SAN JOSE, Calif., June 01, 2026 (GLOBE NEWSWIRE) — zSpace, Inc. (OTC: ZSPC) (“zSpace” or the “Company”), a leading provider of immersive augmented and virtual reality learning technology, today announced that it has entered into agreements with two of its lenders to convert more than $12 million in outstanding debt into equity. The transactions, which closed simultaneously, eliminate the related debt obligations and meaningfully strengthen the Company’s financial position.

Under one agreement, Fiza Investments Limited converted approximately $10 million in total debt — consisting of approximately $7.2 million in principal and $2.8 million in accrued interest into shares of zSpace common stock at 150% of the market price prior to closing and preferred stock. As a result of such refinancing, all of Fiza’s debt obligations with the Company have been fully retired.

Under the other agreement, 3i, LP converted approximately $2 million in outstanding debt into shares of common stock, also at 150% of the market price prior to closing. In connection with this agreement, one of 3i’s two senior secured convertible notes was fully retired and 3i’s remaining senior secured convertible note was amended to include a nine-month period following the closing during which 3i may not convert any portion of the note into shares of common stock. This will result in approximately $5 million in total debt remaining on zSpace’s balance sheet.

“These agreements reflect meaningful progress in strengthening zSpace’s financial foundation,” said Paul Kellenberger, Chief Executive Officer of zSpace. “By converting a substantial portion of our debt into equity, we are reducing financial obligations and positioning the Company to focus on what matters most — delivering innovative learning experiences and driving long-term value for our customers, partners, and shareholders.”

About zSpace

zSpace, Inc. is a leader in immersive learning technology, providing augmented and virtual reality solutions to K-12 schools, higher education institutions, and workforce training programs. zSpace’s award-winning platform combines hardware, software, and curriculum to bring STEM and career and technical education to life. For more information, visit www.zspace.com.

Forward-Looking Statements

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the stabilization of the education market, the long-term potential of our business, and ability to execute with discipline. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the Company’s filings with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and zSpace, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Investor / Media Contact:

zSpace, Inc.

ir@zspace.com

www.zspace.com