Traders should monitor FreeCast's ability to repay or refinance this debt before the June 30, 2026 maturity. If converted, this would result in over 553,000 new shares (at $8.00 conversion price), creating immediate dilution risk. The related-party nature and high interest rate signal potential financial stress.
Price Chart
Executive Summary
FreeCast, Inc. disclosed $4.42 million in outstanding debt under a convertible promissory note with Nextelligence, Inc., a related party controlled by CEO William A. Mobley, Jr. The note bears 12% interest, is due by June 30, 2026, and is convertible into shares at $8.00 per share. This represents a material related-party borrowing with near-term maturity and conversion risk.
Key Facts
- FreeCast has $4,424,052 in outstanding principal under a revolving convertible promissory note with Nextelligence, Inc.
- The note was initially issued on November 21, 2025, with an initial draw of $1,315,552 and additional draws totaling $1,698,500 through March 4, 2026.
- Nextelligence, Inc. is controlled by CEO and Chairman William A. Mobley, Jr., making this a related-party transaction.
- The debt accrues interest at 12% per annum and is due no later than June 30, 2026.
- At Nextelligence's option, the debt (principal and interest) is convertible into FreeCast Class A common stock at $8.00 per share.
- Failure to repay or bankruptcy triggers an increase in interest rate to 18% per annum.
Financial Impact
The company has $4.42 million in short-term, high-interest debt due in four months, with potential for significant dilution if converted at $8.00/share.
Risk Factors
- Near-term liquidity risk with $4.42M due by June 30, 2026
- Significant shareholder dilution if the note is converted
- Related-party transaction with CEO-controlled entity raises governance concerns
- Increased interest burden to 18% in event of default
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-024131 |
| Document: 0001213900-26-024131-index-headers.html | 0001213900-26-024131 |
| Document: 0001213900-26-024131-index.html | 0001213900-26-024131 |
| Document: 0001213900-26-024131.txt | 0001213900-26-024131 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 12w ago | 3 | $1.20 $1.51 | ▲ +25.83% | ▲ +20.81% | $1.17 (−2.50%) |
Jul 23, 2026 13w ago | 8-K | $2.08 $1.87 | ▼ −10.10% | ▼ −13.40% | $1.17 (−43.75%) |
Jul 20, 2026 14w ago | S-1/A | $2.55 $0.8598 | ▲ +66.28% | ▲ +70.40% | $1.17 (+54.12%) |
Jul 15, 2026 14w ago | S-1 | $2.52 $0.9950 | ▲ +60.52% | ▲ +64.13% | $1.17 (+53.57%) |
May 28, 2026 21w ago | 8-K | $0.8200 $7.65 | ▲ +832.93% | ▲ +836.07% | $1.17 (+42.68%) |
May 7, 2026 24w ago | EFFECT | $1.77 $0.7400 | ▲ +58.19% | ▲ +61.33% | $1.17 (+33.90%) |
Apr 17, 2026 27w ago | S-1 | $3.10 $1.41 | ▲ +54.52% | ▲ +58.72% | $1.17 (+62.26%) |
Apr 15, 2026 27w ago | 8-K | $3.96 $1.47 | ▲ +62.88% | ▲ +68.92% | $1.17 (+70.45%) |
Apr 1, 2026 29w ago | 10-Q/A | $4.50 $2.09 | ▲ +53.56% | ▲ +63.43% | $1.17 (+74.00%) |
Mar 5, 2026 33w ago | 8-K | — | awaiting T+20 | — | — |
US Market Status
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