INTRUSION INC 8-K

What Happened

• On April 6, 2026, Intrusion Inc. entered into a Note Purchase Agreement with Streeterville Capital, LLC and issued a Secured Promissory Note with an original principal of $3,230,000. The company received cash proceeds of $3,000,000 (reflecting a $210,000 original issue discount and $20,000 in transaction expenses). The Note bears interest at 7% per annum, compounded daily, and matures 24 months after issuance. The company filed the related Form 8‑K on April 9, 2026.

Key Details

• Investor: Streeterville Capital, LLC; Note principal $3,230,000; cash proceeds $3,000,000 (OID $210,000 + $20,000 expenses).
• Interest and term: 7% per year, compounded daily; 24‑month maturity from issuance (April 6, 2026).
• Fees and monitoring: A monitoring fee provision kicks in after 90 days and automatically increases the Outstanding Balance by ~17.65%.
• Security and rights: Note secured by first‑priority security interests in all company assets and intellectual property (Security Agreement and IP Security Agreement dated April 6, 2026). Investor has monthly redemption rights up to $250,000 beginning six months after issuance, a 10% participation right in future financings, and consent rights/restrictions on certain future issuances.

Why It Matters

• This is material debt financing: the company raised $3.0M in cash but issued a secured note for $3.23M of principal, meaning the effective cost of capital is higher than the stated 7% due to the original issue discount and fees. The monitoring fee that increases the outstanding balance after 90 days further raises the effective repayment amount.
• The secured nature of the note (first‑priority lien on assets and IP) prioritizes the investor in a claim on company assets, which can affect claimants in downside scenarios. Redemption rights and participation/consent provisions give the investor influence over future financings and potential early repayments, which may affect the company’s financing flexibility and cash flow.