Company: FLYE
Filing Date: 2025-04-22
Form Type: S-1
Source: 0001213900-25-034233
Chunk: 10

Company: Fly-E Group, Inc.
Filing Date: 2025-04-22
Form: S-1
Chunk 10
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, less underwriting discounts and commissions, to cover over-allotments. On June 25,
2024, we sold an additional 337,500 shares of Common Stock to the underwriters of our IPO for gross proceeds of $1.4 million upon full
exercise of the underwriters’ over-allotment option. Net proceeds received by us from our initial public offering, including the
exercise of the over-allotment option, were approximately $9.2 million. We also issued to The Benchmark Company, LLC (the “IPO
Representative”), the representative of the IPO underwriters warrants to purchase 129,375 shares. None of such warrants were exercised
as of the date of this prospectus.

Loan and Security Agreement

On
August 5, 2024 (the “Effective Date”), the Company, Fly E-Bike, Inc. (“Fly E-Bike”), a Delaware corporation, and
Fly EV, Inc. (collectively with the Company and Fly E-Bike, the “Borrower”) entered into a loan and security agreement (the
“Loan Agreement”) with Peapack-Gladstone Bank (the “Lender”). Pursuant to the Loan Agreement, the Lender made
available to the Borrower a $5 million revolving credit facility (the “Revolving Credit”), which the Borrower will use periodically
for operating needs and to help facilitate acquisitions. The Loan Agreement has a one-year term. The principal balance of the loan under
the Revolving Credit bears interest at a per annum rate equal to the term SOFR plus a spread of 3.50%, with a floor of 5.50%. The Borrower
will make interest-only payments quarterly, starting on November 1, 2024. The entire amount of outstanding principal and interest is due
on August 31, 2025.

As
security for the payment of the loan, the Borrower granted the Lender a continuing lien on and security interest in all assets of the
Borrower, including accounts, chattel paper, documents, instruments, inventory, general intangibles, equipment, fixtures, deposit accounts,
goods, letter-of-credit rights, supporting obligations, investment property, commercial tort claims, property in the Lender's possession,
additions, and proceeds. The Borrower paid a non-refundable revolving credit closing fee of $20,000 at closing, agreed to pay an unused
line fee of 0.25% quarterly, and a