Edgemode, Inc. (EDGM) caps lender note conversions with 30-day leakout limits
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Edgemode, Inc. entered into a leakout agreement effective July 14, 2026 with certain lenders holding convertible promissory notes with an aggregate outstanding balance of approximately $1,646,136. This agreement replaces a prior standstill agreement dated June 25, 2026.
Under the leakout terms, each lender agrees not to convert, assign, transfer, or pledge more than 30% of the current owed balance of its note during any 30-day period, or 15% over any 30-day period if the company’s common stock closes below $0.003. The leakout restrictions remain in effect until December 31, 2026, regulating the pace at which the covered notes may be converted or otherwise disposed of.
Positive
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Negative
- None.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Convertible notes outstanding: $1,646,136
Standard 30-day limit: 30%
Reduced 30-day limit: 15%
+3 more
6 metrics
Convertible notes outstanding
$1,646,136
Aggregate outstanding amount of notes covered by the leakout agreement
Standard 30-day limit
30%
Maximum portion of each lender’s current owed note balance that can be converted or disposed of in any 30-day period
Reduced 30-day limit
15%
Limit on conversions or dispositions in any 30-day period if common stock closes below $0.003
Price threshold
$0.003
Closing stock price level that triggers the tighter 15% leakout cap
Leakout end date
December 31, 2026
Date through which the leakout agreement remains in effect
Prior agreement date
June 25, 2026
Date of the standstill agreement superseded by the leakout agreement
Key Terms
leakout agreement, convertible promissory notes, standstill agreement, emerging growth company, +1 more
5 terms
leakout agreement financial
"the Company entered into a leakout agreement (the “Leakout Agreement”) with certain lenders"
convertible promissory notes financial
"lenders holding convertible promissory notes in the aggregate outstanding amount"
A convertible promissory note is a loan a company takes that can later be turned into shares instead of being paid back in cash; think of lending money now in exchange for a voucher that can become ownership later. Investors care because it mixes credit risk and potential ownership upside—it can protect lenders if a company struggles while also diluting existing shareholders when converted, affecting future share value and investor returns.
standstill agreement financial
"The Leakout Agreement supersedes that certain standstill agreement entered into"
A standstill agreement is a contract in which one party agrees to pause certain actions — such as making new claims, enforcing debt remedies, or pursuing a takeover bid — for a set period so both sides can negotiate or restructure. Think of it as a temporary pause button that reduces immediate pressure and uncertainty; investors care because it can protect value, buy time for a deal or restructuring to be completed, and signal the likelihood and timing of future corporate developments.
emerging growth company regulatory
"Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
Inline XBRL technical
"Cover Page Interactive Data File (embedded within the Inline XBRL document)"
Inline XBRL is a file format for financial filings that embeds machine-readable data tags directly inside the human-readable report, so the same document can be read by people and parsed by software. For investors it makes extracting, comparing and verifying financial numbers faster and more reliable—like a grocery list where each item also has a barcode—reducing manual errors and speeding up analysis.
FAQ
What did Edgemode (EDGM) disclose regarding its lenders on July 14, 2026?
Edgemode entered a leakout agreement with certain lenders holding convertible promissory notes totaling about $1,646,136. The agreement limits how much of each note can be converted or transferred during any 30-day period through December 31, 2026.
What is the total outstanding amount of notes covered by Edgemode (EDGM)’s leakout agreement?
The leakout agreement covers convertible promissory notes with an aggregate outstanding amount of approximately $1,646,136. These notes are held by certain lenders who have agreed to restrictions on conversions, transfers, assignments, and pledges over defined 30-day periods.
What conversion and transfer limits apply under Edgemode (EDGM)’s leakout agreement?
Each lender may not convert, assign, transfer, or pledge more than 30% of its current owed note balance in any 30-day period. If Edgemode’s common stock closes below $0.003, the limit tightens to 15% over the same 30-day window.
How long will Edgemode (EDGM)’s leakout agreement with lenders remain in effect?
The leakout agreement remains effective until December 31, 2026. During this period, participating lenders are subject to percentage-based limits on how much of their convertible promissory note balances can be converted or otherwise disposed of within any 30-day interval.
What prior arrangement does Edgemode (EDGM)’s leakout agreement replace?
The leakout agreement supersedes a standstill agreement dated June 25, 2026. That earlier arrangement is replaced by more detailed restrictions governing conversions, transfers, assignments, and pledges of the covered convertible promissory notes through year-end 2026.