Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2059

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 9C
Chunk 2059
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 6, 2021, the Company and DGLG entered
into an engagement letter, pursuant to which the Company engaged DGLG as a consultant to assist the Company in its IPO planning, financing
and tax services. Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, is a partner at DGLG. Under
the terms of the engagement agreement with DGLG, the Company has agreed to compensate DGLG for consulting services based on an hourly
fee arrangement. DGLG’s consulting fees were $225,000 and $100,000 for the years ended March 31, 2025 and 2024, respectively. In
addition, during the year ended March 31, 2025 and 2024, the Company paid DGLG a total of $61,050 and $123,000 for tax services, including
sales tax services, payroll tax services, and income tax services, rendered by DGLG, respectively.

On April 1, 2023, the Company agreed to retain
the services of PJMG, a company in which Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, holds over 50% of the
equity interests as a consultant following the completion of its IPO. To secure these services, the Company prepaid a total of $120,000
to PJMG as of March 31, 2025. During the year ended March 31, 2025, the Company paid PJMG a total of $372,047 for consulting services.
$312,047 was expensed as consulting expenses during the year ended March 31, 2025.

F-31

14 — DISPOSAL OF SUBSIDIARIES

During the year ended March 31, 2025, the Company
committed to the disposal of certain subsidiaries. The decision was driven by two primary factors:
(1) to simplify the Company’s legal and operational structure, and (2) to create a more streamlined and transparent organizational
structure, thereby reducing the complexity of consolidation across auditing, finance, and tax reporting. These subsidiaries were not part
of a strategic exit from the New York region or the retail industry. Rather, the disposal was intended to enhance administrative efficiency
and align the Company’s structure with its long-term operational goals.

In December, 2024, the Company decided to
proceed with the disposal plan