WYTEC INTERNATIONAL INC 8-K

What Happened
Wytec International, Inc. announced it entered into a securities purchase agreement and closed financing with 1800 Diagonal Lending LLC on March 3, 2026. Under the agreement Wytec sold a promissory note with a $71,300 face amount (the 1800 Diagonal Note), which included a $9,300 original issue discount and was purchased for $62,000. A one-time 12% interest charge ($8,556) was applied at issuance. The note matures December 30, 2026.

Key Details

• Principal and pricing: $71,300 face amount; $9,300 original issue discount; purchase price $62,000; one-time interest charge of $8,556 (12% at issuance).
• Payment schedule: $39,928 due August 30, 2026; then four monthly payments of $9,982 on Sept 30, Oct 30, Nov 30 and Dec 30, 2026.
• Prepayment and default: Wytec may prepay in full anytime with no penalty and a 2%–5% discount if prepaid within 180 days of issuance. On default the outstanding amount is increased by 150% and the note accrues interest at 22% per year.
• Conversion right on default: 1800 Diagonal may, at its option, convert the note into Wytec common stock at a price equal to 65% of the lowest trading price during the 10 trading days preceding conversion; conversion cannot cause 1800 Diagonal and affiliates to own more than 4.99% of outstanding shares.

Why It Matters
This filing creates a near‑term financial obligation for Wytec with scheduled payments beginning August 2026 and maturity at year end, which could affect the company’s short‑term cash needs. The default provisions are severe (a 150% increase plus 22% interest) and include a conversion feature that could lead to equity issuance at a steep discount if a default occurs, although conversion is limited by a 4.99% ownership cap. Retail investors should note the size, timing, and stringent default remedies when assessing Wytec’s near‑term liquidity and potential dilution risk.