Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 192

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 192
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;

●the availability of tax and other governmental incentives
to purchase and operate electric vehicles or future regulation requiring increased use of nonpolluting vehicles; and

●macroeconomic factors.

Any of the factors described
above may cause current or potential customers not to purchase our electric vehicles and use our services. If the market for electric
vehicles does not develop as we expect or develops more slowly than we expect, our business, prospects, financial condition and operating
results will be affected.

20

The electric mobility industry is subject
to rapidly changing and often complex regulatory environments.

The electric mobility
industry is subject to rapidly changing and often complex regulatory environments at local, state, national, and international
levels. Evolving regulations related to safety standards, emissions, licensing, and operational requirements can have a substantial
impact on our business operations and profitability. Compliance with these changing regulations may necessitate costly modifications
to our products, business processes, or market strategies, which could lead to increased expenses and delays in product development
and market entry. Failure to navigate and adhere to evolving regulations adequately could result in legal and financial liabilities,
damage to our reputation, and potential market restrictions. Furthermore, inconsistency in regulations between different
jurisdictions may create challenges in maintaining uniform business practices and product offerings, increasing our exposure to
regulatory risks. Furthermore, a significant portion of our customer base comprises food delivery workers, and if leading food
delivery platforms like Uber Eats and DoorDash impose new requirements on the type of electric vehicles they allow, non-compliance
on our part could result in the loss of these customers. While we believe we are presently in compliance with applicable laws and
regulations in our operating regions, there can be no assurance that we can always promptly adapt to the rapidly changing regulatory
environment. If we fail to effectively adjust to the changing regulatory landscape and comply with applicable laws and regulations
in our operating regions, our business, prospects, financial condition and operating results would be materially and adversely
affected.

We may be unable to adequately control the
costs associated with our operations.

We expect to incur significant
costs which will impact our profitability, including research and development expenses as we roll out new models and improve existing
models, raw material procurement costs and selling and distribution expenses as we build our brand and market our vehicles. Our ability
to remain profitable in the future will not only depend on our ability to successfully market our vehicles and other products and services
but also to control our costs. If we are unable to cost efficiently design,