13I+E)*F3) 5)989- "[6.;08O_-6N)FA)J,%SS6J N!2G$($>OP)9RRP?E1^F(/%X,U.4E MA<#D.#!G33[/#'Z7E[8J3CS2,!>:C !.^=QUS"4=H["?#.UGUA0F*;DC^.Q^ MDGF\CIC+30:YR7%NSIK%/*[,)X_+3@:_X+@'\9A+/ :)QW'B,0@SRG*"8\:1 MI:G/%7>IQR#U"IQZ+/7+DR[DB<"BH!7]42^6AF G+YTR7_^WL[<%V0/3BXH/ M^69UKH[B9]4?ZVX(GJ4:ER9Z57*04HDQ![D;/MH!$'->WFXWYO%E'F M0,GS^YKPMC#=_ -02P,$% @ 9WJM2 -59U%Q P +@\ !@ !X;"]W M;W)KW#_MB)+;]GD130RB%IMAFJ(<#^^B$'4]S31F M_CU/>LLY!9KGE]F_J')'_+>R%X6L?U;;X3#21HM@*W;EJ1Y>Y?FKF&M(I@DW MLN[5;[ Y]8-L+B&+H"G_Z&/5JN-9_Y/R.8P.P#D KP'7/'0 FP/8+2!6E6HR M5=?G@_Y83JL-3Z.\FR899P[&8GIUJ6Z7'GU?Y; ,WZ=Y+,E:2U!) M;HIPG)S,@':&-1KA2"4H3$6.CS,PIP:FXIF.9X_C8R<^5O&QBL\D)5H"5>2E*[CCN0N1>I0I"8% M)RE2(T5,WO+"E/#L,47F4&0F14I29";%XPRYDR$W5\N#$"+WY8L,1LQ(QEFC M(3\ 9^3-LE28>[#\9P1@WJ^<9@&3A0&-8HJ >Z"@BX(&"J,?H%G#2>.ZD)@: M (\5!M=:@!DH<42C,/.N(">?M<)6Q9'/\^(:%9A.!=$=G-A,E.;T.VZK8D@\ M<%RW M.N(/+X-H!K6,"MBF@G &ZQ^JRC:TF06J@>'PEP_00R"Y6\K6LP+85Q M'U3752"W\M N/HMTG@0]5@]=\\'(RD._9FCZ"NT*A:7A'B\\NMZ#8*'09HV6 M^23DPU\X(H]U1M=]$"T8VI71LA]&B@I+!#XLKOT@LUAH5T;36>#.W@1M^XE] MELFU'[3L!VC[0=-8[KW1CBCRH7'=!Q.+AOP$K&?1_%V,R8>\L$0)]]BWH>MC MR$U_ 8]-++H6A>:V*2,_\^M9H[>8C+2& LV-$_-P('2=#BVG WK',8LT"B1N MGM!H0QK1[55[U@<;>6H'O=>_CEY;P$\XM3'.^'IL#74C=YMFM3R6>_&][/95 MVP=O+6NR&Z30=SSO=SNF+01XOW>FU15[] M U!+ P04 " !G>JU(]6WEBI\! "Q P & 'AL+W=O6CFM&\V@' D3!M)2E*6Y[=4<:&SNHJU9U-7.#DI-#P;8B>EN/F] XGS-BNR M4^%%](,+!5I7=.&U0H&V C4QT&VSNV*S*P,B GX(F.U93(+W/>)K2![;;98' M"R"A<4&!^^4 ]R!E$/*-?QTUWUL&XGE\4O\>I_7N]]S"/.7-)-UJ$Z4C"C^EE:AXSJG/ZP\TCXGL".!+82O>32> M&D6;W[CC=65P)G;DX>R*C8>;(.*5B?=F8QJG3]5#711E10]!Z *S2QB6, N" M>O5/6[#+%CMV1F?_IZ^N'*XB??7!X5\%RBN!,@J4_QSQ$K.^:D+/]E2!Z>/5 ML:3!2;NT>4MUN9UW+)[).[RN1M[#$S>]T);LT?F3C8?:(3KP)O*;=48&_WZ6 M1$+G0OC%QR9=J90X'$\/9'FE]1]02P,$% @ 9WJM2!?1=!>? 0 L0, M !@ !X;"]W;W)K^9&"Z)-)*T8+XH[IH4TM*Y2[20-/EKA):V%_[T#AO*4E/16>93_X6&!UQ19>*S48)]$0"]V6/I2;W3HB M$N"'A-F=Q21ZWR.^Q.1;NZ5%M *&A\51%@.\ A*1:'0^-=1\ZUE))[')_4O M:=K@?B\>OZK*\J]@A"EU@=AG#,V9!L*#^80M^V6+'S^C\__35E<-5HJ_>.?RKP/I* M8)T$UO\<\1)S?]6$G>VI!MNGJ^-(@Y/Q>?.6ZG(['](ALC=X78VBA^_"]M(X MLD'LCR2NL_4$L#!!0 M ( &=ZK4@$/&Q;H $ *X# 8 >&PO=V]R:W-H965T&ULA5/;;IPP$/T5RQ\0@W>3IBL6*9NJ2A\J17E(G[TP@!7;0VVSI'\?V["$ MK-+V!<\,YYPYXTLQHGUQ'8 GKUH9MZ>=]_V.,5=UH(6[PAY,^-.@U<*'U+;, M]19$G4A:,9YE-TP+:6A9I-JC+0L)U6:=(ZSG_X3/N(/F"8$'\TP[\8X<# M7]'Y_^F;"X.;1-]<&OPK?WO!WR;^]E\#KB%Y?GO1@ZTV5(-MT[UQI,+!^&GG MENIR->_2";)W>%GTHH6?PK;2.')$'XXUG6B#Z"&8R*ZN*>G"XUD2!8V/X9<0 MV^D^38G'_OPZEB=:O@%02P,$% @ 9WJM2(YC>'ZA 0 L0, !@ !X M;"]W;W)KM3)N0WOO MAS5CKNY!"W>% YCPIT6KA0^I[9@;+(@FD;1B/,MNF!;2T*I,M4=;E3AZ)0T\ M6N)&K87]LP6%TX;F]%AXDEWO8X%5)5MXC=1@G$1#++0;>INOMT5$), O"9,[ MB4GTOD-\CLF/9D.S: $4U#XJB+#LX0Z4BD*A\7$K3]'-U7^7Y MMY+MH] 99CMC^(Q9$"RHO]N"G[?8\A,Z_YR^NG"X2O35/P[_*U!<"!1)H/AP MQ#,,SRZ:L),]U6"[='4SN0-7I6#Z."GL)TTCNS0AY-- MA]HB>@@FLJMK2OKP?I9$0>MC^"7$=KY2<^)Q.#Z0Y956?P%02P,$% @ M9WJM2-76R&N= 0 L0, !D !X;"]W;W)K&UL MA5/+;MLP$/P5@A\02K23%H8L($X0I(<"00[MF996$A&2JY"4E?Y]2"4-/%GB!JV%_;,#A>.6YG0N/,NV\[' RH(M MO%IJ,$ZB(1::+;W--[MU1"3 +PFC.XE)]+Y'?(G)CWI+LV@!%%0^*HBP'. . ME(I"H?'K4?.]922>QK/Z0YHVN-\+!W>H?LO:=\%L1DD-C1B4?\;Q$8XC7$?! M"I5+7U(-SJ.>*91H\3:MTJ1U//Z9:9\3^)' %\+W+!F?&B6;]\*+LK X$M>+ M>';Y)L!M% G*)'AS*4W33]5#F?.\8(SJFI(NO)\E4=#X&'X+L9VNU)1X M[.<'LKS2\B]02P,$% @ 9WJM2.-;FB6A 0 L0, !D !X;"]W;W)K M&ULA5/;CILP$/T5BP]8@T/:*B)(FZVJ]J'2:A_: M9P<&L-;V4-N$[=_7%\(F::J^X)GAG#-G?*EF-*]V '#D34EM]]G@W+BCU#8# M*&X?< 3M_W1H%'<^-3VUHP'>1I*2E.7Y!ZJXT%E=Q=JSJ2NO=';N$)Y4_1 MNL&;S3/20LJH+MJGH*0A= M80X)PQ)F15"O?K<%NVYQ8!=T]G_ZYL;A)M(W?SG\IT!Y(U!&@7(1*.^.>(W9 MWC2A%WNJP/3QZEC2X*1=VKRUNM[.1Q;/Y!U>5R/OX3LWO="6'-'YDXV'VB$Z M\";RAVU&!O]^UD1"YT+XT<&PO=V]R:W-H965TDM\BQU+1:[3ZL5/6A?2;VV$8%Q@4<=_]^ 3MNDNVV+V9F?,Z9 M,USR >VK:P$\>=?*N UMO>_6C+FR!2W;9%C[Y4T\&B)Z[46]L\6% X;NJ"'PI-L6A\+K,C9S*ND!N,D M&F*AWM"[Q7J[BH@$>)8PN*.81.\[Q->8_*HV-(L60$'IHX((RQ[N0:DH%!J_ M39H?+2/Q.#ZH_TC3!O<[X> >U8NL?!O,9I144(M>^2<(IYOJL"3O:4PVV25?'D1)[X\?-FZOS[;SCZ4P^ MX$7>B09^"]M(X\@.?3C9=*@UHH=@(KNXI*0-[V=.%-0^AM&! MS*^T^ M02P,$% @ 9WJM2.W/#\2> 0 L0, !D !X;"]W;W)K&ULA5/;3N,P$/T5RQ^ 4[M\AOL;D ML=K0+%H !:6/"B(L>[@#I:)0:/QVT/QH&8G'\:3^D*8-[G?"P1VJ%UGY-IC- M**F@%KWRSSC\A,,(EU&P1.72EY2]\Z@G"B5:O(^K-&D=#G\FVM<$?B#PF7"= M)>-CHV3S7GA1Y!8'XCH1SVZQ#G ;18(R"=Y<2M/T8W5?+/AUSO91Z 2S'3%\ MQ,P(%M2_;,%/6VSY$9U_3U^>.5PF^O*3PW\*K,X$5DE@]=\13S$W9TW8T9YJ ML$VZ.HZ4V!L_;MY.RF!S*_TN(O4$L#!!0 ( &=ZK4B&&PO=V]R:W-H965TZ:EE42$Y*HD9:5_7SYDQ3:"MA=Q=S4S.\M'-:-Y MLP. (^]*:KNC@W/CEC';#*"XO<$1M/_3H5'<^=3TS(X&>!M)2K(BR^Z8XD+3 MNHJU%U-7.#DI-+P88B>EN/F]!XGSCN;T5'@5_>!"@=456WFM4*"M0$T,=#MZ MGV_WFX"(@!\"9GL6D^#]@/@6DJ=V1[-@ 20T+BAPOQSA :0,0K[QKT7SHV4@ MGL]Q6N_^P"T\H/PI6C=XLQDE+71\DNX5YT=81K@-@@U*&[^DF:Q#=:)0 MHOA[6H6.ZYS^E/E"^YQ0+(1B)7S-HO'4*-K\QAVO*X,SL2,/9Y=O/=P$$:], MO#<;TSA]JA[KO,PJ=@Q"%YA]PA0)LR*85_^T17'98E^\Q%R[9&=[JL#T\>I8TN"D7=J\M;K>SOLBGLD'O*Y&WL,S M-[W0EAS0^9.-A]HA.O FLIM;2@;_?M9$0N="^,7')EVIE#@<3P]D?:7U'U!+ M P04 " !G>JU(:.OXSI\! "Q P &0 'AL+W=O#+MR\;T'BN*$K>B@\ MB[9SH<#*@BV\6BC05J F!IH-O5NMMWE 1, ? :,]BDGPOD-\"D.38 $D M5"XH<+_LX1ZD#$*^\>NL^=DR$(_C@_K/.*UWO^,6[E'^%;7KO-F$DAH:/DCW MC.,OF$>X#H(52AN_I!JL0W6@4*+XV[0*'==Q_G,[TRX3TIF0+H3;)!J?&D6; M#]SQLC X$MOS<':KM8>;(.*5B?=F8QJGGZK[(IYC\K D[VE,%IHU7QY(* M!^VFS5NJR^V\2^.9?,++HN&PO=V]R:W-H965T6CG-"\VQ[ D0\E MM=W1WKEARYBM>U#9?=,<:%I5<;:JZE* M')T4&EX-L:-2W/S;@\1I1U?T5'@37>]"@54E6WB-4*"M0$T,M#OZN-KNBX"( M@-\")GL6D^#]@/@>DI_-CF;! DBH75#@?CG"$T@9A'SCO[/F9\M /(]/ZL]Q M6N_^P"T\H?PC&M=[LQDE#;1\E.X-IQ>81]@$P1JEC5]2C]:A.E$H4?PCK4+' M=4I_\F*FW2;D,R%?"-^R:#PUBC9_<,>KTN!$[,##V:VV'FZ"B%1OD[T[U_SBRM^ M$?G%/.']S0DO,0]73=C9EBHP7;PYEM0X:I?V;JDNE_,QCT?R":_*@7?PBYM. M:$L.Z/S!QC-M$1UX$]G=AI+>/Y\ED="Z$#[XV*0;E1*'P^E]+(^T^@]02P,$ M% @ 9WJM2/=^1@6A 0 L0, !D !X;"]W;W)K&ULA5/+;MLP$/P5@A\0RI+2IH8L($Y0M(<"00[MF996$A&2JY*4E?Y] M^9 5VS"0B[B[FIF=Y:.:T;S9 <"1=R6UW='!N7'+F&T&4-S>X0C:_^G0*.Y\ M:GIF1P.\C20E69YE7YCB0M.ZBK474U#-9I2TT/%)NE>< M?\ RPGT0;%#:^"7-9!VJ$X42Q=_3*G1-U M97 F=N3A[#9;#S=!Q"L3[\W&-$Z?JL=Z4SQ4[!B$+C#[A,D39D4PKWZS17[9 M8I^?T?//Z<65PR+2B]0]+SX7**\$RBA0+B-^NSGB!:;,KIJPLSU58/IX=2QI M<-(N;=Y:76_G8Q[/Y ->5R/OX1&PO=V]R:W-H965T6CFM&\V0' D721P%*C:/,'=[RN#,[$CCR<7;[SJKS,J_8*0A=80X)4R3,BF!>_=,6Q76+0W%)+XNO!38W'C=18),$\NW7 N6- M0!D%RL7!YGI(G5PFS#9BLIL6[&)/%9@^7AU+&IRT2YNW5M?;^5#$,_F U]7( M>_C%32^T)4=T_F3CH7:(#KR%[.Z>DL&_GS61T+D0?O.Q25JU(*D)@L*@! S! &0 'AL+W=O,N3@3-2)('495^U!I- _MLQ,.P1I? M&-L)T[^O+X0F$>F\8!^SUV8?L*E&;=YL#^#0AQ3*;G'OW+ AQ.Y[D,P^Z &4 MO]-I(YGSI3D0.QA@;82D($66/1+)N,)U%==>3%WIHQ-0.AQ MBW-\7GCEA]Z%!5)79.9:+D%9KA4RT&WQUWS3T*"(@E\<1GLQ1R'[3NNW4/QH MMS@+$4# W@4'YH<3-"!$,/(/?I\\_STR@)?SL_NWV*U/OV,6&BU^\];U/FR& M40L=.PKWJL?O,+6P"H9[+6R\HOW1.BW/"$:2?:21JSB.Z0Y=3]@R4$Q ,0,Y M_2]03D!Y Y"4+/;US!RK*Z-'9 <6/G:^\7(33+PS\LW86,;7E59/=4YI14[! MZ$KSE#1%U!1+BN9*L9HEQ =83%'<.7D:=3%ZOKC"IUD33K MJ%F6-'8P[DA2#7'S?@1W@)S,'KBS::>>W2MPEG=8. MO%'VL,*H]R=X+@1T+DS7?F[2IDZ%T\/YB,[_B?HO4$L#!!0 ( &=ZK4AW M>0+64 ( !T( 9 >&PO=V]R:W-H965T*M/!9"38 \ P-O M7]:DX25M/$8."_\E>-X$2$$TXE=).CZZ]U3X+:7O:O!CO_"ARD JLA-* LO+ MF:Q(52DEZ?RG%[UZ*N+X_J+^39_MR0&?*O%&N^^D MKR%6@CM:AK9Y[$\Y[F)J">@ ;"X.,FA#TAO!*B M+PE13X@>)<0](9X0@*E==VZ-!;!?70_U"S.PY M#Z(D VZT0+;%$HWHR&6P&B.":.["K"V5V 79V#+I_:3A MI!FA%@B-0 SO"T03@4@+1%H@FM3:F&X82&+J@'$,(73AUF-<$(=PC+N9)Y[D MB4=Y@OB!=S>;",S^MR/)1""Q$KA;DHQ;@B"\T9+5@[C-5[B;P>>3X',K>.C\ M,&Q,=-\DG9BDEH!S52]MS.R^20"GWSBT)&Y\Y#9H_H#/I[TDN+_\>XQ[_=^V M0E,K9*5-W5YHY)6FGYW :*^L"3OJ4XI[.WIJA-D4A]GA)'S1!R&XPO.LQ4?R M$[-CV7!O2X7&ULE5;=DIHP&'T5A@=82/@)[B SJVZGO>C,SEZTUU&C,@O$ MDBC;MV]^$$F:%O1"2#S?.3DQ)TG>T?:#G0CAWF==-6SIGS@_/PJJ*X"&(9I4..R\8M<];VU14XOO"H;\M9Z[%+7 MN/V](A7MEC[P;QWOY?'$94=0Y,%0MR]KTK"2-EY+#DO_!3R_0@51B!\EZ=CH MW9.#WU+Z(1O?]DL_E&,@%=EQ28'%XTK6I*HDDU#^U9/>-67A^/W&_D79%$DFXHQ53W][NPCBM;R6^5^-/_2P; M]>ST+UG8E[D+8%\ AX)!QUT0]071O2#^;T'<%\1S"Y*^(+$* NU=S=P&T\=L9R/8%G 6\EB6#VQ'0QU51_B.Z]%B -\^ JB0S,2F.@Q@R(0+ [): I ML8*C34PT/=3(FHU($<0]03Q-$%L$L2*(- &<,5F) M19",1Y!8-AMM4V.0QH3J,RV46D*I8369)D 6 7K4:F819--6-]G(*DQF6EU8 M0@O#:CI- $([)>&C9L%?00/3=M<]2/M-E>$94M"6@H9AY)):]2 MA;)Y2G9> M@!F8S+U]F*#%#!T[5B V)B]RZYB@&>D%=OJ $3_TC^W0!,U9#';X@)$^Y-S- M5A9HQG8&[(P"9%#$;AT3-&,K ':4@9%EE+I7W#C,41K/6W)VF(&19H1FG$=V MFN'#:89VFJ&19N1>^!;(7OC!Z*2N27M4=R3F[>BEX?I('GJ'>]@+5"?]'5[D M9WPDWW%[+!OF;2D7]P5U53A0RHD81?@D+)S$37%H5.3 Y2N2WO3=23&PO=V]R:W-H M965T@8@@3:BJ=E%I-(MV[21. M0 .8VDZ8_GW]( QV785-L,UY70CW%B.A[ZS&F'L?7=NSO5]S/NR"@)UJW"&V M(0/NQ9T+H1WB8DNO 1LH1F=%ZMH I &'6IZORS4V2LM"W+C;=/C5^JQ6] 6S+N_=!_'+PUUYK+@Z L@IEW;CK%$\U-@!,!SH39QTV()D+T28A5I3J9JNL+XJ@L*!D]-B#YML.=@%,I(I0] M40Q36_6X].F]##-0!'[?,M9_%P@LP0R MHY[$&51C#J"S0BAX10ML'&A+N/F&!5GSHH=TJPLB0B-T^)BBQ?()%B^TPO:K1P[P3 MN?5<#(\)N\\_LN_4$L#!!0 ( &=ZK4@ RT#A MS $ $D$ 9 >&PO=V]R:W-H965TH,:8[8*R+!CC53[(#84\JJ3@UUE0UUIT"6GH29YC$\19S MVHHH2[WO766I[ UK!;PKI'O.J?IW B:'8[2*KHZ/MFZ,<^ LQ1.O;#D(W4J! M%%3'Z'EUR-<.X0&_6QCT;(]<[F2[;:;U-\<4)WF%/ D("9$-BJ+X8@]R%. M9$8G2P'R.6)/OH^0/!21>'X2$B3;[P76#P)K+[ >;V%WGZ0(903,UF.2S8[L MDV0)E]_A]H20^+$B/'LB#JKVK:M1(7MAPC5,WFDZGHE[X@?_R4Y-:/*;3)9V MM(9?5-6MT.@LC6T@WSN5E 9L@O'3)D*-G>O)8% 9M]W9O0JM'@PCN^O@3G^/ M[#]02P,$% @ 9WJM2,$KE&ULE5;;CILP$/T5BP]8L+DD1 1IDZIJ'RJM]J%]=H@3T *F MMA.V?U]?",$N:LA+; ]GSIRQ/9YD/64?O"1$@,^F;OG6*X7H-K[/BY(TF+_0 MCK3RRXFR!@NY9&>?=XS@HW9J:A\%0>(WN&J]/-.V-Y9G]"+JJB5O#/!+TV#V M9T=JVF\]Z-T,[]6Y%,K@YYD_^AVKAK2\HBU@Y+3U7N%F#V,%T8B?%>GY9 Z4 M^ .E'VKQ_;CU J6!U*00B@++X4KVI*X5DXS\>R"]QU2.T_F-_:M.5\H_8$[V MM/Y5'44IU08>.)(3OM3BG?;?R)"#5EC0FNM?4%RXH,W-Q0,-_C1CU>JQ-U^2 M8'";=T"# QH=4/)?AW!P".\.2&=JE.F\OF"!\XS1'O .J].&&PEGBD0R YD, MUTN]7<9ZS6&ZSORK(K(P.X-!!C,B?,D^&P+9(79HZIZF MH28(31"T?DP0.021)H@&!=!6V9I,#"99NA&Q$R*V0J#'!(E#D#R;Y,HA6%D* MPMG3MC'1[''9F/BQD+4C9&T1)(\)4H<@?78K8.#>_&#!9CB@U>QN.* E8OXI M0VA1I+/7;P"Y]V\"V5N0!3<,(E<(F@J!"RH1NJ4(GZY%Z!8CC):<3;3@IMH@ MN*!JH5NV,%YR-O%DXZ/YLYE"0D>(/WFV&\+.NIUQ4-!+*\S#.%K'EOFJGWW' MOE.M5+>#.TV>=?A,?F!VKEH.#E3(IJ+[R8E20:2VX$5J*V6S'Q&ULE5;+;MLP$/P501\0D:N7'<@"$A=% M>R@0Y-">&9NVA4BB2])Q^O?E0U9$1DGHBT52L\/9H9;>ZLSXLSA0*J/7KNW% M*CY(>;Q-$K$YT(Z(&W:DO7JS8[PC4DWY/A%'3LG6!'5M @@524>:/JXKL_; MZXJ=9-OT](%'XM1UA/^[IRT[KV(<7Q8>F_U!ZH6DKI(Q;MMTM!<-ZR-.=ZOX M#M^N(=40@_C=T+.8C",M_HFQ9SWYN5W%2&N@+=U(34'4XX6N:=MJ)K7SWX'T M;4\=.!U?V+^;=)7\)R+HFK5_FJT\*+4HCK9T1TZM?&3G'W3((=>$&]8*\QMM M3D*R[A(21QUYM<^F-\^S?5.B(6P^ (8 & ,@_S0@'0+2MP";J55F\OI&)*DK MSLZ1.!)]VOA6P;DF40&8)L4)"[*GN;B<64 M!I/F"*$YU-I!95/4AV)R3TSNB"EFQ5A,83->?J@FGZC!!0J24\0.QUUA.!;> M-_)A>.EE4UY[-@N/8!%P-HMIGA"4YM+;9NEL4\Z6RQ2#\\77FV#DF:FOG]%- M""!X5]7X6C\Q^!00X.@ &BS-@RS%?EWB-,!4!Q3F:N:[FDU<#;'$+SF<7^UJ MX5,4(:X6$U<78:;Z!87+$%/+JTWUZPZ[A1="X=<47EYK*R"/ I"C8CF;K0N" M %?!KRO #@6>/;X!5(3>A>"7'CBE!_-_RAXHQ#6_\, I/,CFLTDG'Z.^--]_ MC\FDY>@HWYM63$0;=NJE[2W&U;'=NP/3LKS!Z^I(]O07X?NF%]$3DZKQ,3W/ MCC%)E1)TH\KOH!K2<=+2G=3#4HVY;='L1++CI>,JU(%E]&G;T; ,7P % 'AL+W-H87)E9%-T&UL[5S+9%.AA1;^ M!&\FPM[X)[SWI^A+?.[-S'IF >!H[/#"*Q*H?-R\>1_G/@I?IVDF/J_#*/W] M%ZLLV[Q[]2KU5FHMTWZ\41&>+.)D+3-\3):OTDVBI)^NE,K6X:O18'#V:BV# MZ N11\%?CT?B+;[Y.@V^^SKZYB+U\K:),R,@7EU$69,_B*M)K M!G$D3D2ZDHE*OWZ5??/U*YJCYYV*'^(H6Z68XRN_^?0'F?3%Z; G1H/A6?/A M9(.'H[?NA[OHFUIQGAMZK94 #L,"-7*OFJ*N;A_N/LZO;&W%U,^U8 M8HK=$QEB5U]]%M^KYTX2'YXWK1V&@Y,_=DZX4TD0T[%\<2&SUES+M8/?_<[) M-ZSA\SH?0KEL/EW(,&VM.,V3A"<$J8;V34&FCIB==K MB,,LB[U//3%C&16W>99F$!Q,[[R#*BL^X,L6NWUU M,7FXO!#O)]>3F^FEF'UW>?DP@RY]G%V(H\-C<2B"2#RLXCP%M6T*E%=HS[CK M2B=IJK+T7>NQ3%>L.Q[]H_Z:!X\RQ/C6)A//(VN0BD1Y"H/F85M;HD?,C).@ M?:=WB=K(P!?J,XQ0VG[^$&=@G6=HE4QK>PU8L 1W2>02I1MB>T]$JJ7=M]D* MLN%>YN'V87(M)K,96-S%K.M SH,PR'"2%L<*1FSD,W&!R9&>E^2J^WP7P6/@ M0QV+6>1@LV:"E,,T^SN;)34 L"Y5,5:_@'"M#'+4E M9*$PP,?EX8KRUNYU]H?EZ5MDQC(J#I[%H'@1>"IY,;U1'.T@F10VR.B&4RV? M]P6#PE;A*T[SZ_7#4 M>S,^AQS2S<):>ZO"R?&9\/QL-#+/H<5J/0>KK"9_5;5/]45?[UATV+GHMM.* ME0I]LC094$&:)\\](3,P'H@"VPXZ//O$A\#B G&YI.(G071B+MNA.?DZ#V'1 M?>%K[F\;$K,2>S#KB5I!JX)')<(X[; =:>UR.Y;7NG]]-7E_=7WU<'4Y$Y.; M"S%[N)U^_]WM]<7E_0QR29'ZE ML@"NXAAL/12O[-6:/]LL?8.(7BF8X@CS_#@,90(; [[Q:L<[%VB)\W9U>.E^ M]=DOW*RF3MN'MC7EA8+NGM1BE[TCIFS?T7$WS&A-N0;N#GR-73?\$!9O;VY7 M16_V@#\_7-Y [&X_B-N[R_O) Y!L%58X)*ZW VO LFP#\AUJT$5+<_J-@C]( M8C_WLBY714. K+)X36S(-^0^V.Y1X)*I2!*[MKJYCH=3LG,PF3OVM\-^&PV> M6:5CT+<)[!Q1LG!@ =R_9,1KP4;+A79-]!HWQ0$<8, MIUJ4J$A1=,,@QU\'$8=+&6QQ-UTN(WT%OD#6,DNT$[;1W;HF-[1$^ 6:,KBK M:R'XKRP)YGEF\8I7L0+&673.+?1LGU5:=_!>IH&WI]Y>!&%.'F^_T3^J8+FB MX?(1'%^J@IR6M=E"E!Z\E9*.(5L4>SJ9?2<^7-_^N'_L4HW\6^"D%*F)!Y'K MP./^7Z"*&BCB;A"> %LB=B0!TQ>);^E_CG#R5+'ECXNE9??2%PHFV NT-68- M6!-8_4FZ "NCRY.YI T(M$#*G>/N8!]"VHY7?))0)1^W;;_$3H5XMUB_DD# M:8-^CG)XL7!+V-*,P'A"O"5.NMF'9:X0,-UU8W(G+,@<#RFLX5D= 4U]:6V%XHT.<-1GE7A! MZL(# 6C>,#!^U@**O6J14/>)"_:#020.OI@_BT7!ANXKH(G8-^'ECWRE_SNF M&_3V#?8[LP(4$,S5,H@B(@+=%L16+GGC?[>'=WS=8$(/WB:C:]OIU] MO+\DRW)S>V.LR]4- /75S;=B,GVX^A.#^$X!HXT*!HMLE<3YZ1A7W2,//A167_:,^Z7>5' !+&0ZR!\9MIT;HJ4/0L@=VPO M>F(%^R[2C:(P2692D->-E@CRGQ')8<^UR3GXCP0TR'@D*=RR.:,"DWV5*<]@ M2$8S:1\0.2FP#9,0L"7QPMQ7[P[^ZS\/'A($T--X\^N__(=8Q(DA"_3Y0>K% M\#5:1^D3S&J>J![-FDE0D=DYL+-/M/:)=16.^00UR.WB'DO:T^(> M)4; /&&NW+)!AG;L?^[.^6"B?T=22 MV!FQ5#*/<16\;QA[6Y[.9?1)_R>#A,R;_J -'*7L88WX&VW6C;' @D$$FYSE M63%@%:>L U4OL%+P0"N/\$[[N"86MR?K'US"9X V&88(GN+*\5/H5P0;P2%X M1"B%-GFN/$]()1.2#"LMJ?+RA"0MC4--)0L3RP$AL'R00J#0EH88.< #- M8L9B\P1P*>)D*2..+@EQJ,^2/>5,;3*= QF^/3_E R<*-Q,GT$=.-�A0KE M$QT=_]]Z6:R'OQU;M;&&'+;>RPG]&D>!LR64E?!X(4CS<#@8BDL)H#M)Y$:N M8G$?2[\G9GD .1X-!CUQ'\ X)7Y*JJZI?#,>G ][^BZP7:9"M5G%<%]1SH0' MJ3AZ^V9T+$:GKT_.7@\&FJPG-4]IU8_WUS3DZ>FI#T%.G]C]08?^]LBOB"W"X]I6XBKP^?<_XG+:H M/^(3!5#9- >E?B I-=P7UM#P8VT_F(T(+'Q%!H"!07TI%Y+E87>DT%'FA%JC MOG"..W@ )Q Z:$:0?.61S*%$#-T0UT8:Q$601PK&\:%4)H!KR!.[LQ40.$1= M<:B^D8F6)5HX\3D&? JR%7_..7EI!8G,U5('5G $>$XBJA,2(.QCQ(10O42; M-39/,/LUC2Y+7 PC:2.:3*J>Y)Y6(ES(!PP35&3B85=D[/ ),@J6W*LEI=IH MC=G)/_?%A D'G:336 R6'\@YSJP=$R"7YNE]Z@0LXCC#4&756^.5WWYTNJ,0 M'L)Y 1 E3&KE.,5V;)R<"2^?W M#SQH7WP7/P$R)#VH-.0)GAERE:UDUMJ3HU$?&V,>7>]:?E*M^]AH4^$:TE0")="]+>"B+"&:JE)9#%-]?7T8DX<9ZZB),*S])\H() 54,J)L -5 MUA0EGHK,M["I;W"&CFO)((@5( KVI#'7O)S=C)F[EL_DJ*2W(H;[Q9Z+'&Q9 MZ&H>X50R>_2,W-@BSW+RD$R*/L#?9SLL$^!WR1U!5N,\](D>*LDS6H^CO^21 MAG&%?N]>F+11:R+Y; 4A*;8*]/7+*,KY2AF08G5K)+XO6,#'UHQNJ55GCX-5+KP:MWUD'-#L<@JG<4P[ZUL!A!70D#!;/A#_J2"C)2T89UM &N M<42V*[2]\LMMUP=N-&J60&T"PS[R906 %N7*ME_5S9:%%HD+6-2@>A#DA M_2ADD38]05#6F!#K&FD7NPFOS;)I=NM#OBF0,/2P74^%3A&17(%_ MM@I:WO99,, _4@T2\PU,.."Q!);Y EZENXT]RCR MC6@9*T .K6+N=_"F+V[B2#DOD]G&114V( F[&[') ;$A7BWP=DJ>J.@5$$=7 M=%B3(#P^J-#069)3FYO;,UC5K%ABD6!# UF88T\XF!'E^+C\%$CAIA, M)$AD&T/KSSD])?(-?3@<]2AP& P&VFY\VQ<_(H /9\S\N*5_7[]Y6^IF,*? M+6"!;:AR:^_O(Y?BV:VJ9)W:"Z=-ZU2S9V02>N0FY+,)FPQ9<50("LE6I!0Y M"DVLC*H9Z$KH9$&9KR6MH?]@ M8E1>TV Q+5N_PHBQ?2^-GN2T$ZZ+01V9*2XO$ Y84X(,5('B&?PGU$G\B3JK MGA$Y19]8G([(9?_I/;OL#6>?] IAGHKAE^)H_"5M4-?:8T03%"Q4.# O,ZY5 M'T1P.X\X-5W0&VB_4N #L^HY%G5T/6@IJ"Q?W36CM@;8J' 3;!,AD";C+[H*E MDMG^-P8=(!(2&5!F51P.^P/@^C D-]%PEA9DT9Z&&*:-KJ\O0-8?,:SQ]Z(5=/;()5'DP DC2"4NA'4GE)YV.$W"K+L]'/7' M>QSJO/M0HU-K@9N'HNDS*K5BI[(MTCQX\7&/" ?H23V;5.'QQ1#6E0I7"@9P MINSS1J>_PNKI!_VST<[SE_UI56$S7*# KM5W11/KM+&OMDX(H2OE9J M.I=G M0WP.$QA=]PQ&9I-8/B3%@9GP,C(>MH;# :8%T;T]_!2PQUKB"25G.-W,+._P M7SV$D&FI!W1CXENX ]#N%$:=5;1D5RV1ML!5%KD9VQ>5,M&NPL MIY)<9:?KF^@O63KD4A* $C@8@SK+]#:(UT"0(W\"P(_ZVNB$U;4OQCRLL2IV># M$Y_=NPZ-:9A!1TNJ4N"PYF/3 X[Z@R^)+6_PMR\^U(C0N+@(7[(*]*!% KYF M36/E5'!][:/*,(WKY^6<"([D4<- QF4%1-Q^2#Q;*"9_T(=OILBPH0!F7>BV MKQ !\G>45C>B:")G7J@(2Q;2HUH'U:6\8!&4J:RZ=3%A70=-0?H/X,8Z3S.= M)V'48!9"'$85+>ZJ.9+'.G-6W#9]:DISL9OU ^6FM'!/',UKRSA6""A+"!P< M+2$@RC[MLKRL/D=>95'*['"R@G ?&PB;6Z.L^A$G+G45QJ=GK]GL49M*!Y#=[7Z(*R9[$1"" M6 *=Q/A=3C,:OZ.TDN>[S?YT M2XN.^L+_;<\>!"0Q-WBCMMY+@KW=WM#,.2 !#G^B.=W1N>LBS5FE0( M@I/EUOFY'GO^]2:,GY4JV^L3;>+KETC]5$M=53U\/2H"J,,S=M3-=0/3%>?H M@[+9QBVI_1WG)L*"M%B'O:(MO1KCQP@)+IK$QQZ0G)Q,V*KVM_/=N7T/##WC M<]N&'RXV%UT_%:5 >#(6=P"7)D6GZ1J.!Q;3: "A'H,8R(%S[":7QS@7?A>& M/.D?( +/S>MKD/>UWI93XV6VCA6X.*+.WU(W1)P8.@45M'U+;9$SMD4E@W!8 M>@3UKI"9?X\@Y=/)S%O%5+[2ZYR G=QRM(Y]%9;9D@7L)IL(5DI#Y+N##R#@ M@3E;[1-N\'2O4>.#5J>CII9I+SEQ\.LO_WIPV!Y<(8M[V-X=7+)!4F6J6SP' M*O1Y@2\/[H/TT\F":*IEB\W38NYC3&GN$+ZP^02@27=JT\VFQ_P8!UVH@&M& MVQ>K 5*(.>4WJ0!5&:$+%ISBY?0Q+C^HK6'J W9Q,JA%A2ZUY2-6G!M.?74LTL@*:T0!E@_.NMK$[#\RKN)Z@SP9R2-0)XPPB%M9S4'PHY MKQA$'(Y%RS>:423*3:;?Y,LC'2:MF4KMS_Q*Y*"9VG)*E)2^IK[4.Y@-?A.Q M.>)-7[0''>CFW:C=GARD!G'IR)"%V[37[-T%75AE8PFQ#GUZ:BJ5Z4BAU$17 MUW%CJ;ZP3<4O()W3JB\A_Z7T:H,9Z@1#=<%:O^*V4U&^I7-BM6^@-HC>'.%S MY)N82[R/U!"G6P@WC39WHI%#&ZM_G",H*;+^2/<1)XDLRFIR"8"U)%%LG[]% MJ_ILRL-%4=(W%]:X+!M2$[D[G#B1U^'%6;M.>^,WH][;4]V/==I[.Z(T^*@. M)UJ:,XTCC]^VYG,WGY[W17T M^55>@KX#,4(4P\GT 0S [M-$* %(5&.3 M;C@VO:LQ]1SHLHMID7D,N$[&[9'%QJE:F@8H8E%.KJXH7>._\/DGTX8Q-XW. M.JWV1%!1]^X7+Q:8;6K@G!VE)<^2Y%#P^DN_TRTO_6X?W%KZ;5]LG4!=I)P9 M-SDV;0RY"!<7?Q]EPM ]A''EM#>]%%"4M+Q0!NO4IFO)8/NEFG%G'=4N$1\F MUI8G!36,&GX(QSY2@ OK($CB90;5UX^*6[-8N*?#X=OB )8U1(3)PI445!O2'#\Z@"C=MF/CCY4H(S)/ MBJ4FCN TJ"!?K@J%L(>PKWA _CA)'T,^ ^IE++ZAY($M+/2J4R/]"NJ"DF>E M$RU[ 34^,N$CY:<5!#K1)WUE(2(5;S1H+&>RAIO3@G;F6+%0\8)04>O94 \Y M91KGRI,(7^G@QCXT%I&.X]9(KAQ)$Z';@%@]E7B.<[VK/;WIJF,=!#:DUU#H MD2F,VKWXJ/H^>*315"K5!72?53X2SDI\W2%.=Z;[AZKR4%%^=M6UQ_JG'[2[ M-*T-%*MR!CBI(6(;C+2P- '+)8*_D!P7'C^M%&=VG[319\M$U4^C%X;(=5]< M+=BP52B8<\=G96!% B/SIDIC;\LC+EJ8IN'R+#*J-AZ&' $K95X)Y.:YX?F7 ME88-8_=:6F6EM; )+H-0J'=+MPE'3"]O>V+ZX5;GOB/V/)0]$/.8"KEKW8@% MGR_TNQ+TLI]6XV+3;9MH(3&O/%)R$7XFY5I%X]3\FD"EEJQM%;0MU+TKS)G> M5H/XDL.;%CL5FN*:Z5M&\*^S#4\("S)%A9-,(RK>:@'S00K4$@-JM_-6RL]# M:A (;(W'DUJ+GTK__'HL?/FLFTKSI/!T\X3@$G. X[]''5AH;:-MM?SP%(9D M/+[%#ZUFG3IA",FH5Y6IX00*Q<\Z8\^"2CS@3[Y2'!P&R985N4O:O&;(-9-J M&=;Q:H1>KXSYN$2E(RV] E)3]?7*@?S2E:#.S M/SJFDT=%3$T;ZL0B58.]RJ7&Q7]0]<-1V:730B>U_L<',B?M-ZUG1HAT2VGG M;RO]GVBEW+/NL==9FXE;T_[DZEG=F05/;1K\-^:]6R\D_W^:>V>:>Z]WML31 MAT-,3]'K91F#T[CUUT MM#96\[X8O';_'*)^.';_G$+1S*2#VXYNYV;7EL?=6,T7'Q/Q,ZZQUK?P3<_H$B.H-*-Q2\#V@0T9E;Z MN3"RT?QE*S.F"Z_U_L'9@''7"R1IVW;MUTX=M/U;-HU?"]FVN+,!8.?O #EAPYX_*M2!&79*D^-6 M.@#&CJ6&+L%TUSX;<7_ M\3K>MA]ZJA73]L1IMFCAPFNUWWJR [M!'97ETC)\WE;(^UFX]GNHEY)^%E-; MW_FY6;;;X@FZ?Z6-BF+MBSYS7O\V6J:.FD_+IXS[9^U5J:SD$+525KJ6VT;. MMX[B6DO$G5K6RJ;O*33&)KONL/;;QAVV>^?/PU7K,+I\UH7:7.GJKE/N8PJ* M-(2KME^D(3;;?UNT+HS;J M5F535^=&;DYBZ0162\C&3I0VZ4S$E"-?I6GVS7\#4$L! A0#% @ 9WJM M2-;@/!Z7 0 NA$ !, ( ! %M#;VYT96YT7U1Y<&5S M72YX;6Q02P$"% ,4 " !G>JU(2'4%[L4 K @ "P M@ '( 0 7W)E;',O+G)E;'-02P$"% ,4 " !G>JU(>Q>T)50! !8$ M&@ @ &V @ >&PO7W)E;',O=V]R:V)O;VLN>&UL+G)E;'-0 M2P$"% ,4 " !G>JU(AQ^5#&X" #7!P $ @ %"! M9&]C4')O<',O87!P+GAM;%!+ 0(4 Q0 ( &=ZK4B1"KB-/P$ &D# 1 M " =X& !D;V-0&UL4$L! A0#% @ 9WJM2!3JVS]) @ X@D T M ( !C0X 'AL+W-T>6QEJU(#A[>AQ4# M >"0 #P @ $!$0 >&PO=V]R:V)O;VLN>&UL4$L! A0# M% @ 9WJM2)CW1]-- @ \P< !@ ( !0Q0 'AL+W=O MJU(I:\91,4" !># & @ 'P&@ M>&PO=V]R:W-H965T&UL4$L! A0#% @ 9WJM2!2RH090 M P I X !@ ( !ZQT 'AL+W=OJU( M]6WEBI\! "Q P & @ $8)0 >&PO=V]R:W-H965T&UL4$L! A0#% @ 9WJM2!?1=!>? 0 L0, !@ M ( ![28 'AL+W=OJU(CF-X?J$! "Q P & M @ &8*@ >&PO=V]R:W-H965T&UL4$L! A0# M% @ 9WJM2-76R&N= 0 L0, !D ( !;RP 'AL+W=O MJU(XUN:):$! "Q M P &0 @ %#+@ >&PO=V]R:W-H965T&UL4$L! A0#% @ 9WJM2.W/ M#\2> 0 L0, !D ( !\3$ 'AL+W=OJU(AG. LYX! "Q P &0 M @ '&,P >&PO=V]R:W-H965T&UL4$L! A0#% @ 9WJM2+P7D@2B 0 L , !D M ( !<3< 'AL+W=OJU(]WY&!:$! "Q P &0 @ %*.0 >&PO M=V]R:W-H965T&UL4$L! A0#% @ 9WJM2"I"8+"H 0 ,P0 !D ( ! M #T 'AL+W=OJU( M=WD"UE " =" &0 @ '?/@ >&PO=V]R:W-H965T&UL4$L! A0#% M @ 9WJM2*&!%WA4 @ "@@ !D ( !.D0 'AL+W=O&PO=V]R:W-H965T&UL4$L! A0#% @ 9WJM2*!#GVVM M @ @L !D ( !2DL 'AL+W=OJU(%E]&G;T; ,7P % M@ $N3@ >&PO

March 31,
2016

December 31,
2015

Inventories consist of:

Finished products

Net inventory