Business Context and Reporting Period
Freight Technologies, Inc. filed a Form 6-K on June 23, 2026, reporting the entry into a material definitive agreement. The filing covers the month of June 2026 and involves the Company and its subsidiaries, Freight App, Inc. and Freight App de Mexico, S.A. de C.V.
Key Financial Metrics
This filing does not provide revenue, profit, cash flow, or margin data. The primary financial metric disclosed is a new secured term loan with the following terms:
- Principal Amount: $2,500,000
- Interest Rate: 10.0% per annum (accrued on a 365-day actual/actual basis)
- Maturity Date: June 17, 2027
- Interest Payment: Monthly, commencing July 1, 2026 (with a Pay-In-Kind option at the Lender's discretion if cash is insufficient)
- Prepayment Penalty: 10.0% of the principal amount repaid
- Default Interest: Applicable rate plus 2.0%
Material Changes
The Company entered into a Loan and Security Agreement on June 18, 2026, with an institutional investor. This agreement grants the Lender a perfected security interest in all assets of the Borrowers. The Borrowers agreed to negative covenants restricting the incurrence of additional indebtedness, mortgages, or liens, and prohibiting changes to the nature of the business, subject to certain exceptions.
Outlook, Risks, and Management Commentary
Use of Proceeds: The Company intends to use the net proceeds from the new loan to repay in full its existing credit facility with Capital Foundry Funding, LLC.
Risks and Contingencies: The loan agreement includes a Pay-In-Kind (PIK) provision, which could increase the principal balance if the Company lacks sufficient cash for interest payments. Additionally, the 10.0% prepayment premium creates a significant cost barrier to early repayment. The agreement imposes strict covenants that limit future financial flexibility regarding new debt and business operations.
Investor Verification Checklist
- Verify the full text of the Loan and Security Agreement (Exhibit 10.1) for specific exceptions to the negative covenants.
- Confirm the outstanding balance and terms of the existing Capital Foundry Funding, LLC facility to be repaid.
- Assess the Company's current cash flow sufficiency to meet the monthly interest obligations without triggering the Pay-In-Kind provision.
- Review the impact of the 10.0% prepayment penalty on the Company's ability to refinance or repay the debt early.