Mobix Labs (MOBX) investor relations material

Use of proceeds and capital allocation

• $500,000 principal loan from Lendspark Corporation, with $50,000 OID, for a total of $550,000, plus a one-time 12% interest charge ($66,000), maturing in 12 months.

• Net proceeds to the company were $500,000, with $8,500 for legal fees, $15,000 for due diligence, and $25,000 for broker fees withheld at closing.

• 150,000 shares of Class A Common Stock issued to Lendspark as commitment shares, fully earned at closing.

• Loan proceeds are to be used for business development and working capital, not for repayment of insider debt, loans to affiliates, or personal use.

• The note is convertible at $0.70 per share, subject to a 4.99% beneficial ownership cap and an exchange cap of 5,747,105 shares unless shareholder approval is obtained.

• The note is secured by a first-priority security interest in substantially all assets of the company and its subsidiaries.

• The agreement includes make-whole provisions: if the company issues stock or convertible securities below $0.70/share, Lendspark receives additional shares or cash, capped at $700,000.

• The company must maintain D&O insurance for 18 months post-closing and register the commitment shares for resale.

Risk factors and disclosures

• The loan is senior secured, with priority over all existing and future indebtedness, except certain permitted junior or ordinary course debt.

• The note includes default interest at 18% per annum and acceleration rights upon default.

• Events of default include non-payment, breach of covenants, bankruptcy, judgments, delisting, and other standard triggers.

• The agreement prohibits the company from selling or divesting material assets outside the ordinary course without Lendspark's consent.

• The company is restricted from entering into additional high-interest loans or cash advances with other parties during the term.

• The note and related agreements include broad indemnification, arbitration, and waiver of jury trial provisions.

Offering details and pricing

• $550,000 principal amount, $500,000 net proceeds, 12% interest, 12-month maturity.

• Convertible at $0.70 per share, with a 4.99% beneficial ownership cap and exchange cap.

• 150,000 commitment shares issued at closing; additional make-whole shares possible.

• Lendspark may convert the note at its option, subject to caps and adjustments.