Filing Analysis
Intrusion Inc. announced its financial and operating results for the first quarter ended March 31, 2026. The results were disclosed via a press release furnished as an exhibit to the filing.
📋 Key Facts
- The report covers the fiscal quarter ended March 31, 2026.
- The press release was issued on May 14, 2026.
- The filing was submitted under Item 2.02 (Results of Operations and Financial Condition).
- Kimberly Pinson, Chief Financial Officer, signed the report.
Intrusion Inc. received a deficiency notice from NASDAQ on May 7, 2026, because its common stock failed to maintain a minimum bid price of $1.00 for 30 consecutive trading days. The company has a 180-day grace period, until November 3, 2026, to regain compliance with the listing standard.
🚩 Red Flags
- Failure to maintain the $1.00 minimum bid price requirement.
- Explicit mention of a potential reverse stock split as a cure for the deficiency.
- Risk of delisting if compliance is not regained within the provided grace periods.
📋 Key Facts
- Notice received from NASDAQ on May 7, 2026, regarding Listing Rule 5550(a)(2).
- Closing bid price was below $1.00 for 30 consecutive trading days from March 25, 2026, through May 6, 2026.
- The company has until November 3, 2026, to regain compliance by maintaining a $1.00 bid price for 10 consecutive business days.
- A second 180-day extension may be available if the company meets other listing standards and notifies NASDAQ of intent to cure, potentially via reverse split.
Intrusion Inc. entered into a $3.23 million secured note purchase agreement with Streeterville Capital, receiving $3 million in net proceeds. The debt is heavily collateralized by all company assets and intellectual property and includes onerous terms such as a 17.65% balance increase after 90 days.
🚩 Red Flags
- Extremely high effective cost of capital including OID and a 17.65% balance step-up.
- First-priority lien on all intellectual property puts the company's core value at risk.
- Daily compounding interest is highly unusual and aggressive.
- Monthly redemption requirements of $250,000 could create significant liquidity pressure starting in late 2026.
- Lender (Streeterville Capital) is known for high-cost financing in the micro-cap sector.
📋 Key Facts
- Original principal amount of $3,230,000 for cash proceeds of $3,000,000 (OID of $210,000).
- Note bears 7% interest per annum, compounded daily, with a 24-month maturity.
- First-priority security interest granted in all assets and intellectual property.
- Automatic 'monitoring fee' increases the outstanding balance by approximately 17.65% after 90 days.
- Monthly redemption rights of up to $250,000 begin six months after issuance.
- Includes a 10% participation right for the investor in future debt or equity financings.
Intrusion Inc. (INTZ) announced its financial results for the fiscal year ended December 31, 2025, via a press release on March 24, 2026.
📋 Key Facts
- The filing reports financial results for the fiscal year ended December 31, 2025.
- The disclosure was made under Item 2.02 (Results of Operations and Financial Condition).
- A press release detailing the results was included as Exhibit 99.1.
- The report was signed by Kimberly Pinson, Chief Financial Officer.