Mitesco had about $1,533 in cash at the end of the first quarter, according to a 10-Q filed with the SEC for the period ended March 31, 2026. By August, it was borrowing $20,000 at a time.
An 8-K filed August 18 shows what that position looks like in practice: new loans carrying built-in fees before any interest accrues, existing bridge-note holders accepting extensions rather than payment, and preferred shareholders whose quarterly exit route has been halted.
The latest cash came from AJB Capital Investments, a Florida investment firm the company has borrowed from before. AJB put in $20,000, but the note it received carries a face value of $22,000 — a $2,000 fee built into the instrument before a single day of interest runs. The note also carries 10% annual interest and matures in February 2027. If Mitesco cannot pay at maturity, AJB can convert the outstanding balance into shares at a 30% discount to the five-day average trading price.
That was not the only new debt. On August 14, two additional lenders provided a combined $160,000 in 60-day term loans, according to the filing. Those maturities fall around mid-October.
Older debts are not being retired either. Holders of $200,000 in bridge notes agreed to extend their terms rather than be repaid. Two of those notes, covering a combined $78,000, were extended only to September 1 — less than two weeks after the filing date. The rest run to December 31.
Preferred shareholders face a different constraint. The board halted all quarterly redemptions of Series A Preferred stock on August 9, with the consent of a majority of those holders. Under the previous arrangement, five institutional investors could convert their preferred position into common stock each quarter at a discount.
In an August 10 press release distributed through GlobeNewswire, Chairman Mack Leath said the predictable quarterly share issuances may have let traders time their activity against retail investors, and that prospective institutional backers viewed the structure as a barrier to new investment. A replacement arrangement is expected by September 30.
To cover software development costs, Mitesco agreed to issue 1,000,000 restricted common shares to a consulting firm in Boca Raton, with no dollar value for the work stated in the filing. On the same day the 8-K was filed, the company also put out a press release about a future home automation offering, according to the filing. No customers, revenue or committed funding were mentioned.
The company expects a new preferred arrangement by September 30. The bridge notes it just extended to September 1 come due three weeks before that.