The deep discount inducement (~$0.795 vs ~$3.26 original strike) signals acute cash needs and will likely pressure the stock as the market prices in immediate dilution and future warrant overhang. Monitor the August 28 deadline for participation levels — higher uptake means more cash but also more dilution. The 6-month lock on new warrants means selling pressure from those is deferred, but the overhang will cap upside.
Price Chart
Executive Summary
Intrusion Inc. launched a warrant inducement program offering holders of up to 3,198,085 existing warrants (weighted avg exercise price ~$3.26) the chance to exercise at a reduced price of $0.795/share through August 28, 2026. As an incentive, each exercising holder receives one new warrant (exercise price $0.67/share, exercisable after a 6-month+1-day lockup, expiring 5 years later). The program is dilutive — if all existing warrants are exercised, the company will issue ~3.2M new shares at a deep discount to the original exercise price, plus up to another 3.2M shares via the new warrants. This is a capital raise structured to avoid a registered offering, signaling near-term cash needs and creating significant future dilution overhang.
Key Facts
- Existing warrants cover up to 3,198,085 shares with a weighted average exercise price of ~$3.26/share.
- Inducement exercise price is $0.795/share — a ~76% discount to the original weighted average exercise price.
- Each exercised warrant generates one new warrant exercisable at $0.67/share, locked for 6 months + 1 day, expiring 5 years after exercisable.
- If all existing warrants are exercised, the company receives ~$2.54M in cash proceeds (3,198,085 × $0.795).
- The new warrants add potential future dilution of up to another 3,198,085 shares at $0.67/share.
- The offering is exempt under Section 4(a)(2) and Rule 506 of Regulation D — no public registration.
- The program runs from August 14 to August 28, 2026.
Financial Impact
Up to ~$2.54M in immediate cash proceeds from exercise of all existing warrants; potential future dilution from up to 3.2M new warrant shares at $0.67/share.
Risk Factors
- Significant dilution: up to 3.2M shares issued now plus up to 3.2M more from new warrants on a ~$16M market cap.
- Deep discount exercise price suggests distressed capital raise — existing shareholders bear the cost.
- New warrants locked for 6 months create a known future overhang that will limit stock appreciation.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-006567 |
| Document: intrusion_ex1001.htm | 0001683168-26-006567 |
| Document: 0001683168-26-006567-index-headers.html | 0001683168-26-006567 |
| Document: 0001683168-26-006567-index.html | 0001683168-26-006567 |
| Document: 0001683168-26-006567.txt | 0001683168-26-006567 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 6w ago | 8-K | $0.8000 $0.6492 | ▼ −18.85% | ▼ −21.83% | $0.5817 (−27.29%) |
Sep 3, 2026 7w ago | 8-K | $0.7800 $0.6900 | ▲ +11.54% | ▲ +12.14% | $0.5817 (+25.42%) |
Aug 28, 2026 8w ago | 8-K | $0.7946 $0.6741 | ▲ +15.16% | ▲ +15.42% | $0.5817 (+26.79%) |
Aug 18, 2026 9w ago | 8-K | $0.6340 $0.7611 | ▼ −20.05% | ▼ −22.00% | $0.5817 (+8.25%) |
Aug 3, 2026 12w ago | DEFA14A | $0.7700 $0.9000 | ▲ +16.88% | ▲ +15.65% | $0.5817 (−24.45%) |
Jun 30, 2026 16w ago | 8-K | $0.8215 $0.7600 | ▼ −7.49% | ▼ −5.30% | $0.5817 (−29.19%) |
May 14, 2026 23w ago | 8-K | $0.7400 $0.8400 | ▼ −13.51% | ▼ −11.39% | $0.5817 (+21.39%) |
May 13, 2026 23w ago | 8-K | $0.7600 $0.7300 | ▲ +3.95% | ▲ +3.33% | $0.5817 (+23.46%) |
US Market Status
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