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In a recent filing with the SEC, Intrusion Inc (NASDAQ:INTZ), a provider of cybersecurity solutions with a market capitalization of $23 million, has announced the completion of a debt-for-equity swap on March 17, 2025. The company has exchanged $236,642.64 in debt for 228,551 shares of its common stock with Streeterville Capital, LLC, effectively settling the outstanding promissory note in full. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, with a healthy current ratio of 1.51.
The original note, issued on March 10, 2022, had a principal amount of $5,350,000.00. The exchange agreement, which was privately negotiated between Intrusion Inc and Streeterville Capital, allows the company to retire the indebtedness associated with the note. The transaction was conducted in accordance with Section 3(a)(9) of the Securities Act of 1933, exempting it from the usual registration requirements.
This move is part of Intrusion Inc’s financial strategy to manage its debt obligations and strengthen its balance sheet. By converting a portion of its debt into equity, the company has reduced its financial liabilities and interest expenses, which could potentially improve its financial flexibility and operational efficiency. InvestingPro analysis reveals impressive gross profit margins of 76.76%, though the company is currently experiencing rapid cash burn. For deeper insights into Intrusion’s financial health and detailed metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The exchange agreement is detailed in the financial statements and exhibits section of the SEC filing, specifically under Exhibit 99.1. This transaction signifies Intrusion Inc’s efforts to streamline its capital structure, with total debt to capital ratio now at just 0.09, and reflects its ongoing commitment to managing its finances in a way that supports its long-term business objectives.
Investors and stakeholders of Intrusion Inc can refer to the SEC filing for a detailed account of the transaction. The information provided in this article is based on the press release statement from the company.
In other recent news, Intrusion Inc. reported a notable increase in its fourth-quarter 2024 revenue, which reached $1.7 million, marking an 11% sequential growth and a 23% year-over-year increase. Despite this revenue growth, the company faced a net loss of $2 million for the quarter, equating to $0.36 per share. For the full year 2024, Intrusion’s revenue totaled $5.8 million, reflecting a 3% increase from the previous year, with a full-year net loss of $7.8 million. Additionally, Intrusion Inc. has engaged in a strategic financial maneuver by exchanging $150,000 of debt for 170,474 shares of common stock with Streeterville Capital, LLC, under a private transaction exempt from registration requirements.
The company has also made strides in product development, launching new cybersecurity products and reducing operating expenses by 21% in 2024. Intrusion Inc. aims to focus on larger sales deals and expand its market presence. Furthermore, analysts have shown interest in the company’s potential for capital raises, which management indicated would only occur for compelling opportunities. Intrusion’s CEO, Tony Scott, emphasized the company’s commitment to innovation and its improved financial position, noting the elimination of Series A preferred stock and a strengthened cash position. These developments reflect Intrusion Inc.’s ongoing efforts to optimize its financial structure and enhance its market strategy.
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