---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-24-020790"
form_type: "8-K"
ticker: null
cik: "0001421636"
company_name: "C-Bond Systems, Inc"
filed_at: "2024-03-07T23:59:59+00:00"
generated_at: "2026-06-05T01:22:20.002648+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# C-Bond Systems enters $157K debt financing with conversion upon default at 35% discount

## Summary
- Issued $157K promissory note (incl. $13K OID) to 1800 Diagonal Lending; funded $125K; net proceeds ~$106K after $19K fees.
- Interest 12% p.a., monthly payments start Aug 30, 2024; default triggers 22% interest and 220% payoff or conversion at the greater of $0.0025 or 65% of 10-day VWAP.
- Conversion only on default; price is greater of $0.0025 fixed or 65% of lowest closing bid in prior 10 trading days (35% discount).
- Proceeds for general working capital; buyer also receives $19K expense reimbursement for legal and due diligence.

## SEC filing metadata
- accession: 0001213900-24-020790
- form_type: 8-K
- cik: 0001421636
- company_name: C-Bond Systems, Inc
- filed_at: 2024-03-07T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1421636/000121390024020790/0001213900-24-020790-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1421636/000121390024020790/ea0201334-8k_cbond.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-24-020790
- JSON: https://secwatch.observer/filing/0001213900-24-020790.json
- Plain text: https://secwatch.observer/filing/0001213900-24-020790.txt

## Key facts
- Debt Financings
  C-Bond Systems, Inc incurred loan of $157,000 with 1800 Diagonal Lending LLC at twelve percent (12%).
  - Instrument: loan
  - Principal: $157,000
  - Counterparty: 1800 Diagonal Lending LLC
  - Rate: twelve percent (12%)
  - Event: incurrence
  source text: On March 1, 2024, C-Bond Systems, Inc. (the “Company”) executed a Promissory Note (“Note”) in favor of 1800 Diagonal Lending LLC (the “Investor”) in the aggregate principal amount of $157,000 (the “Principal”), and an accompanying Securities Purchase Agreement (“SPA”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1421636/000121390024020790/0001213900-24-020790-index.htm
- Material Agreements
  C-Bond Systems, Inc entered into Promissory Note and Securities Purchase Agreement with 1800 Diagonal Lending LLC valued at $157,000 aggregate principal amount; funded $125,000 on March 4, 2023 (effective 2024-03-01).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: 1800 Diagonal Lending LLC
  - Value: $157,000 aggregate principal amount; funded $125,000 on March 4, 2023
  - Effective: 2024-03-01
  source text: On March 1, 2024, C-Bond Systems, Inc. (the “Company”) executed a Promissory Note (“Note”) in favor of 1800 Diagonal Lending LLC (the “Investor”) in the aggregate principal amount of $157,000 (the “Principal”), and an accompanying Securities Purchase Agreement (“SPA”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1421636/000121390024020790/0001213900-24-020790-index.htm

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