Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 225

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 225
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 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. Any potential issues
with the lithium-ion batteries used in our EVs could have a material adverse effect on our business, financial condition, and results
of operations, including a significant negative impact on our revenue. 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 condition and operating results.

56

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Trading Arrangements

During the quarterly period ended September 30,
2025, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under