Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 34

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 34
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competitors have significantly greater financial, technical, manufacturing, marketing, sales networks and other resources than we do and
may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale and support of their
products. Increased competition could result in lower vehicles sales, price reductions, revenue shortfalls, loss of customers and loss
of market share, which could harm our business, prospects, financial condition and operating results.

An adverse determination in any significant
product liability claim against us could materially adversely affect our business, results of operations or financial condition.

The development, production,
marketing, sale and usage of our vehicles will expose us to significant risks associated with product liability claims. As a provider
of consumer products, we are, from time to time, subject to civil litigation regarding those products, including in publicly-available
court filings. Our business is vulnerable to product liability claims, and we may face inherent risk of exposure to claims in the event
our vehicles do not perform or are claimed to not have performed as expected. If our products are defective, malfunction or are used incorrectly
by our customers, it may result in bodily injury, property damage or other injury, including death, which could give rise to product liability
claims against us. For example, our certain EVs use lithium-ion batteries, which, if not appropriately managed and controlled, can rapidly
release energy by venting smoke and flames that can ignite nearby materials. Furthermore, there is some risk of electrocution if individuals
who attempt to repair battery packs do not follow applicable maintenance and repair protocols. Any such damage or injury would likely
lead to product liability claims against us and potentially a safety recall. Any losses that we may suffer from any liability claims and
the effect that any product liability litigation may have upon the brand image, reputation and marketability of our products could have
a material adverse impact on our business, results of operations or financial condition. No assurance can be given that material product
liability claims will not be made in the future against us, or that claims will not arise in the future in excess or outside of our insurance
coverage and contractual indemnities with suppliers and manufacturers. We may not be able to obtain adequate product liability insurance
for our existing or new products or the cost of doing so may be prohibitive. Adverse determinations of material product liability claims
made against us could also harm our reputation and cause us to lose customers and could have a material adverse effect on our business,
prospects, financial