Intrusion Inc 8-K, filed Feb 21, 2024
Intrusion Inc (INTZ)
About this 8-K
Intrusion Inc filed this 8-K on February 21, 2024, reporting on events of February 8, 2024.
Items reported
- Item 8.01: Other events
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SECURITIES AND EXCHANGE COMMISSION
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CURRENT REPORT
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Item 8.01 Other Events
As previously disclosed on the Current Report on Form 8-K filed by Intrusion Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”) on October 2, 2023, the Company received a written notice from the Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that the closing bid price of the Company’s common shares over 30 consecutive trading days had fallen below $1.00 per share, which is the minimum closing bid price required to maintain listing on the Nasdaq Capital Market under Listing Rule 5550(a)(2) (the “Minimum Bid Requirement”). Additionally, as previously disclosed on the Current Report on Form 8-K filed by the Company with the SEC on October 27, 2023, the Company received a written notice from Nasdaq notifying the Company that its securities were subject to delisting based upon the Company's non-compliance with the $35 million market value of listed securities requirement ("MVLS") for continued listing on the Nasdaq Capital Market under Listing Rule 5550(b)(2). At that time, the Company indicated that it may, alternatively, seek to regain compliance under the Nasdaq listing criteria of maintaining $2.5 million stockholders’ equity under Listing Rule 5550(b)(1) (“Equity Standard”) as an alternative to the MVLS requirement and to satisfy compliance with Listing Rule 5550(b).
On November 2, 2023, the Company submitted a request for a hearing to Nasdaq concerning the notices, which hearing was held on February 1, 2024. At the hearing, the Company presented its plan for regaining and sustaining compliance with all applicable requirements for continued listing on Nasdaq before a Nasdaq Hearings Panel (“Panel”).
On February 8, 2024, the Company was notified that the Panel had granted the Company’s request for continued listing, and on February 15, 2024, the Company received a revised written notice from Nasdaq (the “Nasdaq Letter”) regarding the Panel’s grant of the Company’s request for continued listing on the Nasdaq Capital Market until April 23, 2024, subject to certain conditions, including creation of a new class of preferred stock and conversion of $8.98 million of its current debt, as described at the hearing. Subject to receipt of shareholder approval at the Company’s special meeting of shareholders to be held on March 15, 2024 (the “Special Meeting”), the Company expects to create a new class of preferred stock and to convert $8.98 million in debt as soon as practicable following the Special Meeting.
To regain compliance with the Minimum Bid Requirement, the Company plans to effect a reverse stock split, also subject to shareholder approval at the Special Meeting.
The Nasdaq Letter also stated that the Panel does not have discretion to grant continued listing on the Nasdaq Capital Market beyond April 23, 2024. Accordingly, if the Company does not, as of April 23, 2024 (i) comply with the Minimum Bid Requirement, and (ii) meet the requirements of the Equity Standard, the Company’s common stock will be delisted from the Nasdaq Capital Market.
There can be no assurance that the Company will be able to (i) regain or maintain compliance with the Minimum Bid Requirement, and (ii) meet the requirements of the Equity Standard.
Forward-Looking Statements
Except for the factual statements made herein, information contained in this report consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words such as “will,” “may,” “expects,” “should,” “plans,” and similar expressions, or the use of future tense, identify forward-looking statements, but their absence does not mean a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and actual actions or events could differ materially from those contained in such statements. For example, there can be no assurance that the Company will be able to timely file an appeal to the Nasdaq Hearings Panel, that the Nasdaq Hearings Panel will grant an extension, or that the Company will meet Nasdaq compliance standards for continued listing on the Nasdaq Capital Market. The risks included are not exhaustive; for a more detailed description of these uncertainties and other factors, see the other risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission, copies of which are available for free at www.sec.gov or upon request from the Company’s Investor Relations Department. All information provided in this release is as of the date hereof and the Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
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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: February 21, 2024 | By: | /s/ Kimberly Pinson |
| Kimberly Pinson | ||
| Chief Financial Officer | ||
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