secwatch.observer — SEC 8-K summary
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Issuer:     Katapult Holdings, Inc. (KPLT)
CIK:        0001785424
Form:       8-K
Filed at:   2025-10-14T23:59:59+00:00
Accession:  0000950103-25-013098
Event type: debt
Sentiment:  negative
Materiality: 0.85
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Katapult obtains limited waiver on loan covenant default through Oct 20; lenders gain conversion rights at $16.54 VWAP
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- Company defaulted on Minimum Trailing Three-Month Originations covenant as of Aug 31 and Sept 30, 2025.
- Lenders temporarily waive default until Oct 20, 2025; no commitment to extend beyond.
- Class B Lenders can convert up to 100% of Term Loan into common stock at 20-day VWAP (~$16.54 as of Oct 10).
- Credit Parties release all claims against lenders except for fraud, gross negligence, or willful misconduct.
- Conversion rights exercisable anytime after execution; potential significant dilution for existing shareholders.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1785424/000095010325013098/0000950103-25-013098-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1785424/000095010325013098/dp235807_8k.htm
  HTML page:      https://secwatch.observer/filing/0000950103-25-013098

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer