ICCT
Icoreconnect INC
NASDAQ
8-K: iCoreConnect Secures Convertible Note and Forbearance Agreement Amidst Financial Restructuring
Sentiment:
Debt Financing and Forbearance Agreement
15 February 2024 6:32 PM
iCoreConnect has entered into a convertible promissory note agreement for $473,743 and a forbearance agreement with its senior secured lender to address existing defaults and secure additional financing.
Worse than expected
The company is in default on its loan agreement, requiring a forbearance agreement and a $300,000 payment to cure defaults.
The company needs to raise $1.3 million in additional financing, indicating significant financial strain.
The default interest rate on the loan has been increased, further burdening the company's finances.
Capital raise
The company is seeking to raise approximately $1.3 million of additional equity or subordinated debt financing.
The funds are intended to make a $300,000 payment to the lender, pay the cash component of the Featherpay acquisition of approximately $500,000, and provide the company with working capital of approximately $500,000.
Summary
- iCoreConnect issued a convertible promissory note for $473,743 to LGH Investments, LLC, with a maturity date of June 1, 2024, and a 12% annual interest rate.
- The note is convertible into common stock at a price equal to 100% of the closing share price on December 29, 2023, subject to shareholder approval.
- The company also entered into a forbearance agreement with Element SaaS Finance (USA), LLC, its senior secured lender, to address existing defaults on a $2,000,000 loan, with an outstanding balance of $1,853,593.61 as of December 31, 2023.
- As part of the forbearance agreement, iCoreConnect agreed to make a $300,000 payment to cure certain defaults, increase the default interest rate, and provide weekly financial and cash metrics.
- The forbearance agreement provides for interest-only payments until July 2024 and waives all covenants in exchange for the $300,000 payment and other conditions.
- The company terminated a purchase agreement with Arena Business Solutions Global SPC II, Ltd., with no penalties.
- The company is seeking to raise approximately $1.3 million in additional equity or subordinated debt financing to make the $300,000 payment, fund the Featherpay acquisition, and provide working capital.
Sentiment
Score: 3
Explanation: The document reveals significant financial challenges, including loan defaults, a need for forbearance, and a substantial capital raise requirement. While the company has secured some temporary relief, the overall outlook is concerning, indicating a negative sentiment.
Positives
- The forbearance agreement provides iCoreConnect with a temporary reprieve from exercising remedies by its senior secured lender.
- The company has secured a convertible note, providing a potential source of capital.
- The termination of the Arena Business Solutions agreement was achieved without penalties.
- The forbearance agreement allows for interest-only payments until July 2024, easing immediate cash flow pressures.
Negatives
- The company is in default under its existing loan agreement.
- The company is required to make a $300,000 payment to cure defaults.
- The default interest rate on the loan has been increased.
- The company is required to provide weekly financial and cash metrics to the lender.
- The company needs to raise $1.3 million in additional financing to meet its obligations and fund operations.
- The convertible note is subject to shareholder approval for conversion.
Risks
- The company's ability to raise the required $1.3 million in additional financing is uncertain.
- Failure to comply with the terms of the forbearance agreement could lead to the lender exercising its rights and remedies.
- The company's financial condition is precarious, as evidenced by the existing defaults and need for forbearance.
- The conversion of the promissory note is subject to shareholder approval, which may not be obtained.
- The company is subject to increased scrutiny and reporting requirements under the forbearance agreement.
Future Outlook
The company is seeking to raise approximately $1.3 million in additional equity or subordinated debt financing to meet its obligations, fund the Featherpay acquisition, and provide working capital. The company's ability to secure this financing and comply with the terms of the forbearance agreement will be critical to its future.
Management Comments
- By acceptance of this Note, the Holder acknowledges the Note satisfies the Company's obligations to Holder pursuant to the Satisfaction Agreement.
- The company agreed to make $300,000 payment to cure certain defaults under the original Loan Agreement.
Industry Context
The company's financial difficulties and need for restructuring are not uncommon in the technology sector, particularly for smaller companies. The use of convertible notes and forbearance agreements are typical strategies for companies facing financial challenges. The company's ability to secure additional financing and execute its restructuring plan will be crucial for its survival and growth.
Comparison to Industry Standards
- The 12% interest rate on the convertible note is relatively high, reflecting the company's financial risk profile. Similar companies in the tech sector may have secured financing at lower rates.
- The forbearance agreement with a senior secured lender is a common approach for companies facing loan defaults. However, the specific terms, such as the increased default interest rate and weekly reporting requirements, are indicative of the lender's concerns about the company's financial stability.
- The need to raise $1.3 million in additional financing highlights the company's cash flow challenges. Other companies in similar situations may have pursued alternative financing options, such as asset sales or strategic partnerships.
- The termination of the purchase agreement with Arena Business Solutions without penalties is a positive outcome, as it avoids further financial obligations. However, it also suggests that the company's strategic plans may be in flux.
Stakeholder Impact
- Shareholders face potential dilution from the conversion of the promissory note.
- Employees may be concerned about the company's financial stability and future prospects.
- Creditors are at risk if the company fails to meet its obligations.
- Customers may be concerned about the company's ability to provide ongoing services.
Next Steps
- The company needs to secure $1.3 million in additional financing.
- The company must comply with the terms of the forbearance agreement, including weekly financial reporting.
- The company needs to obtain shareholder approval for the conversion of the promissory note.
- The company must execute its restructuring plan to achieve operational and monthly cash flow profitability.
Key Dates
- February 28, 2022: Date of the original Loan and Security Agreement with Element SaaS Finance (USA), LLC.
- April 1, 2022: The date from which the company failed to make loan payments.
- September 12, 2023: Date of the Purchase Agreement with Arena Business Solutions Global SPC II, Ltd.
- August 9, 2023: Date of the Satisfaction Agreement between the Company, Holder and LGH Investments, LLC.
- December 29, 2023: Issuance date of the convertible promissory note and effective date of the securities purchase agreement.
- December 31, 2023: Date of the Forbearance Agreement and the outstanding principal balance of the loan.
- February 9, 2024: Date the company issued the convertible note and entered into the securities purchase agreement.
- February 12, 2024: Date the company entered into the Forbearance Agreement with its senior secured lender.
- February 14, 2024: Date the company provided termination notification to Arena Business Solutions Global SPC II, Ltd.
- February 15, 2024: Effective date of the termination of the Purchase Agreement with Arena Business Solutions Global SPC II, Ltd.
- June 1, 2024: Maturity date of the convertible promissory note.
- July 1, 2024: End date of the forbearance period, unless a Forbearance Default occurs earlier.
Keywords
convertible note, forbearance agreement, loan default, financing, debt, equity, interest rate, shareholder approval, restructuring, acquisition
ICCT
Icoreconnect INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
3 June 2025 5:30 PM
Bankruptcy Filing
- The company has filed for Chapter 11 bankruptcy, indicating severe financial distress and inability to meet its obligations.
- Outstanding note payables of over $10 million are in default.
- The company was facing a potential asset auction prior to the bankruptcy filing.
Worse than expected
3 June 2025 4:35 PM
Auditor Change Announcement
- The former auditor's report included an explanatory paragraph regarding 'substantial doubt about the Company's ability to continue as a going concern'.
- The Company disclosed 'material weaknesses in its internal control over financial reporting' for multiple periods in 2024.
Capital raise
30 May 2025 1:57 AM
Annual Report
- The company is currently funding its business through product sales, services, common stock sales, and debt arrangements, and intends to seek additional funding.
- It plans to raise additional funds in the immediate short-term through the issuance of equity, equity-related, or debt securities or by obtaining additional credit from financial institutions.
- The company previously entered into a purchase agreement with Arena Business Solutions Global SPC II, Ltd. in September 2023 for up to $40 million of common stock, which was terminated in February 2024.
- A Strata Purchase Agreement with Clearthink Capital Partners, LLC for up to $5.0 million of common stock was executed in August 2024 but terminated in December 2024.
- An Equity Purchase Agreement with Crom Structured Opportunities Fund I, LP for up to $20.0 million of common stock was entered into in December 2024, but had not been utilized as of December 31, 2024.
- In January 2025, the company issued an unsecured convertible note for $149,500 in principal amount for gross proceeds of $130,000.
- In March 2025, the company issued 110,389 shares of common stock for net proceeds of $36,682 through its equity line of credit.
- In March 2025, the company secured a Business Loan and Security Agreement for a $525,000 secured promissory note.
- In April 2025, the company issued 174,611 shares of common stock for net proceeds of $402,909 through its equity line of credit.
- In April 2025, the company entered into a Revolving Loan Agreement with Bowery Consulting Group, Inc. for up to $2,180,000, and issued 220,289 common shares as an inducement.
- In May 2025, the company entered into an Agreement of Sale of Future Receipts for $350,000 of future receivables, with an implied interest rate of 44%.
Delay expected
30 May 2025 1:57 AM
Annual Report
- The company failed to timely file its Form 10-K for the fiscal year ended December 31, 2024.
- The company failed to timely file its Form 10-Q for the quarter ended March 31, 2025.
- There were delays in registering the resale of common stock underlying notes issued in February 2024, leading to a waiver agreement with investors.
Worse than expected
30 May 2025 1:57 AM
Annual Report
- The net loss for 2024 nearly doubled to $(31.16) million, significantly worse than the $(15.55) million loss in 2023.
- The working capital deficit worsened by 110% to $(11.25) million, indicating a severe deterioration in short-term liquidity.
- The cash balance plummeted by 83% to $202,177, signaling a critical cash shortage.
- The company's common stock was delisted from Nasdaq due to failure to file required financial reports, a major negative event impacting market access and investor confidence.
- The auditors issued a 'going concern' warning, indicating substantial doubt about the company's ability to continue operations.
- A significant impairment charge of $6.63 million on intangible assets reflects a substantial decline in the perceived value of the company's core assets.
Worse than expected
30 May 2025 1:57 AM
Current Report Non-Reliance on Financial Statements
- The company's previously issued financial statements for Q3 2024 can no longer be relied upon, indicating a significant error in financial reporting.
- The company has identified material weaknesses in its internal controls over financial reporting, which means there is a reasonable possibility of material misstatements not being prevented or detected.
- Disclosure controls and procedures were deemed ineffective, which is a serious compliance issue.
Delay expected
30 May 2025 1:57 AM
Current Report Non-Reliance on Financial Statements
- The company will restate financial statements in its Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed 'as soon as practicable,' implying a potential delay from the standard filing timeline.
Delay expected
22 May 2025 6:02 AM
8-K Filing
- The company failed to file its Form 10-K for the year ended December 31, 2024, and Form 10-Q for the quarter ended March 31, 2025, in a timely manner.
Worse than expected
22 May 2025 6:02 AM
8-K Filing
- The company's failure to file required financial reports on time has resulted in a delisting notice from Nasdaq, which is worse than expected.
Worse than expected
12 May 2025 5:25 PM
Current Report
- The company had to pay a significant amount of money to avoid an asset auction, indicating a negative financial situation.
Delay expected
25 April 2025 5:25 PM
8-K Filing
- The company failed to file its Form 10-K for the period ended December 31, 2024, on time, resulting in an extension from Nasdaq.
Worse than expected
25 April 2025 5:25 PM
8-K Filing
- The company received a public reprimand from Nasdaq.
- The company faces a potential asset auction by PIGI Solutions, LLC.
- The company's motion for a temporary restraining order and preliminary injunction to stop the auction was denied.
Worse than expected
21 April 2025 5:00 PM
8-K Filing
- The company received a delisting notice from Nasdaq.
- The company is involved in a dispute over a significant debt.
- The company's assets are at risk of being auctioned.
Delay expected
21 April 2025 5:00 PM
8-K Filing
- The company has not yet filed its Form 10-K for the period ended December 31, 2024.
Capital raise
11 April 2025 9:00 PM
Current Report (Form 8-K)
- The Revolving Loan Agreement stipulates that iCoreConnect will use its reasonable best efforts to consummate a public offering of not less than $5,000,000 as soon as practicable.
- The proceeds from the Loans hereunder can be used to finance the expense of a Qualified Public Equity Offering.
Worse than expected
7 April 2025 4:30 PM
8-K Filing
- The company received a delisting warning from Nasdaq.
- The company is in a legal dispute with PIGI Solutions over a disputed debt of $2.4 million.
- PIGI intends to conduct a public auction of iCoreConnect's assets to recover the debt.
Delay expected
7 April 2025 4:30 PM
8-K Filing
- The company failed to promptly disclose information in a Form 8-K dated March 26, 2025.
Worse than expected
26 March 2025 5:00 PM
Current Report
- The announcement of a potential asset auction due to a disputed debt is worse than expected for iCoreConnect.
Worse than expected
7 March 2025 5:00 PM
8-K Filing
- The company is not in compliance with Nasdaq listing rules, which is worse than expected.
Worse than expected
21 February 2025 4:30 PM
8-K Filing
- The company failed to meet the minimum stockholders' equity requirement, leading to a delisting notice from Nasdaq.
Capital raise
10 February 2025 8:01 AM
S-1 Filing
- The document details a potential capital raise through an equity purchase agreement with CROM, where CROM commits to purchase up to $20.0 million of the company's common stock.
- The document also details a potential capital raise through the issuance of unsecured convertible notes in the aggregate principal amount of up to $8,250,000.
Worse than expected
12 December 2024 9:46 PM
SEC Form 4
- The sale of a large number of shares by a major shareholder is generally viewed negatively by the market.
Worse than expected
10 December 2024 5:21 PM
Financing Agreement
- The company is taking on debt with a 10% original issue discount, which reduces the net proceeds received.
- The conversion price of the note is initially set at a premium, which may limit the conversion potential.
- The company is subject to certain restrictions and covenants under the note, which may limit its operational flexibility.
Capital raise
10 December 2024 5:21 PM
Financing Agreement
- The company has entered into an equity purchase agreement with Crom Structured Opportunities Fund I, LP, committing to sell up to $20 million of common stock over 24 months.
- The company has also issued a convertible promissory note with a principal amount of $[GROSS].
Worse than expected
19 November 2024 4:25 PM
Quarterly Report
- The company's net loss significantly widened, and its cash balance decreased substantially, indicating worse than expected financial performance.
- The company's operating expenses increased significantly due to a one-time stock compensation expense, further contributing to the worse than expected results.
- The company's working capital deficit and accumulated deficit are also worse than expected, raising concerns about its financial stability.
Capital raise
19 November 2024 4:25 PM
Quarterly Report
- The company is seeking to raise additional capital through the issuance of debt and/or equity securities to fund its operations.
- The company is reliant on future fundraising to finance operations soon.
- The company has an equity line of credit agreement with Clearthink Capital Partners, LLC, for up to $5.0 million.
Capital raise
21 October 2024 5:01 PM
S-1/A Amendment
- The registration statement relates to the registration for resale by the selling stockholders named in the Registration Statement of up to 27,425,287 shares of the Company's common stock.
- These shares include shares issuable pursuant to a Purchase Agreement dated August 16, 2024, shares issued as Commitment Fee Shares, and shares issuable upon the conversion of certain convertible notes and exercise of certain warrants.
Capital raise
11 October 2024 4:01 PM
S-1 Filing
- The document details a Strata Agreement with Clearthink Capital Partners, LLC, committing Clearthink to purchase up to $5.0 million of iCoreConnect's common stock.
- The document also references the potential issuance of shares upon conversion of convertible notes and exercise of warrants.
Worse than expected
11 October 2024 4:01 PM
S-1 Filing
- The company has a history of net losses and a working capital deficit, raising concerns about its ability to continue as a going concern.
- The company has received deficiency letters from Nasdaq regarding minimum bid price and stockholders' equity requirements, potentially leading to delisting.
Capital raise
20 September 2024 5:05 PM
Special Meeting Results
- The document details the approval of the issuance of up to 11,203,700 shares of common stock upon the exercise of certain warrants.
- The document details the approval of the issuance of shares of common stock upon conversion of an amended convertible note.
- The document details the approval of the issuance of shares of common stock pursuant to the Strata Purchase Agreement.
- The document details the approval of the issuance of shares of common stock upon conversion of convertible notes issued in connection with the exchange and/or extension of certain outstanding indebtedness.
Delay expected
20 September 2024 5:05 PM
Special Meeting Results
- The Special Meeting was originally convened on September 16, 2024, and adjourned to September 19, 2024.
Delay expected
17 September 2024 4:25 PM
8-K/A Filing
- The Special Meeting was delayed from September 16th to September 19th due to a lack of quorum.
Worse than expected
17 September 2024 4:25 PM
8-K/A Filing
- The meeting was adjourned due to a lack of quorum, which is worse than expected as it indicates a potential issue with shareholder engagement.
Worse than expected
16 September 2024 4:59 PM
Current Report
- The meeting was adjourned due to a lack of quorum, which is worse than expected as it indicates a potential issue with shareholder engagement.
Delay expected
16 September 2024 4:59 PM
Current Report
- The Special Meeting of Stockholders was delayed from September 16, 2024, to September 19, 2024, due to a lack of quorum.
Capital raise
5 September 2024 4:30 PM
Proxy Statement
- The company is seeking approval for the issuance of shares related to a $5.0 million commitment from Clearthink Capital Partners.
- The company is also seeking approval for the issuance of shares related to the conversion of convertible notes.
Delay expected
5 September 2024 4:30 PM
Proxy Statement
- The company failed to file its Form 10-K on a timely basis, leading to events of default under the Notes.
- There were delays in registering the resale of the common stock underlying the Notes issued in February 2024.
Worse than expected
5 September 2024 4:30 PM
Proxy Statement
- The proposals, if approved, will lead to significant dilution of existing shareholders' ownership, which is generally viewed negatively by the market.
Delay expected
27 August 2024 4:30 PM
8-K Filing
- The conversion of preferred stock to common stock has been delayed until the Maturity Date.
Capital raise
21 August 2024 5:14 PM
Debt Restructuring and Equity Commitment Announcement
- iCoreConnect has secured a commitment from Clearthink Capital Partners to purchase up to $5 million of the company's common stock.
- The company will issue 300,000 shares of common stock to Clearthink as a commitment fee.
- The company may sell shares to Clearthink over a 24-month period, subject to certain conditions.
- The purchase price of the shares will be based on a percentage of the average of the two lowest daily volume-weighted average prices during the five trading days preceding the purchase date.
- The company will need shareholder approval to issue more than 19.99% of its outstanding shares to Clearthink.
Worse than expected
21 August 2024 5:14 PM
Debt Restructuring and Equity Commitment Announcement
- The company is restructuring debt at a high interest rate of 12% and the new notes are subordinated to senior secured lenders, indicating a weaker financial position.
- The company is relying on a potential equity raise to fund operations, which is not a sign of financial strength.
Worse than expected
21 August 2024 4:30 PM
8-K Filing
- The company received a delisting notice due to not meeting the minimum stockholders' equity requirement, which is a negative development.
Better than expected
16 August 2024 4:30 PM
Quarterly Report
- The company's revenue growth of 66% in Q2 2024 significantly exceeded expectations.
- The gross profit margin improvement to 80% was also better than anticipated.
Capital raise
16 August 2024 4:30 PM
Quarterly Report
- Noteholders have the option to convert their notes into common stock at a conversion price of $0.80 per share.
- Mandatory conversion of notes into common stock will occur if the common stock price exceeds $1.04.
Delay expected
16 August 2024 4:28 PM
Quarterly Report
- The company received a waiver for untimely filing of its regulatory reporting requirements from a lender.
- The company failed to file its Form 10-K on a timely basis and experienced delays in registering the resale of common stock underlying notes issued in February 2024.
Capital raise
16 August 2024 4:28 PM
Quarterly Report
- The company intends to raise additional capital through the issuance of debt and/or equity securities to fund its operations.
- The company is reliant on future fundraising to finance operations in the near future.
- The company issued $2,927,960 in gross proceeds in the form of secured notes and convertible notes to fund operations and growth in the first six months of 2024.
- The company entered into a securities purchase agreement with a related party for $267,500 in July 2024.
- The company issued $384,406 of notes in exchange for $349,460 in gross proceeds in July 2024.
Worse than expected
16 August 2024 4:28 PM
Quarterly Report
- The company's net loss significantly widened to $15.6 million for the first six months of 2024, compared to a $4.4 million loss in the same period of 2023.
- The company's operating expenses increased substantially due to a one-time stock compensation expense of $4.8 million.
- The company has a net working capital deficit of $11.5 million, indicating financial strain.
Worse than expected
12 August 2024 6:00 AM
Current Report
- The company received a delisting notice from Nasdaq, indicating a failure to meet listing requirements for board independence.
Capital raise
1 August 2024 4:30 PM
Debt Financing Announcement
- The company has raised $349,460 through the issuance of convertible notes.
- The company may raise additional capital through the exercise of warrants.
- The company may raise additional capital through the conversion of the notes into common stock.
Delay expected
1 August 2024 4:30 PM
Debt Financing Announcement
- The document mentions a waiver of defaults related to the company's failure to file its Form 10-K on time and delays in registering the resale of common stock underlying notes issued in February 2024.
Worse than expected
11 July 2024 4:30 PM
Delisting Notice
- The company's stock price has fallen below the minimum bid price requirement, triggering a delisting notice from Nasdaq.
Capital raise
9 July 2024 4:31 PM
Amendment to Securities Purchase Agreement
- The document details an amendment to the February 2024 offering, increasing the offering size to $8,250,000.
- The amendment allows the company to accelerate amortization payments on both existing and future notes issued under the February 2024 offering.
- Holders of the First Closing Notes can voluntarily convert amounts under the notes at a conversion price equal to the Market Price, at the company's option.
- Future Notes will also have a voluntary conversion option at the Market Price, and First Closing Note Optional Conversions will not adjust the conversion price of Future Notes.
Capital raise
17 June 2024 4:30 PM
Debt Financing Announcement
- The company issued a new convertible promissory note for $397,622.
- The company issued 15,229 shares and 74,685 shares of common stock as inducements for the note extensions.
Capital raise
11 June 2024 5:31 PM
Amendment to Securities Purchase Agreement
- The offering size has been increased to $8,250,000.
- The company may issue additional notes under the Financing at the mutual agreement of the Company and Investors.
Capital raise
31 May 2024 4:38 PM
Annual Meeting Results
- The company has received approval to issue up to 2,500,000 shares of common stock upon the conversion of certain convertible promissory notes and the exercise of certain warrants.
- The company has also received approval to issue shares upon conversion of notes without regard to limitations, potentially leading to a significant increase in outstanding shares.
Capital raise
28 May 2024 4:30 PM
Debt Financing Announcement
- The document details a potential capital raise through the issuance of 225,000 shares of common stock if the $500,000 note is not repaid by November 15, 2024.
Worse than expected
28 May 2024 4:30 PM
Debt Financing Announcement
- The high interest rate of 15% and the potential for equity dilution if the note is not repaid by November 15, 2024, are worse than typical financing terms.
Better than expected
17 May 2024 4:49 PM
Quarterly Report
- The company's revenue growth of 48% significantly exceeded typical growth rates for companies in the sector.
- The gross profit margin improvement to 81% was also better than expected.
Capital raise
15 May 2024 5:21 PM
Quarterly Report
- The company intends to raise additional capital through the issuance of debt and/or equity securities to fund its operations.
- The company is reliant on future fundraising to finance operations in the near future.
- The company has no commitments for such capital and there is no assurance that it will be successful in raising any additional capital.
Worse than expected
15 May 2024 5:21 PM
Quarterly Report
- The company's net loss widened significantly despite a substantial increase in revenue.
- The company's cash balance decreased substantially, raising concerns about its ability to fund operations.
- The company's operating expenses increased significantly, outpacing revenue growth.
- The company has stated there is substantial doubt about its ability to continue as a going concern.
Capital raise
13 May 2024 9:15 AM
Proxy Statement
- The company is seeking approval for the issuance of common stock upon conversion of certain convertible promissory notes and warrants.
- The company is seeking approval for the issuance of common stock upon conversion of preferred stock.
- The company anticipates needing to raise additional capital and may issue shares to acquire other companies or assets.
Worse than expected
10 May 2024 4:00 PM
Current Report
- The company received a non-compliance notice from Nasdaq due to the resignation of a director, indicating a failure to meet listing requirements.
Capital raise
29 April 2024 4:53 PM
Annual Report Amendment
- The document details several promissory notes and convertible notes issued to related parties, which could be considered a form of capital raising.
- The company issued a $200,000 convertible note and a $260,000 promissory note to related parties in April 2024.
Delay expected
29 April 2024 4:53 PM
Annual Report Amendment
- The company did not file the required Part III information in the original 10-K, necessitating this amendment.
Capital raise
18 April 2024 6:23 PM
Annual Results
- The company intends to raise additional capital through the issuance of debt and/or equity securities to fund its operations.
- The company is reliant on future fundraising to finance operations in the near future.
- The company may seek additional equity or debt financing to facilitate acquisitions or investments.
Worse than expected
18 April 2024 6:23 PM
Annual Results
- The company's net loss of $15.9 million is significantly worse than the previous year's loss of $7.87 million.
- The company's identification of material weaknesses in internal control over financial reporting is a negative development.
- The substantial doubt about the company's ability to continue as a going concern indicates a severe financial situation.
Capital raise
28 February 2024 5:00 PM
Financing Agreement
- The document details a potential capital raise of up to $2.375 million through the issuance of convertible notes.
- The financing is structured in two tranches, with an initial tranche of $1.375 million and a potential second tranche of $1.1 million.
- The second tranche is contingent upon the effectiveness of a registration statement and shareholder approval.
Worse than expected
15 February 2024 6:32 PM
Debt Financing and Forbearance Agreement
- The company is in default on its loan agreement, requiring a forbearance agreement and a $300,000 payment to cure defaults.
- The company needs to raise $1.3 million in additional financing, indicating significant financial strain.
- The default interest rate on the loan has been increased, further burdening the company's finances.
Capital raise
15 February 2024 6:32 PM
Debt Financing and Forbearance Agreement
- The company is seeking to raise approximately $1.3 million of additional equity or subordinated debt financing.
- The funds are intended to make a $300,000 payment to the lender, pay the cash component of the Featherpay acquisition of approximately $500,000, and provide the company with working capital of approximately $500,000.
Capital raise
7 February 2024 6:41 PM
Financing Agreement
- The company has raised $55,000 through the issuance of convertible promissory notes.
- The notes are convertible into common stock, which could result in a future equity raise.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.