Applied Real Intelligence, a private investment firm specializing in senior secured growth credit and structured equity investments, announced that the New York Supreme Court, Commercial Division, has ruled in favor of its affiliated entities, A.R.I. Agent, LLC and A.R.I. Senior Secured Growth Credit Fund, LP (collectively, “A.R.I.”) in their lawsuit against Mona Lee Inc. (“Monalee”), the solar technology company now doing business as Artemis, also known as Artemis Power and Artemis Solar. The company is led by co-founder and CEO Walid Halty, Chief Technology Officer Juan Carillo, Chief Marketing Officer Jonathan Leung, and Chief Financial Officer Alexander Urban.

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In its October 1, 2026 Decision and Order, the Court granted summary judgment in favor of A.R.I. on liability for breach of contract and money had and received, finding that Artemis had breached its loan agreement and was legally responsible for the resulting obligations. The Court also dismissed the defendants’ counterclaim and all seven affirmative defenses.

The ruling establishes Artemis’ liability on those claims without the need for a trial on liability. The amount recoverable by A.R.I., including applicable principal, interest, fees, and expenses, remains to be determined.

The defendants filed a Notice of Appeal on October 9, 2026. The ruling remains subject to appellate review.

New York Supreme Court Finds Artemis Liable and Grants Summary Judgment to A.R.I.

The litigation arises from a July 2024 senior secured credit facility of up to $10 million, under which A.R.I. initially funded $2 million.

The Court determined that A.R.I. fulfilled its funding obligations and that Artemis breached the loan agreement by failing to make required monthly interest payments. Those failures triggered an Event of Default and the resulting contractual repayment obligations.

At the September 22, 2026 hearing, Justice Joel M. Cohen emphasized the demanding legal standard governing summary judgment, which requires courts to view the evidence in the light most favorable to the opposing party. Even under that standard, the Court concluded that A.R.I. had established its entitlement to judgment on liability.

As Justice Cohen explained:

“The burden to establish a right to summary judgment is a heavy one. The facts must be viewed in the light most favorable to the nonmoving party. Every available inference must be drawn in the nonmoving party’s favor.”

Justice Cohen continued:

“Mere conclusions, allegations, or assertions are insufficient to raise a triable issue of fact. As I have said earlier, Plaintiffs have met their burden, in my view, with respect to liability.”

Having determined that Artemis failed to raise a triable issue of material fact concerning liability, Justice Cohen made his ruling explicit:

“Summary judgment will be granted on liability with an open question as to what the amount still owed is.”

Source: September 22, 2026 Hearing Transcript, pp. 20, 24.

New York Supreme Court Finds Artemis Breached Loan Agreement and Failed to Satisfy Repayment Obligations

At the September 22, 2026 hearing, Justice Joel M. Cohen addressed the contractual consequences of Artemis’ default:

“The undisputed evidence indicates that Defendants breached the Loan Agreement by not making timely monthly interest payments, late payments under the contract constitute an Event of Default. And at that point, upon a default, the outstanding principal of all loans accrued and unpaid interest, fees, charges, et cetera, are due and owing.”

Justice Cohen further explained that the defendants had failed to demonstrate that their prior payments satisfied the amounts owed:

“I don’t see anything in their papers which suggests that they have already fully repaid the loan, plus interest, plus expenses, even reasonable ones.”

The Court rejected the defendants’ position that their prior payments satisfied their contractual obligations. The amount recoverable by A.R.I. remains to be determined.

Source: September 22, 2026 Hearing Transcript, pp. 24-25.

New York Supreme Court Dismisses Artemis’ Counterclaim and All Seven Affirmative Defenses

In addition to granting summary judgment on liability in A.R.I.’s favor, the New York Supreme Court dismissed Artemis’ counterclaim and all seven affirmative defenses, rejecting the defendants’ attempts to defeat A.R.I.’s contractual claims.

At the September 22, 2026 hearing, Justice Joel M. Cohen addressed the factual basis for the defendants’ affirmative defenses.

As Justice Cohen stated:

“I don’t see any basis in the record for defenses such as laches, release, waiver, estoppel, unclean hands, and the like. Those all seem just like, you know, sort of buzzwords without any facts attached to them.”

Justice Cohen further explained:

“This was a loan, it wasn’t repaid. The question is whether some of the expenses in getting the money back have been unreasonable. I can deal with that without having to reach for defenses like waiver and unclean hands. So I think some of those are unnecessarily complicating the record. I think it is a pretty straightforward case, frankly.”

Source: September 22, 2026 Hearing Transcript, p. 27; October 1, 2026 Decision and Order.

Separate Massachusetts Litigation Involving Artemis, Walid Halty, and Bank of America, N.A.

Separate from the New York proceedings, A.R.I. is pursuing litigation in Massachusetts against Mona Lee Inc. (now doing business as Artemis), CEO Walid Halty individually, and Bank of America, N.A. The Massachusetts action involves distinct legal claims and allegations from those adjudicated in New York.

The Massachusetts litigation concerns allegations of fraud, misrepresentation, concealed bank accounts at Bank of America, N.A., and the transfer of more than $5.45 million in pledged cash collateral from accounts maintained by Artemis at Bank of America, N.A. following A.R.I.’s exercise of its contractual control rights under a Deposit Account Control Agreement (“DACA”) with Bank of America, N.A.

As detailed in A.R.I.’s May 7, 2026 Business Wire announcement and the underlying court filings, A.R.I. alleges that Walid Halty and Artemis concealed bank accounts, made misrepresentations concerning compliance with lending obligations, and participated in conduct involving the transfer of pledged funds outside the agreed collateral-control structure.

A.R.I. further alleges that Bank of America, N.A. failed to comply with its obligations under the three-party DACA, permitting more than $5.45 million in cash pledged as collateral to be transferred out of an account subject to A.R.I.’s exercised contractual control rights.

These allegations remain disputed and have not been adjudicated by the New York summary judgment ruling. The New York decision concerns only the contractual liability of Artemis; it does not establish personal liability against Walid Halty or liability against Bank of America, N.A. The Massachusetts litigation remains ongoing.

Artemis Announces $6 Million Financing Backed by Arielle Zuckerberg and Other Investors Amid Loan Default and Pending Litigation

On March 4, 2026, while in default under its loan agreement with A.R.I. and facing ongoing litigation, Mona Lee Inc. (“Monalee”) publicly announced that it was rebranding as “Artemis” and had raised $6 million in venture financing. The announcement came approximately five months after A.R.I. commenced legal proceedings arising from the company’s loan default and separate allegations involving Mona Lee Inc., CEO Walid Halty and Bank of America, N.A.

The $6 million financing was co-led by Long Journey Ventures and Copec WIND Ventures. Among the investors publicly supporting Artemis was Arielle Zuckerberg, a General Partner at Long Journey Ventures and sister of Meta founder Mark Zuckerberg. In connection with the financing announcement, Zuckerberg praised Artemis as “the kind of magically weird company we love at Long Journey.” Brian Walsh of Copec WIND Ventures also publicly endorsed Artemis, highlighting its technology and growth potential in solar and energy storage.

The announcement identified Ludlow Ventures, Shrug Capital, Coalition Operators, Plug and Play Ventures, FJ Labs, Tribeca Ventures, Palm Tree Crew, and Scott Banister among Artemis’s investors. Earlier public announcements also identified The Pags Group, led by Boston Celtics owner Steve Pagliuca, as an investor.

The timing raises questions about what Artemis and CEO Walid Halty disclosed to investors concerning the company’s existing defaults, pending litigation, outstanding obligations to A.R.I., and allegations involving the improper transfer of more than $5.45 million in cash collateral that was pledged to A.R.I. Whether these matters were fully and accurately disclosed during the fundraising process remains unknown. A.R.I. has not reviewed the investors’ confidential financing materials and does not allege wrongdoing by the identified investors.

Statement from A.R.I.

A.R.I. believes the conduct at issue in the separate Massachusetts litigation involving Artemis, its CEO Walid Halty, and Bank of America, N.A. raises serious concerns regarding alleged fraud, misrepresentation, and interference with the contractual rights of a senior secured lender. The New York Supreme Court’s ruling establishes Artemis’s contractual liability, but significant questions remain concerning the conduct underlying the separate Massachusetts litigation.

Central to those proceedings is the alleged transfer of more than $5.45 million in cash pledged to A.R.I. from a Bank of America, N.A. account governed by a three-party Deposit Account Control Agreement (“DACA”). A.R.I. alleges that the funds were transferred after it exercised its contractual control rights, in violation of the DACA, and seeks to establish the respective roles and responsibilities of Artemis, Walid Halty, and Bank of America, N.A.

The implications extend well beyond A.R.I. Deposit account control agreements are widely used in private credit and secured lending to establish and enforce lenders’ rights over pledged cash collateral. Lenders rely on these arrangements to mitigate credit risk, protect investor capital, and extend financing to businesses that might otherwise face more restrictive borrowing terms.

If financial institutions cannot be relied upon to honor a lender’s properly exercised contractual control rights, the effectiveness of these DACA protections would be undermined, potentially increasing credit risk, borrowing costs, and financing constraints across the private credit market.

A.R.I. has secured summary judgment on liability in New York and continues to pursue the amounts owed under its loan agreement, while separately seeking to establish the facts and legal responsibilities of the defendants in Massachusetts. We welcome full transparency and look forward to the evidence being examined through the judicial process. We are confident in our legal positions and believe the facts will speak for themselves. A.R.I. will vigorously enforce its contractual rights, protect its investors, and pursue all available legal remedies against parties found to have violated their obligations. Neither delay, resistance, nor prolonged litigation will deter us.

Litigation References

Company Identity: Mona Lee Inc. (“Monalee”) publicly announced its rebranding as “Artemis” on March 4, 2026. Artemis is the same business previously operating as Monalee. The rebranding occurred after the loan default and commencement of litigation. References to Artemis throughout this announcement refer to the business previously known as Monalee, while the underlying court filings retain the legal names of the parties.

New York Litigation: A.R.I. Agent, LLC et al. v. Mona Lee Inc. et al., Supreme Court of the State of New York, County of New York, Commercial Division (Index No. 659237/2025). On October 1, 2026, the Court granted summary judgment on liability in favor of A.R.I. and dismissed the defendants’ counterclaim and all seven affirmative defenses. The defendants filed a Notice of Appeal on October 9, 2026. The amount recoverable remains subject to further proceedings, and the ruling remains subject to appellate review.

Massachusetts Litigation: A.R.I. Agent, LLC et al. v. Mona Lee Inc. et al., pending in the Commonwealth of Massachusetts, Superior Court Department, Suffolk County (Civil Action No. 2584CV03003). The Massachusetts action names Mona Lee Inc. (now doing business as Artemis), CEO Walid Halty individually, and Bank of America, N.A., among the defendants. The action involves separate allegations of fraud, misrepresentation, concealed bank accounts, and the improper transfer of over $5.45 million in pledged cash collateral. These allegations remain disputed and have not been adjudicated. The New York Supreme Court’s summary judgment ruling does not establish liability on the separate Massachusetts claims.

Copies of the verified complaints and related court filings are publicly available through the respective court systems, where the proceedings remain pending.

About Applied Real Intelligence (A.R.I.)

Applied Real Intelligence (A.R.I.) is a research-driven investment platform specializing in private credit, venture debt, structured private equity, and customized financing solutions for innovative North American companies. Combining rigorous underwriting with sophisticated financial structuring and active portfolio management, A.R.I. seeks to deliver attractive risk-adjusted returns through investments that emphasize downside protection, contractual income, and long-term equity upside.

Building on its credit investing foundation, A.R.I. is expanding into direct equity investments and special situations, applying its financial expertise, operational capabilities, and strategic relationships to create value through active ownership and hands-on business development. The firm’s platform is backed by sophisticated family offices and institutional investors across North America.

Dr. Zack Ellison, CFA, CAIA, is the Founder and Managing General Partner of A.R.I. and Chief Investment Officer of the A.R.I. Senior Secured Growth Credit Fund. He brings 22 years of experience across leveraged lending, investment banking, fixed income portfolio management, and corporate credit trading at five publicly traded financial institutions, including three with more than $1 trillion in assets. His career includes positions at Sun Life Financial, Deutsche Bank, Scotiabank, and Thomson Reuters, among others.

He previously served on the boards of CFA Society Los Angeles and the CAIA Association’s Southern California Chapter and currently serves as Chief Executive Officer and Chairman of Lights Out Enterprises, Inc., an A.R.I. portfolio company. His academic credentials include a Doctor of Business Administration (DBA) from the University of Florida, an MBA from the University of Chicago Booth School of Business, and an MS in Risk Management from NYU Stern School of Business. He holds the Chartered Financial Analyst (CFA) and Chartered Alternative Investment Analyst (CAIA) designations and has published extensively on venture debt, private credit, and innovation finance.

Learn more at www.arivc.com.

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