INTRUSION INC. Reports Material Definitive Agreement

TL;DR

**INTZ just signed a big deal, watch for details on its impact.**

AI Summary

INTRUSION INC. (INTZ) filed an 8-K on January 9, 2024, reporting a material definitive agreement entered into on September 28, 2023. This filing indicates a significant contractual obligation or opportunity for the company. For investors, this matters because material agreements can dramatically impact future revenue, expenses, and overall financial health, potentially leading to stock price volatility depending on the nature and terms of the agreement.

Why It Matters

This filing signals a new, significant contract for INTRUSION INC., which could be a major revenue driver or a substantial financial commitment, directly affecting the company's future performance and stock valuation.

Risk Assessment

Risk Level: medium — The risk is medium because while a material agreement is reported, the specific details and financial implications are not disclosed in this filing, creating uncertainty.

Analyst Insight

Investors should monitor future filings and company announcements for specific details regarding the 'Material Definitive Agreement' to assess its financial impact on INTRUSION INC. before making investment decisions.

Key Players & Entities

• INTRUSION INC. (company) — the registrant filing the 8-K
• September 28, 2023 (date) — date of the earliest event reported (entry into material definitive agreement)
• January 9, 2024 (date) — date the 8-K was filed
• 001-39608 (other) — Commission File Number for INTRUSION INC.
• INTZ (other) — trading symbol for INTRUSION INC. Common Stock
• NASDAQ Capital Market (other) — exchange where INTRUSION INC. Common Stock is registered

Forward-Looking Statements

• INTRUSION INC. will provide more details about the 'Material Definitive Agreement' in a subsequent filing or earnings call. (INTRUSION INC.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share INTZ NASDAQ Capit
• $250,000 — and expenses to plaintiff's counsel of $250,000; and (iii) the dismissal of all claims
• $0.5 million — ts insurance policy since the Company's $0.5 million retention was previously exhausted (the

Filing Documents

• intrusion_8k.htm (8-K) — 33KB
• intrusion_ex1001.htm (EX-10.1) — 109KB
• 0001683168-24-000148.txt ( ) — 341KB
• intz-20230928.xsd (EX-101.SCH) — 3KB
• intz-20230928_lab.xml (EX-101.LAB) — 33KB
• intz-20230928_pre.xml (EX-101.PRE) — 22KB
• intrusion_8k_htm.xml (XML) — 3KB

01. Entry into a Material Definitive

Item 1.01. Entry into a Material Definitive Agreement. As previously disclosed, on June 3, 2022, a stockholder derivative complaint ( Prawitt v. Blount, et al. , Case No. 1:22-cv-00735-MN (D. Del.) (the "Action")) was filed in U.S. District Court, District of Delaware by plaintiff Nathan Prawitt on behalf of Intrusion Inc. (the "Company") against certain of the Company's current and former officers and directors. The plaintiff alleged that defendants through various actions breached their fiduciary duties, wasted corporate assets, and unjustly enriched defendants by (a) incurring costs and expenses in connection with the then-ongoing investigation by the Securities and Exchange Commission (the "SEC"), (b) incurring costs and expenses to defend us with respect to the previously disclosed consolidated class action, (c) settling class-wide liability with respect to the consolidated class action, as well as ancillary claims regarding sales of the Company's common stock by certain of the defendants. Further, as previously disclosed, on September 28, 2023, the Company agreed to the terms of a settlement contained in that certain Stipulation of Compromise and Settlement ("Settlement Agreement") of the Action. The Settlement Agreement is subject to Court approval and provides in part for (i) an amendment to the Company's Bylaws, committee Charters, and other applicable corporate policies to implement certain measures set forth more fully therein, to remain in effect for no less than three years; (ii) attorneys' fees and expenses to plaintiff's counsel of $250,000; and (iii) the dismissal of all claims against the defendants, including the Company, in connection with the Action. The $250,000 settlement payment will be paid by the Company's insurance provider under its insurance policy since the Company's $0.5 million retention was previously exhausted (the "Settlement Payment"). The Company also agreed to adopt amended and restated bylaws providing that when the Company's

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. Exhibit No. Description 10.1 Notice Of Pendency And Proposed Settlement Of Action Dated December 21, 2023 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. The Company uses words and phrases such as "an agreement," "subject to," "would," "provides" "requires" and similar expressions to identify forward-looking statements in this report. Such forward-looking statements are based on information available to the Company as of the date of this report and involve a number of risks and uncertainties, some beyond the Company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) the ability to overcome any objections or appeals regarding the settlement and (ii) other risks described in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, and future filings and reports by the Company. These forward-looking obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. INTRUSION INC. Dated: January 9, 2024 By: /s/ Kimberly Pinson Kimberly Pinson Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR