SHORT-TERM LOANS |
3 Months Ended | |||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
| SHORT-TERM LOANS | NOTE 13 – SHORT-TERM LOANS
Insurance funding borrowing
On August 5, 2025, the Company entered into a financing agreement of $407,500 for the purchase of an insurance policy with AFCO Insurance Premium Finance. The debt is payable in monthly instalments through June 2026 and bears an interest rate of 7.5%. The carrying amount of $103,848 and $205,403 is included as Short-term Loan on the accompanying unaudited condensed consolidated balance sheet as on March 31, 2026, and audited consolidated balance sheet as on December 31, 2025, respectively. The Company recognized interest expense of $3,254 for the three months ended March 31, 2026.
On July 18, 2024, the Company entered into a financing agreement of $510,000 for the purchase of an insurance policy with AFCO Insurance Premium Finance. The debt is payable in monthly instalments through June 2025 and bears an interest rate of 8.46%. The debt was fully repaid in June 2025. The Company recognized interest expense of nil and $3,903 for the three months ended March 31, 2026 and March 31, 2025, respectively.
Stardust Power Inc. and Subsidiaries NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Other short-term loans
In December 2024, the Company entered into the Endurance Term Sheet with Endurance providing for a loan in the aggregate principal amount of $1,750,000, bearing interest at a rate of 15% per annum, and maturing in March 2025. The Company agreed to issue to Endurance $3,500,000 in Common Stock as an Equity Kicker. In addition, Endurance received warrants representing the right, exercisable within five years of the closing date, of up to 50% of Common Stock issued as Equity Kicker, with each 10 warrants exercisable for one share of Common Stock at an exercise price of $115.00 in accordance with such private placement terms. As of December 31, 2025, the Company has repaid the principal amount of $1,750,000 along with accrued interest of $70,000 and issued shares of Common Stock and warrants to Endurance.
In December 2024, the Company entered into binding Term Sheets (the “Investor Term Sheets”) with several lenders including DRE Chicago, a related party (collectively, the “Investors”), providing for loans (the “Investor Loans”) in the aggregate principal amount of $1,800,000, bearing interest at a rate of 15% per year, and maturing in March 2025 (the “Investor Maturity Date”). The Company agreed to issue to the Investors an aggregate of $ in Common Stock as an Equity Kicker. In addition, the Investors received warrants representing the right, exercisable within five years of the closing date, of up to 50% of Common Stock issued as an Equity Kicker, with each 10 warrants exercisable for one share of Common Stock at an exercise price of $115.00 in accordance with such private placement terms. As of December 31, 2025, the Company has repaid the principal amount of $1,800,000 along with accrued interest of $67,146 and issued shares of Common Stock and 377,092 warrants to the Investors.
The Company recognized interest expense of and $103,938 towards other short-term loans on the accompanying unaudited condensed consolidated statements of operations for the three months ended March 31, 2026, and March 31, 2025, respectively.
The following table summarizes the Company’s outstanding short-term loan arrangements:
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