PALO ALTO, Calif., July 06, 2026 (GLOBE NEWSWIRE) —
- Elimi ated the va iable co ve sio p ice featu e that p eviously equi ed de ivative accou ti g t eatme t, positio i g the sha es fo pe ma e t equity classificatio goi g fo wa d.
- Excha ged 1,170 Se ies 2 sha es fo a u secu ed p omisso y ote.
- The accou ti g cha ges a e p ese tatio – elated o ly a d have o impact o liquidity, ope atio s, o the Compa y’s u de lyi g eco omics.
- The Compa y’s upcomi g Q1 2026 fili g will eflect a evised accou ti g classificatio of its p efe ed stock.
- The evised p ese tatio is o -cash i atu e a d has o effect o the Compa y’s cash positio , ope atio s, total assets, total liabilities, o et assets.
“These actio s ep ese t a othe impo ta t step i simplifyi g ou capital st uctu e a d fi a cial epo ti g,” said James McCo mick, Chief Executive Office of Cloudast uctu e. “By establishi g a fixed co ve sio p ice a d excha gi g a po tio of the p efe ed sha es fo a p omisso y ote, we’ve simplified these secu ities a d positio ed the emai i g Se ies 2 P efe ed Stock fo pe ma e t equity classificatio . Impo ta tly, the accou ti g p ese tatio eflected i ou upcomi g fili g is o -cash i atu e a d does ot cha ge the u de lyi g eco omics of ou busi ess. With these matte s behi d us, we ca emai focused o executi g ou g owth st ategy a d c eati g lo g-te m value fo sha eholde s.”
O Ju e 29, 2026, the Compa y filed a Ame ded a d Restated Ce tificate of Desig atio s of P efe e ces a d Rights of its Se ies 2 Co ve tible P efe ed Stock (the “Ame ded Ce tificate”) with the Sec eta y of State of the State of Delawa e, followi g app oval by the Compa y’s Boa d of Di ecto s a d by St eete ville Capital, LLC (“St eete ville”), the sole holde of all outsta di g Se ies 2 sha es. The Ame ded Ce tificate elimi ates the va iable co ve sio p ice featu e that had p eviously equi ed the i st ume t to be accou ted fo as a embedded de ivative, emoves a p ovisio that could have t igge ed liquidatio payme ts upo ce tai cha ge-of-co t ol t a sactio s outside the Compa y’s co t ol, a d limits the liquidatio p efe e ce to apply o ly i the eve t of a actual volu ta y o i volu ta y liquidatio , dissolutio , o wi di g up of the Compa y. The Compa y expects the ame ded te ms to suppo t classificatio of the Se ies 2 sha es withi pe ma e t stockholde s’ equity goi g fo wa d.
O Ju e 30, 2026, the Compa y e te ed i to a Excha ge Ag eeme t with St eete ville u de which St eete ville excha ged 1,170 Se ies 2 sha es fo a u secu ed p omisso y ote i the o igi al p i cipal amou t of $1,299,870 (the “Excha ge Note”), issued without a y additio al co side atio paid by St eete ville. The Excha ge Note bea s i te est at 9.5% pe a um, matu es o July 30, 2027, a d, begi i g July 30, 2026, may be edeemed by St eete ville at a ate of up to $108,332.50 pe mo th, plus acc ued i te est. The Excha ge Note co tai s customa y t igge eve ts, a d if a t igge eve t is ot timely cu ed, it becomes a eve t of default u de which St eete ville may accele ate epayme t of the Note. The 1,170 Se ies 2 sha es excha ged u de the ag eeme t we e ca celled.
I p epa i g its Qua te ly Repo t o Fo m 10-Q fo the fi st qua te of 2026, the Compa y ide tified two accou ti g classificatio matte s elated to its Se ies 1 Co ve tible P efe ed Stock (fully co ve ted i 2025) a d its Se ies 2 Co ve tible P efe ed Stock. The te ms of both secu ities we e fully disclosed at issua ce, a d the Compa y’s o igi al accou ti g t eatme t was based o thi d-pa ty a alysis that was eviewed by its the -i depe de t audito s. The upcomi g fili g will eflect a evised, o -cash accou ti g p ese tatio that affects o ly the bala ce sheet classificatio of these i st ume ts, with o impact o the Compa y’s cash positio , ope atio s, total assets, total liabilities, o et assets.
Headqua te ed i Palo Alto, Califo ia, Cloudast uctu e’s pate ted, adva ced, awa d-wi i g secu ity platfo m utilizes a scalable cloud-based a chitectu e that featu es cloud video su veilla ce with p op ieta y, state-of-the-a t AI/ML a alytics, a d a seamless emote gua di g solutio . The combi atio e ables e te p ise busi esses to achieve p oactive, e d-to-e d secu ity, a d pai s that platfo m with a att active value p opositio that eschews p op ieta y ha dwa e a d offe s co t act-f ee, mo th-to-mo th p ici g a d u limited 24/7 suppo t. With Cloudast uctu e, compa ies ca achieve u pa alleled situatio al awa e ess i eal time a d the eby stop c ime as it is happe i g, while simulta eously achievi g up to a 75% lowe Total Cost of Ow e ship tha othe systems. Fo mo e i fo matio , visit https://www.cloudast uctu e.com/.
Ce tai stateme ts i this p ess elease may be co side ed fo wa d-looki g, such as stateme ts co tai i g estimates, p ojectio s, a d othe fo wa d-looki g i fo matio , i cludi g stateme ts ega di g the expected classificatio of the Se ies 2 Co ve tible P efe ed Stock a d the a ticipated effects of the Ame ded Ce tificate a d Excha ge Ag eeme t. Fo wa d-looki g stateme ts a e typically ide tified by wo ds a d ph ases such as “a ticipate,” “estimate,” “believe,” “co ti ue,” “could,” “i te d,” “may,” “pla ,” “pote tial,” “p edict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “p ojectio ,” “fo ecast,” “goal,” “guida ce,” “outlook,” “effo t,” “ta get” o the egative of such wo ds a d othe compa able te mi ology. Howeve , the abse ce of these wo ds does ot mea that a stateme t is ot fo wa d-looki g. A y fo wa d-looki g stateme t exp essi g a expectatio o belief as to futu e eve ts is exp essed i good faith a d believed to be easo able at the time such fo wa d-looki g stateme t is made. Howeve , these stateme ts a e ot gua a tees of futu e eve ts a d i volve isks, u ce tai ties, a d othe facto s beyo d ou co t ol. The efo e, we cautio you agai st elyi g o a y of these fo wa d-looki g stateme ts. Facto s that could cause o co t ibute to such diffe e ces i clude the isks a d u ce tai ties discussed i the epo ts that the Compa y has filed with the SEC, such as its A ual Repo t o Fo m 10-K. Actual outcomes a d esults may diffe mate ially f om what is exp essed i a y fo wa d-looki g stateme t. Except as equi ed by applicable law, i cludi g U.S. fede al secu ities laws, we do ot i te d to update a y of the fo wa d-looki g stateme ts to co fo m them to actual esults o evised expectatio s.
