Intrusion stock faces Nasdaq hurdle after $4 million debt swap
Published on 11/05/2026 at 03:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSDebt exchange leaves listing hurdle
- Intrusion exchanged secured debt for Series B preferred stock with a 10% annual preferred return.
- The company plans to seek another Nasdaq compliance period, but a reverse split remains possible and approval is not assured.
- Intrusion sells threat-intelligence and network-security solutions from its base in Texas.
Intrusion Inc. disclosed on Monday, November 2, 2026, that it had agreed to exchange 4 million US dollars of secured debt for Series B preferred stock. The details were reported in the company’s Form 8-K filing.
Debt exchange changes capital structure
Under the agreement, Streeterville Capital will receive 4,000 newly designated Series B preferred shares when the partitioned notes are surrendered and cancelled. The transaction involves no cash payment beyond the debt cancellation. The preferred shares carry a stated value of 1,100 US dollars each and a 10% annual preferred return, payable quarterly in cash or additional shares at Intrusion’s election.
The Series B shares are non-voting except in specified circumstances, cannot be converted into common stock and rank ahead of common stock for dividends, distributions and liquidation payments. The designation authorizes up to 10,000 Series B shares and includes restrictions on additional debt, equity issuance, certain transactions and reverse splits, except where needed for Nasdaq compliance.
Nasdaq compliance remains unresolved
Intrusion said the exchange lifts stockholders’ equity above 5 million US dollars and believes it meets the prerequisites to request a second 180-calendar-day compliance period. The company still fails Nasdaq’s 1 US dollar minimum bid-price requirement, however, and the filing says Nasdaq may deny the additional period. Intrusion also identified a reverse stock split as a possible measure, without saying that Nasdaq had granted an extension.
The filing sets a regulatory milestone for investors: the next material development is expected to be Nasdaq’s response to the requested compliance period. The capital restructuring may improve the company’s reported equity position, but it also gives preferred investors senior economic rights over common shareholders.
The S&P 500 provides the broad US market context for investors following Intrusion.
Cybersecurity platform targets threat prevention
Intrusion is a Plano, Texas-based cybersecurity company focused on advanced threat intelligence. Its TraceCop database tracks historical behavior and reputational risk linked to internet addresses, domains and hostnames, while Intrusion Shield is designed to detect and block malicious and unknown network connections in real time. The company sells its solutions to commercial, government and critical-infrastructure customers, positioning it as a specialized provider alongside broader cybersecurity vendors such as Palo Alto Networks, CrowdStrike and Fortinet.
Intrusion at a glance
- Company: Intrusion Inc.
- Ticker: INTZ
- Home exchange: The Nasdaq Capital Market
- Business: Cybersecurity and advanced threat intelligence
- Key products: TraceCop and Intrusion Shield
