Fly-E Group, Inc.

Item 3. Defaults Upon Senior Securities.

On August 5, 2024, the Company obtained a $5,000,000 line of credit from Peapack-Gladstone Bank (the “Lender”). The Company defaulted on its repayment obligations under this credit facility beginning in August 2025. On November 7, 2025, the Company entered into a forbearance and modification agreement with the Lender extending the repayment deadline to March 31, 2026, at an interest rate of 12.875%. Subsequent to the execution of the forbearance agreement, the Company received written notices from the Lender asserting defaults and reserving the Lender’s rights to pursue remedies under the applicable loan documents. On May 28, 2026, the Company entered into a second forbearance and modification agreement with the Lender extending the repayment deadline to June 30, 2026, at an interest rate of 12.875%, subject to payment of $123,877 in interest and a $4,000 forbearance fee. As of September 1, 2026, the date of this Report, the June 30, 2026 repayment deadline has passed and the Company is in ongoing negotiations with the Lender regarding a renewal or further extension of the credit facility. The outstanding principal balance under the credit facility was approximately $3,910,018 as of June 30, 2026. The credit facility is secured by substantially all of the Company’s assets. See Note 9 to the Consolidated Financial Statements included in this Report for additional information.