Expect significant downward pressure on DAIO from the overhang of convertible and warrant shares. Monitor the 2026 annual meeting for shareholder approval triggering automatic conversion of the note, which would accelerate dilution.
Price Chart
Executive Summary
Data I/O Corporation entered into a $9 million private placement with institutional investors, issuing 869,840 common shares, a $6.825 million convertible note, and warrants for 1.08 million shares. The potential conversion of the note alone could add ~2.73 million shares at $2.50/share, representing massive dilution relative to the $28M market cap.
Key Financial Metrics
Key Facts
- Aggregate purchase price of $9 million from Lytton-Kambara Foundation and Alice W. Lytton Family LLC.
- Immediate issuance of 869,840 shares of common stock.
- Convertible debenture of $6,825,400, convertible into Series B Preferred Stock at $1,000 per share.
- Preferred Stock convertible into common at $2.50 per share, yielding up to ~2.73 million common shares.
- Warrants to purchase 1,080,000 shares at $3.00 per share for five years.
- Total potential dilution of up to ~4.68 million shares subject to beneficial ownership and investor issuance caps.
Financial Impact
Total potential dilution of up to ~4.68 million shares on a $28M market cap, representing over 50% dilution if fully exercised/converted.
Risk Factors
- Massive dilution to existing shareholders from conversion of note and exercise of warrants.
- Potential stock price decline due to overhang and future resale registration.
- If stock price stays below $2.50, conversion may not occur but note still represents debt obligation.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001654954-26-005124 |
| Document: 0001654954-26-005124-index-headers.html | 0001654954-26-005124 |
| Document: 0001654954-26-005124-index.html | 0001654954-26-005124 |
| Document: 0001654954-26-005124.txt | 0001654954-26-005124 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $2.49 | awaiting T+20 | — | $2.50 (+0.40%) |
Oct 19, 2026 7d ago | 8-K | $2.52 | awaiting T+20 | — | $2.50 (−0.79%) |
Oct 19, 2026 7d ago | Press Release | $2.52 | awaiting T+20 | — | $2.50 (−0.79%) |
Oct 19, 2026 7d ago | Press Release | $2.52 | awaiting T+20 | — | $2.50 (+0.79%) |
Aug 13, 2026 10w ago | EFFECT | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.50 (+22.36%) |
Aug 12, 2026 10w ago | Press Release | $3.22 $2.77 | ▲ +13.98% | ▲ +12.23% | $2.50 (+22.36%) |
Aug 11, 2026 10w ago | S-1/A | $2.92 $2.78 | ▲ +4.79% | ▲ +3.74% | $2.50 (+14.38%) |
Jul 30, 2026 12w ago | 8-K | $2.84 $2.93 | ▲ +3.17% | ▲ +0.18% | $2.50 (−11.97%) |
Jul 30, 2026 12w ago | Press Release | $2.92 $2.98 | ▲ +2.05% | ▼ −1.91% | $2.50 (−14.38%) |
Jul 16, 2026 14w ago | Press Release | $3.32 $3.22 | ▼ −3.01% | ▼ −6.63% | $2.50 (−24.70%) |
US Market Status
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