Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 195

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 195
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 and stock price.

In connection with the preparation
and audit of our consolidated financial statements for the year ended March 31, 2025, we identified material weaknesses in our internal
control over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial
reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements
will not be prevented or detected on a timely basis. The material weaknesses that have been identified included our lack of (i) sufficient
financial reporting and accounting personnel with appropriate knowledge of generally accepted accounting principles in the United States
of America (the “U.S. GAAP”) and SEC reporting requirements to properly address complex U.S. GAAP accounting issues
and to prepare and review our consolidated financial statements and related disclosures to fulfill U.S. GAAP and SEC financial reporting
requirements, (ii) formal internal control policies and internal independent supervision functions to establish formal risk assessment
process and internal control framework, and (iii) sufficient controls designed and implemented in IT environment and IT general control
activities, which are mainly associated with areas of logical access management, change management, computer operation, service organization
management as well as cyber security management.

22

In
response to the material weaknesses identified for the year ended March 31, 2025, we are in the process of implementing a number
of measures to address the material weaknesses identified, including but not limited to (i) hiring additional qualified accounting
and financial personnel with appropriate knowledge and experience in U.S. GAAP accounting and SEC reporting; (ii) organizing
regular training for our accounting staff, especially training related to U.S. GAAP and SEC reporting requirements; and (iii) regularly
conducting checks on the IT software we utilize to ensure its proper functionality, and arranging training sessions for our IT staff.
We also plan to adopt additional measures to improve our internal control over financial reporting, including, among others, creating
a U.S. GAAP accounting policies and procedures manual, which will be maintained, reviewed and updated, on a regular basis, to the
latest U.S. GAAP accounting standards, strengthening corporate governance as well as general control over our information technology.
While we believe these efforts, once completed, will remediate the material weaknesses, we may not be able to complete our evaluation,
testing or any required remediation in a timely fashion,