TON Strategy Co Debt Disclosure
8. NOTE PAYABLE
The Company has the following outstanding notes payable as of December 31, 2025 and 2024:
| Note | Issuance
Date |
Maturity
Date |
Interest
Rate |
Original Borrowing |
Balance
at December 31, 2025 |
Balance
at December 31, 2024 |
||||||||||||||
| Note payable | May 15, 2020 | May 15, 2050 | 3.75 | % | $ | 150 | $ | $ | 118 | |||||||||||
| Total notes payable | 118 | |||||||||||||||||||
| Non-current | (98 | ) | ||||||||||||||||||
| Current | $ | $ | 20 | |||||||||||||||||
On May 15, 2020, the Company executed an unsecured loan with the SBA under the Economic Injury Disaster Loan program in the amount of $150. Monthly payments, including principal and interest, began on October 26, 2022. On March 7, 2025, the Company fully repaid the SBA loan balance, including accrued interest.
The following table provides a breakdown of interest expense for the periods presented:
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Interest expense – amortization of debt discount | $ | $ | 99 | |||||
| Interest expense – amortization of debt issuance costs | 73 | |||||||
| Interest expense – other | 1 | 65 | ||||||
| Total interest expense | $ | 1 | $ | 237 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2022 | Apr 17, 2023 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.