Dalrada Technology Group, Inc. 8-K

What Happened

• Dalrada Technology Group, Inc. (through its wholly owned subsidiary Genefic Inc.) announced on its Form 8‑K that Genefic entered into a Master Performance Standby Letter of Credit and Guaranty Agreement (SBLC Agreement) with IBS Equity Fund III, LLC and a related Credit, Security, and Account Purchase Agreement (ARL Agreement) dated December 31, 2025.
• The SBLC Agreement provides for up to $20,000,000 of guarantees and related instruments, and the ARL Agreement enables the Secured Party (or its affiliate) to provide revolving credit by purchasing Genefic’s accounts receivable up to $5,000,000. The availability period runs from December 31, 2025 through December 31, 2030 (unless earlier terminated).
• The financing is secured by a first‑priority security interest in substantially all assets of Genefic and the Company, and the Company pledged 100% of equity interests in its direct and indirect subsidiaries as collateral. Brian Bonar, Dalrada’s Chairman & CEO, has provided an unlimited personal guaranty.

Key Details

• $20,000,000 aggregate commitment for guarantees; $5,000,000 maximum receivables purchase/revolving credit under the ARL Agreement.
• Collateral: first‑priority lien on substantially all assets of Genefic and Dalrada, plus a 100% equity pledge of all subsidiaries; Genefic must maintain collateral equal to at least 25% of outstanding guarantees.
• Guaranty and fees: CEO Brian Bonar executed a joint and several unlimited personal guaranty; closing fees include $140,000 cash, a $165,000 promissory note (paid as $7,652 monthly over 24 months), and a $225,000 pre‑funded warrant with rights related to 5% of fully diluted membership units.
• Events of default allow acceleration, reimbursement demands, and liquidation of collateral; unpaid obligations accrue default interest.

Why It Matters

• The agreements give Genefic access to significant guarantees and a receivables financing line to support its healthcare operations (including specialty pharmacy), which can help liquidity and business operations.
• At the same time, the arrangements materially encumber Dalrada’s and its subsidiaries’ assets and expose the Company (and its CEO personally) to substantial financial risk if Genefic defaults. The upstream pledge and CEO’s unlimited personal guaranty could lead to recovery actions against parent assets and create potential conflicts of interest identified by the Board.
• Investors should note the funding costs, potential dilution from the warrant arrangement, and the degree to which consolidated assets are subordinated to support the subsidiary’s obligations when assessing company risk.