GridAI settles $1,014,675 revolving loan default

GridAI Technologies Corp. entered a Debt Settlement and Subscription Agreement with its lender to resolve a default under a revolving loan.

Rhea-AI Filing Summary

GridAI Technologies Corp. entered a Debt Settlement and Subscription Agreement with its lender to resolve a default under a revolving loan. The lender had demanded $1,014,675 after the January 31, 2026 maturity passed without repayment. GridAI will pay $800,000 in cash, covering $700,000 of principal and $100,000 of accrued interest, and will issue 71,482 common shares at a deemed price of $3.25 per share to satisfy remaining accrued interest of $232,315.

Positive

• None.

Negative

• Loan default and costly resolution: GridAI allowed a revolving loan to pass its January 31, 2026 maturity without repayment, prompting a $1,014,675 demand and forcing an $800,000 cash payout plus issuance of 71,482 shares at $3.25 to settle accrued interest of $232,315.

Insights

Credit & capital structure analyst

GridAI cures a loan default with cash plus equity, adding dilution risk.

GridAI Technologies Corp. defaulted on a revolving loan when the January 31, 2026 maturity passed without repayment, triggering a lender demand for $1,014,675. Default events raise counterparty risk and can narrow future funding options if not quickly addressed.

The company has now agreed to a settlement requiring an $800,000 cash payment and issuance of 71,482 common shares at $3.25 per share to clear remaining accrued interest of $232,315. This combination reduces debt but shifts part of the burden into equity dilution.

Investors can gauge impact by comparing the 71,482 new shares to existing shares outstanding as of the most recent reporting date in company disclosures, and by watching how future filings describe remaining borrowing capacity and any revised lending terms after this settlement.

8-K Event Classification

2 items: 1.01, 9.01

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Lender demand amount: $1,014,675 Loan principal: $700,000 Cash settlement payment: $800,000 +5 more

8 metrics

Lender demand amount $1,014,675 Total demanded in April 1, 2026 default letter

Loan principal $700,000 Principal amounts received by the company under Revolving Loan Agreement

Cash settlement payment $800,000 Cash to be paid under Debt Settlement and Subscription Agreement

Accrued interest paid in cash $100,000 Portion of accrued interest settled in cash

Shares issued in settlement 71,482 shares Common stock issued to satisfy remaining accrued interest

Deemed share price $3.25 per share Valuation used for 71,482 settlement shares

Interest settled in shares $232,315 Remaining accrued interest satisfied via equity issuance

Loan maturity date January 31, 2026 Maturity Date under the Revolving Loan Agreement

Key Terms

Revolving Loan Agreement, Debt Settlement and Subscription Agreement, Maturity Date, default, +1 more

5 terms

Revolving Loan Agreement financial

"entered into a Revolving Loan Agreement dated January 27, 2025 (the “Revolving Loan Agreement”)"

Debt Settlement and Subscription Agreement financial

"entered into a Debt Settlement and Subscription Agreement (the “Settlement Agreement”)"

Maturity Date financial

"were due in full on January 31, 2026 (the “Maturity Date”)."

The maturity date is the specific day when a loan, bond, or investment reaches its full term and the borrower must repay the borrowed amount in full. It is important for investors because it indicates when they will receive their initial money back and can plan their future financial steps accordingly. Think of it as the due date for a loan or the day a gift card or coupon expires.

default financial

"asserting that the Company is in default of the Revolving Loan Agreement"

When a borrower fails to meet a legal obligation on a debt—most commonly missing scheduled interest or principal payments—it's called a default. For investors, default signals higher credit risk and can lead to loss of expected returns, forced restructuring or legal claims on assets; like a tenant suddenly not paying rent, it can disrupt cash flow and reduce the value of loans or bonds held by outsiders.

accrued interest financial

"accrued interest in the amount of $100,000, and (ii) the issuance of 71,482 shares ... in satisfaction of remaining accrued interest obligations of $232,315"

Accrued interest is the amount of interest that has built up on a loan, bond, or similar investment since the last payment date but has not yet been paid. For investors this matters because when you buy or sell a fixed‑income security between payment dates you compensate the other party for that earned interest—think of it like buying a house mid‑month and reimbursing the seller for days of heating already used—so it affects the actual cash you pay, the yield you receive, and short‑term returns.

FAQ

What agreement did GridAI Technologies Corp. (ENTO) enter on May 14, 2026?

GridAI Technologies Corp. entered a Debt Settlement and Subscription Agreement with its revolving loan lender. The deal resolves a prior default by combining a substantial cash payment with issuing new common shares to cover remaining accrued interest obligations.

Why did GridAI Technologies Corp. face a $1,014,675 demand from its lender?

The lender sent a demand letter after the January 31, 2026 maturity date passed without repayment under the Revolving Loan Agreement. It sought $1,014,675, including $700,000 principal, accrued interest, and a contractual 20% default-related increase.

How much cash will GridAI Technologies Corp. pay under the debt settlement?

GridAI will make a cash payment of $800,000 to its lender. This covers $700,000 of principal and $100,000 of accrued interest outstanding under the Revolving Loan Agreement as part of the overall default resolution package.

How many shares will GridAI issue to complete the loan settlement?

GridAI will issue 71,482 shares of common stock to its lender. These shares are valued at a deemed price of $3.25 per share and are used to satisfy remaining accrued interest obligations totaling $232,315 under the Revolving Loan Agreement.

What loan caused the default and settlement for GridAI Technologies Corp.?

The default and settlement relate to a Revolving Loan Agreement dated January 27, 2025, with 1396974 BC Ltd. The agreement required all principal, accrued interest, and other amounts to be paid in full by the January 31, 2026 maturity date.

Does the GridAI settlement reduce its debt obligations to the lender?

The settlement is designed to satisfy GridAI’s obligations under the Revolving Loan Agreement. It replaces the lender’s $1,014,675 demand with an $800,000 cash payment plus equity issuance covering $232,315 of accrued interest, eliminating that loan exposure once completed.

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

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Accepted by SEC EDGAR 05/20/2026 - 04:06 PM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 14, 2026

GridAI Technologies Corp.

(Exact name of Registrant as Specified in its Charter)

Delaware		001-37853		46-4993860
(State or other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

433 Plaza Real, Suite 275

Boca Raton, FL 33432

(Address of Principal Executive Offices) (Zip Code)

(561) 589-5444

(Registrant’s Telephone Number, Including Area Code)

N/A 

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		GRDX		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01. Entry into a Material Definitive Agreement.

As previously disclosed in the Current Report on Form 8-K filed with the Securities and Exchange Commission on February 6, 2025, GridAI Technologies Corp. (f/k/a Entero Therapeutics, Inc.) (the “Company”) entered into a Revolving Loan Agreement dated January 27, 2025 (the “Revolving Loan Agreement”), with 1396974 BC Ltd. (the “Lender”) pursuant to which the Lender agreed to make loans to the Company. Under the Revolving Loan Agreement, the outstanding principal balance of all outstanding loans, all accrued and unpaid interest and all other amounts, costs, expenses and/or liquidated damages were due in full on January 31, 2026 (the “Maturity Date”). As also previously disclosed in the Current Report on Form 8-K filed with the Securities and Exchange Commission on April 24, 2026, on April 1, 2026, the Company received a demand letter from the Lender, asserting that the Company is in default of the Revolving Loan Agreement as the Maturity Date had passed and the amounts due under the Revolving Loan Agreement have not been repaid, and demanding the Company to pay a total sum of $1,014,675, which includes the principal amounts received by the Company ($700,000), interest and a 20% increase of these amounts due to the default pursuant to the terms of Revolving Loan Agreement. On May 14, 2026, the Company and the Lender entered into a Debt Settlement and Subscription Agreement (the “Settlement Agreement”) pursuant to which the Company will satisfy its obligation to the Lender through (i) a cash payment in the aggregate amount of $800,000, comprised of the principal amount of $700,000 and accrued interest in the amount of $100,000, and (ii) the issuance of 71,482 shares of the Company’s common stock at a deemed price of $3.25 per share, in satisfaction of remaining accrued interest obligations of $232,315, all in accordance with the terms and conditions set forth in the Settlement Agreement.

The foregoing description of the Settlement Agreement is subject to, and qualified in its entirety by, such document, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

No.		Description
10.1		Debt Settlement and Subscription Agreement, dated May 14, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GRIDAI TECHNOLOGIES CORP.
Date: May 20, 2026	By:	/s/ Jason D. Sawyer
	Name:	Jason D. Sawyer
	Title:	Chief Executive Officer

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EXHIBIT 10.1 102.9 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.0 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 33.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 21.8 KB