The debt-to-equity conversion avoids immediate default but at a high cost to common shareholders. Expect continued dilution pressure as Ascent Partners converts preferred shares and sells common stock. The conversion price of $2.0265 acts as a technical ceiling if the stock trades below that level. Monitor for Form 4 filings and conversion notices. The company remains highly distressed with a loan agreement amended 28 times and a history of stock price declines.
Price Chart
Executive Summary
Our Bond, Inc. exchanged $3,302,457.63 of outstanding promissory notes held by Ascent Partners Fund LLC for 366,941 shares of newly created Series G Convertible Preferred Stock. The preferred stock carries a $10 stated value, a 10% annual dividend (24% on trigger events), and is convertible into common stock at $2.0265 per share. The exchange eliminates $3.3M of debt but creates massive potential dilution, as the preferred shares can be converted into approximately 1.81M common shares. Separately, lender Eastward Fund Management waived existing defaults related to the notes and other matters under a loan agreement that has been amended 28 times.
Key Financial Metrics
Key Facts
- Exchanged $3,302,457.63 of promissory notes (March 2025 note balance $2,292,179.85; May 2026 note balance $1,010,277.78) for 366,941 shares of Series G Convertible Preferred Stock
- Preferred stock has $10 stated value, convertible into common at $2.0265 per share, implying ~1.81M common shares upon full conversion
- Preferred stock carries 10% annual dividend (24% on trigger events), redemption rights at 110% of stated value on trigger events, and change-of-control redemption at 200% of stated value
- Holder is Ascent Partners Fund LLC, which also has an equity line of credit with the company
- Eastward Fund Management waived defaults under a loan agreement related to the notes and other matters via a 28th amendment
- Market cap is $13M; the conversion amount represents ~25% of market cap, indicating severe dilution
Financial Impact
Debt reduction of $3.3M offset by issuance of convertible preferred stock with a stated value of $3.67M, convertible into ~1.81M common shares (dilution of unknown magnitude relative to current float). Preferred dividends at 10% (24% on trigger) add cash burden.
Risk Factors
- Massive dilution from preferred stock conversion into common shares
- Preferred dividend obligations (10-24% per annum) strain limited cash resources
- Potential for further debt restructuring or bankruptcy if operations do not improve
- Nasdaq minimum bid price compliance risk given low stock price and declining trend
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-028818 |
| Exhibit: ex3-1.htm | 0001493152-26-028818 |
| Exhibit: ex10-3.htm | 0001493152-26-028818 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | EFFECT | $2.04 | awaiting T+60 | — | $1.82 (+10.78%) |
Oct 21, 2026 5d ago | S-1 | $2.37 | awaiting T+60 | — | $1.82 (−23.21%) |
Oct 20, 2026 6d ago | 8-K | $2.30 | awaiting T+60 | — | $1.82 (−20.87%) |
Oct 15, 2026 11d ago | 8-K | $0.1438 | awaiting T+60 | — | $1.82 (+1165.65%) |
Aug 27, 2026 8w ago | 8-K | $0.3652 | awaiting T+60 | — | $1.82 (+398.36%) |
Aug 14, 2026 10w ago | 8-K | $0.3888 | awaiting T+60 | — | $1.82 (+368.11%) |
Aug 14, 2026 10w ago | Press Release | $0.3888 | awaiting T+60 | — | $1.82 (+368.11%) |
Aug 5, 2026 11w ago | Press Release | $0.4900 | awaiting T+60 | — | $1.82 (+271.43%) |
Jul 29, 2026 12w ago | 8-K | $0.5206 $2.37 | ▲ +355.24% | ▲ +350.51% | $1.82 (+249.60%) |
Jul 22, 2026 13w ago | EFFECT | $0.5135 $0.1438 | ▼ −72.00% | ▼ −75.26% | $1.82 (+254.43%) |
US Market Status
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