Business Context and Reporting Period
This Form 6-K filing by Freight Technologies, Inc. covers the month of April 2023, specifically dated April 24, 2023. The report discloses the entry into a Material Definitive Agreement regarding the modification of existing debt instruments.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or margin data. The specific financial details disclosed relate to a debt restructuring event:
- Modified Funding Amount: The total "Funding Amount" under the amended agreement is defined as $9,000,000.
- Immediate Funding: Concurrent with the agreement, the Investor exercised an option to fund an additional $1,050,000.
- Debt Instrument: The transaction involves an Amended and Restated Convertible Promissory Note.
Material Changes
The primary material change is the execution of a Debt Modification Agreement with Freight Opportunities LLC. This agreement modifies the Securities Purchase Agreement (SPA) originally entered into on January 3, 2023. Key changes include:
- Re-definition of the total Funding Amount to $9,000,000.
- Amendments to terms regarding notes and tranches in Sections 2.1 and 2.2 of the original SPA.
- Immediate capital injection of $1,050,000.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or a discussion of general risks and contingencies. The document is strictly a disclosure of the debt modification event. Investors are directed to the full text of the Debt Modification Agreement and the Amended and Restated Convertible Promissory Note (filed as Exhibits 10.1 and 10.2) for complete terms.
Investor Verification Checklist
- Review Exhibit 10.1 (Debt Modification Agreement) for specific terms regarding the $9,000,000 funding cap.
- Examine Exhibit 10.2 (Amended and Restated Convertible Promissory Note) for conversion rates, interest rates, and maturity dates.
- Verify the status of the original January 3, 2023 Securities Purchase Agreement to understand the full scope of the amendment.
- Confirm the utilization of the $1,050,000 immediate funding tranche.