Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 139

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 139
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 $7.7 million. As of September 30, 2025, the Company had
a current portion of contractual obligation of approximately $7.8 million, including short-term loan payables of approximately $5.5 million,
current portion of long-term loan payables of approximately $0.2 million, accrued UL penalty of $0.2 million and current portion of operating
lease liabilities of approximately $1.8 million. The Company became default of repayment of loan with Peapack-Gladstone Bank of approximately
$4.9 million since August 31, 2025. For the six months ended September 30, 2025, the Company paid $373,683 on interest of the line of
credit. On November 7, 2025, the Company entered into forbearance and modification agreement with the bank for extension of repayment
deadline to March 31, 2026. Management has determined there is substantial doubt about its ability to continue as a going concern. Management
plans to alleviate the going concern risk through (i) equity financing to support the Company’s working capital; (ii) other available
sources of financing (including debt) from banks and other financial institutions; and (iii) financial support from the Company’s
related parties. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing
will be available to the Company on commercially reasonable terms, or at all. The Company’s inability to secure needed financing
when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s
ability to continue as a going concern and results of operations. The unaudited condensed consolidated financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of
business. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome
of such uncertainties.

2 — SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

(a) Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (the
“U.S. GAAP”) and regulations of the Securities Exchange Commission (the “SEC”).  The accompanying
unaudited condensed consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the
normal course of business. The realization of