Transparency Report: Active Deal Workouts and Recovery Updates

As of September 30, 2025

Percent is committed to providing transparency regarding the performance of all deals on our platform. While the vast majority of deals performed as expected, some loans have faced challenges and entered workout status. This page provides detailed information on current workouts, including the underlying borrower, the events leading to the workout, the underwriter’s response, and the current status of recovery efforts.

We believe that transparency and open communication are essential to building trust with our investors. We are dedicated to providing regular updates on workout situations and working diligently to maximize recoveries on behalf of our investors.

Detailed Workout Summaries (Corporate Loans)

Taiger: Exposure to a senior corporate loan

Background: Taiger was unable to make payment on its principal maturities in January 2024, as various developments affected their strategy, operations, and access to financing, including delays in its Spanish debt restructuring, a shift to smaller contracts related to industry-specific solutions, leading to defaults on junior debt, and delays in convertible note financing and Series C round.

Underwriter Response: Underwriters retained legal counsel in Singapore. Percent, AP-SF, and Taiger agreed on a 6-month forbearance agreement (with two 3-month extensions subject to certain terms) to waive both the event of default and foreclosure on the collateral (shares of Taiger) as well as allowing for PIK interest at the current rate in exchange for consent rights on capital raised, tighter restricted payments covenants, 20% equity warrant coverage, and Board observer seat. Additionally, all parties hosted a webinar for Percent investors to learn more about the business, forbearance plan, and next steps.

Principal at Start of Default: $5.00M
Recovered So Far: $0.19M (3.9%)
Remaining Principal Outstanding: $4.81M

Current Status: On January 7, 2025, Percent was informed by Taiger management that they held a meeting with representatives of its preferred shareholder classes, during which management disclosed that employees are owed six months of unpaid salaries, and key personnel, including the CTO, Chief Architect, and VP of Finance, have resigned. In response, management recommended liquidating the business and sought shareholder approval to approve an orderly liquidation by appointing a professional Singapore based liquidator. On January 9, 2025, Taiger management confirmed to Percent the support from shareholders to move forward with appointing a professional liquidator. Taiger management also confirmed that it has no remaining cash and is requesting ~SGD 52,000 from stakeholders (including Percent) to cover liquidation and advertising costs. Given the uncertainty of liquidation proceeds, Percent decided not to contribute to the liquidation expenses per advice of Withers, our local counsel, because Percent is already in a senior position and should liquidation proceeds not be enough to cover these expenses, we would be unnecessarily draining a significant portion of the remaining cash reserve, which stood at $134,340.00 for the benefit of the TGR1 2023-1 note specifically (for the TGR1 2023-2 note the cash reserve was fully utilized to make interest payments on that note). On March 7, 2025, Percent was contacted by Charles Mah, a professional liquidator nominated by Taiger’s management and preferred shareholders, informing us of a formal creditors meeting to be held on March 21, 2025, as well as documents to be submitted evidencing our claims in advance. Percent and its counsel attended the formal creditors meeting, which was short and procedural in nature as the professional liquidator hosted and managed the call according to the agenda previously distributed. Percent and its counsel nominated Prath Reddy from Percent to be a member of the liquidation’s Committee of Inspection. Four other members, including Sinuhe Arroyo, CEO/Founder of Taiger, were thereafter nominated and appointed as members as well. The appointed liquidator, Charles Mah, has been marketing Taiger’s intellectual property for sale. On July 11, 2025, the liquidator notified members of the Committee of Inspection that initial efforts to market the company’s IP had not been effective and no inquiries were received. That said, one introduction was made which did lead to a presentation and a request for further information. Given the limited traction of efforts to market the IP for sale, the marketing of the IP is being extended.

Gas Pos: Exposure to a senior corporate loan

Background: Quiq Capital syndicated approximately $2.4 million of this $6.0 million secured corporate term loan on the Percent platform on a pro-rata basis. In January 2024, Gas Pos did not make an interest payment and partial principal payment when due and the deal went into workout. This was amended shortly after but as Gas Pos has still not been able to secure alternative funding, they have consequently missed an interest payment in April 2024, and as such the transaction is back in workout status.
Underwriter Response: According to Quiq Capital, Gas Pos aimed to settle the entire outstanding balance of Quiq Capital’s loan that underlies the Percent note program by March 2024 by obtaining financing from USDA. As part of the arrangement, Quiq Capital’s outstanding loan would become subordinated to this new debt as it must be funded in a set of incremental tranches before the Gas Pos loan is repaid. Quiq Capital believed that allowing Gas Pos to secure this financing would preserve collateral value and facilitate a timely payoff of Quiq Capital’s loan maturing in December 2024. Following the execution of the subordination agreement, Gas Pos has made the accrued interest payments due in January, February, as well as advance payment for March 2024 accrued interest, along with a $450,000 principal paydown on the underlying loan. On January 30, 2024, Percent received note interest payments for January and February, as well as the prorated principal paydown amount from Quiq.

Principal at Start of Default: $2.42M
Recovered So Far: $0.42M (17.4%)
Remaining Principal Outstanding: $2.00M

Current Status: The Underwriter and its special servicer continue to work on the Gas Pos loan towards a payoff. On March 31, 2025, the borrower executed a Letter of Intent (LOI) with a potential acquirer regarding the sale of certain assets and assumption of specific liabilities. The proposed consideration includes: (i) $5.0 million in cash at closing, (ii) $1.0 million held back by the purchaser to be paid one year post-closing, and (iii) a structured earnout over a four-year period following the transaction. Quiq Capital anticipates receiving all or most of the $5.0 million cash component at closing. The transaction was delayed in May 2025 as the letter-of-intent was modified to accommodate an equipment lender. In parallel, discussions with another prospective purchaser have expanded to potentially include not only the merchant portfolio and software but also the equipment lease portfolio, with a total estimated transaction value of approximately $20 million. Negotiations remain active. Quiq Capital is currently working with its legal counsel to evaluate options for either modifying the existing loan or structuring a new facility to account for any remaining outstanding balance not satisfied at closing. In the interim, the borrower continues to make weekly good-faith payments ranging from $10,000 to $20,000, which are being applied directly toward reducing the outstanding principal balance. During the June 3, 2025 investor webinar, Quiq Capital shared that the borrower has resumed principal repayments and is expected to continue. However, a planned asset sale has stalled due to the bank lender’s inflexibility. The borrower is now pursuing an equity raise, which, if successful, could accelerate repayments; otherwise, they will continue via free cash flow. While full recovery remains possible, the timeline has likely extended to 2–3 years. As of September 2025, Gas Pos has not made any partial principal payments since July. Quiq Capital has indicated that a change in the borrower’s payment processor for its merchant contracts has negatively impacted monthly revenue collections, contributing to the payment interruption. The borrower is reportedly working to resolve this operational issue; however it is difficult to project when payments could resume. In parallel, Quiq Capital has filed a legal complaint against one of the guarantors to pursue additional recovery options while operational challenges are being addressed.

US ATM ASI: Exposure to a senior corporate loan

Background: Quiq Capital syndicated approximately $3.64 million of this $5.5 million secured corporate term loan on the Percent platform on a pro-rata basis. The underwriter’s Quiq Income Fund, LP continued to retain the balance of the exposure, equivalent to approximately $1.86 million. In July 2024 US ATM did not make an interest payment when due on July 1, 2024 and the deal went into workout.

Underwriter Response: According to Quiq, after communications with Quiq Capital, US ATM ASI said that they plan to make additional payments once some of their larger clients make payment on monthly payables due to US ATM ASI. In June, the Underwriter executed an extension agreement for the existing US ATM ASI loan through August 1, 2024, as US ATM worked through refinancing and/or loan payoff strategies. More recently they began exploring an outright sale of the company to repay the loan as well. Quiq Capital and Percent have received some updates and confidential materials prepared by the investment bank to track progress.

Principal at Start of Default: $3.64M
Recovered So Far: $0.00M (0.00%)
Remaining Principal Outstanding: $3.64M

Current Status: Quiq Capital has issued default notices to US ATM ASI and the guarantors in connection with the underlying loan. In March 2025, the borrower’s bank accounts were frozen following an ex parte motion for judgment granted to a vendor due to non-payment under a settlement agreement scheduled to commence in January 2025. The borrower contends that the freeze was unjust. The accounts were frozen for approximately two weeks, which prevented the borrower from making critical vendor payments and led to the loss of several major clients and essential vendors. Quiq Capital continues to conduct 1–2 calls per week with the management team of US ATM ASI to finalize an asset sale plan. Additionally, US ATM ASI is working with its restructuring advisors to reduce its Accounts Payables. The near-term priority is the recovery of an expected $1–2 million Employee Retention Credit (ERC) tax refund, which Quiq Capital anticipates will be collected shortly despite industry-wide delays. Proceeds are expected to be used to pay down principal. Quiq Capital has engaged an independent expert to assess the value of the owners’ collateral and guarantees, enabling prompt enforcement should the asset sale proceeds fall short of repaying the loan in full. Quiq Capital is taking a strategic approach by incentivizing the owners to maximize sale value while making clear that it is prepared to pursue personal collateral if necessary. The failed sale process had a credible resolution path, evidenced by Quiq Capital’s own $650K loan originated in December 2024 to help the Company meet critical vendor payables as it continued to run its sale process. This loan sits pari passu to the other US ATM ASI loans held by Quiq Capital and Percent. In July 2025, the management team of US ATM ASI informed Quiq Capital that the original sellers of US ATM ASI’s business filed a motion to appoint a receiver to collect on a default judgment relating to the seller note used to finance the acquisition. Following the appointment, the US ATM ASI management team has ceased liquidating assets and is awaiting the receiver’s direction. This change shifts control of the asset sale process from the owners to the receiver, and may delay the sale timeline as the receiver evaluates how to maximize recoveries on behalf of creditors. In September 2025, following the appointment of a receiver and the ongoing asset sale and recovery process, Quiq Capital has now received a proposal for an additional collateral pledge from one of the personal guarantors of the US ATM ASI loan. Quiq is currently awaiting a proposal from the other guarantor and has reviewed the first guarantor’s offer, with a counterproposal expected to be delivered this week. In parallel, Quiq is working closely with counsel to prepare legal complaints that can be filed in case negotiations fail.

Fiberight: Exposure to a senior corporate loan

Background: The borrower did not make a payment when due on July 31, 2024 so the transaction was categorized as in workout in August 2024 (after the grace period ended). Fiberight had been working on refinancing the loan without outside capital. In communications with the third-party underwriter for this transaction, New Technology Ventures, and Percent, Fiberight has said that they have agreed to a hard deadline with an investor providing Fiberight with equity capital. This date was set to August 19. By then, Fiberight expected to raise enough capital to repay the entire note’s principal and accrued interest balance but this did not materialize.

Underwriter Response: New Technology Ventures and Percent did receive some updates and confidential materials related to the contemplated refinancing, which included a signed term sheet. When the transaction fell through, Percent was notified of the company’s intent to go through a voluntary liquidation. Fiberight filed for a creditors voluntary liquidation on October 1, 2024. Charles Hamilton Turner and Jack Callow from Opus Restructuring LLP were formally appointed as Joint Liquidators of the company.

Principal at Start of Default: $0.50M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $0.50M

Current Status: Liquidators confirmed that at least as of the date of commencement of liquidation proceedings, of the dozens of creditors (most very small) Percent is the only known creditor with a ‘fixed and floating charge’ (a first lien security interest) on substantially all of the company’s assets. However, the company also had individual equipment finance agreements with 3 lenders with outstanding balances of approximately £0.85 million ($1.09 million). There are also some amounts due to employees and tax authorities in the UK. On Monday December 9, 2024, the liquidators disclosed to Percent that despite their attempts, the landlord of the premises Fiberight leased refuses to grant the Joint Liquidators access to the site which has made it difficult to proceed with realising the value of the equipment. Percent communicated with the landlord to clarify our charge on a substantial portion of the assets of Fiberight and demand that they give access to the liquidators promptly and is exploring other legal options. After failing to receive a response and learning that the liquidator and other creditors were experiencing the same difficulty, Percent began working with legal counsel to explore alternative routes. Further, in seeking to enter into an agreement to sell whatever right and title Fiberight Ltd has in various intellectual property assets, following discussions with a connected third-party company which has claimed the IP assets belong to them, the liquidators have agreed a basis to settle the dispute that has arisen which will ensure proceeds from this settlement will be available to the liquidation estate. In June 2025, Capital Law (Percent’s legal counsel) requested additional information from the liquidators. The liquidators also disclosed new challenges impacting recovery. The landlord, owed back rent, has claimed a lien over assets at the leased site and changed the locks, blocking access. As a result, the liquidators disclaimed the lease, citing high legal and insurance costs and safety risks due to combustible waste. Percent’s counsel noted that even if funds were available to pursue a remedy, any recovery could benefit other creditors. With no access to the premises, the liquidator expects no recovery from fixed assets. In September 2025, the liquidator explained that they are still in the process of liquidating the final assets of Fiberight. An update in this regard will be provided in the next statutory report to creditors which is expected between October 1 and December 1, 2025.

Littlemees Limited and Littlemees USA (The Cloud): Exposure to a senior corporate loan

Background: Littlemees Limited (“The Cloud” or “CLD”) communicated on March 15, 2024 that the CEO of The Cloud, Georges Karam, had resigned from his position. According to the Board of Directors of CLD, this outcome was the result of fundamental strategic disagreements between Georges Karam and the Board of Directors. In summary, Georges Karam wanted to develop CLD’s business in non-Gulf Cooperation Council (“GCC”) countries while the Board of Directors wanted to focus on GCC markets, particularly Saudi Arabia and the United Arab Emirates. In May 2024, Percent and Aluna received information from The Cloud’s management and Board of Directors about the The Cloud’s deteriorating financial condition following George Karams’ departure and need to raise sufficient equity capital as well as the need to restructure CLD Notes in order for The Cloud to execute on its business plan to become cash flow positive and eventually repay CLD Notes. On September 10th 2024, following missed principal and interest payments, the transaction moved into “workout” status. Littlemees USA LLC is a subsidiary of Littlemees Limited and had raised capital on Percent through its KBX1 note program to fund international expansion in December 2023 with a 15 month final term. The security for this KBX1 note program consists of newly acquired assets of Littlemees USA LLC. Affected by the same aforementioned issues of The Cloud and disruption in the international expansion plans, they missed the principal payment due in March 2025, and the status of that program was as well moved to workout.

Underwriter Response: Over the course of May, June and July 2024, Percent and Aluna specifically:

Negotiated a restructuring proposal for CLD Notes directly with The Cloud and its Board of Directors that contemplated a variety of terms and conditions intended to support The Cloud’s business plan and financial needs as well as facilitate the successful separation of business entities. Percent engaged Eptalex as local counsel to advise us on a variety of matters including a proactive analysis on liquidation scenarios for The Cloud to ensure our security would be recognized in local courts and formulating a plan of action in the event the CLD Notes restructuring was unsuccessful.
Concurrently collaborated with Georges Karam to protect KBX Note holder interests to create a new UK Holding entity to own all international non-GCC operations including the assets acquired from the original proceeds of the KBX Note, the separate offering on the Percent platform which funded a specific subsidiary of The Cloud.
After Aluna and Percent communicated the acceptance of the final CLD Notes restructuring proposal in late July 2024, we learned in August 2024 that the Board and a faction of existing venture equity shareholders that are aligned with the Board have decided to vote in favor of liquidating the company instead. It has become apparent that the Board: i) No longer has any interest in growing The Cloud according to their own proposed business plan and ii) Was unable to raise enough of the equity capital required for the restructuring proposal.
With guidance from Percent’s local counsel, Eptalex, a liquidation petition was filed. However, on November 13, 2024, we discovered that a separate petition was filed by the borrower. Shahab Haider of Compliance Forte LLP was appointed liquidator of the borrower. While Percent, Aluna and Eptalex proactively prepared for the liquidation, the timeline for a liquidation sale and resolution is subject to ADGM court procedures and we continue to expect this to take several months based on Eptalex’s guidance. The CLD Note is the only known secured debt obligation of The Cloud according to our counsel’s searches.

Littlemees Limited:

Principal at Start of Default: $2.00M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $2.00M

Littlemees USA:

Principal at Start of Default: $2.58M
Recovered So Far: $0.00M (0.0%)
PIK Interest: $413,205
Remaining Principal Outstanding: $2.99M

Current Status: The UK HoldCo, which is the secured guarantor of the KBX Note (and future secured guarantor of the CLD Note post The Cloud’s liquidation) has been fully operational now for several months in the UK under a new name and brand, “Global Food Ventures”, or “GFV”. To ensure GFV continues to achieve scale, attract equity investment and ultimately service and repay both KBX and CLD Notes, Percent and Aluna extended GFV terms and conditions to postpone the repayment of the KBX Note by one year and GFV has subsequently accepted these terms. Counsel continues to advocate to the liquidator and ADGM courts Percent’s senior secured position and desire to facilitate the sale of assets to Georges Karam to be purchased by transferring the totality of the outstanding CLD Notes to GFV in consideration for the purchase price. The liquidator followed up on March 12, 2025, with a statement of affairs outlining the assets and liabilities of the company, as well as minutes and an attendees list from the meeting.As of June 2025, Percent and Aluna Partners have been in ongoing active dialogue with Georges Karam and Eptalex in order to facilitate an orderly separation of The Cloud and NewCo while ensuring CLD1 2023-1, CLD1 2023-2 and KBX1 2023-1 holders are protected. GFV has made operational progress, growing revenue, expanding its footprint, and raising $300K in junior capital. Two acquisitions expected to close by August are expected to be funded by ~$1.6M in subordinated debt. GFV was unable to resume interest payments under the KBX Note without hindering growth, as a result, the forbearance agreement was extended in order to extend PIK interest, with terms aligned to upcoming acquisitions, improved cash flow, and a revised financial model. The new forbearance agreement runs until June 2027. Under its terms, interest may be PIK’d until the earlier of 1) November 30, 2025 or 2) 30 days following the completion of one or more of the above-mentioned acquisitions. Upon cash interest payments resuming, there will be a formulaic monthly principal repayment equivalent to 25% of remaining free cash flow after servicing all interest owed on debt. As of September 2025, we remain in active dialogue with the liquidator and ADGM courts to facilitate the sale of The Cloud’s assets to GFV and transfer the CLD Notes; a formal offer is being prepared and a response is expected in the coming weeks. Following the July forbearance extension, PIK interest continues to accrue and the KBX Note principal is now $2,989,379 (up from $2,576,174). GFV launched Saudi Arabia operations in September and is growing UK revenue to support resuming cash interest on November 30, 2025, followed by monthly principal payments equal to 25% of free cash flow after debt service. Percent and Aluna believe the revised repayment plan remains achievable and continue to work with all parties to maximize recovery for investors.

Rocketfy: Exposure to a senior corporate loan

Background: On January 9th, as the maturity of February 28, 2025 for the ROC Corporate Loan Sr. 2024-2 Unsecured Note (“ROC1 2024-2”) was approaching Percent reached out to the third-party arranger, Aluna Partners (“Aluna”), for confirmation that Rocketfy S.A.S. (“Rocketfy”) was expecting to rollover the outstanding principal amount on ROC1 2024-2. On February 7th, Aluna advised that Rocketfy would be unable to make the interest payments for ROC1 2024-2, ROC Corporate Loan Sr. 2024-3 (“ROC1 2024-3”) and ROC Corporate Loan Sr. 2024-4 (“ROC1 2024-4”), (collectively, the “ROC1 Notes”). The cash reserve was used to make the interest payments due on January 31, 2025, totalling $29,075.49, and as of March 3, 2025 the cash reserve for the ROC1 Notes stood at $156,490.41. On February 10, 2025, Percent met with Aluna and Rocketfy to discuss their business and financial position. Rocketfy expressed that, based on the competitive position of their product offering compared to that of competitors, their revenues have meaningfully fallen and that they were unable to service the principal of the ROC1 Notes, resulting in a missed payment. As a result, on March 7, 2025, the notes were moved to workout status.

Underwriter Response: Percent and Aluna Partners began negotiations of a restructuring of the payment obligations of Rocketfy with respect to the ROC1 Notes moving forward. This was agreed on March 28, 2025. Under the new repayment plan, no payments will be due until the Borrower has realized earnings before interest, taxes, depreciation, and amortization (“EBITDA”) greater than $0.00 in a month OR the Borrower has earned gross revenue greater than $650,000,000.00 Colombian pesos in a month. After this is achieved, the amount of cash interest will be the greater of one hundred percent (100.0%) of EBITDA in excess of $0.00, if any, in the immediately prior calendar month or sixty percent (60.0%) of gross profit in excess of $650,000,000.00 Colombian pesos, if any, in the immediately prior calendar month. Any excess interest accruing above this amount will be paid-in-kind (“PIK’ed”). Percent and Aluna Partners have also taken certain actions to improve its security in the event of a liquidation or restructuring of Rocketfy.

Principal at Start of Default: $1.87M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $1.87M

Current Status: On May 21, 2025, Rocketfy advised that their expectation of growth had not materialized as of then and that they had a total of 13 clients, an increase of 3 clients from the previous two months. As a result of this and poor prospects for the legacy product going forward, Rocketfy shifted their business model to focus solely on their software product, moving away from their prior role, acting as an intermediary in shipping and payment processes for their client base, with the goal of increasing their operational profitability. On May 30th, with the objective to avoid operational disruption from unsecured creditors claiming close to $1 million through potential lawsuits, Rocketfy presented a request to enter a reorganization procedure under Colombian Law 1116, similar in some respects to filing Chapter 11 Reorganization Bankruptcy in the United States. With the exception of tax liabilities and amounts due to employees, Percent sits senior to other obligations and has majority of voting rights during claim verification and negotiation state, and legal priority at repayment stage ahead of other unsecured creditors, based on information provided by Rocketfy during the meeting and local legal counsel. Nonetheless, the restructuring proceedings are likely to delay repayment to Percent. Rocketfy was accepted into this reorganization procedure on July 29, 2025.

As of July 8, 2025, Rocketfy has a total of 45 clients, up from 13 in mid-May, and is focusing on serving small businesses with brick and mortar stores looking to break into e-commerce by using Rocketfy’s platform for operational and logistics streamlining. Currently the company is experiencing a cash burn of USD $10,000 per month and has USD $73,000 in cash. The company expects to receive a tax rebate in the amount of approximately USD $65,000 sometime between October and November, which will extend the company’s expected runway. Rocketfy is also targeting achieving profitability in January 2026. However, to do so, Rocketfy will need to acquire approximately 355 clients, in addition to the 45 clients they currently have, and generate $35,000 in revenue per month.

FIT SRL: Exposure to a senior corporate loan

Background: On February 28, 2025 Aluna advised that FIT SRL (“FIT”) was in breach of the minimum cash balance covenant due to some delays in collecting the invoiced amounts with its largest customer, Lotus Technology Innovative Limited (“Lotus”). Further, Aluna informed Percent that FIT was seeking to raise additional equity from its shareholders to restore the minimum cash balance and have a healthy buffer to run the company until the invoices are settled by the client. On March 4, Aluna informed Percent that based on updates received from FIT, Lotus stopped meeting its contractual obligations at the end of December 2024, including payments and issuing new orders. More extensive information was received by Percent on March 14, indicating that a commercial dispute has developed between FIT and Lotus. On March 21, 2025, Percent did not receive the scheduled interest and principal payment due at the maturity of FIT1 2024-1 or interest due on the other FIT notes outstanding,and as such the deals were marked as in workout status.
Underwriter Response: Given where FIT stood in relation to its goals, whether with respect to its contract with Lotus, traction with other customers and fundraising, and the amount of new capital needed, and especially given the timing and status of the dispute with Lotus, Percent did not believe a new offering to platform investors could be justified. Further, by the time sufficient information had been received to assess this possibility, there was little time with which to arrange a refinancing, even if Percent had been comfortable with the risk and had the most recent updates been positive.

Principal at Start of Default: $2.30M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $2.30M

Current Status: FIT is employing legal counsel to represent it in its dispute but is also open to attempting an amicable commercial solution. FIT insisted that damages that it is prepared to seek in court, if needed, may exceed €20 million. On May 9, 2025, FIT’s CEO met with Aluna and Percent to discuss the borrower’s situation. FIT confirmed it has not yet filed its legal claim against Lotus due to funding constraints, though UK jurisdiction has been confirmed. The lawsuit will target Lotus Technology Innovative Limited and affiliates, with an estimated 18-month timeline absent settlement. A €13M settlement offer from FIT was previously rejected. The €25M damages claim includes reference to the Percent notes, which FIT considers fully represented. FIT holds ~132 bikes and frames (valued at €9K each) and is exploring legal and resale options, though branding and ownership rights are still being reviewed. FIT is working to raise funds through the sale of €500K in VAT credits and potential litigation financing. Liquidity challenges persist, including an unresolved $220K FX margin call and operational strain from workforce losses and limited new business. While some investments are reusable, FIT’s business continuity depends on securing near-term funding or legal resolution.

Bringo SpA: Exposure to a senior corporate loan

Background: On March 21, 2025, Percent received a communication from Bringo SpA (“Bringo”) explaining that a partnership with a key distribution channel, that with Abastible, a natural gas distribution company in Chile, was at risk of not continuing into the future. When a new supply contract was being negotiated in March 2025, Bringo found the terms did not meet its minimum expectations. Specifically, Bringo found the lack of clear commitments regarding purchase volumes and monthly minimums inadequate. Without such commitments Bringo believed it would be impossible to raise additional capital for its business. On April 21, 2025, Percent and the third-party underwriter for this transaction, Aluna Partners, received a communication from Bringo notifying us that the company has decided to cease operating and commence a liquidation process.

Underwriter Response: Aluna Partners has been engaging local counsel in Chile to represent Percent in the liquidation proceedings. The liquidation process is still in very early stages.

Principal at Start of Default: $0.54M
Recovered So Far: $0.03M (5.6%)
Remaining Principal Outstanding: $0.51M

Current Status: A liquidator has been appointed (Leonardo Andrés Álvarez Orozco) and a liquidation resolution issued. Percent. Aluna, and our legal counsel in Chile, Baker McKenzie, prepared a ‘proof of claim’ which details the debts due and a summary of our note’s security. According to advice received from counsel, amounts incurred as legal expenses in these workout efforts after the commencement of a liquidation are not able to be successfully recovered through the liquidation proceeds and as such cannot be included in the proof of claim. This will diminish the ultimate recovery to investors. The appointed liquidator has liquidated product inventory at a cumulative price of approximately 20 million Chilean pesos (approximately $20,600). After amounts due to the warehouse and statutory claims are paid, the amount recovered by these sales is expected to be approximately 11 million Chilean pesos (approximately $11,300). These recoveries will form part of the gross liquidation proceeds available to creditors. Further, the liquidator has said that there is interest in acquiring the Bringo licence (a license to use the Algramo brand in Chile) from an outside party, though no formal offers have been received to date. The intention is to request an expert opinion on the appropriateness and feasibility of selling the licence. Additionally, Percent’s legal counsel was notified by the liquidator of the apparent loss of two forklifts belonging to Bringo, which may have been unlawfully removed. The liquidator is conducting an investigation into this matter. It was further disclosed that, prior to liquidation, Bringo may have entered into an arrangement with another company to settle a debt by transferring its own inventory. The liquidator is investigating this transaction.

Noypitz Holdings: Exposure to a senior corporate loan

Background: Percent has not received the required surveillance reporting from Noypitz. The only information towards satisfaction of these requirements that Percent received were financial statements for two Noypitz locations, Long Beach and Las Vegas, for Q1 2025. The financial statements showed a small net profit ($14,539.86 for the first three months of 2025) for a Long Beach restaurant location and a larger net loss ($ -154,045.25) for a Las Vegas restaurant location. These were received in late May 2025 and did not include any of the other Noypitz locations. Given the persistent delinquency in delivering the required reporting, Percent declined to offer Noypitz an opportunity to refinance the Percent notes with new ones.

Underwriter Response: On Thursday, June 26, 2025, the third-party Underwriter for this transaction, Millenia Ventures, notified Percent that the borrower was requesting a one month extension. The Underwriter is also leading efforts to secure new capital intended to replace the Percent notes.

Principal at Start of Default: $0.50M
Recovered So Far: $0.00M (0.1%)
Remaining Principal Outstanding: $0.50M

Current Status: A call between Percent, Millenia, and Noypitz took place on July 2, 2025, one day after Percent received the interest due but not the principal. On the call, Noypitz requested a six month extension. The CEO of Noypitz said that during this period, it will be able to pay interest and a small amount beyond that but no more than $12,000 per month total. For comparison, the current interest payments amount to a little less than $7,000 per month. The company described performance of its restaurants as mixed with Long Beach continuing to do well but a location in Las Vegas struggling. The Underwriter said they are looking for alternative financing to repay Percent investors but so far offers received have not exceeded $250,000. It is unclear if the alternative financing would require a first lien on the assets of Noypitz Holdings Company, if so, it is unlikely that a partial refinancing from these sources can be realized. Percent received an ordinary interest payment for the month of July which was distributed to investors on August 8, 2025. An extra $5,000 to be allocated to penalty interest (of 2.0%) and principal repayment was not delivered to Percent until August 20, 2025 by which point the amount received would not have covered the extra interest accrued through August 20, 2025, inclusive of the penalty interest. As a result, Percent is holding such payment until the following payment date at which point it would be combined with the following payment received from Noypitz to pay interest, including penalty interest, and to the extent of any excess, towards principal repayment. Percent has continued to instruct Noypitz to pay at least $12,000 per month, an amount that covers interest (including penalty interest) and a little over $4,000 towards principal.

LVL Technology Holdings: Exposure to a senior corporate loan

Background: As noted in prior Critical Updates and investor communications, LVL Technology Holding (“LVL”) has continued to experience severe liquidity challenges and has been unable to fund product development or materially grow revenue during 2025. Recent interest payments on the LVL note program have been made from the cash reserve established at the inception of the transaction, as LVL has not remitted funds. The LVL1 2024-3 tranche, which matured on September 4, 2025, remains unpaid. On September 9, 2025, LVL’s CEO confirmed that the company was not in a position to make the required repayment, and no payment was received within five business days. As a result, this transaction has been placed in “Work-out” status. LVL has pursued several strategic options, including potential M&A transactions. Two prior offers (each below $500,000) have fallen through, and while LVL is pursuing a third potential acquisition, progress has been slow. Recovery prospects remain highly dependent on a successful sale of the business or its assets. In the meantime, client attrition has continued as LVL has been unable to invest in product development for most of 2025.

Underwriter Response: With the underwriter’s close support, Percent has sent a notice of default to LVL and has received a business update from it on Monday September 29. A status update was received on the potential acquisition of LVL but progress is slow. Aluna Partners is exploring alternative avenues for recovery in the event no offer to purchase LVL or its assets is received.

Principal at Start of Default: $4.0M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $4.0M

Current Status: LVL is continuing to pursue a potential sale of the company. Aluna Partners is exploring alternative avenues for recovery in the event no offer to purchase LVL or its assets is received.

Carryt: Exposure to a senior corporate loan

Background:Percent did receive the scheduled September 10 interest payment on all outstanding notes from the CAR1 program within five business days and the transaction has been moved to “Work-out” status.

Underwriter Response: Percent and Aluna Partners have been in ongoing communication with Carryt to emphasize the importance of timely servicing of platform notes. On September 30, Percent held discussions with Carryt and Aluna Partners, regarding Carryt’s plans to meet the missed payment.

Principal at Start of Default: $6.1M
Recovered So Far: $0.00M (0.0%)
Remaining Principal Outstanding: $6.1M

Current Status: Carryt confirmed that its cash reserve was fully depleted after covering the August 10 interest payment. Carryt advised it expected to receive $65,000 during the week of September 22 from an advance payment on an existing customer invoice. However, by the end of September, percent had only received $25,000.

Carryt also anticipates approximately BRL 500,000 from a SAFE note issued to Evoy Consórcios within the next two weeks, which would supplement funds to cover the September 10 interest obligation. Over the long term, Carryt is pursuing multiple financing avenues to stabilize operations and address payment obligations, including:

Discussions with several finance companies to raise approximately $100,000;
A debt capital raise with lenders in Colombia and Europe; and
A credit facility currently under investment committee review could provide about $1,000,000, of which $250,000–$500,000 would be used to partially repay principal on Percent platform notes and the remainder to fund operations.
Additionally, Carryt remains in the due diligence phase of a Series A equity raise, targeting USD $8,000,000 in proceeds, with funds expected by the end of Q4 2025.

Detailed Workout Summaries (Asset-Based Notes)

Zinobe: Colombian SME Lender

Background: In early 2023, Zinobe faced cash flow issues due to a default by its parent company on other debt, and misused funds assigned to Percent for operating purposes, leading to a violation of the participation agreement central to this deal and a default on the Percent note program.

Underwriter Response: We engaged legal counsel in Colombia and agreed on a recovery path with Zinobe. We enacted legal safeguards to maximize recovery and are actively monitoring the situation and keeping investors updated.

Principal at Start of Default: $1.54M
Recovered So Far: $0.68M (44.1%)
Remaining Principal Outstanding: $0.86M

Current Status: The assets remaining in the underlying portfolio are nearly entirely all delinquent, in particular, a single loan to ASIC S.A.S. which is presently in insolvency proceedings and makes over 80% of the remaining outstanding portfolio. Because of the nonperforming status of this loan and continued doubts about Zinobe’s ability to continue as a going concern, Percent has directed Zinobe to market this loan for sale. Percent and Zinobe have investigated several options and the leading potential buyers at this point are two private debt funds that have expressed interest in acquiring the ASIC S.A.S. debt. However, both had expressed that they want to wait until a later stage of the insolvency proceedings before making an offer. On Tuesday May 27, 2025, Zinobe notified Percent that ASIC S.A.S., the obligor of the large delinquent loan, comprising the vast majority of the remaining portfolio, has proposed a payment schedule for creditors. This was the expected next step in the ASIC S.A.S. insolvency proceedings. The proposed repayment schedule would feature annual payments beginning in 2028 and continuing until 2034 with the largest payments scheduled for the last two years, 2033 and 2034. The payment schedule is still pending approval. Following the receipt of the proposed payment schedule, Percent requested Zinobe to inform two potential loan buyers of the updated status of the ASIC S.A.S. workout. Previously, potential buyers of this loan were not interested in proceeding until the insolvency proceedings progressed further. Unfortunately, one of these potential buyers has declined to make an offer for the loan given the long repayment horizon. Separately, Percent understands that Tangerine Pomelo Group, S.A.P.I. de C.V., the Mexico-based parent company of Zinobe, is expected to reach a deal with its own creditors soon.

Sharestates (SHA2 and SHA4): Exposure to a senior mortgage

Background: In January 2024, Sharestates notified Percent that the borrower associated with this transaction, Skyward TX LLC, was seeking refinancing of its outstanding loan with the lender in order to repay the outstanding principal balance. While seeking a refinancing, the underlying borrower did not make its contractual payments and the deal entered a workout.

Underwriter Response: Due to the underlying borrower’s failure to provide supporting refinancing or buyer documentation, Sharestates opted to initiate foreclosure proceedings on the property. Sharestates’ legal representative will issue a notice of default to the underlying borrower. As Texas operates as a ‘Non-Judicial’ state, the foreclosure process typically concludes within 8-10 weeks. Sharestates believes it will take approximately 12-18 months for the underlying mortgage to be paid off, including the time it takes to gain ownership of the property and sell it.

Principal at Start of Default: $0.65M
Recovered So Far: $0.0M (0.0%)
Remaining Principal Outstanding: $0.65M

Current Status: According to Sharestates, the foreclosure sale of the underlying property was completed on August 6th, but Sharestates did not secure a bidder. The underlying property is now in REO status, and Sharestates’ attorney has completed updating the foreclosure deed. Sharestates has already obtained a property manager since the property already has tenants. Sharestates began renovating several units to improve marketability and enhance overall value, with the goal of maximizing returns for investors. Since then, Sharestates has received two offers for the full 131-unit Beaumont portfolio. Unfortunately, the prospective buyers did not want to move forward. Sharestates has initiated the process of pursuing a judgment against the borrower. Updates will be shared as negotiations progress. Interest continues to accrue at 11.50% APY on the outstanding principal.

Sharestates (SHA3): Exposure to a senior mortgage

Background: Sharestates notified Percent that the borrower linked to the transaction, Attack Life II, LLC, failed to complete the construction project by the maturity date of the underlying mortgage, on March 1st, 2024. As the borrower was unable to fulfill the required principal payment by the maturity date of the SHA3 2023-1 note (March 28th), the offering defaulted.

Underwriter Response: Sharestates has identified a replacement individual to oversee the project’s completion. Sharestates is taking the necessary steps in ensuring that this individual has the requisite creditworthiness and expertise to effectively oversee the project. Additionally, the individual is expected to bring the loan current, establish a three-month interest reserve, and collaborate with Sharestates on a comprehensive loan repayment plan.

Principal at Start of Default: $0.25M
Recovered So Far: $0.0M (0.0%)
Remaining Principal Outstanding: $0.25M

Current Status: In July 2024, the transfer of property ownership had been finalized and the new borrower assumed the principal balance outstanding, resulting in the loan becoming current. A three-month interest reserve was established by the new borrower. Additionally, the new borrower was required to adhere to the monthly payment schedule stipulated by the loan. The maturity date of the new loan was November 1st 2024, providing the new borrower with five months to finish the construction and either refinance or sell the property. In November 2024, Sharestates advised that the new borrower associated with the property located at 2604 North College Avenue had not made interest payments in October 2024 and had been unresponsive to Sharestates’ outreach efforts. Sharestates was actively working to establish communication with the borrower. Following these efforts, Sharestates and the borrower signed an extension agreement, establishing a new maturity date of April 8, 2025, while maintaining all other terms from the original agreement. To memorialize subsequent extensions, Sharestates has since finalized a forbearance agreement with the borrower for the property located at 2604 North College Avenue. Under the terms of the agreement, the borrower has paid interest for April and May 2025. Interest payments for June, July, and August have been deferred and will be due at payoff. The maturity date has been extended to November 1, 2025. In September 2025, the forbearance period for the property located at 2604 North College Avenue, Indianapolis, IN ended. Despite the temporary relief granted, including deferred interest payments for June through August, the borrower continues to experience cash flow challenges and has not resumed regular payments. Sharestates remains in active communication with the borrower and is pursuing a repayment and exit strategy, which may include refinancing or a sale of the property, while reserving the right to enforce the loan terms ahead of maturity if necessary. Further updates will be provided as additional developments occur.

Golden Lion: Exposure to a senior asset-based equipment financing

Background: On July 10, 2025, the Underwriter, Stoke Inventory Partners Inc. (“Stoke”), informed Percent that Golden Lion’s management team had failed to meet key milestones, including construction delays, failure to sufficiently capitalize the company and procure biomass inputs, and execution of commercial partnerships, leading to operational delays and cash shortfalls. On August 11, 2025, the Underwriter, Stoke Inventory Partners, informed Percent that Golden Lion would be unable to make the payment of interest and principal due that day on the underlying equipment financing transaction and in turn the Percent notes and no payment was received. Stoke has been communicating the status of Golden Lion’s business with Percent. To start, Entexs (manufacturer of the underlying equipment financed by Stoke and Percent investors) has acquired two new extraction equipment chillers to serve as components to its systems. The installation of these systems is expected to resolve a production issue limiting Golden Lion’s production of THC distillate. Unfortunately, installation of this equipment requires two layers of fire agencies – one local and the other at the state level. According to Stoke, Golden Lion must be prepared to be shut down for between 7 and 14 days until the inspection is complete.

Underwriter Response: Stoke became aware of the severity of these issues in late May, and David Goldstein, CEO of Stoke, stepped into the management of Golden Lion as of June 11, 2025, with the consent of Michael Guthrie (former CEO of Golden Lion). Since then, Stoke, with support from Entexs (Guarantor and manufacturer of the production equipment used by Golden Lion), has implemented a turnaround plan focused on improving system efficiency, securing biomass supply, and developing new revenue streams, including tolling and co-packing.

Principal at Start of Default: $1.24M
Recovered So Far: $0.00M (0.0%)
PIK Interest: $18,065
Remaining Principal Outstanding: $1.25M

Current Status: Stoke and Golden Lion have negotiated the production specifications of certain contracts and entered into new sales agreements; certain expenses have also been deferred. On August 28, 2025, with input from Percent, Stoke Inventory Partners signed a forbearance agreement with the Borrower, Golden Lion (effective retroactively to August 1, 2025). Under the forbearance agreement, Stoke agreed to forbear from exercising remedies for a specific set of defaults by Golden Lion, specifically the payment default that occurred in August as well as Golden Lion’s severe revenue shortfall, its failure to properly capitalize the company, its failure to secure more than a token amount of biomass for processing, and its failure to create a viable sales process for its output. During a forbearance period ending November 1, 2025, Golden Lion shall make interest-only payments in the amount of $30,940.23 each month. During the forbearance period, no amortization of the principal of the loan will occur. Thereafter, the loan shall resume its original amortization schedule until maturity, with the added provision that 100% of net cash flow each month will be distributed to Stoke as payment against principal of the loan until the amortization payments not made by Golden Lion, plus unpaid interest, are fully recovered. The continuance of this forbearance is dependent on Golden Lion fulfilling various requirements. These include (i) creating a new committee composed of 3 members that will include a representative from Entexs and another one from Stoke, to better monitor the company, (ii) raising $500,000 in new capital within 90 days, and (iii) adhering to a new approved budget without a negative variance of more than 5% in any single line item. The occurrence of any of a number of events of default would also terminate the forbearance period early. Golden Lion made a September 2025 interest payment in full.

Understanding Workouts

A loan enters workout status when the borrower fails to meet their payment obligations or violates the terms of their loan agreement. Workouts can occur for various reasons, including financial difficulties faced by the borrower, changes in market conditions, or unforeseen events. When a loan enters workout, the underwriter responsible for the deal takes proactive measures to address the situation and protect investor interests. This may include negotiating with the borrower, restructuring the loan, or pursuing legal remedies.

We will continue to provide regular updates on these workout situations, including any significant developments or changes in status. Investors are encouraged to review these updates and the associated deal documentation for the most current information.

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We invite you to reach out to us with any questions or concerns you may have regarding specific workouts or the workout process in general. Our team is dedicated to providing you with the information you need to make informed investment decisions.