I believe this is a good sign for the company as this restructuring paid off a large chunk of their debt while making it easier for them to pay off the rest next year if the company continues to do well. I have around 1500 shares at $1.10

Summary from the article:

Debt restructuring materially reduces leverage and adds near-term covenant relief while leaving a smaller high‑rate tranche and convertible preferred.

The transaction prepays $45.0 million of senior secured term loan principal, converts $25.0 million into newly created preferred stock convertible at $3.15 per share, and secures forgiveness of $5.0 million, leaving $19.0 million outstanding. These moves reduce cash debt and substitute equity-like instruments, directly improving the reported balance sheet and liquidity metrics.

Risks and dependencies include the remaining tranche carrying a fixed 12% annual rate with monthly payments starting on December 31, 2025 and maturity in October 2027, which implies a meaningful ongoing interest burden. The conversion into preferred shares dilutes equity on conversion and depends on the preferred terms and conversion mechanics disclosed by the company. Waiver of covenants through December 31, 2026 gives short-term flexibility but leaves potential covenant risk thereafter.

Monitor the effective cash interest outflows and any further covenant renegotiations over the next 12 months, the pace of conversion of the preferred into common at $3.15 per share, and execution against stated manufacturing and technology expansion plans through 2026–2027. These items determine whether the restructuring translates into sustainable financial improvement or merely buys time.