| Schedule of Company’s Loans |
A summary of the Company’s loans is listed as follows: | | | | | As of
June 30, | | | As of
March 31, | | | Lender | | Due Date | | 2026 | | | 2026 | | | Milea Truck Sales of Queens Inc. (i) | | August 22, 2027 | | | 54,374 | | | | 65,234 | | | Milea Truck Sales of Queens Inc. (i) | | July 26, 2027 | | | 37,211 | | | | 45,404 | | | Peapack-Gladstone Bank(ii) | | March 31, 2026 | | | 3,936,058 | | | | 3,936,058 | | | Velocity Commercial Capital, LLC (iii) | | December 1, 2054 | | | 1,919,280 | | | | 1,921,240 | | | Stripe, Inc. (iv) | | December 22, 2026 | | | — | | | | 7,544 | | | Total loan payables | | | | | 5,946,923 | | | | 5,975,480 | | | Short-term loan payables | | | | | (3,936,058 | ) | | | (3,936,058 | ) | | Current portion of long-term loan payables | | | | | (88,227 | ) | | | (93,980 | ) | | Total Long-term loan payables | | | | $ | 1,922,638 | | | $ | 1,945,442 | | | (i) | On August 22, 2024, Fly E-Bike, Inc. obtained a three-year long-term loan of $128,132 from Milea Truck Sales of Queens Inc. with an annual interest rate of 9.90%. The collateral provided was the FTR 2025 vehicle purchased by Fly E-Bike, Inc. As of June 30, 2026, the outstanding balance is $54,374. From July 1 to September 1, 2026, the Company paid $4,125 on principal and interest of the loan. On July 26, 2024, Fly E-Bike, Inc. obtained a three-year long-term loan of $96,506 from Milea Truck Sales of Queens Inc. with an annual interest rate of 7.03%. The collateral provided was the NRR-CAB 2025 vehicle purchased by Fly E-Bike, Inc. As of June 30, 2026, the outstanding balance is $37,211. From July 1 to September 1, 2026, the Company paid $5,961 on principal and interest of the loan. | | (ii) | On August 5, 2024, Fly-E Group, Inc obtained a line of credit of $5 million from Peapack-Gladstone Bank with a floating annual interest rate and the current annual interest rate is 8.8%. From August 5 to August 6, 2024, the Company withdrew $996,476 and $423,506 from its line of credit to repay loans from Bank of Hope and JPMorgan Chase Bank, N.A., respectively. From August 7 to August 19, 2024, the Company withdrew $3,490,000 from the line of credit. Mr. Zhou Ou, the Company’s Chief Executive Officer, and Mr. Ke Zhang, the Company’s Chief Human Resource Officer, provided a guarantee on this loan. To secure payment and performance of the liabilities, Fly-E Group granted Peapack-Gladstone Bank a continuing lien on and security interest in all assets of the Company, including accounts, chattel paper, documents, instruments, inventory, general intangibles, equipment, fixtures, deposit accounts, goods, letter-of-credit rights, supporting obligations, investment property, commercial tort claims, property in the Lender’s possession, additions, and proceeds of first 39 incorporated subsidiaries of the Company. The Company became default of repayment since August 31, 2025. The Company entered into forbearance and modification agreement with the bank on November 7, 2025 for extension of repayment deadline with interest rate of 12.875% to March 31, 2026. Subsequent to the execution of the forbearance agreement, the Company has received written notices from Peapack-Gladstone Bank asserting defaults and reserving the lender’s rights to pursue remedies under the applicable loan documents. During the three months ended June 30, 2026, the Company paid $82,376 of interest of the loan. The Company entered into a forbearance and modification agreement with the bank on May 28, 2026, extending the repayment deadline to June 30, 2026, at an interest rate of 12.875%, and the agreement requires the Company to pay $123,877 in interest and a $4,000 forbearance fee in respect of the loan. As of September 1, 2026, the June 30, 2026 repayment deadline has passed and the Company remains in default under the credit facility. The Company is in ongoing negotiations with the bank for a renewal or further extension; however, there can be no assurance that such negotiations will be successful or that the bank will not exercise its remedies under the loan documents, including acceleration of the outstanding balance and foreclosure on the collateral. | | (iii) | On November 27, 2024, the Company’s subsidiary, AOFL LLC (the “borrower”) obtained four thirty-year long-term loans of $525,000, $560,000, $595,000, and $420,000, respectively, from Velocity Commercial Capital, LLC (the “lender”) with an annual interest rate of 11.24%. The lender charged a total of $170,933 loan settlement fees for closing the loan which included attorney fee, escrow fee, origination fee, and so on. The Company amortized the $170,933 over the loan term. To secure payment and performance of the liabilities, AOFL LLC pledged to Velocity Commercial Capital, LLC a continuing lien on and security interest in any and all deposits or other sums at any time credited by or due from lender to the borrower and any cash, securities, instruments or other property of the borrower in the possession of lender. | | (iv) | On June 23, 2025, a total of 8 subsidiaries of the Company obtained 42-week short-term loans from Stripe, Inc. with an aggregate principal amount of $126,100 and 18-month long-term loans from Stripe, Inc. with an aggregate principal amount of $216,000. Repayment schedules differ by agreement and include both weekly and 60-day installment options. The stated annual interest rates range from 10.2% to 20.4%. |
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