Company: FLYE
Filing Date: 2025-06-02
Form Type: 424B4
Source: 0001213900-25-050035
Chunk: 7

Company: Fly-E Group, Inc.
Filing Date: 2025-06-02
Form: 424B4
Chunk 7
---
 and to help facilitate acquisitions. The Loan Agreement has a one -yearterm. 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 -onlypayments 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 -creditrights, supporting obligations, investment property, commercial tort claims, property in the Lender’s possession, additions, and proceeds. The Borrower paid a non -refundablerevolving 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 -certifiede -bikesin compliance with New York State regulations in October 2024. The rental service, now available in New York City, Los Angeles, and Toronto via the Go Fly rental service mobile app and select Fly E -Bikestores, provides users with a flexible and affordable e -bikerental option. As part of our growth strategy, we plan to expand the rental service to Miami in the near term. Trade-in Program In January 2025, the New York City Department of Transportation (“NYC DOT”) launched a $2 million trade -inprogram, allowing eligible food delivery workers to replace their unsafe e -bikes, e -mobilitydevices, and batteries with high -qualityversions. Our Fly -11PRO was chosen as the official model of NYC DOT and participates in this program. In January 2025, we completed the delivery of the initial batch of Fly -11Pro models to our retail partner participating in the program. We have also been actively