Dalrada Technology Group, Inc. 8-K/A

What Happened Dalrada Technology Group, Inc. (through its wholly owned subsidiary Genefic Inc.) announced new financing agreements dated December 31, 2025 (reported in an 8-K filed Feb 2, 2026). The arrangements consist of a Master Performance Standby Letter of Credit and Guaranty Agreement (SBLC) providing up to $20,000,000 of guarantees and a related Credit, Security, and Account Purchase Agreement (ARL) providing up to $5,000,000 of accounts‑receivable financing — a combined commitment of $25,000,000. The facility availability runs from December 31, 2025, through December 31, 2030 (unless earlier terminated). The agreements grant the lender first‑priority security interests in substantially all assets of Genefic and the parent company and include an unlimited personal guaranty by CEO and Chairman Brian Bonar.

Key Details

• Total commitment: $25,000,000 (up to $20M under SBLC + up to $5M under ARL).
• Collateral/security: first‑priority security interest in substantially all Genefic assets and a pledge of 100% equity interests in all direct and indirect subsidiaries of the parent company. Genefic must maintain collateral value equal to at least 25% of outstanding guarantees.
• Personal guaranty: Brian Bonar executed an unlimited, joint and several personal guaranty guaranteeing Genefic’s obligations.
• Fees/consideration: Genefic paid $140,000 cash at closing, issued a $165,000 promissory note (payments of $7,652 monthly for 24 months), and issued a pre‑funded warrant valued at $225,000 (with repurchase rights affecting 5% of fully diluted membership units).

Why It Matters The financing gives Genefic access to guarantees and receivables financing to support its healthcare and specialty pharmacy operations, which may help cash flow and contract performance. However, the agreements materially encumber the parent and subsidiary assets and effectively subordinate those assets to Genefic’s obligations; the lender may seize or liquidate collateral on default. The CEO’s unlimited personal guaranty creates direct personal liability and potential conflicts of interest the board acknowledged. Investors should note the increased secured indebtedness and upstream pledge of company assets, as these raise recovery and governance considerations in the event of financial stress.