Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 154

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 products and materially and adversely affect our results of operations.

While our business is influenced by these general factors, our results
of operations are more directly affected by company specific factors, including the following major factors:

New Customers

Our growth will
depend on our ability to achieve sales targets, including our ability to attract new customers, which in turn depends in part on our
ability to execute our retail strategy and produce effective marketing initiatives to expand our brand perception with prospective customers.
As of August 19, 2025, we have 16 stores, including 15 retail stores in the U.S. and one retail store in Canada. We offer rental
services from selected locations. We also operate one online store, focusing on selling E-motorcycles, E-bikes, and E-scooters and selling
our product in the United States. It is critical for us to successfully manage production ramp-up and quality control to deliver to customers
in adequate volume and quality.

With respect to branding and marketing, we plan to raise brand awareness
through both traditional and social media channels and connect with customers through physical touchpoints such as our retail stores
and distributors. We believe that effective marketing can boost our brand awareness and contribute to increased sales. In addition, we
intend to provide superior customer experience through our trained technicians who will provide after-sale maintenance and repair services
at our retail stores. An inability to attract new customers would substantially impact our ability to grow revenue or improve our financial
results.

Product Sales Price and Volume

For the three months ended June 30, 2025, our net revenues decreased
by 32.3% to $5.3 million, compared to $7.9 million for the same period in 2024, which was primarily driven by a decrease in total
units sold, which dropped by 6,432 units, from 16,880 units for the three months ended June 30, 2024, to 10,448 units for the three
months ended June 30, 2025, and by the decreased average sales price of EV, which decreased by $93 per EV, from $1,053 in the three
months ended June 30, 2024 to $960 in the three months ended June 30, 2025. The decrease in volume is mainly due to recent
lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery explosion incidents in New
York, customers are less