Monitor whether Stewards can repay the $1.6M principal plus accrued interest by September 1, 2026. Failure to do so would trigger the 15% default rate and escalate default remedies. The related-party nature of the note suggests limited external financing options — a default could accelerate liquidity concerns and delisting risk for this OTC-traded micro-cap.
Price Chart
Executive Summary
Stewards, Inc. filed an 8-K disclosing two items: (1) Amendment No. 1 to a Promissory Note with related-party holder FAVO Holdings, extending the maturity of the $1.6 million final installment to September 1, 2026, increasing the interest rate to 10% p.a., and waiving the 15% default interest through September 1, 2026; and (2) adoption of Amended and Restated Bylaws adding majority voting for uncontested director elections, advance notice provisions for shareholder proposals, exclusive forum provisions, and updated notice/remote meeting rules. The note amendment reveals the company was unable to pay a $1.6M obligation when due and required a related-party extension at a higher rate, signaling liquidity stress.
Key Financial Metrics
Key Facts
- Original $4.7M promissory note had a final installment of $1,600,000 (plus accrued interest at 6%) due May 31, 2026 that was not paid.
- Amendment extends the maturity to September 1, 2026 and raises the interest rate to 10% per annum ($40,000 aggregate interest for the 3-month extension period).
- Default interest rate of 15% per annum is waived only through September 1, 2026; reinstated if not paid by that date.
- The holder, FAVO Holdings, is owned 65% by Vincent Napolitano and 35% by Shaun Quin (CEO and director) — a related-party transaction.
- CFO Katy Murless signed for the company; Shaun Quin recused himself from board deliberation; disinterested directors approved the amendment.
- Bylaw amendments include majority voting standard for uncontested director elections, advance notice provisions, exclusive forum in Nevada courts, and authorization of remote/hybrid meetings.
Financial Impact
$1,600,000 principal extended at increased interest rate (6% to 10%) — modest incremental cost of ~$16,000 extra interest over 3 months, but signals default on a material obligation.
Risk Factors
- Potential payment default on September 1, 2026 if the company cannot raise funds; default interest jumps to 15%.
- Related-party loan structure with CEO as 35% beneficial owner of the holder raises governance and conflict-of-interest concerns.
- OTC-traded with no 12(b) securities — limited liquidity and disclosure protections for common stockholders.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001663577-26-000243 |
| Exhibit: ex10_1.htm | 0001663577-26-000243 |
| Document: swrd_8k080526.htm | 0001663577-26-000243 |
| Document: 0001663577-26-000243-index-headers.html | 0001663577-26-000243 |
| Document: 0001663577-26-000243-index.html | 0001663577-26-000243 |
| Document: 0001663577-26-000243.txt | 0001663577-26-000243 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 19d ago | 8-K/A | $2.54 $2.62 | ▼ −3.15% | ▼ −2.55% | $2.50 (+1.57%) |
Sep 29, 2026 27d ago | 8-K | $2.43 $2.42 | ▼ −0.41% | ▼ −0.21% | $2.50 (+2.88%) |
Sep 24, 2026 4w ago | 8-K | $2.81 $2.61 | ▼ −7.12% | ▼ −7.66% | $2.50 (−11.03%) |
Sep 24, 2026 4w ago | Press Release | $2.81 $2.61 | ▲ +7.12% | ▲ +7.66% | $2.50 (+11.03%) |
Sep 21, 2026 5w ago | 8-K | $2.18 $2.42 | ▼ −11.01% | ▼ −11.73% | $2.50 (−14.68%) |
Sep 21, 2026 5w ago | 3 | $1.99 $2.18 | ▲ +9.55% | ▲ +9.56% | $2.50 (+25.63%) |
Sep 16, 2026 5w ago | SC 13D | $2.13 $2.15 | ▲ +0.94% | ▲ +1.06% | $2.50 (+17.37%) |
Sep 16, 2026 5w ago | SC 13D | $2.13 $2.15 | ▲ +0.94% | ▲ +1.06% | $2.50 (+17.37%) |
Sep 16, 2026 5w ago | SC 13D | $2.13 $2.15 | ▲ +0.94% | ▲ +1.06% | $2.50 (+17.37%) |
Sep 16, 2026 5w ago | SC 13D | $2.13 $2.15 | ▲ +0.94% | ▲ +1.06% | $2.50 (+17.37%) |
US Market Status
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