zSpace secures $2 million in loans from Itria Ventures

Published 04/03/2025, 23:24
zSpace secures $2 million in loans from Itria Ventures

SAN JOSE, CA – zSpace, Inc. (ZSPC), a company specializing in prepackaged software services with a market capitalization of $270.1 million, has entered into two loan agreements with Itria Ventures LLC, securing a total of $2 million in term loans. According to InvestingPro data, the company currently operates with moderate debt levels and faces challenges with short-term liquidity. The loans, bearing an 18% annual interest rate, were finalized on February 26, 2025, with maturity set for one year later.

Under the terms of the agreements, zSpace received $1.1 million and $900,000 in principal amounts and is required to make monthly payments over the course of 12 installments. The company retains the option to prepay the loans at any time, subject to a 1.5% prepayment fee on the remaining principal balance.

These financial obligations are backed by a comprehensive security interest in nearly all of zSpace’s assets. The loan agreements include standard covenants related to the use of the loan proceeds and information rights, as well as negative covenants that restrict the company from incurring additional debt beyond specific exceptions. InvestingPro analysis reveals a concerning current ratio of 0.5, indicating the company’s short-term obligations exceed its liquid assets.

In the event of a default, the interest rate would increase to 23% per annum, and the lender could demand immediate payment of the outstanding principal and accrued interest. The details of these loan agreements were disclosed in a current report on Form 8-K filed with the Securities and Exchange Commission (SEC).

zSpace’s engagement with Itria Ventures reflects its ongoing financial strategy and commitment to securing resources for its operations. The company is publicly traded on the Nasdaq Stock Market under the ticker symbol ZSPC. InvestingPro analysis indicates the stock has declined nearly 50% over the past six months, with additional insights available to subscribers, including 11 more ProTips and detailed financial metrics.

This financial move comes as zSpace continues to navigate the competitive landscape of the technology sector. The information provided is based on the company’s recent SEC filing.

In other recent news, zSpace Inc. has launched its zSpace Imagine Learning Solution, an augmented and virtual reality laptop system designed for elementary education. This new product aims to provide an immersive learning experience without the need for traditional headsets or 3D glasses, featuring curriculum-aligned lessons and interactive software. Additionally, Roth/MKM has initiated coverage on zSpace, issuing a Buy rating with a price target of $20.00 per share, highlighting the company’s growth potential due to an expanding market and upcoming product launches. zSpace’s recent efforts also include salary increases for top executives, aligning their compensation with industry standards to enhance talent retention. CEO Paul Kellenberger’s salary will rise to $500,000, while CFO Erick DeOliveira’s salary will increase to $400,000. Other executives, including Michael Harper and Ron Rheinheimer, will also see significant salary adjustments. These developments reflect zSpace’s strategic moves to maintain competitiveness and capitalize on the growing demand for educational technology solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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