Company: INTS
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001567264-25-000010
Chunk: 46

Company: INTENSITY THERAPEUTICS, INC.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 46
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8.    Convertible Notes

Prior to the IPO, the Company entered into a series of interest-bearing convertible notes, which bore interest at rates ranging 3% to 10%, and were automatically converted upon the IPO at a discount ranging 30% to 35% to the conversion price of $11.50 per share, in accordance with the respective note agreements.  Below is a summary of activity of convertibles notes for the year ended December 31, 2023 (in thousands): PrincipalAccrued InterestTotalAs of January 1, 20234,250 99 4,349 Issuance of Convertible Notes243 — 243 Interest expense— 145 145 Conversion to common stock upon IPO(4,493)(244)(4,737)Balance as of December 31, 2023$— $— $— Upon the IPO, all convertible note principal and accrued interest of $4.5 million and $0.2 million, respectively, converted into an aggregate of 1,399,716 shares of common stock, pursuant to the conversion terms in each respective note. The Company recorded a non-operating loss on debt extinguishment of $2.3 million in the statement of operations, which is equal to the aggregate discounts on the IPO price specified in each convertible note agreement. In addition, upon the IPO, the remaining $0.2 million balance of unamortized discount on 2022 Convertible Notes was recognized and recorded in Interest Expense on the Statement of Operations.

Note 9.    Stockholders’ Equity 

Initial public offeringOn July 5, 2023, as described in Note 1, the Company completed IPO, issuing 3,900,000 shares of common stock at the IPO price of $5.00 per share. On July 7, 2023, the Company sold the full over-allotment of the IPO shares and issued 585,000 shares of common stock at the IPO price of $5.00 per share. Pursuant to the IPO, 

F-12

•all Series A, B and C Preferred Stock was converted into 4,124,851 shares of common stock at conversion prices equal to $4.00, $9.00 and $11.50, respectively.•Series B and Series C Preferred Stock received an additional 100,189 and 164,518 shares of common stock, respectively, pursuant to the terms of their security agreements,