Dot Ai Fortifies Balance Sheet Through Series of Capital Structure Actions

Rhea-AI Summary

Dot Ai (Nasdaq:DAIC) announced actions to strengthen its balance sheet and simplify its capital structure.

The company retired in full approximately $867,000 of secured convertible promissory notes held by White Lion Capital and released related security interests. A potential new investor also advanced $500,000 via an additional secured convertible note to fund operations and corporate purposes.

Positive

• Retired approximately $867,000 in secured convertible notes held by White Lion Capital
• Eliminated related debt obligation and released security interests on retired White Lion notes
• Secured $500,000 in new capital through an additional secured convertible note
• Actions aim to simplify Dot Ai's capital structure and increase financial flexibility

Negative

• New $500,000 financing is structured as secured convertible debt, adding a new obligation
• Additional secured convertible note may lead to future equity dilution upon conversion

Market Context

Retiring $867,000 of White Lion secured convertible notes while adding a new $500,000 secured conver...

Analysis

Retiring $867,000 of White Lion secured convertible notes while adding a new $500,000 secured convertible facility reshapes Dot Ai’s capital stack. Investors may track how this interacts with strategic alternatives and whether further financings alter leverage or potential dilution.

Key Figures

Retired White Lion notes: $867,000 New secured convertible note: $500,000

2 metrics

Retired White Lion notes $867,000 Aggregate principal amount of secured convertible promissory notes retired in full

New secured convertible note $500,000 Additional secured convertible financing from a potential new investor

Previous AI Reports

5 past events · Latest: Jun 24 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 24	product update	Positive	+2.2%	Launch of Dot Matrix Version 3.5 with UX and multi-tenant upgrades.
Jun 10	strategic LOIs	Positive	+9.2%	Non-binding LOIs for preferred investment and partial business sale.
Jun 10	strategic LOIs	Positive	-4.2%	Initial disclosure of LOIs for investment and asset sale.
Jun 03	strategic review	Negative	-19.2%	Engagement of advisor to evaluate alternatives including possible liquidation.
Mar 25	webinar notice	Neutral	-1.0%	Scheduling of April 1, 2026 industry webinar on asset intelligence.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

AI-tagged headlines have produced mixed but slightly negative average reactions, with most moves directionally aligned to the underlying news and only one clear divergence.

Key Terms

secured convertible promissory notes, security interests, secured convertible note, loi

4 terms

secured convertible promissory notes financial

"the retirement in full of its outstanding secured convertible promissory notes held by White Lion Capital"

A secured convertible promissory note is a written IOU where a borrower promises to repay money that is backed by specific assets (secured) and includes an option for the lender to convert the debt into company shares (convertible). Think of it as lending money against collateral with a choice to take the borrower’s stock instead of cash; investors watch these instruments because they change who gets paid first in a liquidation and can dilute existing shareholders if converted to equity.

security interests financial

"The retirement releases the security interests that secured the notes"

A security interest is a legal claim a lender or creditor has on a borrower's specific assets to ensure repayment; if the borrower fails to pay, the creditor can seize those assets to recoup losses. For investors, security interests change how risky a company's debt and assets are because they determine who gets paid first in financial trouble—think of it like a mortgage on a house that gives one lender first dibs on the sale proceeds.

secured convertible note financial

"a potential new investor has agreed to provide $500,000 of new capital to the Company through an additional secured convertible note"

A secured convertible note is a loan to a company that is backed by specific assets (secured) and can be changed into company shares (convertible) instead of being paid back in cash. For investors this matters because it mixes lower risk—because collateral gives repayment priority if things go wrong—with potential upside through stock conversion, while also affecting future ownership and how much existing shareholders may be diluted.

loi financial

"as previously contemplated in the previously announced non-binding LOI, a potential new investor has agreed"

A letter of intent (LOI) is a short, nonbinding written note that outlines the basic terms two parties expect to follow when pursuing a deal such as an acquisition, partnership, or major contract. Like a handshake that records the main points before lawyers write the formal agreement, an LOI signals deal intent, timelines and key conditions — information investors use to gauge potential changes to a company’s value, while remembering the agreement can still change.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Company Retires White Lion Notes in Full, new investor advances $500,000 in Additional Secured Convertible Financing

LAS VEGAS, NV / ACCESS Newswire / July 2, 2026 / Dot Ai, Inc. (Nasdaq:DAIC) ("Dot Ai" or the "Company"), an IoT and AI-based SaaS company redefining asset intelligence for industrial technology, today announced a series of actions to fortify its balance sheet and simplify its capital structure, including the retirement in full of its outstanding secured convertible promissory notes held by White Lion Capital, LLC, in the aggregate principal amount of approximately $867,000. The retirement releases the security interests that secured the notes, eliminates the associated debt obligation and further simplifies the Company's capital structure.

In addition, as previously contemplated in the previously announced non-binding LOI, a potential new investor has agreed to provide $500,000 of new capital to the Company through an additional secured convertible note. This new capital provides Dot Ai with incremental resources to support its operating initiatives and general corporate purposes.

"Retiring the White Lion notes in full is a meaningful step forward in strengthening our balance sheet and simplifying Dot Ai's capital structure," said Ed Nabrotzky, Co-Founder and Chief Executive Officer of Dot Ai. "By eliminating this secured obligation and releasing the security interests that backed it, we are removing both complexity and risk from our financial structure while creating greater flexibility to execute on our strategic plan. We are equally encouraged that the new investor contemplated in the previously announced LOI has provided additional capital as a first step towards a significant potential transaction for the company.

About Dot Ai

Dot Ai (Nasdaq:DAIC) is an IoT and AI-based SaaS company at the forefront of Asset Intelligence technology for smart supply chain operations. Leveraging state-of-the-art AI engines, cutting-edge 5G RF and BLE technology, sensor-agnostic architecture and seamless cloud integrations, Dot Ai offers continuous asset visibility and predictive analytics that integrate with existing/legacyinfrastructure. The Company serves multiple industries including aviation, construction, delivery, military, mining, retail, sea ports, medical logistics, warehousing and manufacturing. For more information, please visit daic.ai.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, including statements regarding the Company's capital structure, balance sheet, and strategic plans and include statements regarding the proposed sale of a portion of the Company's operating business. All forward-looking statements are based on Dot Ai's current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and Dot Ai assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

No Assurances

The letter of intent (LOI) relating to a sale of a portion of the Company's operating is non-binding, other than certain provisions relating to exclusivity, and expenses, and does not constitute a binding commitment to complete the proposed transaction. Completion of the proposed transaction is subject in all respects to the negotiation and execution of definitive agreements, satisfactory completion of due diligence, board approval, receipt of any required stockholder, lender, Nasdaq, and regulatory consents or approvals, market conditions, and the satisfaction of customary closing conditions, including maintenance of the Company's listing on The Nasdaq Stock Market LLC. There can be no assurance that definitive agreements will be executed, that the proposed transaction will be completed on the terms described in the letter of intent or at all, or as to the timing of any such transaction. The Company does not intend to disclose further developments unless and until it determines that additional disclosure is appropriate or required.

No Offer

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Investor Relations Contact
Lucas A. Zimmerman & Ian Scargill
MZ Group - MZ North America
(262) 357-2918
DAIC@mzgroup.us
www.mzgroup.us

SOURCE: Dot Ai

View the original press release on ACCESS Newswire

FAQ

What capital structure changes did Dot Ai (NASDAQ:DAIC) announce on July 2, 2026?

Dot Ai announced full retirement of secured convertible notes held by White Lion and new secured financing. According to Dot Ai, approximately $867,000 in White Lion notes were retired and a potential new investor advanced $500,000 via a secured convertible note.

How much debt did Dot Ai (DAIC) retire from White Lion Capital?

Dot Ai retired secured convertible promissory notes with an aggregate principal of about $867,000 held by White Lion Capital. According to Dot Ai, this retirement removes the related debt obligation and releases the security interests that previously secured these notes.

What are the details of Dot Ai's new $500,000 secured convertible note financing?

Dot Ai received $500,000 in new capital from a potential investor through an additional secured convertible note. According to Dot Ai, these funds provide incremental resources for operating initiatives and general corporate purposes and are connected to a previously announced non-binding LOI.

How do the recent financing actions affect Dot Ai's balance sheet and capital structure?

The actions reduce existing secured debt while adding new secured convertible financing. According to Dot Ai, retiring White Lion notes simplifies the capital structure, releases security interests, and, combined with the new $500,000 note, is intended to strengthen the balance sheet and flexibility.

Why does Dot Ai describe the new investor financing as a step toward a potential transaction?

Dot Ai links the new financing to a previously announced non-binding LOI with a potential investor. According to Dot Ai, the $500,000 capital infusion is described as a first step toward a significant potential transaction for the company, without disclosing further terms.