Recent Updates — DFCO

Dalrada Technology Group settled a commercial dispute with IBS Equity Fund III and IBS Private Credit Fund IV for a lump sum of $20,000. The settlement resolves IBS's prior demand for approximately $1,162,246 in fees and charges related to defaulted Financing Documents, including a Master Performance Standby Letter of Credit and a Master Credit Agreement. Upon closing on October 2, 2026, all financing documents were terminated, obligations discharged, and liens released. IBS confirmed it holds no equity or warrants in the company. Dalrada Technology Group operates in the technology sector.

Dalrada Technology Group’s subsidiary, Genefic, terminated financing agreements with IBS Equity Fund III and IBS Private Credit Fund IV. Although no funds were ever disbursed under the $20 million standby letter of credit or $5 million account purchase facility, IBS issued a Master Notice declaring Events of Default based on alleged failures to pay servicing invoices, maintain collateral values, and comply with reporting requirements. IBS accelerated the $181,500 promissory note and demanded a total of approximately $1.16 million in fees, redemption amounts, and expenses, while also requiring an additional $875,000 in qualifying collateral. The Company disputes these claims, asserting meritorious defenses against charges for unfunded facilities. If IBS prevails or exercises remedies such as seizing accounts or pledged equity, it could materially adversely affect the Company’s liquidity and operations. Dalrada Technology Group operates in the technology sector.