On March 19, 2026, zSpace, Inc. announced that it has entered into a new Loan and Security Agreement with Itria Ventures LLC, securing a term loan of $1,344,500 at an interest rate of 18.99% per annum. This financing is intended to refinance all outstanding debt with the lender, which includes two previous loans totaling $2 million. The new loan will be repaid in 24 equal monthly installments, maturing two years from the funding date. The agreement includes provisions for a prepayment option after the first month, subject to a fee if prepaid within the first year. Additionally, the loan is secured by a second priority lien on the company's assets and is guaranteed by its wholly-owned subsidiaries, zSpace Technologies (Shanghai) Ltd. and zSpace K.K. The refinancing comes at a time when zSpace is looking to stabilize its financial position amidst ongoing operational challenges. The company has also entered into an amendment with Fiza Investments Limited, allowing for a moratorium on interest payments until the end of 2026, which may provide some relief in the short term. However, the high interest rate and the terms of the new loan could pose risks to zSpace's liquidity and operational flexibility in the future.

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