Cloudastructure, Inc. Class A Common Stock

Cloudastructure has eliminated the variable conversion price feature of its Series 2 Convertible Preferred Stock, strengthening its balance sheet and capitalization structure. The company filed an amended certificate on June 29, 2026, removing the variable conversion price that had required derivative accounting treatment, and expects the remaining Series 2 shares to be classified as permanent equity. In a related move, Cloudastructure exchanged 1,170 Series 2 shares held by Streeterville Capital for an unsecured promissory note with a principal amount of $1,299,870, bearing 9.5% annual interest and maturing on July 30, 2027. The accounting changes are presentation-related and non-cash, with no impact on liquidity, operations, total assets, total liabilities, or net assets. The company also noted that its upcoming first quarter 2026 filing will reflect a revised classification of its preferred stock, which does not affect its underlying economics.

Cloudastructure has been selected by a leading multifamily development group to deploy its AI Surveillance and Remote Guarding platform across two communities currently undergoing rehabilitation in the greater Arizona market. The deployment represents the first properties within the developer’s portfolio to implement Cloudastructure’s full security platform from the outset of occupancy and establishes a framework for potential expansion across a growing portfolio spanning Arizona, Texas, California, and Hawaii. The developer selected Cloudastructure based on the platform’s flexibility, cost efficiency, and ability to integrate with existing infrastructure, with its camera-agnostic architecture compatible with approximately 99% of commercial-grade IP cameras. According to the National Apartment Association’s 2024 State of Tenant Safety & Satisfaction report, 69% of renters rank safety as their most important amenity, while 70% indicate they would pay more to live in a safer community. Cloudastructure currently maintains a customer retention rate of approximately 99%.