Intrusion Inc (INTZ) · Nov 2, 2026 · Other events

Intrusion debt exchange cuts secured burden, adds preferred stock

$4M debt exchange — $4.0M exchanged; $1.59M of note balances remains

Intrusion’s debt exchange removes $4 million of secured notes without raising cash, easing near-term obligations while adding Series B preferred stock.

Intrusion is trying to turn an AI-cybersecurity pivot into a viable business while operating with very little liquidity: it acquired VigilAigent to add recurring cybersecurity revenue, but had only $0.2 million of cash at June 30, 2026 and used $5.4 million in operating cash during the first half.

The filing materially reduces the debt burden without using cash. Intrusion exchanges $3.25 million of Note #1 and $0.75 million of Note #2—$4.0 million in total—for 4,000 shares of Series B Preferred Stock. The exchanged notes are cancelled, so this removes a meaningful portion of obligations at a company that has been dependent on outside financing. 〔0〕

This is balance-sheet relief, not fresh financing. The company receives no new cash, and the remaining note balances total about $1.59 million; the filing also says the existing security interests, guarantees, and collateral agreements remain in force for the notes. 〔1〕 That means the transaction helps reduce repayment pressure but does not solve the operating cash shortfall highlighted in the latest quarterly filing.

The benefit is partly offset by limited visibility into what replaces the debt. The filing provides the number of Series B shares but not the preferred stock’s economic terms in the supplied text—such as dividends, liquidation priority, redemption rights, or conversion terms—so the full cost of the exchange cannot be assessed. It is therefore a constructive capital restructuring, but not a clean improvement in the underlying business or liquidity position.

Bottom line: Intrusion removes $4 million of secured obligations, which modestly strengthens a stressed balance sheet. But because it raises no cash and the preferred-stock terms are unclear, this advances the financing story more than the operating story; the signal is mildly positive, not transformative.

Original filing on SEC EDGAR