Dalrada Technology Group Inc.

What they do

Dalrada operates through five divisions: Genefic, Dalrada Climate Technology, Dalrada Precision Manufacturing, Dalrada Technologies, and Dalrada Corporate. Genefic covers specialty pharmaceutical and infusion, and Dalrada Climate Technology addresses heat pump and deposition technology markets. Dalrada Precision Manufacturing and Dalrada Technologies serve industrial, semiconductor, electronics, and digital engineering markets. Corporate carries no revenue and houses centralized costs.

Revenue drivers

• Genefic — The largest division at $10.4M of fiscal 2025 revenue, comprising specialty pharmaceutical and infusion operations including the IV Services acquisition.
• Dalrada Climate Technology — Second-largest at $8.1M of fiscal 2025 revenue, covering heat pump technology and supplemented by the Grand Entrances acquisition.
• Dalrada Technologies — Contributed $1.3M of fiscal 2025 revenue and serves digital engineering and energy services markets.
• Dalrada Precision Manufacturing — Smallest reporting division at $448,409 of fiscal 2025 revenue, focused on deposition technology for semiconductor, electronics, and solar applications.

Recent performance

For the three months ended March 31, 2026, consolidated revenue was $2,567,104 versus $4,574,276 for the same quarter a year earlier. Genefic revenue fell 35.5% to $901,255, which management attributed to limited working capital and a shift in the sales pipelines of Genefic Specialty Pharmacy. Consolidated loss from operations narrowed to $3,284,520 from $3,938,773. The company reported a net loss of $4,326,287 for the quarter and $14,813,937 for the nine months ended March 31, 2026.

Strategy

Management states it is implementing plans to achieve cost savings and other strategic objectives to address profitability. It intends to grow the subsidiaries anticipated to be most profitable while reducing investments in areas not expected to have long-term benefits. The company continues to rely on equity and debt investors to finance its losses and expects to pursue related-party and other financing. It also describes pursuing synergistic opportunities to enhance its business portfolio.

Risks

• Going concern — The independent registered public accounting firm's report contains a statement that net losses and limited working capital raise substantial doubt about the ability to continue as a going concern.
• Working capital deficit — At March 31, 2026, total liabilities of $38.5M exceeded total assets of $17.7M, producing shareholder equity of negative $20.9M and cash of only $82,625.
• Revenue concentration and decline — Genefic and Dalrada Climate Technology produced roughly 91% of fiscal 2025 revenue, and quarterly revenue fell from $6.6M in June 2025 to $2.6M in March 2026.
• Financing dependence and listing history — The company states it must raise substantial capital and cannot assure that financing will be available on acceptable terms, and it reported a delisting notice or listing-rule failure in January 2025.

Outlook

Management says the company may incur additional losses in the foreseeable future until it successfully executes its business plan, and that it will be required to raise substantial capital for capital expenditures and working capital. It continues to rely on related parties and to seek other financing, while giving no assurance that funds will be sufficient to execute the plan or generate positive operational results.