Expect continued selling pressure as the convertible note allows Lambda Ventures to convert at a deep discount and sell shares, likely into any liquidity. Monitor for conversion notices and subsequent dilution. The OTC-traded stock may see increased volatility and downward drift.
Price Chart
Executive Summary
AI Era Corp. issued a $51,500 convertible promissory note to Lambda Ventures LLC, netting $45,000 after fees and legal expense. The note carries a 10% interest rate, matures in 12 months, and is convertible into common stock at 80% of the lowest trading price over the prior 20 days. This highly dilutive financing signals severe cash constraints and will likely pressure the stock price.
Key Financial Metrics
Key Facts
- Issued $51,500 principal convertible promissory note with a $1,500 OID, net proceeds of $45,000 to the company after $5,000 legal fee withholding.
- Conversion price set at 80% of the lowest traded price during the prior 20 trading days, subject to anti-dilution adjustments.
- Company must reserve at least 3,500,000 shares for conversion (or 5x the shares issuable), implying potential dilution of ~62% relative to the 5,640,519 shares outstanding.
- Note is unsecured with events of default including failure to pay, failure to issue shares, bankruptcy, or delisting; upon default, 150% of outstanding becomes due.
- Proceeds to be used for SaaS AI build-out, with restrictions on other uses.
Financial Impact
Potential dilution of over 60% from conversion shares; default penalty of 150% of outstanding could quickly escalate the liability.
Risk Factors
- Extreme dilution from conversion of the note at a 20% discount to market.
- Company may face default penalties (150% acceleration) if it fails to deliver shares on conversion.
- Low liquidity on OTC could exacerbate price declines upon any selling by the note holder.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001663577-26-000121 |
| Exhibit: ex4_1.htm | 0001663577-26-000121 |
| Document: aera8k_042826.htm | 0001663577-26-000121 |
| Document: 0001663577-26-000121-index-headers.html | 0001663577-26-000121 |
| Document: 0001663577-26-000121-index.html | 0001663577-26-000121 |
| Document: 0001663577-26-000121.txt | 0001663577-26-000121 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 17, 2026 14w ago | 8-K | $0.5410 $0.4986 | ▼ −7.84% | ▼ −7.25% | $0.0187 (−96.54%) |
Jun 15, 2026 18w ago | 8-K | $1.00 $1.09 | ▲ +9.00% | ▲ +11.62% | $0.0187 (−98.13%) |
Jun 9, 2026 19w ago | 8-K | $1.00 $1.05 | ▼ −5.00% | ▼ −2.86% | $0.0187 (+98.13%) |
May 11, 2026 23w ago | 8-K | $1.12 $0.9999 | ▼ −10.72% | ▼ −10.64% | $0.0187 (−98.33%) |
Apr 30, 2026 25w ago | 8-K | $1.20 $0.9400 | ▲ +21.67% | ▲ +23.39% | $0.0187 (+98.44%) |
Apr 20, 2026 26w ago | 8-K | $0.8240 $1.09 | ▲ +32.28% | ▲ +31.20% | $0.0187 (−97.73%) |
Apr 7, 2026 28w ago | 8-K | $0.2412 $0.2100 | ▼ −12.94% | ▼ −18.26% | $0.0187 (−92.25%) |
Apr 3, 2026 29w ago | EFFECT | $0.2412 $0.2100 | ▲ +12.94% | ▲ +17.07% | $0.0187 (+92.25%) |
Mar 23, 2026 30w ago | S-1 | $0.4240 $0.2800 | ▲ +33.96% | ▲ +33.54% | $0.0187 (+95.59%) |
Feb 24, 2026 34w ago | 8-K | $0.2700 $0.3200 | ▼ −18.52% | ▼ −19.55% | $0.0187 (+93.07%) |
US Market Status
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