SideChannel Inc (SDCH)

[Slojab]

From the annual report.

"As discussed in Notes 2 and 5, the Company issued a convertible note, which if not paid upon maturity, has no explicit limit on the number of shares that may be issued since the conversion prices are based on a discount to the market prices of the Company’s common stock, with no floor price per share. In the event the Company does not repay this convertible note, the holders, upon conversion, may cause a significant adverse impact on the Company’s common stock. Also see Note 10 for subsequent amendments to the terms of the convertible note, and related common stock and warrants previously issued in connection therewith, which will be accounted for as an extinguishment with a loss recorded to operations."