INTRUSION INC

Intrusion Inc. reported Q1 2026 revenue of $0.9 million, a 50% year-over-year decrease, primarily due to delays in a key U.S. government contract. The company posted a net loss of $3.6 million, or $(0.18) per share, an increase in loss compared to the prior year. Despite the challenging quarter, Intrusion secured a $4 million contract with a state government agency and obtained a $3 million secured financing agreement to enhance its liquidity. Management remains optimistic about recovering delayed revenue and achieving profitability by the end of fiscal year 2026.

Intrusion Inc. received a notice from NASDAQ on May 7, 2026, stating that its common shares failed to meet the minimum $1.00 bid price requirement for 30 consecutive trading days. The company has 180 calendar days, until November 3, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. Failure to comply could lead to delisting, though an extension or appeal process is possible. The company plans to monitor its share price and evaluate options.

INTRUSION INC (INTZ) has entered into a Note Purchase Agreement with Streeterville Capital, LLC, securing $3.0 million in cash proceeds. The financing involves a Secured Promissory Note with an original principal amount of $3.23 million, reflecting an original issue discount of $210,000 and $20,000 in transaction expenses. This capital infusion is secured by a first-priority interest in all of the Company's assets and intellectual property, providing crucial liquidity but with notable costs and investor rights. The terms include a 7% annual interest rate, a 24-month maturity, and a significant monitoring fee provision, indicating a potentially expensive form of financing for the company.