The combination of a secured high-cost debt facility, a monitoring fee that effectively increases the principal by ~18% in 90 days, and monthly redemption rights creates a ticking time bomb for a $20M market cap company. Monitor for any missed payments or redemption notices—a trigger event would allow Streeterville to accelerate the note and potentially seize assets. The stockholder approval for the VigilAigent framework also opens the door for further dilutive equity issuances under Nasdaq rules.
Price Chart
Executive Summary
Intrusion Inc. completed the second closing of its VigilAigent acquisition, paying $1.3M in cash funded by a new $1.615M secured promissory note from Streeterville Capital. The note carries onerous terms including a 7% interest rate, a monitoring fee that increases the balance by ~17.65% after 90 days, and monthly redemption rights of up to $150,000 starting at month 6. The company now owns 100% of OW Cyber LLC, but the financing structure—secured by all assets and IP with a subsidiary guarantee—signals acute near-term cash needs and creates significant debt service obligations for a $20M market cap company.
Key Financial Metrics
Key Facts
- Intrusion completed the second closing of the VigilAigent acquisition, paying $1.3M in cash for the remaining 40% of OW Cyber LLC.
- The cash was funded by a $1.615M secured promissory note to Streeterville Capital, with net proceeds of $1.5M after $105K OID and $10K transaction expenses.
- The note bears 7% interest, matures in 24 months, and includes a monitoring fee after 90 days that automatically increases the outstanding balance by ~17.65%.
- The note is secured by a first-priority security interest in all of Intrusion's assets and intellectual property, and guaranteed by OW Cyber.
- Stockholders approved the VigilAigent transaction framework at the August 27, 2026 annual meeting, with 4,392,822 votes for and 432,643 against.
- The company now owns 100% of OW Cyber, which adds ~$3.5M in annual recurring revenue from multi-year contracts and an 80+ partner reseller network.
Financial Impact
New debt of $1.615M principal (net $1.5M cash) secured by all assets, with a monitoring fee that adds ~17.65% to the balance after 90 days. Monthly redemption rights of up to $150,000 begin at month 6. Total potential dilution from prior warrant inducement program could reach ~6.4M shares.
Risk Factors
- Debt service burden on a $20M market cap company with limited cash flow
- Monitoring fee automatically increases principal by ~17.65% after 90 days, effectively raising the cost of capital
- Monthly redemption rights of $150K starting month 6 could strain liquidity
- First-priority security interest on all assets and IP creates risk of asset seizure on default
- Prior warrant inducement program (3.2M existing + 3.2M new warrants) creates massive dilution overhang
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-006767 |
| Document: 0001683168-26-006767-index.html | 0001683168-26-006767 |
| Document: 0001683168-26-006767.txt | 0001683168-26-006767 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 6w ago | 8-K | $0.8000 $0.6492 | ▼ −18.85% | ▼ −21.83% | $0.5900 (−26.25%) |
Sep 3, 2026 7w ago | 8-K | $0.7800 $0.6900 | ▲ +11.54% | ▲ +12.14% | $0.5900 (+24.36%) |
Aug 28, 2026 8w ago | 8-K | $0.7946 $0.6741 | ▲ +15.16% | ▲ +15.42% | $0.5900 (+25.75%) |
Aug 18, 2026 9w ago | 8-K | $0.6340 $0.7611 | ▼ −20.05% | ▼ −22.00% | $0.5900 (+6.94%) |
Aug 3, 2026 12w ago | DEFA14A | $0.7700 $0.9000 | ▲ +16.88% | ▲ +15.65% | $0.5900 (−23.38%) |
Jun 30, 2026 16w ago | 8-K | $0.8215 $0.7600 | ▼ −7.49% | ▼ −5.30% | $0.5900 (−28.18%) |
May 14, 2026 23w ago | 8-K | $0.7400 $0.8400 | ▼ −13.51% | ▼ −11.39% | $0.5900 (+20.27%) |
May 13, 2026 23w ago | 8-K | $0.7600 $0.7300 | ▲ +3.95% | ▲ +3.33% | $0.5900 (+22.37%) |
US Market Status
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