Material Event Form 8 K

Item 8.01 Other Events.

On June 27, 2024 (the "Effective Date"), Track Group Chile SpA. ("Track Chile"), a wholly-owned subsidiary of Track Group, Inc. (the "Company"), entered into a settlement agreement (the "Agreement") with the Government of Chile ("Customer") (together, the "Parties"), whereby the Parties dismissed further legal and equitable issues between or among the Parties, including all asserted and existing claims asserted against Track Chile and the Company, and any related claims, and any potential claims related to the Parties' disputes arising on or before the date hereof.

In connection with the Agreement, Track Chile agreed to pay 950,600,000 CLP (approximately $1,002,975 USD based on the exchange rate as of the Effective Date) ("Settlement Payment") to Customer in full satisfaction of the Dispute, and in consideration, Customer committed to return to Track Chile its performance bond in full, totaling 1,500,035,181 CLP (approximately $1,582,683 USD based on the exchange rate as of the Effective Date), within two days of receipt of the Settlement Payment.