Intrusion Inc extends warrant exercise program to Dec 27

Intrusion Inc (NASDAQ:INTZ), a provider of computer communications equipment currently trading near its 52-week low at $0.43, has announced the extension of its Warrant Exercise Inducement Program through December 27, 2024. This program, initially set to conclude on December 19, 2024, allows warrant holders to exercise their warrants at a reduced price and receive an equivalent number of new warrants.

The extension, approved by the company's Board of Directors on December 17, 2024, aims to encourage the exercise of warrants issued on various dates, including September 14, 2022, November 8, 2023, April 2, 2024, and April 22, 2024.

These warrants cover the purchase of common stock shares ranging from 52,482 to 2,697,136 shares. According to InvestingPro analysis, the company faces liquidity challenges with short-term obligations exceeding liquid assets.

Intrusion's decision to extend the program underscores its efforts to incentivize warrant holders and potentially strengthen its capital position, which InvestingPro data indicates is needed given the company's weak financial health score and rapid cash burn rate.

Despite these challenges, the company maintains an impressive gross profit margin of 77.84%. The program's terms, as outlined in the Inducement Letter, remain unchanged except for the new expiration date.

Headquartered in Plano, Texas, Intrusion Inc has a history of name changes, formerly known as Intrusion Com Inc, ODS Networks Inc, and Optical Data Systems Inc. The company, with a current market capitalization of $3.49 million, operates under Delaware's jurisdiction and has its fiscal year end on December 31.

This update is based on a press release statement and was filed with the Securities and Exchange Commission on December 20, 2024, as part of a Form 8-K current report. The company's common stock is listed on the NASDAQ Capital Market under the trading symbol INTZ.

In other recent news, INTRUSION Inc. has reported substantial developments in its financial performance and capital structure. The company has seen its second consecutive quarter of revenue growth, reaching $1.5 million, a 3% sequential increase.

This growth is largely attributed to the company's Shield product line, which saw a 49% sequential revenue increase due to a new $2 million contract with the U.S. Department of Defense. Despite a slight decrease in consulting revenue and an overall net loss, the company's net loss improved from $3.2 million to $2.1 million year-over-year.

In terms of capital structure, INTRUSION Inc. executed an unregistered exchange of equity securities with Streeterville Capital, LLC, swapping 68 shares of its Series A Preferred for 110,340 shares of its common stock. This transaction, valued at $74,800, represents a conversion within the existing capital structure of the company.

Furthermore, the company launched an incentive program to stimulate the conversion of outstanding warrants into common stock, potentially leading to an increased number of shares in the market and additional capital for the company.

These are recent developments that highlight the ongoing efforts of INTRUSION Inc. to manage its capital structure, stimulate growth, and provide value to its shareholders.

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