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Get filing alertsVirtuix exchanges $2.7M of 18% debt for new 6% note with monthly redemption rights
Filed April 2, 2026 · Period ending March 31, 2026 · ~1 min read
Key Changes
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Company restructured $2.68M of maturing 18% subordinated notes into new 6% note due July 2027, avoiding immediate repayment but adding $243K discount and $10K fees to principal balance.
Item 1.01 verify on EDGAR → -
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Starting July 2026, lender Streeterville Capital can demand monthly repayments up to $112K with just two trading days' notice, creating potential liquidity pressure on short notice.
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Subsidiary Virtuix Inc. guaranteed the debt, putting subsidiary assets at risk if parent company defaults on obligations to Streeterville.
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Agreement includes restrictive covenants requiring timely SEC filings, maintaining exchange listing, and limiting additional debt or equity issuances; violations trigger acceleration of full balance plus penalties.
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Summary
Virtuix Holdings restructured $2.7 million of high-interest debt that matured March 31, 2026, exchanging 18% subordinated notes for a new note with Streeterville Capital at 6% interest due July 2027. While the lower rate appears favorable, the deal added $253,000 in fees and discount to the principal and gives the lender significant control: starting in three months, Streeterville can demand monthly repayments of up to $112,000 with only two days' notice. Retail investors should understand this creates near-term liquidity risk.
The company must maintain cash reserves to meet potential monthly redemption demands while complying with restrictive covenants that limit its financing flexibility. The subsidiary guarantee means operational assets back this debt. Watch for: (1) whether Streeterville exercises monthly redemption rights starting July 2026, which would signal either lender concern or company cash strain, and (2) the company's ability to refinance or repay before the July 2027 maturity without diluting shareholders through equity raises.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
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The Company’s obligations under the Exchange Note are guaranteed by Virtuix Inc., a Delaware corporation and a subsidiary of the Company, pursuant to a guaranty referenced in the Exchange Agreement (filed as Exhibit 10.3 to this Current Report on Form 8-K).
The company's subsidiary Virtuix Inc. has guaranteed the debt obligations, meaning the lender can pursue the subsidiary's assets if the parent company defaults. This increases the creditor's security but puts subsidiary assets at risk.
Event · Item 2.03 — Creation of a Direct Financial Obligation
8-K discloses creation of a direct financial obligation, with details incorporated by reference from Item 1.01.
Added in current filing · verify on EDGAR →
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
The company disclosed the creation of a direct financial obligation or off-balance sheet arrangement. The specific details are referenced in Item 1.01 of this same 8-K filing, which was not provided in the excerpt. This typically indicates new debt, credit facility, or similar financial commitment.
Event · Item 9.01 — Financial Statements and Exhibits
Virtuix exchanged debt with Streeterville Capital, issuing a new $2.68M promissory note backed by subsidiary guaranty.
Added in current filing · verify on EDGAR →
Exchange Agreement, dated March 31, 2026, by and between Virtuix Holdings Inc. and Streeterville Capital, LLC.
Virtuix entered into an exchange agreement with Streeterville Capital on March 31, 2026. The nature of the exchange is not detailed in the 8-K body, but it resulted in the issuance of a new promissory note.
Added in current filing · verify on EDGAR →
Guaranty, dated March 31, 2026, made by Virtuix, Inc. in favor of Streeterville Capital, LLC.
Virtuix's operating subsidiary, Virtuix, Inc., provided a guaranty to Streeterville Capital in connection with the exchange transaction. This means the subsidiary's assets may be at risk if the parent company defaults on the new note.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 3, 2026 · How we verify