ReelTime Media Cuts Outstanding Debt in Half, Bringing Total Debt Reduction Over the Past Year Down More Than 64%

Core Viewpoint - ReelTime Media, Inc. has successfully reduced its outstanding debt by over 50% through strategic renegotiations, enhancing its balance sheet and positioning for long-term growth and shareholder value [1][6]. Debt Reduction Strategy - The company reached an agreement with its largest debt holder to retire a note with an outstanding balance of approximately $2.86 million at a 15% interest rate, replacing it with a new note of approximately $286,000 at a reduced 5% interest rate, maturing on February 1, 2028 [4]. - Additionally, ReelTime extinguished approximately $63,000 in legacy debt, resulting in a 20% reduction in potential dilution relative to prior conversion terms [5]. - This marks the second major debt reduction in the past year, with a total debt reduction exceeding 64%, including a previous reduction of approximately $1.2 million in April [5]. Financial Position and Strategy - The company's CEO emphasized a disciplined strategy to improve financial position while protecting shareholder interests, focusing on reducing high-interest obligations and eliminating legacy liabilities [6]. - ReelTime is currently negotiating with remaining long-term note holders to modify and restart multiple outstanding notes, aiming to further reduce potential dilution and streamline its capital structure [6]. Industry Context - Unlike many leading AI infrastructure companies that are increasing leverage for capital-intensive expansions, ReelTime is prioritizing balance-sheet strength and disciplined capital management [7][8]. - The company believes its approach provides a unique financial advantage in a market that rewards capital efficiency and sustainable growth [8]. Company Overview - ReelTime Media, based in the Seattle area, is a multimedia production and AI innovation company, known for its flagship Reel Intelligence platform that offers tools for creating various media content [9].