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$510,000 in principal constitutes the face amount of the 10% Convertible Promissory Note NextBoat Inc. (NXB) issued to Greentree Financial Group, Inc. on August 14, 2026, per the company's 8-K filed with the SEC.
A 10% original issuance discount strips $51,000 off the top, leaving approximately $459,000 in gross proceeds; subtract the $10,000 legal fee allowance payable to the Lender and the cash reaching NextBoat's balance sheet is closer to $449,000.
Note economics | Term | Detail | |---|---| | Principal | $510,000 | | OID | 10% ($51,000) | | Gross proceeds (est.) | $459,000 | | Coupon | 10% per annum, quarterly | | Default rate | 18% per annum | | Maturity | August 14, 2028 | | Conversion price | $1.785/share | | Warrant shares | 100,000 at $1.785 | | Warrant term | 3 years | | Commitment shares | 20,000 restricted | | Beneficial ownership cap | 4.99% (waivable to 9.99%) | The Note matures August 14, 2028.
At 10% on $510,000, quarterly payments beginning October 10, 2026 run approximately $12,750 per quarter; across the two-year term, the interest burden at the stated coupon reaches $102,000 on the face amount.
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