Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 2
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 “IPO
Representative”), the representative of the IPO underwriters warrants to purchase 25,875 shares. None of such warrants were
exercised as of the date of this annual report.

Loan and Security Agreement

On August 5, 2024, 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 late charge of 5% on any payments not made within five days of the due date. Upon an event of default, the Lender
may terminate the Revolving Credit, declare the Borrower’s obligations immediately due and payable, and exercise rights under the
UCC and other applicable laws, including taking possession of the collateral and selling it.

Rental Program

We launched a rental program
to meet the increasing market demand for safe, UL-certified e-bikes in compliance with New York State regulations in October 202