Our Bond, Inc. (OBAI) · Nov 3, 2026 · Restructuring

Our Bond debt conversion brings relief—but heavy dilution

Debt converted — $7.88M secured debt converted; only $250K cash funded initially

Our Bond’s financing 8-K removes secured debt and old preferred stock, but replaces it with costly Series G dilution and limited new cash.

Our Bond is trying to scale an AI-powered preventative-security platform while still operating with weak economics: first-half 2026 revenue was $4.47 million, ARR was about $10 million, but the company reported an $11.47 million net loss, $8.34 million of operating cash burn, and substantial doubt about continuing as a going concern.

The debt burden is reduced, but not economically erased. Eastward’s $7.88 million secured loan was converted into 787,815 shares of new Series G preferred stock, while $803,941 of fees owed to Maxim was also converted. The company also exchanged Ascent’s Series C and Series D preferred stock into $5.78 million of Series G and retired Ascent’s warrants. 〔0〕 That removes near-term secured debt and simplifies the preferred stack, but the obligations have largely been transformed into a new security that still accrues a 10% dividend and can convert into common stock.

The central problem is dilution, not the headline debt reduction. At the stated conversion price, the total Series G balance—including existing Series G—represents roughly 8.27 million common shares, versus 1.64 million common shares outstanding before the transaction. The preferred stock also carries anti-dilution protection, a 10% dividend that rises to 24% during a triggering event, and registration rights for resale. That makes the recapitalization helpful for solvency optics but highly dilutive if holders convert.

The new-money component is much smaller than the filing’s headline capacity. The company signed for up to $10 million of common-stock purchases, but only $250,000 is initially funded for 90,909 shares. 〔1〕 The remaining $9.75 million requires separate mutual agreement, written milestones, and future registration coverage, so it is financing potential—not committed liquidity.

The structure buys time but leaves execution and funding risk intact. Leak-out limits may slow selling by the converted holders, but they do not remove the eventual resale supply, and the company must file resale registration statements on tight deadlines. Given the company’s ongoing cash burn, the immediate cash injection is modest relative to its financing needs; the real benefit is retiring secured obligations, not funding growth.

Bottom line: This is a balance-sheet reset that reduces secured debt pressure, but it does so by creating a very large preferred-to-common overhang while delivering only $250,000 of fresh cash today. For a cash-burning company, that is a modestly negative restructuring rather than a clean liquidity solution.

What to watch next

Resale registration filings due within 10–14 days

Original filing on SEC EDGAR

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