---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-24-033672"
form_type: "8-K"
ticker: "AIFC"
cik: "0000862861"
company_name: "AI Financial Corp"
filed_at: "2024-08-23T23:59:59+00:00"
generated_at: "2026-05-31T07:56:19.314502+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Alt5 Sigma raises $1.6M via non-convertible debentures with escalating interest up to 4%/month and warrants

## Summary
- Sold three units: one $1.784M debenture + 400,000-share warrant; two $404,454.39 debentures each + 90,909-share warrants.
- Debentures bear interest at 1%/month (Aug–Oct 2024), 3%/month (Nov 2024–Jan 2025), then 4%/month until repayment.
- Principal includes escalating OID: base $1.271M (big) and $288,864 (small), increasing if not repaid by Oct 31, 2024 or Jan 29, 2025.
- Warrants exercisable at $1.71/share; initial tranches must be exercised within 15 days, contingent tranches vest on missed repayment dates.
- Maturity April 28, 2025; 50% of any future financing proceeds must be used to prepay debentures on a pro-rata basis.

## SEC filing metadata
- accession: 0001493152-24-033672
- form_type: 8-K
- ticker: AIFC
- cik: 0000862861
- company_name: AI Financial Corp
- filed_at: 2024-08-23T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 1.01, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/862861/000149315224033672/0001493152-24-033672-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/862861/000149315224033672/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-24-033672
- JSON: https://secwatch.observer/filing/0001493152-24-033672.json
- Plain text: https://secwatch.observer/filing/0001493152-24-033672.txt

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