Alfi, Inc. on April 18, 2022 and Lee Aerospace, Inc. (the “Lender”) entered into a Credit and Security Agreement (the “Credit Agreement”) pursuant to which the Lender made available to the Company a non-revolving line of credit, up to an aggregate principal amount of $2,500,000, on the terms and conditions set forth in the Credit Agreement. The Lender is wholly owned by an entity which is majority owned and controlled by James Lee, the Company's Chairman of the Board of Directors. Mr. Lee is also President of the Lender.

In addition, Mr. Lee and the Lender, together, beneficially own over 30% of the shares of the Company's common stock. On June 27, 2022, the Company and the Lender entered into Amendment No. 1 to the Credit and Security Agreement (“Amendment No.

1”) and an Amended and Restated Non-Revolving Line of Credit Note (the “Amended Note”), pursuant to which the non-revolving line of credit available to the Company from the Lender was increased to $2,750,000. The Amendment No. 1 and the Amended Note do not otherwise amend the terms of the Credit Agreement and related documents, a brief description of which is set forth in the April Form 8-K and is incorporated into this Item 1.01 by reference.

Through July 1, 2022, the Lender has funded to the Company $2,750,000 under the Credit Agreement, as amended.