SCHMITT INDUSTRIES INC 8-K

What Happened
Schmitt Industries, Inc. filed an 8-K reporting that on May 11, 2026 it received a Notice of Default from Sententia Capital Management LLC. The notice alleges the Company owes $4,280,626.78 (principal, interest and fees) under a Consolidated Promissory Note dated July 14, 2023, and additionally alleges $402,131.51 (principal, interest and fees) under a 12% Secured Convertible Promissory Note issued by the Company’s subsidiary, Schmitt Measurement Systems, Inc.

Key Details

• Lender: Sententia Capital Management LLC (Notice of Default received May 11, 2026).
• Consolidated Promissory Note (dated July 14, 2023): original amount cited $2,638,885.21; Sententia claims $4,280,626.78 due including principal, interest and fees.
• Subsidiary note: 12% Secured Convertible Promissory Note (dated July 14, 2023) issued by Schmitt Measurement Systems, Inc.; original principal $300,000; claimed amount $402,131.51 including principal, interest and fees.
• Security: Consolidated note secured by a Stock Pledge Agreement (July 14, 2023) related to Schmitt Measurement Systems common stock; the subsidiary’s 12% note is stated as secured by a Security Agreement (All Assets) dated July 14, 2026 (as reported in the filing).

Why It Matters
A lender’s notice of default can accelerate repayment obligations and enable enforcement of collateral (stock pledge or asset security). That could affect the company’s liquidity, capitalization, or control of the subsidiary if not resolved. The 8-K only discloses receipt of the notice and the claimed amounts; it does not state the Company’s response, cure plans, or any dispute. Investors should monitor further filings or company statements for updates on negotiations, payments, or legal actions.