zSpace, Inc. 8-K

What Happened

• zSpace, Inc. announced on March 19, 2026 that it entered a new Loan and Security Agreement with Itria Ventures LLC for a $1,344,500 term loan at an 18.99% annual interest rate to refinance its outstanding debt with that lender. The loan is payable in 24 equal monthly installments and is secured by a second-priority lien on substantially all assets and guaranteed by two wholly owned subsidiaries.
• On March 22, 2026 zSpace and Fiza Investments Limited executed Amendment No. 4 to their July 11, 2024 loan agreement to impose a moratorium on interest payments through December 31, 2026; interest will continue to accrue and be capitalized during the moratorium and monthly interest-only payments resume afterward.

Key Details

• New Itria term loan: $1,344,500 principal; 18.99% interest; 24 monthly equal payments; matures 24 months after funding (loan dated March 19, 2026).
• Refinanced two prior Itria agreements dated August 20, 2025 (original principal amounts $1,000,000 each).
• Intercreditor agreement: Itria subordinated its security interest to the Senior Lender; New Loan remains subordinated and subject to covenant limits on declaring defaults.
• Fiza Amendment: interest payments deferred until 12/31/2026; deferred interest will be capitalized (added to principal); normal monthly interest-only payments resume after the moratorium.

Why It Matters

• For investors, the transactions create a new direct financial obligation of $1.3445M (Itria loan) and defer cash interest payments to Fiza through year-end 2026, which may ease near-term cash outflows.
• The Itria loan carries a high nominal rate (18.99%) and is subordinated (second lien), and deferred Fiza interest will increase principal when capitalized — both facts affect the company’s future interest expense and leverage.
• The intercreditor arrangement preserves the Senior Lender’s priority, and events of default (e.g., missed payments or bankruptcy) could trigger a 5 percentage-point interest increase and acceleration of repayment.