Traders should monitor for potential share dilution as the note becomes convertible after 6 months. The aggressive conversion terms suggest financial distress, which could pressure the stock price. Watch for any early conversions, which would signal immediate dilution. Consider this financing as a negative signal about the company's financial health and future funding prospects.
Price Chart
Executive Summary
Edgemode, Inc. raised $130,000 in net proceeds through a $150,000 convertible promissory note issued to an accredited investor, CFI Capital LLC. The note carries a 6% interest rate, is convertible into common stock at a 40% discount to the lowest trading price over 15 days, and includes significant penalties for prepayment. The proceeds will be used for working capital.
Key Facts
- Edgemode issued a $150,000 convertible note to CFI Capital LLC with a $15,000 original issue discount
- Net proceeds to the company were $130,000 after $5,000 in legal fees
- Note bears 6% interest, payable in shares of common stock
- Convertible at 60% of the lowest trading price over 15 days, creating significant dilution risk
- Prepayment penalties range from 105% to 140% of principal depending on timing
- Proceeds will be used for working capital
- The company reserved 116,822,430 shares for potential conversion of the note
Financial Impact
The company received $130,000 in net proceeds but created substantial future dilution risk. The conversion mechanism at 60% of the lowest trading price over 15 days could significantly dilute existing shareholders if the stock price declines. The note's structure with high prepayment penalties suggests expensive, last-resort financing.
Risk Factors
- Significant shareholder dilution from conversion at a 40% discount
- Potential for death spiral financing if the stock price declines
- High cost of capital with original issue discount and prepayment penalties
- Risk of accelerated conversion if the company triggers an event of default
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-001478 |
| Document: edgemode_ex1002.htm | 0001683168-26-001478 |
| Document: edgemode_8k.htm | 0001683168-26-001478 |
| Document: 0001683168-26-001478-index-headers.html | 0001683168-26-001478 |
| Document: 0001683168-26-001478-index.html | 0001683168-26-001478 |
| Document: 0001683168-26-001478.txt | 0001683168-26-001478 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $0.000200 | awaiting T+5 | — | $0.000300 (−50.00%) |
Oct 16, 2026 10d ago | 8-K | $0.000200 $0.000200 | · 0.00% | ▲ +0.14% | $0.000300 (+50.00%) |
Aug 21, 2026 9w ago | 8-K | $0.000600 $0.000500 | ▲ +16.67% | ▲ +17.14% | $0.000300 (+50.00%) |
Jun 29, 2026 17w ago | 8-K | $0.003400 $0.003800 | ▲ +11.76% | ▲ +10.38% | $0.000300 (−91.18%) |
Mar 4, 2026 33w ago | 8-K | $0.0118 $0.009300 | ▲ +21.19% | ▲ +18.95% | $0.000300 (+97.46%) |
US Market Status
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