{"url_path":"/sec/otlk/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Defaults Upon Senior Securities","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1649989/0001104659-26-062632-index.html","accession_number":"0001104659-26-062632","cik":"0001649989","ticker":"OTLK","issuer_name":"Outlook Therapeutics, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1649989/0001104659-26-062632-index.html","primary_entity_key":"0001649989","primary_entity_name":"Outlook Therapeutics, Inc."},"word_count":150,"has_tables":true,"body_markdown":"Item 3. Defaults Upon Senior Securities\n\nNone. However, as described in Note 7 to the unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, on December 31, 2025, the Company did not satisfy the required $3,000,000 Quarterly Debt Reduction Obligation under the March 2025 Note, which constituted a “Major Trigger Event” (as defined in the March 2025 Note) and resulted in (i) an automatic 10% increase to the outstanding balance and (ii) an adjustment to the Conversion Price. Subsequent to December 31, 2025, Avondale converted $6,910,000 of principal and accrued interest into 15,057,649 shares of common stock, satisfying the Quarterly Debt Reduction Obligation for both the quarters\n\n41\n\n[Table of Contents](#TOC)\n\nended December 31, 2025 and March 31, 2026. Avondale has confirmed that this Major Trigger Event has not resulted in an Event of Default (as defined in the March 2025 Note).\n\n​\n\n​\n\n​"}