SMIT Schmitt Industries Inc - 8-K

Item 2.04

Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On May 11, 2026, Schmitt Industries, Inc. (the Company)
received a Notice of Default under Loan Documents between the Company and Sententia Capital Management LLC (Sententia). The notice claims
a total obligation by the Company in the amount of $4,280,626.78 including principal, interest, and fees under the Consolidated Promissory
Note dated July 14, 2023, issued by the Company to Sententia, in the amount of $2,638,885.21. The notice also claims $402,131.51 including
principal, interest, and fees under the 12% Secured Convertible Promissory Note, dated July 14, 2023, issued by Schmitt Measurement Systems,
Inc., a subsidiary of of the Company, in the amount of $300,000.

The Consolidated Promissory Note dated July 14, 2023,
issued by the Company is secured by a Stock Pledge Agreement dated July 14, 2023, related to the Company’s shares of the common
stock of Schmitt Measurement Systems, Inc. The 12% Secured Convertible Promissory Note, dated July 14, 2023, issued by the Company’s
subsidiary Schmitt Measurement Systems, Inc. is secured by a Security Agreement (All Assets), dated July 14, 2026.