Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 198

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 198
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. As part of our growth strategy, we plan to expand the rental service to Miami in the near term.

We
are currently in the process of developing a Fly E-Bike app, which is a management service mobile software for our EVs, enabling
customers to purchase bikes, locate company stores, schedule bike repairs, and more. We aim to design an app that will bring users a
comprehensive intelligent experience to create a safer and more satisfying riding life. The development of the app is still in its
preliminary stage. We have launched a testing version of the app, which is currently unavailable to our customers. In December 2023,
the Company engaged DF Technology US Inc (“DFT”) for certain technology services including the development of an
enterprise resource planning system (“ERP system”), and in July 2024, the Company engaged DFT to develop a mobile phone
application for its renal services, the GO FLY APP. The GO FLY APP is fully completed and delivered on September 9, 2024. The ERP
system is fully completed and delivered on May 20, 2025.

We source a significant portion of our vehicle components from China
and the United States, and then assemble them into our vehicles in a facility located in Maspeth, New York. For the three months
ended June 30, 2025, we produced 1,236 E-motorcycles, 384 E-bikes and 88 E-scooters at the same facility.

33

Recent Developments

UL Litigation

On or about March 12, 2025, UL LLC (“UL”)
filed a complaint against the Company, along with the Company’s certain subsidiaries and certain individuals, in the Eastern District
of New York (the “Complaint”). The Complaint alleges that the Company improperly used UL’s trademark by claiming
certain products were certified by UL. The Complaint seeks $2,000,000 for each instance an allegedly counterfeit UL mark was used
and asserts claims for federal trademark infringement and counterfeiting, unfair competition and false designations of the origin and
false and misleading representations, common law unfair competition, common law unjust enrichment, and unlawful deceptive acts and practices.

On May 21, 2025, Company, along with its
certain subsidiaries and certain individuals, and UL entered into a settlement and release agreement (the “Settlement Agreement”)
on mutually acceptable settlement terms. Pursuant to the Settlement Agreement, the Company