Mandatory prepayments tied to revenue collections from product or service sales, plus proceeds from non-ordinary-course asset sales.
Granted a first-priority security interest in core assets; agreed to issue 500,000 shares as a commitment fee, reserve 5,000,000 default shares.
Senior secured loan and discount terms
Entered a $400,000 senior secured loan with Hollywood Horizons on July 16, 2026, via a Senior Secured 25% Original Issue Discount Promissory Note and Security Agreement.
25% original issue discount cut proceeds to a $300,000 purchase price; interest set at 10% annually, payable monthly.
Non-amortizing two-month term; balance due 60 days after funding; default interest rises to 18%.
SAFX•
