Dalrada Technology Group, Inc. has resolved a dispute with IBS Equity Fund III, LLC and IBS Private Credit Fund IV, LLC through a settlement agreement signed on October 2, 2026. The agreement, filed as an exhibit to the current report, terminates all outstanding financing arrangements that were previously in place between the parties.
The dispute originated from notices delivered by IBS in September 2026, which asserted events of default and demanded approximately $1.16 million in fees, charges, and other amounts. Dalrada disputed these demands. Under the terms of the settlement, Dalrada paid a single lump-sum amount of $20,000 to IBS. The payment was made in cleared funds on October 2, 2026, and IBS confirmed receipt on October 5, 2026.
The settlement fully discharges all obligations related to the original financing documents, including a Master Performance Standby Letter of Credit and a Master Credit, Security, and Account Purchase Agreement. As part of the resolution, the secured promissory note was cancelled, and a pre-funded warrant was extinguished. Additionally, the Company and its Chief Executive Officer, Brian Bonar, were released from all corporate and personal guarantees, stock pledges, and deposit account control agreements. All liens and security interests held by IBS against the Company and its subsidiaries were terminated, and the related financing statement was filed with the Wyoming Secretary of State.
The agreement includes mutual releases of claims arising from the financing documents and the commercial relationship between the parties. It also contains provisions for the return of original instruments and collateral, the closure of related accounts, and the return or destruction of confidential information. The settlement is governed by Florida law and does not constitute an admission of liability by any party.
