Helio Corp /FL/ Material Event Summary

Helio Corp faces a critical financial crisis, having defaulted on loans totaling $250,000. This development signals severe liquidity challenges and creates substantial uncertainty for investors, even as the company promotes its advanced space initiatives.

1. Core Event: Default Notices Received On February 7, 2026, Helio Corp received Default Notices from three lenders. These notices state the company failed to meet its payment obligations or violated other terms of its loan agreements. Lenders now demand immediate repayment of $250,000. Specifically, the defaults involve:

• A $50,000 loan, originally from Blackwolf Venture Group, LLC, now held by James S. Byrd SEP-IRA.
• A $150,000 loan to Indicia Capital, LLC.
• A $50,000 loan to David Shapiro. Helio Corp originally secured these loans in March 2024 and April 2025. The company faces a critical deadline: it must pay these amounts by February 22, 2026. Failure to do so could lead lenders to initiate legal action, accelerate the full amount of the loans, and pursue collection efforts.

2. Context: Severe Financial Distress Amidst Strategic Initiatives These default notices reveal Helio Corp's severe financial distress and cash flow problems. This situation raises serious questions about the company's ability to continue operating as a "going concern" without immediate and effective intervention.

Notably, these financial challenges surface even as the company promotes strategic advancements:

• On February 11 and 12, 2026, Helio Corp highlighted its ongoing collaboration with NASA on space technology, specifically mentioning its "QuasiStatic Release Mechanism" – a technology crucial for deploying satellites.
• The company also announced the hiring of Oliver Fildes as Lead Systems Engineer for its space-based solar power initiatives, emphasizing potential market opportunities in orbital energy. This creates a mixed message for investors: severe financial instability coexisting with promising, capital-intensive long-term projects.

3. Immediate and Long-Term Implications for Investors This event poses significant risks for investors:

• Financial Instability: The defaults highlight a critical lack of cash, which could prevent the company from funding operations, including its advanced space projects.
• Legal Action Risk: If Helio Corp does not resolve the defaults by February 22, 2026, lenders could file lawsuits, seize assets, and further harm the company's finances and reputation.
• Access to Capital: Loan defaults severely limit Helio Corp's ability to raise future capital, which is essential for growth-focused technology companies. Any new funding, if available, would likely come with unfavorable terms, potentially diluting existing shareholders.
• Stock Price Volatility: News of loan defaults typically causes sharp stock price declines and increased volatility, reflecting greater investor uncertainty and risk.
• "Going Concern" Risk: The most serious risk is that Helio Corp may cease operations. Without a resolution with lenders or new capital, the company could face bankruptcy.

4. Company Response and Outlook Helio Corp reports it is "evaluating the Default Notices" and "engaged in discussions" with lenders to find a solution. However, the company admits it "cannot currently predict the outcome," highlighting significant uncertainty. Possible resolutions include negotiating new payment terms, restructuring debt, or seeking new equity financing (which could dilute existing shareholders). In the worst case, bankruptcy proceedings are a possibility.

5. Key Investor Takeaways

• High Risk Profile: Helio Corp faces severe financial distress. Investors should view this as a major red flag, indicating a significantly elevated risk.
• Monitor Closely: Investors must closely monitor future announcements from Helio Corp, especially regarding lender negotiations as the February 22, 2026, deadline nears.
• Evaluate Financial Health: Scrutinize the company's latest financial statements (when available) to assess its cash position, burn rate, and overall liquidity.
• Strategic vs. Operational Reality: While Helio Corp's space technology initiatives offer long-term potential, the immediate financial crisis threatens to prevent these projects from ever succeeding.
• Consult a Financial Advisor: Given the complexity and severity of these developments, investors should consult a qualified financial professional to understand the potential impact on their investment.