Intrusion Inc. has taken a decisive step to enhance its financial stability by entering into an exchange agreement with Streeterville Capital, LLC. This agreement allows the company to convert $4 million in debt into equity, a strategic move that could improve its compliance with Nasdaq listing requirements.

On October 29, 2026, Intrusion Inc. finalized the exchange agreement, partitioning two secured promissory notes totaling $4 million into shares of newly designated Series B Preferred Stock. This action aims to bolster the company's balance sheet and demonstrates its commitment to maintaining compliance with Nasdaq standards.

Background

Intrusion Inc., incorporated in Delaware, operates in the computer communications equipment sector (SIC: 3576). The company trades under the ticker symbol INTZ on the Nasdaq exchange. Recent filings indicate that Intrusion has been actively managing its financial obligations, with a series of 8-K and 4 filings leading up to this significant agreement.

What the Filing Says

The SEC filing details the exchange agreement, stating, "Pursuant to the Exchange Agreement, the Company and Streeterville agreed to partition a new secured promissory note in the original principal amount of $3,250,000.00... and $750,000.00... for a total of $4,000,000.00 in aggregate principal debt for 4,000 shares of the Company’s newly designated Series B Preferred Stock." This agreement is expected to cancel the existing debt, thereby enhancing the company's equity position.

Impact

This agreement may significantly affect Intrusion's current and potential shareholders, as it restructures the company's financial obligations and improves its equity standing. Additionally, it could influence other companies in the computer communications equipment sector as they look for ways to manage debt and maintain compliance with stock exchange requirements.

What's Next

The filing does not say what happens next. However, Intrusion intends to notify Nasdaq of its compliance efforts, including possible measures like a reverse stock split to ensure it meets the minimum bid price requirement.