# EDGAR Filing Document

**Accession Number:** 0002070579
**File Stem:** 0001665160-25-001218
**Filing Date:** 2025-6
**Character Count:** 112978
**Document Hash:** e7132364edbf9e493d06fcedcccee51f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001665160-25-001218.hdr.sgml**: 20250617

**ACCESSION NUMBER**: 0001665160-25-001218

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20250617

**DATE AS OF CHANGE**: 20250617

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Electric Bike Company, LLC
- **CENTRAL INDEX KEY:** 0002070579

**ORGANIZATION NAME:**
- **EIN:** 465766761
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-36039
- **FILM NUMBER:** 251052693

**BUSINESS ADDRESS:**
- **STREET 1:** 1945 PLACENTIA AVE
- **STREET 2:** STE A
- **CITY:** COSTA MESA
- **STATE:** CA
- **ZIP:** 92627
- **BUSINESS PHONE:** (949) 264-4080

**MAIL ADDRESS:**
- **STREET 1:** 1945 PLACENTIA AVE STE A
- **STREET 2:** STE A
- **CITY:** COSTA MESA
- **STATE:** CA

### Attached PDF Documents

**Attachment 1:** `offeringmemoformc.pdf`

# Offering Memorandum: Part II of Offering Document (Exhibit A to Form C)

Electric Bike Company, LLC
1945 Placentia Ave Ste A
Costa Mesa, CA 92627
https://electricbikecompany.com/

Up to $1,234,999.33 in Class B Common Units at $0.83
Minimum Target Amount: $19,999.68

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

In the event that we become a reporting company under the Securities Exchange Act of 1934, we intend to take advantage of the provisions that relate to "Emerging Growth Companies" under the JOBS Act of 2012, including electing to delay compliance with certain new and revised accounting standards under the Sarbanes-Oxley Act of 2002.

# Company:

- Company: Electric Bike Company, LLC
- Address: 1945 Placentia Ave Ste A, Costa Mesa, CA 92627
- State of Incorporation: DE
- Date Incorporated: February 12, 2025

# Terms:

- **Equity**
- Offering Minimum: $19,999.68 | 24,096 shares of Class B Common Units
- Offering Maximum: $1,234,999.33 | 1,487,951 shares of Class B Common Units
- Type of Security Offered: Class B Common Units
- Purchase Price of Security Offered: $0.83
- Minimum Investment Amount (per investor): $499.66

*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.*

## Investment Incentives &amp; Bonuses*

- Loyalty Bonus: Customers and previous investors of Electric Bike Company are eligible for an additional 25% bonus shares.

## Time-Based Perks

- Early Bird 1: Invest $500+ within the first 2 weeks | 5% bonus shares
- Early Bird 2: Invest $1,000+ within the first 2 weeks | 10% bonus shares
- Early Bird 3: Invest $2,500+ within the first 2 weeks | 15% bonus shares
- Early Bird 4: Invest $5,000+ within the first 2 weeks | 20% bonus shares
- Early Bird 5: Invest $10,000+ within the first 2 weeks | 25% bonus shares
- Early Bird 6: Invest $25,000+ within the first 2 weeks | 30% bonus shares
- Early Bird 7: Invest $50,000+ within the first 2 weeks | 35% bonus shares

## Mid-Campaign Perks (Flash Perks)

- Flash Perk 1: Invest $1,000+ between days 35 - 40 and receive 10% bonus shares
- Flash Perk 2: Invest $1,000+ between days 60 - 65 and receive 8% bonus shares

## Amount-Based Perks

- **Gear Shifter**: Invest $500+ and receive an investor’s edition Electric Bike Company t-shirt and 5% off on your next accessory purchase online
- **Locked in**: Invest $1,000+ and receive 1% bonus shares, and a Premium Anti-Theft Bike Alarm
- **Cruise Control**: Invest $2,500+ and receive 2% bonus shares, an Electric Bike Company Hat and custom color E-helmet, 10% off an e-bike purchase
- **Trailblazer**: Invest $5,000+ and receive 5% bonus shares, Comprehensive accessory pack (includes hidden air tag tracking bell), and 15% off next bike or trike purchase.
- **High Wheeler**: Invest $10,000+ and receive 7% bonus shares, Customized electric bike/trike color options, a Premium accessory pack, and a private tour of our factory
- **Builder’s Club**: Invest $25,000+ and receive 10% bonus shares, an Exclusive annual product development session with the team, 30% off an e-bike purchase
- **Legends Tour**: Invest $50,000+ and receive 15% bonus shares, Lifetime service and maintenance package, a Customized flagship electric bike, and Zion National Park E-bike tour with EBC executive, dinner and 2 nights accommodation

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.

Crowdfunding investments made through a self-directed IRA cannot receive perks due to tax laws. The Internal Revenue Service (IRS) prohibits self-dealing transactions in which the investor receives an immediate, personal financial gain on investments owned by their retirement account. As a result, an investor must refuse those perks because they would be receiving a benefit from their IRA account.

## The 10% StartEngine Venture Club Bonus

Electric Bike Company, LLC will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Venture Club.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Class B Common Units at $0.83 / share, you will receive 110 shares of Class B Common Units, meaning you'll own 110 shares for $83. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and the time of offering elapsed (if any). Eligible investors will also receive the Venture Club bonus and the Loyalty Bonus in addition to the aforementioned bonus.

## The Company and its Business

### Company Overview

Founded in 2014 and headquartered in Costa Mesa, California, Electric Bike Company (EBC) specializes in designing and manufacturing customizable electric cruiser bicycles. The company aims to provide high-quality, American-made e-bikes that blend luxury, safety, and performance. EBC's product lineup includes various models, each tailored to meet diverse customer preferences and riding styles.

EBC offers a range of electric cruiser bicycles that are fully customizable, allowing customers to select colors, accessories, and branding to suit their individual tastes. The e-bikes are built using high-quality global materials and are assembled in EBC's California factory. Emphasizing safety and technology, the company incorporates features like smart battery management systems to prevent overheating and fires.

EBC operates on a factory-direct-to-consumer business model, eliminating unnecessary markups associated with intermediaries. This approach enables the company to offer competitively priced, high-quality e-bikes directly to customers. EBC's supply chain involves sourcing premium components from global suppliers, which are then assembled in its California facility. The target customer base includes individuals seeking customizable, reliable, and stylish electric cruiser bicycles for leisure, commuting, and recreational purposes.

## Corporate History

The Company was initially formed as a California LLC on May 22, 2014 and converted to a Delaware LLC on February 12, 2025.

## Alta Media Partners LLC v. Electric Bike Company LLC

On April 16, 2025, Alta Media Partners LLC filed a civil complaint against the Company in the California Superior Court for Orange County (Case No. 025-0147558), seeking payment for unpaid invoices totaling approximately $27,000 related to affiliate marketing services provided between October 2024 and February 2025. The Company had engaged Alta Media under a recurring service agreement but experienced delays in payment due to seasonal cash flow constraints. The matter is currently pending. The Company is exploring options to resolve the dispute and may enter into a negotiated settlement. No judgment has been entered as of the date of this filing.

## Litigation Disclosure

In connection with its acquisition of Integral Electrics, LLC in February 2025, Electric Bike Company, LLC ("the Company") became indirectly involved in a legal claim asserted by a former consultant to Integral. The claim relates to alleged unpaid compensation and penalties totaling approximately $30,000. While the claim predates the acquisition, the Company continues to make payments to the claimant under a predetermined schedule. The Company does not expect this matter to affect its equity capitalization table or require the use of offering proceeds. However, resolution of the matter may involve additional legal fees and administrative costs. No resolution is expected during the course of this offering.

### Competitors and Industry

EBC operates within the electric bicycle industry, focusing on the niche market of customizable electric cruiser bikes.

Dominant players in the broader e-bike market include companies like Lectric and Rad Power Bikes. Direct competitors with similar product offerings and company size include Velotric, Ride1Up, Pedego, and Super73. These companies offer various e-bike models that cater to customers seeking stylish and functional electric bicycles for urban commuting and recreational use.

## Current Stage and Roadmap

EBC has established itself as a reputable manufacturer of customizable electric cruiser bicycles, with a diverse product lineup and a strong customer base. The company continues to focus on innovation and expansion to meet the evolving demands of the market.

In the near future, EBC plans to achieve several key milestones:

Launching New Products: EBC intends to introduce new e-bike models and accessories, further expanding its product lineup to cater to a broader range of customer preferences.

Expanding Distribution Channels: The company aims to enhance its distribution network by partnering with additional dealerships and mobile bike mechanics across the United States, ensuring seamless support and service for customers nationwide.

Enhancing and Expanding Go To Market: EBC plans to bolster its marketing initiatives through targeted advertising campaigns and strategic partnerships, raising brand awareness and reaching new customer segments.

Enhancing Technological Capabilities: Following the merger with Integral Electrics LLC, EBC is focused on integrating advanced technologies into its e-bike models, including IOT and a custom mobile application for tracking and service. These improvements will enhance performance, safety, and user experience.

These initiatives reflect EBC's commitment to continuous improvement and its dedication to providing customers with high-quality, innovative electric bicycles.

## The Team

### Managers

**Name:** Sean Patrick Lupton-Smith

Sean Patrick Lupton-Smith's current primary role is with the Issuer.

**Positions and offices currently held with the issuer:**

- **Position:** CEO and Director
- **Dates of Service:** January, 2014 - Present
- **Responsibilities:** Founder and CEO. Does not currently receive a salary from the Company.

**Name:** Russell Theodore Skiba

Russell Theodore Skiba's current primary role is with the Issuer.

**Positions and offices currently held with the issuer:**

- **Position:** VP Finance/Controller
- **Dates of Service:** January, 2024 - Present
- **Responsibilities:** Manage all day-to-day functions of the accounting department. Manage daily cash flow and banking. Prepare financial reports, develop budgets, and perform variance analysis. Receives an annual salary of $135,000 from the Company.

**Other business experience in the past three years:**

- **Employer:** Structures/Virgin Galactic
- **Title:** Release Train Engineer
- **Dates of Service:** March, 2023 - December, 2023
- **Responsibilities:** Championed SAFe deployment and implementation. Managed Release Train Engineering support services

**Other business experience in the past three years:**

- **Employer:** Vision 33

Title: IT Process Improvement/Scrum Master
Dates of Service: March, 2019 - March, 2023
Responsibilities: Managed implementation software for enterprises of all sizes, developing, and managing software roadmaps, deploying, and managing Agile Release Train processes. Developed and aligned systems to support growth, security, stability, and profitability

Name: Laura Palm Belmar

Laura Palm Belmar's current primary role is with the Issuer.

Positions and offices currently held with the issuer:
- Position: President and Chief Commercial Officer
Dates of Service: February, 2025 - Present
Responsibilities: Face of the brand and leadership team. Receives an annual salary of $135,000 from the Company.

Other business experience in the past three years:
- Employer: Integral Electrics
Title: Co-founder and CEO
Dates of Service: October, 2022 - February, 2025
Responsibilities: Co-founder and CEO at Integral Electrics, led product development of cargo e-bikes, e-trikes, as well as customer acquisition and finance.

Other business experience in the past three years:
- Employer: Kinetika Inc dba Mason Bottle
Title: Co-founder and CEO
Dates of Service: December, 2014 - September, 2022
Responsibilities: Co-founder and CEO at Mason Bottle, which makes sustainable US made baby products. Led product development, customer acquisition and finance until the Company's acquisition in September 2022.

Name: Michael Alan Edwards

Michael Alan Edwards's current primary role is with Old Post Company Inc. Michael Alan Edwards currently services 5-10 hours per week in their role with the Issuer.

Positions and offices currently held with the issuer:
- Position: Director
Dates of Service: March, 2025 - Present
Responsibilities: Facilitates meetings and strategic relationships for the Company.

Other business experience in the past three years:
- Employer: Old Post Company Inc
Title: Principal
Dates of Service: March, 2024 - Present
Responsibilities: Principal, Managing Director and Founder

Other business experience in the past three years:
- Employer: Weiss Advisors
Title: Partner, Deputy CIO
Dates of Service: May, 2019 - March, 2024
Responsibilities: Partner and Deputy Chief Investment Officer, headed strategy and marketing and served on allocation and executive committees.

# Risk Factors

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These

include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

These are the risks that relate to the Company:

## Uncertain Risk

An investment in the Company (also referred to as "we", "us", "our", or the "Company") involves a high degree of risk and should only be considered by those who can afford the loss of their entire investment. Furthermore, the purchase of any securities should only be undertaken by persons whose financial resources are sufficient to enable them to indefinitely retain an illiquid investment. Each investor in the Company should research thoroughly any offering before making an investment decision and consider all of the information provided regarding the Company as well as the following risk factors, in addition to the other information in the Company's Form C. The following risk factors are not intended, and shall not be deemed to be, a complete description of the commercial, financial, and other risks inherent in the investment in the Company.

## Our business projections are only projections

There can be no assurance that the Company will meet its projections. There can be no assurance that the Company will be able to find sufficient demand for its product or service, that people think it's a better option than a competing product or service, or that we will be able to provide a product or service at a level that allows the Company to generate revenue, make a profit, or grow the business.

## Any valuation is difficult to assess

The valuation for the offering was established by the Company. Unlike listed companies that are independently valued through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess, may not be exact, and you may risk overpaying for your investment.

## The transferability of the Securities you are buying is limited

You should be prepared to hold this investment for several years or longer. For the 12 months following your investment, there will be restrictions on the securities you purchase. More importantly, there are a limited number of established markets for the resale of these securities. As a result, if you decide to sell these securities in the future, you may not be able to find, or may have difficulty finding, a buyer, and you may have to locate an interested buyer when you do seek to resell your investment. The Company may be acquired by an existing player in the industry. However, that may never happen or it may happen at a price that results in you losing money on this investment.

## Your investment could be illiquid for a long time

You should be prepared to hold this investment for several years or longer. For the 12 months following your investment, there will be restrictions on how you can resell the securities you receive. More importantly, there are limited established markets for these securities. As a result, if you decide to sell these securities in the future, you may not be able to find a buyer. The Company may be acquired by an existing player in the same or a similar industry. However, that may never happen or it may happen at a price that results in you losing money on this investment.

## The Company may undergo a future change that could affect your investment

The Company may change its business, management or advisory team, IP portfolio, location of its principal place of business or production facilities, or other change which may result in adverse effects on your investment. Additionally, the Company may alter its corporate structure through a merger, acquisition, consolidation, or other restructuring of its current corporate entity structure. Should such a future change occur, it would be based on management's review and determination that it is in the best interests of the Company.

## Your information rights are limited with limited post-closing disclosures

The Company is required to disclose certain information about the Company, its business plan, and its anticipated use of proceeds, among other things, in this offering. Early-stage companies may be able to provide only limited information about their business plan and operations because it does not have fully developed operations or a long history to provide more disclosure. The Company is also only obligated to file information annually regarding its business, including financial statements. In contrast to publicly listed companies, investors will be entitled only to that post-offering information that is required to be disclosed to them pursuant to applicable law or regulation, including Regulation CF. Such disclosure generally requires only that the Company issue an annual report via a Form C-AR. Investors are generally not entitled to interim updates or financial information.

## Some early-stage companies may lack professional guidance

Some companies attribute their success, in part, to the guidance of professional early-stage advisors, consultants, or investors (e.g., angel investors or venture capital firms), advisors, consultants, or investors may play an important role in a company through their resources, contacts, and experience in assisting early-stage companies in executing their business plans. An early-stage company primarily financed through Regulation Crowdfunding may not have the benefit of such professional investors, which may pose a risk to your investment.

If the Company cannot raise sufficient funds it will not succeed

The Company is offering Class B Common Units in the amount of up to $1,235,000 in this offering, and may close on any investments that are made. Even if the maximum amount is raised, the Company is likely to need additional funds in the future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the Company itself or the broader economy, it may not survive. If the Company manages to raise only the minimum amount of funds sought, it will have to find other sources of funding for some of the plans outlined in "Use of Proceeds."

We may not have enough capital as needed and may be required to raise more capital.

We anticipate needing access to credit in order to support our working capital requirements as we grow. It is a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity may require bringing on additional investors. Securing these additional investors could require pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced lower, your ownership percentage would be decreased with the addition of more investors. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your investment.

Terms of subsequent financings may adversely impact your investment

We will likely need to engage in common equity, debt, or preferred stock financings in the future, which may reduce the value of your investment in the Company. Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be more advantageous to those investors than to the holders of common stock or other securities. In addition, if we need to raise more equity capital from the sale of Common Stock, institutional or other investors may negotiate terms that are likely to be more favorable than the terms of your investment, and possibly a lower purchase price per security.

Management's Discretion as to Use of Proceeds

Our success will be substantially dependent upon the discretion and judgment of our management team with respect to the application and allocation of the proceeds of this offering. The Use of Proceeds described below is an estimate based on our current business plan. We, however, may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category to another, and we will have broad discretion in doing so.

Projections: Forward Looking Information

Any projections or forward-looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management's best estimate of the probable results of our operations and may not have been reviewed by our independent accountants. These projections are based on assumptions that management believes are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Therefore, actual results of operations will vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.

The amount raised in this offering may include investments from company insiders or immediate family members Officers, directors, executives, and existing owners with a controlling stake in the Company (or their immediate family members) may make investments in this offering. Any such investments will be included in the raised amount reflected on the campaign page.

Reliance on a single service or product

All of our current services are variants of one type of service and/or product. Relying heavily on a single service or product can be risky, as changes in market conditions, technological advances, shifts in consumer preferences, or other changes can adversely impact the demand for the product or service, potentially leading to revenue declines or even business failure.

We may never have an operational product or service

It is possible that there may never be an operational product or that the product may never be used to engage in transactions. It is possible that the failure to release the product or service is the result of a change in business model upon the Company's making a determination that the business model, or some other factor, will not be in the best interest of the Company. In addition, the failure to launch a product or service can result in significant losses of time and resources. Even if a product or service is launched, low adoption rates can result in lackluster revenue and diminished market share.

Developing new products and technologies entails significant risks and uncertainties

Competition can be intense in many markets, and a failure to keep up with competitors or anticipate shifts in market dynamics can lead to revenue declines or market share losses. We are currently in the research and development stage and have only manufactured a prototype for our product. Delays or cost overruns in the development of our product and failure of the product to meet our performance estimates may be caused by, among other things, unanticipated technological hurdles, difficulties in manufacturing, changes to design, and regulatory hurdles. Any of these events could materially and adversely affect our operating performance and results of operations.

Supply Chain and Logistics Risks

The availability of raw materials, transportation costs, and supply chain disruptions can all impact the ability to manufacture and distribute products or services, leading to lost revenue or increased costs. Products and services that are not available when customers need them can lead to lost sales and damage to the brand's reputation.

## Quality and Safety of our Product and Service

The quality of a product or service can vary depending on the manufacturer or provider. Poor quality can result in customer dissatisfaction, returns, and lost revenue. Furthermore, products or services that are not safe can cause harm to customers and result in liability for the manufacturer or provider. Safety issues can arise from design flaws, manufacturing defects, or improper use.

## Minority Holder; Securities with No Voting Rights

The Class B Common Units that an investor is buying has no voting rights attached to them. This means that you will have no rights in dictating how the Company will be run. You are trusting in management's discretion in making good business decisions that will grow your investments. Furthermore, in the event of a liquidation of our company, you will only be paid out if there is any cash remaining after all of the creditors of our company have been paid out.

## Insufficient Funds

The Company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case it may cease operating and result in a loss on your investment. Even if we sell all the Class B Common Units we are offering now, the Company may need to raise more funds in the future, and if unsuccessful in doing so, the Company the company may need to moderate its operating plans or it may fail.. Even if we do make a successful offering in the future, the terms of that offering might result in your investment in the Company being worth less, if later investors have better terms than those in this offering.

This offering involves "rolling closings," which may mean that earlier investors may not have the benefit of information that later investors have.

Once we meet our target amount for this offering, we may request that StartEngine instruct the escrow agent to disburse offering funds to us. At that point, investors whose subscription agreements have been accepted will become our investors. All early-stage companies are subject to a number of risks and uncertainties, and it is not uncommon for material changes to be made to the offering terms, or to companies' businesses, plans, or prospects, sometimes with little or no notice. When such changes happen during the course of an offering, we must file an amendment to our Form C with the SEC, and investors whose subscriptions have not yet been accepted will have the right to withdraw their subscriptions and get their money back. Investors whose subscriptions have already been accepted, however, will already be our investors and will have no such right.

Non-accredited investors may not be eligible to participate in a future merger or acquisition of the Company and may lose a portion of their investment.

Investors should be aware that under Rule 145 under the Securities Act of 1933 if they invest in a company through Regulation CrowdFunding and that company becomes involved in a merger or acquisition, there may be significant regulatory implications. Under Rule 145, when a company plans to acquire another and offers its shares as part of the deal, the transaction may be deemed an offer of securities to the target company's investors, because investors who can vote (or for whom a proxy is voting on their behalf) are making an investment decision regarding the securities they would receive. All investors, even those with non-voting shares, may have rights with respect to the merger depending on relevant state laws. This means the acquirer's "offer" to the target's investors would require registration or an exemption from registration (such as Reg. D or Reg. CF), the burden of which can be substantial. As a result, non-accredited investors may have their shares repurchased rather than receiving shares in the acquiring company or participating in the acquisition. This may result in investors' shares being repurchased at a value determined by a third party, which may be at a lesser value than the original purchase price. Investors should consider the possibility of a cash buyout in such circumstances, which may not be commensurate with the long-term investment they anticipate.

## Our new product could fail to achieve the sales projections we expect

Our growth projections are based on the assumption that with an increased advertising and marketing budget, our products will be able to gain traction in the marketplace at a faster rate than our current products have. It is possible that our new products will fail to gain market acceptance for any number of reasons. If the new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

## We face significant market competition

We will compete with larger, established companies that currently have products on the market and/or various respective product development programs. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or superior products than those developed by us. There can be no assurance that competitors will not render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.

## We are competing against other recreational activities

Although we are a unique company that caters to a select market, we do compete against other recreational activities. Our business growth depends on the market interest in the Company over other activities.

We are an early stage company and have not yet generated any profits

Electric Bike Company, LLC was formed on February 12, 2025. Accordingly, the Company has a limited history upon which an evaluation of its performance and future prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. Electric Bike Company, LLC has incurred a net loss and has had limited revenues generated since inception, if any. There is no assurance that we will be profitable in the near future or generate sufficient revenues to pay dividends to our shareholders.

We are an early stage company and have limited revenue and operating history

The Company has a short history, few customers, and effectively no revenue. If you are investing in our company, it's because you think that our product is a good idea, that the team will be able to successfully market, and sell the product or service, that we can price them right and sell them to enough people so that the Company will succeed. Further, we have never turned a profit and there is no assurance that we will ever be profitable.

We are an early stage company operating in a new and highly competitive industry

The Company operates in a relatively new industry with a lot of competition from both startups and established companies. As other companies flood the market and reduce potential market share, Investors may be less willing to invest in a company with a declining market share, which could make it more challenging to fund operations or pursue growth opportunities in the future.

Intense Market Competition

The market in which the company operates may be highly competitive, with established players, emerging startups, and potential future entrants. The presence of competitors can impact the company's ability to attract and retain customers, gain market share, and generate sustainable revenue. Competitors with greater financial resources, brand recognition, or established customer bases may have a competitive advantage, making it challenging for the company to differentiate itself and achieve long-term success.

Vulnerability to Economic Conditions

Economic conditions, both globally and within specific markets, can significantly influence the success of early-stage startups. Downturns or recessions may lead to reduced consumer spending, limited access to capital, and decreased demand for the company's products or services. Additionally, factors such as inflation, interest rates, and exchange rate fluctuations can affect the cost of raw materials, operational expenses, and profitability, potentially impacting the company's ability to operate.

Uncertain Regulatory Landscape

Due to the unestablished nature of the market the business operates within, the potential introduction of new laws or industry-specific standards can impose additional costs and operational burdens on the company. Non-compliance or legal disputes may result in fines, penalties, reputational damage, or even litigation, adversely affecting the company's financial condition and ability to operate effectively.

We have existing patents that we might not be able to protect properly

One of the Company's most valuable assets is its intellectual property. The Company owns trademarks, copyrights, Internet domain names, and trade secrets. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company.

We have pending patent approval's that might be vulnerable

One of the Company's most valuable assets is its intellectual property. The Company's intellectual property such as patents, trademarks, copyrights, Internet domain names, and trade secrets may not be registered with the proper authorities. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company due to its unregistered intellectual property.

Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective

Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company's value will be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company.

The cost of enforcing our trademarks and copyrights could prevent us from enforcing them

Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business.

Our business depends on our ability to attract, retain, and develop highly skilled and qualified employees. As we grow, we will need to continue to attract and hire additional employees in various areas, including sales, marketing, design, development, operations, finance, legal, and human resources. However, we may face competition for qualified candidates, and we cannot guarantee that we will be successful in recruiting or retaining suitable employees. Additionally, if we make hiring mistakes or fail to develop and train our employees adequately, it could have a negative impact on our business, financial condition, or operating results. We may also need to compete with other companies in our industry for highly skilled and qualified employees. If we are unable to attract and retain the right talent, it may impact our ability to execute our business plan successfully, which could adversely affect the value of your investment. Furthermore, the economic environment may affect our ability to hire qualified candidates, and we cannot predict whether we will be able to find the right employees when we need them. This would likely adversely impact the value of your investment.

Our ability to sell our product or service is dependent on outside government regulation which can be subject to change at any time.

Our ability to sell our products is subject to various government regulations, including but not limited to, regulations related to the manufacturing, labeling, distribution, and sale of our products. Changes in these regulations, or the enactment of new regulations, could impact our ability to sell our products or increase our compliance costs. Furthermore, the regulatory landscape is subject to regular change, and we may face challenges in adapting to such changes, which could adversely affect our business, financial condition, or operating results. In addition to government regulations, we may also be subject to other laws and regulations related to our products, including intellectual property laws, data privacy laws, and consumer protection laws. Non-compliance with these laws and regulations could result in legal and financial liabilities, reputational damage, and regulatory fines and penalties. It is also possible that changes in public perception or cultural norms regarding our products may impact demand for our products, which could adversely affect our business and financial performance, which may adversely affect your investment.

We rely on third parties to provide services essential to the success of our business.

Our business relies on a variety of third-party vendors and service providers, including but not limited to manufacturers, shippers, accountants, lawyers, public relations firms, advertisers, retailers, and distributors. Our ability to maintain high-quality operations and services depends on these third-party vendors and service providers, and any failure or delay in their performance could have a material adverse effect on our business, financial condition, and operating results. We may have limited control over the actions of these third-party vendors and service providers, and they may be subject to their own operational, financial, and reputational risks. We may also be subject to contractual or legal limitations in our ability to terminate relationships with these vendors or service providers or seek legal recourse for their actions. Additionally, we may face challenges in finding suitable replacements for these vendors and service providers, which could cause delays or disruptions to our operations. The loss of key or other critical vendors and service providers could materially and adversely affect our business, financial condition, and operating results, and as a result, your investment could be adversely impacted by our reliance on these third-party vendors and service providers.

The Company is vulnerable to hackers and cyber-attacks.

As an internet-based business, we may face risks related to cybersecurity and data protection. We rely on technology systems to operate our business and store and process sensitive data, including the personal information of our investors. Any significant disruption or breach of our technology systems, or those of our third-party service providers, could result in unauthorized access to our systems and data, and compromise the security and privacy of our investors. Moreover, we may be subject to cyber-attacks or other malicious activities, such as hacking, phishing, or malware attacks, that could result in theft, loss, or destruction of our data, disruption of our operations, or damage to our reputation. We may also face legal and regulatory consequences, including fines, penalties, or litigation, in the event of a data breach or cyber-attack. Any significant disruption or downtime of our platform, whether caused by cyber-attacks, system failures, or other factors, could harm our reputation, reduce the attractiveness of our platform, and result in a loss of investors and issuer companies. Moreover, disruptions in the services of our technology provider or other third-party service providers could adversely impact our business operations and financial condition. This would likely adversely impact the value of your investment.

## Economic and market conditions

The Company's business may be affected by economic and market conditions, including changes in interest rates, inflation, consumer demand, and competition, which could adversely affect the Company's business, financial condition, and operating results.

Force majeure events

The Company's operations may be affected by force majeure events, such as natural disasters, pandemics, acts of terrorism, war, or other unforeseeable events, which could disrupt the Company's business and operations and adversely affect its financial condition and operating results.

Adverse publicity

The Company's business may be negatively impacted by adverse publicity, negative reviews, or social media campaigns that could harm the Company's reputation, business, financial condition, and operating results.

Reliance on Management's Judgment and Fiduciary Duty

As an investor, you will hold a minority position and will not have a role in day-to-day operations or decision-making. The Company's management team has broad discretion over the use of proceeds and strategic direction. While management owes a fiduciary duty to act in the best interests of all shareholders, including duties of care and loyalty, investors must recognize that business decisions inherently involve judgment and risk. There can be no assurance that management's decisions will result in financial success or preserve shareholder value. Your investment depends substantially on the competence, integrity, and good faith of the Company's leadership.

We are currently involved in litigation with a service provider, and similar disputes could arise in the future, which may harm our financial condition and reputation.

As of the date of this offering, the Company is subject to an active legal proceeding filed by a marketing vendor seeking recovery of unpaid fees. Although the amount in dispute is modest in absolute terms, the outcome is uncertain and may involve settlement costs, legal fees, or other consequences. Moreover, disputes with vendors or service providers, even when isolated, can disrupt business operations and adversely affect the Company's reputation. If we are unable to resolve these matters efficiently or if similar disputes arise in the future, our ability to manage vendor relationships and maintain operational continuity could be negatively affected.

Cash flow constraints in certain periods have affected our ability to timely meet vendor obligations.

During certain quarters, particularly in winter months, the Company has experienced reduced cash inflows, which impacted the timing of payments to service providers. This has led to disputes, including litigation, with certain vendors. While we are actively working to manage liquidity and negotiate payment terms, our cash flow may not always align with short-term liabilities, and this may affect our operational flexibility or relationships with third parties.

We may be subject to liabilities from historical claims associated with entities we have acquired.

As a result of our recent acquisition of Integral Electrics, LLC, we are involved in resolving a legal claim brought by a former consultant to Integral related to alleged unpaid compensation. While the Company believes this claim is limited in scope and financial exposure, there is no guarantee that the resolution will not involve additional costs or claims. If we are required to devote resources to resolving the matter or if additional disputes arise from historical obligations, our financial condition and ability to focus on core operations may be affected.

# Ownership and Capital Structure; Rights of the Securities

## Ownership

The following table sets forth information regarding beneficial ownership of the company's holders of 20% or more of any class of voting securities as of the date of this Offering Statement filing.

| Member Name | Number of Securities Owned | Type of Security Owned | Percentage |
| --- | --- | --- | --- |
| Sean Lupton-Smith | 8,634,346 | Class B Common Units | 64.8% |

## The Company's Securities

The Company has authorized Class A Common Units, and Class B Common Units. As part of the Regulation Crowdfunding raise, the Company will be offering up to 1,487,951 of Class B Common Units.

### Class A Common Units

The amount of security authorized is 1,229,582 with a total of 1,229,582 outstanding.

### Voting Rights

One vote per unit.

### Material Rights

There are no material rights associated with Class A Common Units. Class A Common Units are the equity securities that result from the conversion of Class A Preferred which were issued in conjunction with the business merger of The Company with Integral Electrics LLC that occurred on February 16, 2025.

The total amount outstanding includes warrants in the amount of 2,158,586.

### Class B Common Units

The amount of security authorized is 12,950,461 with a total of 10,792,932 outstanding.

### Voting Rights

One vote per unit.

### Material Rights

Investors in this offering will receive Class B Common Units of Electric Bike Company, LLC (the "Company"). By investing, each investor will be admitted as a Member and become a party to the Company's Amended &amp; Restated Operating Agreement, included as Exhibit F to these offering materials. The following summarizes key terms relevant to Class B Common Unit holders.

### Class B Common Units

Class B Common Units represent an ownership interest in the Company. They are uncertificated and tracked through the Company's internal records.

### Voting Rights

Class B Unit holders do not have voting rights under the Operating Agreement, except as required by law. The Company is managed exclusively by its Board of Managers.

### Distributions

Distributions may be made at the discretion of the Board of Managers. There is no guarantee of distributions or fixed return on investment.

### Capital Contributions

Investors are not required to contribute any capital beyond their initial investment. The Operating Agreement does not include mandatory capital calls.

### Preemptive Rights

Class B Unit holders do not have preemptive rights. These rights are limited to certain large investors defined as "Qualified Members" in the Operating Agreement.

### Transfer Restrictions

Transfers of Class B Units are subject to approval by the Board and are generally restricted under the terms of the Operating Agreement.

Non-Compete and Repurchase Provisions

Class B Unit holders are not subject to non-compete obligations. Repurchase rights for breach of such obligations apply only to certain holders of Preferred Units.

Tax Reporting

The Company will issue IRS Schedule K-1s annually to all investors for tax reporting purposes.

Binding Agreement

By completing an investment in this offering, investors agree to be bound by the terms of the Amended &amp; Restated Operating Agreement, attached as Exhibit F.

## What it means to be a minority holder

As a minority holder of Class B Common Units of the Company, you will have limited rights in regard to the corporate actions of the Company, including additional issuances of securities, company repurchases of securities, a sale of the Company or its significant assets, or company transactions with related parties. Further, investors in this offering may have rights less than those of other investors and will have limited influence on the corporate actions of the Company.

## Dilution

Investors should understand the potential for dilution. The investor's stake in a company could be diluted due to the Company issuing additional shares. In other words, when the Company issues more shares, the percentage of the Company that you own will go down, even though the value of the Company may go up. You will own a smaller piece of a larger company. This increase in the number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, or angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock. If the Company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the Company offers dividends, and most early-stage companies are unlikely to offer dividends, preferring to invest any earnings into the Company).

## Transferability of securities

For a year, the securities can only be resold:

- In an IPO;
- To the company;
- To an accredited investor; and
- To a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

## Recent Offerings of Securities

We have made the following issuances of securities within the last three years:

- Type of security sold: Warrants
- Final amount sold: $0.01
- Use of proceeds: Warrants sold in relation to a loan restructure and no use of proceeds at this time.
- Date: January 30, 2025
- Offering exemption relied upon: Section 4(a)(2)

## Financial Condition and Results of Operations

## Financial Condition

You should read the following discussion and analysis of our financial condition and results of our operations together with

our financial statements and related notes appearing at the end of this Offering Memorandum. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled "Risk Factors" and elsewhere in this Offering Memorandum.

# Results of Operations

Circumstances which led to the performance of financial statements:

## Revenue

Revenue for fiscal year 2023 was $10,129,442.79 compared to $9,479,702.00 in fiscal year 2024.

The slight decrease in revenue tracks with a reduction in ad spend over the same period.

## Cost of Sales

Cost of Sales for fiscal year 2023 was $6,513,856.97 compared to $5,422,289.00 in fiscal year 2024.

The battery is typically the most expensive item in the bill of materials, and we were able to reduce our cost of goods sold in this area.

## Gross Margins

Gross margins for fiscal year 2023 were $3,615,585.82 compared to $4,057,413.00 in fiscal year 2024.

Gross margins improved as a result of the reduced cost of goods sold primarily.

## Expenses

Expenses for fiscal year 2023 were $5,904,269.008 compared to $5,977,920.00 in fiscal year 2024.

We maintained our operating expenses by adding software automation that allowed for reduced staffing.

## Historical results and cash flows:

The Company is currently in the growth stage and revenue generating. We are of the opinion the historical cash flows will be indicative of the revenue and cash flows expected for the future because the business model and market demand are essentially unchanged. Past cash was primarily generated through sales of electric bicycles via our direct to consumer channel and B2B channel, as well as via service and maintenance of our existing customer's bikes. Our goal is to increase both sides of the direct to consumer business in terms of new sales as well as service. These two channels are the highest margin and produce the most impact of cash flows.

# Liquidity and Capital Resources

What capital resources are currently available to the Company? (Cash on hand, existing lines of credit, shareholder loans, etc...)

As of May 31, 2025, the Company has capital resources available in the form of $49,465.06 cash on hand. Other lines of credit, capital contributions, and shareholder loans are disclosed under indebtedness.

How do the funds of this campaign factor into your financial resources? (Are these funds critical to your company operations? Or do you have other funds or capital resources available?)

We believe the funds of this campaign are critical to our company operations.

These funds are required to support new product development, the conversion rate optimization of the website, and working capital needs to hit key target for growth and profitability.

Are the funds from this campaign necessary to the viability of the company? (Of the total funds that your company has, how much of that will be made up of funds raised from the crowdfunding campaign?)

We believe the funds from this campaign are necessary to the viability of the Company. Of the total funds that our Company has, 81% will be made up of funds raised from the crowdfunding campaign, if it raises its maximum funding goal.

How long will you be able to operate the company if you raise your minimum? What expenses is this estimate based on?

If the Company raises the minimum funding goal, we anticipate the Company will be able to operate for 6 months. This is

based on a current monthly burn rate of $50,000 for expenses related to facilities overhead. Payroll, and R&amp;D.

How long will you be able to operate the company if you raise your maximum funding goal?

If the Company raises the maximum funding goal, we anticipate the Company will be able to operate for 36 months or more. This is based on a projected monthly burn rate of $50,000 for expenses related to facilities overhead, payroll and R&amp;D in the near term.

Are there any additional future sources of capital available to your company? (Required capital contributions, lines of credit, contemplated future capital raises, etc...)

Currently, the Company has contemplated additional future sources of capital including a working capital revolver to level out seasonal cash flows and inventory purchase repayment. If this raise goes well, and if there continue to be opportunities for inorganic growth in the marketplace, we would contemplate an additional equity raise to capitalize on those opportunities.

## Indebtedness

- Creditor: New Co Capital Group-Loan 1
- Amount Owed: $187,000.00
- Interest Rate: 32.0%
- Maturity Date: December 10, 2025
- Monthly payment of $26,400

- Creditor: New Co Capital Group-Loan 2
- Amount Owed: $142,000.00
- Interest Rate: 32.0%
- Maturity Date: December 27, 2025
- Monthly payment of $17,600

- Creditor: Forward Financing
- Amount Owed: $121,469.00
- Interest Rate: 31.0%
- Maturity Date: December 05, 2025
- Monthly payment of $20,469

- Creditor: Pejeco Loan 1
- Amount Owed: $100,000.00
- Interest Rate: 25.0%
- Maturity Date: January 23, 2026
- Monthly payment of $16,182

- Creditor: Pejeco Loan 2
- Amount Owed: $50,000.00
- Interest Rate: 20.0%
- Maturity Date: August 19, 2026
- Monthly payment of $6,342

- Creditor: Rohit Gupta
- Amount Owed: $25,000.00
- Interest Rate: 15.0%
- Maturity Date: September 12, 2026
- Monthly payment of $2,652

- Creditor: Shannon Lukei Loan 1
- Amount Owed: $14,089.00
- Interest Rate: 0.0%
- Maturity Date: December 31, 2030
- Lump sum payment of $14,089 due at end of Loan

- Creditor: Shannon Lukei Loan 2
- Amount Owed: $100,000.00

Interest Rate: 0.0%
Maturity Date: December 31, 2030
4 Lump Sum payment of $100,000 due at end of Loan

- Creditor: Shannon Lukei Loan 3
Amount Owed: $85,000.00
Interest Rate: 0.0%
Maturity Date: December 30, 2030
Lump Sum Payment of $85,000 due at end of Loan.

## Related Party Transactions

- Name of Person: Shannon Lukei
Relationship to Company: Owner's Domestic Partner
Nature / amount of interest in the transaction: Amount Owed: $14,089 Interest Rate: 0%
Material Terms: Nature of Transaction: Equipment Loan Maturity Date: 12/31/2030 Material Terms: Lump Sum payment of $14,089 due at end of Loan

- Name of Person: Shannon Lukei
Relationship to Company: Owner's Domestic Partner
Nature / amount of interest in the transaction: Amount Owed: $100,000 Interest Rate: 0%
Material Terms: Nature of Transaction: Working Capital Loan Maturity Date: 12/31/2030 Material Terms: Lump Sum payment of $100,000 due at end of Loan

- Name of Person: Shannon Lukei
Relationship to Company: Owner's Domestic Partner
Nature / amount of interest in the transaction: Amount Owed: $85,000 Interest Rate: 0%
Material Terms: Nature of Transaction: Equipment Loan Maturity Date: 12/30/2030 Material Terms: Lump Sum Payment of $85,000 due at end of Loan.

- Name of Person: Pejeco Loan 1
Relationship to Company: Owner
Nature / amount of interest in the transaction: Amount Owed: $100,000 Interest Rate: 25%
Material Terms: Nature of Transaction: Working Capital Loan Maturity Date: 01/23/2026 Material Terms: Monthly payment of $16,182

- Name of Person: Pejeco Loan 2
Relationship to Company: Owner
Nature / amount of interest in the transaction: Amount Owed: $50,000 Interest Rate: 20%
Material Terms: Nature of Transaction: Working Capital Loan Maturity Date: 08/19/2026 Material Terms: Monthly payment of $6,342

## Valuation

Pre-Money Valuation: $9,978,686.62

Valuation Details:

Electric Bike Company's Revenue for 2024 was $9,512,897.67, and this valuation is 1.05x revenue. E-commerce companies typically trade at 1-1.7x revenue, depending on the percentage of revenue that is recurring, market conditions, and a variety of other factors. Given that e-commerce is Electric Bike Company's primary sales channel, we used e-commerce valuation methodology and erred on the side of a conservative valuation. About 10-15% of the company's revenue would be considered recurring on the basis of annual B2B sales and annual service and maintenance.

This pre-money valuation was calculated internally by the Company without the use of any formal third-party valuation.

The pre-money valuation has been calculated on a fully diluted basis. In making this calculation, we have assumed: (i) all preferred units are converted to common units; (ii) all outstanding warrants and other securities convertible into or exercisable for units are exercised; and (iii) there are no outstanding stock options or reserved units under any equity incentive plan.

## Use of Proceeds

If we raise the Target Offering Amount of $19,999.68 we plan to use these proceeds as follows:

- StartEngine Platform Fees
7.5%
- StartEngine Service Fees
92.5%
Fees for certain creative design, legal, marketing, technical, and administrative support services provided by StartEngine, of which the final amount may vary.

If we raise the over allotment amount of $1,234,999.33, we plan to use these proceeds as follows:

- StartEngine Platform Fees
7.5%
- StartEngine Service Fees
1.5%
Fees for certain creative design, legal, marketing, technical, and administrative support services provided by StartEngine, of which the final amount may vary.
- Campaign Setup, Creative, Management and Advertising
8.9%
Building the campaign page, creative direction and video production as well as financial review and advertising spend throughout the campaign
- Conversion Rate Optimization, ERP, and Tech Stack Improvements
12.2%
Overhauling the website and customization experience to increase conversion rate and also to implement our ERP to improve inventory tracking and reduce lead times, along with other complementary software integrations on Shopify to enhance efficiency of overall operations, custom building where required
- Supply Chain Improvements and COGS reduction
3.6%
Molds and CAD work required to produce components with new partners at better pricing
- Research &amp; Development
4.4%
Development of our mobile app as well as IOT tracking and theft deterrent software and hardware. Also included here is the development of new cargo models and lightweight models, like folding bikes
- Enhanced and Expanded Go To Market
29.2%
We'll increase our spend on marketing and advertising, particularly as it relates to video and to SEO so that we have a robust content marketing funnel and are driving new and repeat purchases as well as service appointments.
- Seasonal Working Capital
32.7%
Working capital that allows us to bridge seasonality of placing inventory orders in the winter low season in order to be fully stocked for spring and summer high season

The Company may change the intended use of proceeds if our officers believe it is in the best interests of the company.

## Regulatory Information

### Disqualification

No disqualifying event has been recorded in respect to the company or its officers or directors.

### Compliance Failure

The company has not previously failed to comply with the requirements of Regulation Crowdfunding.

### Ongoing Reporting

The Company will file a report electronically with the SEC annually and post the report on its website no later than April 30 (120 days after Fiscal Year End). Once posted, the annual report may be found on the Company's website at https://electricbikecompany.com/ (www.electricbikecompany.com/investors).

The Company must continue to comply with the ongoing reporting requirements until:

(1) it is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
(2) it has filed at least one (1) annual report pursuant to Regulation Crowdfunding and has fewer than three hundred (300) holders of record and has total assets that do not exceed $10,000,000;
(3) it has filed at least three (3) annual reports pursuant to Regulation Crowdfunding;
(4) it or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) it liquidates or dissolves its business in accordance with state law.

## Updates

Updates on the status of this Offering may be found at: www.startengine.com/electric-bike-company

## Investing Process

See Exhibit E to the Offering Statement of which this Offering Memorandum forms a part.

EXHIBIT B TO FORM C

FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANT'S REVIEW OR AUDIT (AS APPLICABLE) FOR Electric Bike Company, LLC

[See attached]

ELECTRIC BIKE COMPANY, LLC

REVIEWED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024, AND 2023
(Unaudited)

INDEX TO FINANCIAL STATEMENTS

(UNAUDITED)

Page

INDEPENDENT ACCOUNTANTS' REVIEW REPORT ...1

FINANCIAL STATEMENTS:

Balance Sheets ...2
Statements of Operations ...3
Statements of Changes in Members' Equity ...4
Statements of Cash Flows ...5
Notes to Financial Statements ...6

SET APARL

# INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Board of Members of
Electric Bike Company, LLC
Costa Mesa, California

We have reviewed the accompanying financial statements of Electric Bike Company, LLC (the "Company,"), which comprise the balance sheets as of December 31, 2024, and December 31, 2023, and the related statements of operations, statements of members' equity, and cash flows for the year ending December 31, 2024 and December 31, 2023, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

## Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

## Accountant's Responsibility

Our responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

## Accountant's Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

## Going Concern

As discussed in Note 12, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

SetApart Accountancy Corp.

April 25, 2025
Los Angeles, California

- 1 -

ELECTRIC BIKE COMPANY, LLC

BALANCE SHEETS

(UNAUDITED)

| As of December 31, | 2024 | 2023 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| ASSETS |  |  |
| Current Assets: |  |  |
| Cash & Cash Equivalents | $112,274 | $224,509 |
| Accounts Receivable, net | 37,027 | 63,890 |
| Inventory | 2,884,819 | 4,987,244 |
| Prepaids and Other Current Assets | 26,725 | 8,590 |
| Total Current Assets | 3,060,845 | 5,284,233 |
| Property and Equipment, net | 113,757 | 208,444 |
| Right-of-Use Asset | 1,161,782 | 1,582,501 |
| Security Deposit | 86,115 | 91,729 |
| Total Assets | $4,422,499 | $7,166,907 |
| LIABILITIES AND MEMBERS' EQUITY |  |  |
| Current Liabilities: |  |  |
| Accounts Payable | $573,591 | $425,535 |
| Credit Cards | 272,156 | 228,714 |
| Current Portion of Related Party Loans | 211,189 | - |
| Current Portion of Loans and Notes | 7,674,536 | 7,227,712 |
| Lease Liability, current portion | 464,773 | 420,719 |
| Other Current Liabilities | 154,064 | 669,052 |
| Total Current Liabilities | 9,350,309 | 8,971,732 |
| Loans and Promissory Notes, net of current portion | 54,657 | 60,099 |
| Lease Liability, net of current portion | 769,646 | 1,234,420 |
| Total Liabilities | 10,174,612 | 10,266,251 |
| MEMBERS' EQUITY |  |  |
| Members' Equity | (5,752,113) | (3,099,344) |
| Total Members' Equity | (5,752,113) | (3,099,344) |
| Total Liabilities and Members' Equity | $4,422,499 | $7,166,907 |

See accompanying notes to financial statements.

ELECTRIC BIKE COMPANY, LLC

STATEMENTS OF OPERATIONS

(UNAUDITED)

| For Fiscal Year Ended December 31, | 2024 | 2023 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| Net Revenue | $9,479,702 | $10,129,442 |
| Cost of Goods Sold | 5,422,289 | 6,513,857 |
| Gross Profit | 4,057,413 | 3,615,585 |
| Operating Expenses |  |  |
| General and Administrative | 5,099,561 | 5,046,181 |
| Sales and Marketing | 878,359 | 858,088 |
| Total Operating Expenses | 5,977,920 | 5,904,269 |
| Net Operating Loss | (1,920,507) | (2,288,684) |
| Interest Expense | 608,168 | 1,348,106 |
| Other Loss/(Income) | (95,671) | 41,780 |
| Loss Before Provision for Income Taxes | (2,433,004) | (3,678,570) |
| Provision/(Benefit) for Income Taxes | - | - |
| Net Loss | $(2,433,004) | $(3,678,570) |

See accompanying notes to financial statements.

- 3 -

ELECTRIC BIKE COMPANY, LLC

STATEMENTS OF CHANGES IN MEMBERS' EQUITY

(UNAUDITED)

| (in, $US) | Members' Equity |
| --- | --- |
| Balance-December 31, 2022 | $245,484 |
| Capital Contribution | 333,742 |
| Net Loss | (3,678,570) |
| Balance-December 31, 2023 | $(3,099,344) |
| Capital Distribution | (219,765) |
| Net Loss | (2,433,004) |
| Balance-December 31, 2024 | $(5,752,113) |

See accompanying notes to financial statements.

ELECTRIC BIKE COMPANY, LLC

STATEMENTS OF CASH FLOWS

(UNAUDITED)

| For Fiscal Year Ended December 31, | 2024 | 2023 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| CASH FLOW FROM OPERATING ACTIVITIES |  |  |
| Net Loss | $(2,433,004) | $(3,678,570) |
| Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities |  |  |
| Depreciation of Property and Equipment | 261,983 | 37,558 |
| Non-Cash Lease Expense |  | 36,319 |
| Changes in operating assets and liabilities: |  |  |
| Inventory | 2,102,425 | 2,600,976 |
| Accounts Receivable, net | 26,862 | 19,662 |
| Prepaids and Other Current Assets | (18,135) | 112,350 |
| Accounts Payable | 148,056 | (150,194) |
| Credit Cards | 43,442 | 102,638 |
| Other Current Liabilities | (514,988) | 406,600 |
| Security Deposit | 5,614 | 26,649 |
| Net Cash Used In Operating Activities | (377,745) | (486,012) |
| CASH FLOW FROM INVESTING ACTIVITIES |  |  |
| Purchases of Property and Equipment | (167,296) | (166,556) |
| Net Cash Used in Investing Activities | (167,296) | (166,556) |
| CASH FLOW FROM FINANCING ACTIVITIES |  |  |
| Capital Contribution | - | 333,742 |
| Capital Distribution | (219,765) | - |
| Repayment of Promissory Notes and Loans | (22,931) | (251,485) |
| Borrowing on Promissory Notes and Loans | 464,313 |  |
| Borrowing on Related Party Loans | 211,189 | - |
| Net Cash Provided by Financing Activities | 432,806 | 82,257 |
| Change in cash | (112,235) | (570,311) |
| Cash-beginning of year | 224,509 | 794,820 |
| Cash-end of year | $112,274 | $224,509 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |  |
| Cash paid during the year for interest | $452,539 | $590,665 |

See accompanying notes to financial statements.

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

## 1. NATURE OF OPERATION

Electric Bike Company, LLC was formed on May 22, 2014, in the state of California. The financial statements of Electric Bike Company, LLC (which may be referred to as the "Company", "we", "us", or "our") are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's headquarters are located in Costa Mesa, California.

Electric Bike Company, based in Newport Beach, California, specializes in crafting custom-built electric beach cruisers assembled entirely in the USA. Their direct-to-consumer model allows customers to personalize everything from frame colour to accessories, with each bike hand-built by local technicians and shipped fully assembled. The company offers an industry-leading 10-year warranty on motors and frames, a 5-year battery warranty, and a 30-day money-back guarantee, reflecting their commitment to quality and customer satisfaction.

## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of significant accounting policies is presented to assist in understanding the Company's financial statements. The accounting policies conform to accounting principles generally accepted in the United States of America ("GAAP" and "US GAAP").

### Basis of Presentation

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with US GAAP, and the Company has adopted the calendar year as its basis of reporting.

### Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

### Cash &amp; Cash Equivalents

Cash and cash equivalents include all cash in banks, cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. As of December 31, 2024, and 2023, the Company's cash &amp; cash equivalents did not exceed FDIC insured limits.

### Accounts Receivable

Accounts receivable are carried net of allowance for expected credit losses. The allowance for expected credit losses is increased by the provision charged to expense and reduced by accounts charged off, net of recoveries. The allowance is maintained at a level considered adequate to provide for potential account losses based on management's evaluation of the anticipated impact on the balance of current economic conditions, changes in character and size of the balance, past and expected future loss experience and other pertinent factors.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instrument - Credit Losses." This ASU, and the related ASUs issued subsequently by the FASB, introduce a new model for recognizing credit loss on financial assets not accounted for at fair values through net income, including loans, debt securities, trade receivables, net investment in leases and available-for-sale debt securities. The new ASU broadens the information that an entity must consider in developing estimates of expected credit losses and requires an entity to estimate credit losses over the life of an exposure based on historical information, current information and reasonable supportable forecasts.

The Company adopted this ASU on January 1, 2023, using the modified retrospective approach. The adoption of this ASU did not have a material impact on financial statements, as the Company's customers are direct consumers and pay at the time of purchase. As of December 31, 2024, and 2023, the Company determined that no allowance for expected credit loss is needed.

### Inventories

Inventories are valued at the lower of cost and net realizable value. Inventories include costs for ingredients and finished goods, which are determined using an average method.

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

## Property and Equipment

Property and equipment are stated at cost. Expenditures for additions, major renewals and betterments are capitalized, and expenditures for maintenance and repairs are charged against income as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in statements of operations.

Depreciation and amortization of property and equipment are computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized on a straight-line basis over either the useful life of the improvement or the remainder of the related lease term, whichever is shorter.

Estimated useful lives for property and equipment are as follows:

| Category | Useful Life |
| --- | --- |
| Computer | 5 years |
| Equipment | 5 years |
| Leasehold Improvements | 5 years |
| Transportation Equipment | 5 years |
| Vehicles | 5 years |

## Impairment of Long-Lived Assets

Long-lived assets, including property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recorded in the period in which it is determined that the carrying amount is not recoverable. The determination of recoverability is made based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. The measurement of the impairment for long-lived assets is based on the asset's estimated fair value. No such impairment was recorded for the years ended December 31, 2024 and 2023.

## Revenue Recognition

The Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In determining when and how revenue is to be recognized from contracts with customers, the Company performs the following five step analysis laid under Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers: (1) identification of contract with customers, (2) determination of performance obligations, (3) measurement of the transaction price, (4) allocation of transaction price to the performance obligations, and (5) recognition of revenue when or as the company satisfies each performance obligation.

The Company typically recognizes revenue at a point in time, when control of the goods passes to the customer, as follows:

- In-store Sales: Revenue is recognized when the customer takes possession of the finished product at the retail location.
- Online Sales: Revenue is recognized when the custom-built electric bicycle is delivered to the customer.
- Wholesale Transactions: Revenue is recognized upon shipment or delivery of the goods, depending on the terms of the sale.

## Cost of Sales

Cost of sales includes the cost of retail products.

## Income Taxes

The Company has been organized as a limited liability company and has elected to be taxed as a partnership, which is not a tax-paying entity for federal income tax purposes and therefore, no provision for federal income taxes is reflected in its records. The income or loss of the limited liability company is passed through to the members and reported on their individual income tax returns.

- 7 -

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

## Leases

The Company determines if an arrangement is a lease at inception by determining whether the agreement conveys the right to control the use of the identified asset for a period of time, whether the Company has the right to obtain substantially all of the economic benefits from use of the identified asset, and the right to direct the use of the asset. Lease liabilities are recognized at the commencement date based upon the present value of the remaining future minimum lease payments over the lease term using the rate implicit in the lease or the Company's incremental borrowing rate. The incremental borrowing rate is defined as the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. The Company's lease terms include options to renew or terminate the lease when it is reasonably certain that it will exercise the option.

The lease right-of-use assets are initially measured at the carrying amount of the lease liability and adjusted for any prepaid or accrued lease payments, remaining balance of lease incentives received, unamortized initial direct costs, or impairment charges relating to the right-of-use-asset. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Variable lease expenses include payments related to the usage of the leased asset (utilities, real estate taxes, insurance, and variable common area maintenance) and are expensed as incurred.

## Fair Value of Financial Instruments

The carrying value of the Company's financial instruments included in current assets and current liabilities (such as cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) approximates fair value due to the short-term nature of such instruments.

The inputs used to measure fair value are based on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to lowest priority, are described below:

- **Level 1** - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.
- **Level 2** - Observable prices that are based on inputs not quoted on active markets but corroborated by market data.
- **Level 3** - Unobservable inputs reflecting the Company's assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

## Advertising &amp; Promotional Costs

Advertising and promotional costs are expensed as incurred. Advertising and promotional expenses for the years ended December 31, 2024, and December 31, 2023, amounted to $878,359 and $858,088, which is included in sales and marketing expenses.

## Subsequent Events

The Company considers events or transactions that occur after the balance sheet date, but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through April 25, 2025, which is the date the financial statements were available to be issued.

## 3. DETAILS OF CERTAIN ASSETS AND LIABILITIES

Prepaid and other current assets consist of the following:

| As of December 31, | 2024 | 2023 |
| --- | --- | --- |
| Prepaid Insurance | $21,004 | $8,480 |
| Other current assets | 5,721 | 110 |
| Total Prepaids and other current asset | $26,725 | $8,590 |

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

Other current liabilities consist of the following:

| As of December 31, | 2024 | 2023 |
| --- | --- | --- |
| Customer Deposits | $78,694 | $565,098 |
| Payroll Payable | 20,569 | 74,436 |
| Tax Payable | 54,801 | 29,518 |
| Total Other Current Liabilities | $154,064 | $669,052 |

## 4. INVENTORY

Inventory consists of the following:

| As of December 31, | 2024 | 2023 |
| --- | --- | --- |
| Raw materials | $2,884,819 | $4,987,244 |
| Total Inventory | $2,884,819 | $4,987,244 |

## 5. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

| As of Year Ended December 31, | 2024 | 2023 |
| --- | --- | --- |
| Computer | $24,936 | $15,140 |
| Equipment | 220,243 | 220,243 |
| Leasehold Improvements | 758,838 | 601,338 |
| Transportation Equipment | 8,545 | 8,545 |
| Vehicles | 297,355 | 297,355 |
| Property and Equipment, at Cost | 1,309,917 | 1,142,621 |
| Accumulated depreciation | (1,196,160) | (934,177) |
| Property and Equipment, Net | $113,757 | $208,444 |

Depreciation expense for the years ended December 31, 2024, and 2023 was $261,983 and $37,558, respectively.

## 6. LEASES

The Company maintains two operating leases for its business premises, with lease terms extending through 2027. Monthly lease payments are $35,529 under the first agreement and $12,500 under the second, with neither agreement containing escalation clauses. Rent expense is recorded on a straight-line basis over the lease term.

The weighted average discount rate for operating leases as of December 31, 2024, and 2023 was 10%.

Minimum future lease payments under non-cancellable operating leases as of December 31, 2024, are as follows:

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

| As of | December 31, 2024 |
| --- | --- |
| 2025 | $576,348 |
| 2026 | 576,348 |
| 2027 | 407,261 |
| 2028 | - |
| Thereafter |  |
| Present Value Discount | (325,538) |
| Total | $1,234,419 |

## 7. DEBT

The Company had outstanding term loans/ notes payables with varying maturities. Details of loans outstanding are as follows:

|  |  |  |  |  | As of December 31, 2024 |  |  | As of December 31, 2023 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Debt Instrument Name | Principal Amount | Interest Rate | Borrowing Period | Maturity Date | Current Portion | Non-Current Portion | Total Indebtedness | Current Portion | Non-Current Portion | Total Indebtedness |
| Loan Agreement with Cynosure Private Credit Fund, L.P. | $7,500,000 | 10.00% | 19/01/2022 | 01/01/2026 | $7,702,427 |  | $7,702,427 | $7,238,114 | $ - | $7,238,114 |
| Auto Loans | $139,296 |  | up to 60months |  | 5,442 | 54,657 | 60,099 | 39,598 | 60,099 | 99,697 |
| Debt Issuance costs | $(100,000) |  |  |  | (33,333) |  | (33,333) | (50,000) |  | (50,000) |
| Total |  |  |  |  | $7,674,536 | $54,657 | $7,729,193 | $7,227,712 | $60,099 | $7,287,811 |

As of December 31, 2024, the Company had an outstanding loan from Cynosure Private Credit Fund, L.P. in the principal amount of $8,522,708, excluding accrued interest, fees, and expenses. The original loan was entered into on January 19, 2022, with a maximum principal amount of $7,500,000 and was amended and restated through a Second Loan and Note Modification Agreement dated January 17, 2025. The loan is secured by a Security Agreement, which grants the lender a security interest in substantially all assets of the Company. Additionally, the loan is personally guaranteed by the Company's founder and further guaranteed by a related party, Electric Bicycle Company LLC, who has assumed obligations as both guarantor and grantor under the Security Agreement. The Company previously failed to make scheduled payments of interest and principal due on April 1, July 1, October 1, 2024, and January 1, 2025, resulting in a formal default and a Reservation of Rights Letter from the lender. However, on January 21, 2025, the Company and the guarantors completed a $1,000,000 partial paydown as required under the modification agreement. In accordance with the agreement, this payment resolved the default status, and the lender is contractually obligated to forgo further enforcement and release certain claims and liens, subject to continued compliance. Given the change in status, the loan is no longer in default as of the issuance date of these financial statements. The full amount remains classified as a current liability. The loan does not contain covenants restricting dividend payments or additional borrowing but continues to include default provisions and enforcement rights that could apply in the event of future non-compliance.

## Related Party Loans

In 2024, the Company borrowed money from the related parties. The details of the loans are as follows:

|  |  |  |  |  | As of December 2024 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Owner | Principal Amount | Borrowing Period | Interest Rate | Maturity Date | Current Portion | Non-Current Portion | Total Indebtedness |
| Shannon Lukei | $199,089 | Fiscal Year 2022 | 0% | No set maturity | $199,089 | $ - | $199,089 |
| Electric Bicycle Company | $12,100 | Fiscal Year 2024 | 0% | No set maturity | 12,100 |  | 12,100 |
| Total |  |  |  |  | $211,189 | $ - | $211,189 |

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

The imputed interest for 0% interest loans was deemed immaterial and thus not recorded. Since there is no maturity date set and thus the loan may be called at any time, the loan was classified as current.

## 8. EQUITY

The ownership percentages of the members are as follows:

As of Year Ended December 31, 2024

| Member's name | Ownership percentage |
| --- | --- |
| Sean Lupton-Smith | 100.0% |
| TOTAL | 100.0% |

## 9. CONTINGENCIES AND COMMITMENTS

### Contingencies

The Company's operations are subject to a variety of local, state, and federal regulations. Failure to comply with these requirements may result in fines, penalties, restrictions on operations, or losses of permits, which will have an adverse impact on the Company's operations and might result in an outflow of economic resources.

### Litigation and Claims

From time to time, the Company may be involved in or exposed to litigation arising from operations in the normal course of business. As of December 31, 2024, and December 31, 2023, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company's operations.

## 10. RELATED PARTY TRANSACTIONS

In 2024, the Company borrowed $199,089 from Shannon Lukei, a related party. As the loan bears no interest, the imputed interest was deemed immaterial and not recorded. Given that the loan has no specified maturity date and may be called at any time, it was classified as a current liability. The outstanding balance as of December 31, 2024, was $199,089.

Additionally, in 2024, the Company borrowed $12,100 from Electric Bicycle Company, also a related party. Similar to the above, the 0% interest rate resulted in immaterial imputed interest, which was not recorded. Due to the absence of a maturity date and the callable nature of the loan, it was also classified as current. The outstanding balance as of December 31, 2024, was $12,100.

## 11. SUBSEQUENT EVENTS

On January 17, 2025, the Company entered into a Second Loan and Note Modification and Joinder Agreement with Cynosure Private Credit Fund, L.P., amending and restating the terms of an existing loan originally dated January 19, 2022. As of December 31, 2024, the outstanding principal balance on the loan was $8,522,708, excluding accrued interest, fees, and expenses. The loan is secured by substantially all of the Company's assets and is personally guaranteed by the Company's founder and a related party, Electric Bicycle Company LLC, which has also joined the Security Agreement as a grantor. The loan was previously in default date due to missed interest and principal payments on April 1, July 1, October 1, 2024, and January 1, 2025. A $1,000,000 partial repayment was made on January 21, 2025, satisfying the conditions of the loan modification. As a result, the lender released certain claims and liens, and agreed not to pursue enforcement, thereby resolving prior defaults, subject to ongoing compliance.

ELECTRIC BIKE COMPANY, LLC

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

In connection with the loan modification, the Company issued a Warrant Agreement dated January 17, 2025, to Cynosure Private Credit Fund, L.P., granting the holder the right to purchase 20% of the total issued and outstanding equity interests of the Company for a nominal aggregate exercise price of $0.01. The warrant is currently outstanding and fully exercisable. As a result, 20% of Electric Bike Company, LLC's equity is contractually subject to issuance at a nominal strike price. This obligation will result in immediate dilution of existing ownership upon exercise of the warrant.

On January 17, 2025, the Company executed an ERC Assignment Agreement in favor of Cynosure Private Credit Fund, L.P., assigning all rights to receive up to $800,000 in Employee Retention Credit (ERC) proceeds. This agreement forms part of the revised repayment and security structure negotiated under the loan modification. The assignment is absolute and unconditional and includes the obligation to remit any ERC-related funds received, net of verified third-party processing costs, directly to the lender.

On February 13, 2025, the Company converted from a California LLC to a Delaware LLC.

On February 18, 2025, the Company entered into a Membership Interest Purchase Agreement and a Preferred Unit Purchase Agreement with the members of Integral Electrics, LLC ("Integral"). Under the terms of the agreements, the Company acquired 100% of the membership interests in Integral in exchange for issuing 1,289,594 Class A Preferred Units to the selling members, representing a 9.8% ownership interest in Electric Bike Company, LLC, on a fully diluted basis.

## 12. GOING CONCERN

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has a net operating loss of $1,920,507, an operating cash flow loss of $377,745 and liquid assets in cash of $112,274, which is less than a year's worth of cash reserves as of December 31, 2024. These factors normally raise substantial doubt about the Company's ability to continue as a going concern.

The Company's ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued depends upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results.

Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. During the next twelve months, the Company intends to fund its operations through debt and/or equity financing.

There are no assurances that management will be able to raise capital on terms acceptable to the Company. If it is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned development, which could harm its business, financial condition, and operating results. The accompanying financial statements do not include any adjustments that might result from these uncertainties.

EXHIBIT C TO FORM C

PROFILE SCREENSHOTS

[See attached]

.

EXHIBIT D TO FORM C

VIDEO TRANSCRIPT

Campaign Video Script

The American eBike Market is about to explode. Few companies are ready for it. We are.

Most electric bikes are mass-produced overseas and arrive in a box you have to build yourself. We're not here for that. At Electric Bike Company, every bike is built by hand right here in the USA.

You customize everything from the color to the components and we ship it assembled, so you can ride the moment it arrives. We obsess over the details. UL-certified batteries, top tier components, full inspections.

It's not about cutting costs. It's about building bikes people actually love to ride.

So as the electric bike industry expands, Electric Bike Company is very well positioned. Over a decade in this business, we've seen the ups and downs, but now we see huge growth.

And now, we're expanding. We're launching new lines: Cargo bikes, GPS tracking, Smart locks, Trikes, and more. So as we grow, we are now in the position of acquiring some of the most competitive cutting edge companies that are out there.

We're raising money to capitalize on a huge market with new tech and form factors. Expanding our customer base and market share. Urbanization, traffic, rising costs of car ownership and changing consumer preferences are all creating this inflection point in the growth of micro mobility products like e-bikes. We're inviting investors along for the ride.

So there are no other e-bike brands that can offer customization at scale like we do*. (*based on company's internal analysis and market research at filming) This is your shot to invest in the future of American micro mobility with a company that's already delivering. If you believe in American manufacturing, thoughtful design, and companies with real traction, invest in Electric Bike Company.

Power the future you want to see.

STARTENGINE SUBSCRIPTION PROCESS (Exhibit E)

## Platform Compensation

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## Information Regarding Length of Time of Offering

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## Hitting The Target Goal Early &amp; Oversubscriptions

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## Minimum and Maximum Investment Amounts

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EXHIBIT F TO FORM C

ADDITIONAL CORPORATE DOCUMENTS

[See attached]

Final Version

# AMENDED AND RESTATED OPERATING AGREEMENT OF ELECTRIC BIKE COMPANY, LLC

This Amended and Restated Operating Agreement (the “Agreement”) of Electric Bike Company, LLC (the “Company”) is entered into as of February 18, 2025 (the “Effective Date”) by and among (a) the Company, (b) the Initial Member, and (c) any other Person admitted in accordance with this Agreement as a Member of the Company from time to time. This Agreement amends and restates in its entirety the operating agreement of the Company dated as of May 12, 2014 (the “Original LLC Agreement”).

## INTRODUCTION

WHEREAS, this Agreement is being entered into (a) in connection with the consummation of the transactions contemplated by the Purchase Agreement (as defined below) and (b) to provide for, among other things, the governance, management and capitalization of the Company and restrictions on Transfers (as defined below) of the Company’s Interests (as defined below); and

WHEREAS, the Company is a party to that certain Warrant to Purchase Equity Interests, effective as of January 17, 2025 (the “Warrant”), by and between the Company and Cynosure Private Credit Fund, LP, a Delaware limited liability partnership (“Cynosure”) pursuant to which the Cynosure has the option to purchase certain membership interests in the Company.

Capitalized terms used herein and not otherwise defined shall have the respective meanings given to them in ARTICLE X of this Agreement.

## AGREEMENT

NOW, THEREFORE, in consideration of the covenants herein expressed, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

## ARTICLE I

### NAME; BUSINESS; TERM

1.1 **Name; Jurisdiction of Organization.** The name of the Company is Electric Bike Company, LLC. The Board in its sole discretion may change the name of the Company at any time and from time to time; provided that the Board shall provide prompt written notice to the Members upon the effectiveness of such a name change. The Company’s business may be conducted under its name and/or any other name or names deemed advisable by the Board. The Company is a limited liability company organized under the Delaware Limited Liability Company Act, as amended from time to time (the “Act”). The Company was formed on May 22, 2014.

1.2 **Purpose.** The Company is organized for the object and purpose of engaging in any lawful transactions and business activities as may be authorized under the Act and as determined by the Board, including but not limited to the Business. The Company shall have any and all powers necessary or desirable to carry out the object and purpose of the Company, to the extent the same may be permitted by the provisions of this Agreement and the Act.

1.3 **Business.** The character of the business of the Company is to develop, manufacture and sell customizable or standard electric bikes and electric bike accessories and to engage in any other activity that is permitted for a limited liability company organized in Delaware.

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### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Electric Bike Company, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 02-12-2025

**Physical Address:** 1945 Placentia Ave Ste A, Costa Mesa, CA, 92627

**Issuer Website:** https://electricbikecompany.com/

**Is there a Co-Issuer?:** No

**Intermediary Name:** StartEngine Primary, LLC

**Intermediary CIK:** 0001725012

**Intermediary File Number:** 008-70060

### Offering Information

**Compensation to Intermediary:** 7 - 13 percent

**Financial Interest in Issuer:** One percent (1%) of securities of the total amount of investments raised in the offering, along the same terms as investors.

**Type of Security Offered:** Other

**Other Description of Security:** Class B Common Units

**Number of Securities Offered:** 24096

**Price per Security:** $0.83

**Method for Determining Price:** N/A

**Target Offering Amount:** $19,999.68

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** At issuer's discretion, with priority given to StartEngine Owners

**Maximum Offering Amount:** $1,234,999.33

**Deadline to Reach Target Amount:** 09-16-2025

### Annual Report Disclosure Requirements

**Current Number of Employees:** 36

**Total Assets (Most Recent Fiscal Year):** $4,422,499.00

**Total Assets (Prior Fiscal Year):** $7,166,907.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $112,274.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $224,509.00

**Accounts Receivable (Most Recent Fiscal Year):** $37,027.00

**Accounts Receivable (Prior Fiscal Year):** $63,890.00

**Short-Term Debt (Most Recent Fiscal Year):** $9,350,309.00

**Short-Term Debt (Prior Fiscal Year):** $8,971,732.00

**Long-Term Debt (Most Recent Fiscal Year):** $824,303.00

**Long-Term Debt (Prior Fiscal Year):** $1,294,519.00

**Revenues/Sales (Most Recent Fiscal Year):** $9,479,702.00

**Revenues/Sales (Prior Fiscal Year):** $10,129,442.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $5,422,289.00

**Cost of Goods Sold (Prior Fiscal Year):** $6,513,857.00

**Taxes Paid (Most Recent Fiscal Year):** $54,801.00

**Taxes Paid (Prior Fiscal Year):** $29,518.00

**Net Income (Most Recent Fiscal Year):** $-1,975,308.00

**Net Income (Prior Fiscal Year):** $-2,318,202.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DISTRICT OF COLUMBIA, DELAWARE, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** Electric Bike Company, LLC

**Signature:** Sean Patrick Lupton Smith

**Title:** CEO and Director

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**Signature:** Sean Patrick Lupton Smith

**Title:** CEO and Director

**Date:** 06-17-2025

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**Signature:** Russell Theodore Skiba

**Title:** VP Finance/Controller

**Date:** 06-17-2025

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**Signature:** Michael Alan Edwards

**Title:** Director

**Date:** 06-17-2025