---
schema_version: "secwatch.filing_event.v1"
accession: "0001104659-24-062373"
form_type: "8-K"
ticker: null
cik: "0001822145"
company_name: "Presto Automation Inc."
filed_at: "2024-05-16T23:59:59+00:00"
generated_at: "2026-06-01T21:37:43.475919+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Presto Automation enters forbearance requiring $3M capital raise; warns stock could become worthless

## Summary
- Forbearance requires raising $3M by May 22 ($2.5M by May 15) to extend to June 14; additional $3M by June 7 to extend to July 15.
- Issued $1.5M subordinated convertible note to Remus Capital (board affiliate) at $0.14/share; PIK interest 7.5%.
- Extended $4M secured note from Presto CA LLC maturity to forbearance end; anti-dilution trigger lowered to $0.14.
- If forbearance ends, lenders can enforce remedies; company warns common stock may become worthless.

## SEC filing metadata
- accession: 0001104659-24-062373
- form_type: 8-K
- cik: 0001822145
- company_name: Presto Automation Inc.
- filed_at: 2024-05-16T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1822145/000110465924062373/0001104659-24-062373-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1822145/000110465924062373/tm2414694d1_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001104659-24-062373
- JSON: https://secwatch.observer/filing/0001104659-24-062373.json
- Plain text: https://secwatch.observer/filing/0001104659-24-062373.txt

## Key facts
- Material Agreements
  Presto Automation Inc. entered into Cooperation Agreement with Metropolitan Partners Group Administration, LLC valued at Forbearance on defaults under Credit Agreement; requires capital raises of $3,000,000 and $3,000,000 (effective 2024-05-16).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Metropolitan Partners Group Administration, LLC
  - Value: Forbearance on defaults under Credit Agreement; requires capital raises of $3,000,000 and $3,000,000
  - Effective: 2024-05-16
  source text: On May 16, 2024, the Company and Presto Automation LLC (the “Borrower”), the Company’s wholly owned subsidiary (the “Loan Parties”) entered into a Cooperation Agreement (the “Cooperation Agreement”) with Metropolitan Partners Group Administration, LLC, the administrative, payment and collateral agent (the “Agent”) under the Credit Agreement, dated as of September 21, 2022 (as amended, the “Credit Agreement”), Metropolitan Levered Partners Fund VII, LP, Metropolitan Partners Fund VII, LP, Metropolitan Offshore Partners Fund VII, LP and CEOF Holdings LP (collectively, the “Lenders”), and certain significant stockholders.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1822145/000110465924062373/0001104659-24-062373-index.htm
- Material Agreements
  Presto Automation Inc. entered into May Note with Remus Capital Series B II, L.P valued at Convertible subordinated note in principal amount of $1,500,000; convertible into 10,714,286 shares (effective 2024-05-16).
  - Action: entry
  - Agreement: notes offering
  - Counterparty: Remus Capital Series B II, L.P
  - Value: Convertible subordinated note in principal amount of $1,500,000; convertible into 10,714,286 shares
  - Effective: 2024-05-16
  source text: On May 16, 2024, Presto Automation Inc. (the “Company” or “we”) issued to Remus Capital Series B II, L.P, an entity controlled by Krishna Gupta, a member of our Board of Directors, a subordinated convertible note in the principal amount of $1,500,000 (the “May Note”) in consideration for a cash investment of $1,500,000 from Remus Capital.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1822145/000110465924062373/0001104659-24-062373-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.