Eshallgo Inc. Secures $880,000 Note with Pledge Agreement

Eshallgo Inc. has entered into a material definitive agreement involving a Secured Promissory Note and a Pledge Agreement. On February 20, 2026, the Company issued a note for $880,000, with an original issuance discount of $80,000, for a purchase price of $800,000. The note carries a fixed interest rate of 8% per annum and matures on October 20, 2026. Prepayment is restricted without the lender's consent, but mandatory prepayment is required if the Company receives proceeds from debt or equity financing. In connection with the note, the Company's Chairman, Zhidan Mao, and CEO, Qiwei Miao, pledged 100% of their Class B Ordinary Shares to secure the Company's obligations. The note includes customary representations, warranties, covenants, and events of default, with the interest rate increasing to 18% upon default. The proceeds from the note were used to repay a portion of outstanding convertible debentures.