Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 193

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 193
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, respectively.

In December 2023, the Company engaged DFT, a former
related party, for certain technology services, such as ERP system. The total contract price for the ERP system is $, subject
to adjustments. The final delivery of the ERP system is scheduled for May 10, 2025, subject to adjustments mutually agreed upon by the
parties in response to any changes in project scope or unforeseen delays. As of December 31, 2024 and March 31, 2024, the accumulative
payments to DFT for development of the ERP system were $ and $, respectively. As of December 31, 2024 and March 31,
2024, construction in progress was $ and $, respectively, and primarily relating to the cost incurred to develop the software
by DFT. As of December 31, 2024 and March 31, 2024, the Company had a prepayment of $ and $, respectively, to DFT (see
Note 13 - Long-term prepayment for software development - related parties, net).

On August 12, 2024, the Company entered into a
purchase agreement with He’s Realty Holdings LLC (the “Seller”), a third party, to purchase an office property. The
final purchase price of the property was $ and closing cost was $. The Company paid $ in cash to the Seller, withdrew
$ from its line of credit with Peapack-Gladstone Bank, and financed the remaining $. On August 13, 2024, the Company’s
subsidiary, AOFL LLC, obtained a one-year short-term loan of $ from He’s Realty Holdings LLC with an annual interest rate
of %. The principal amount shall be paid to He’s Realty Holdings LLC in one or more installments on or before August 11, 2025,
and during the one-year borrowing period, AOFL LLC only needs to pay interest of $ to He’s Realty Holdings LLC on a monthly
basis. The collateral provided was the office purchased by AOFL LLC. The loan was paid off in full on November 29, 2024.

In October 2024, the Company started to offer
rental services through its subsidiaries, GOBIKE INC, in New York, and FLYLA INC, in Log Angeles. The rental term is from one hour to
one month. In New York, the Company offers a single model of E-Bike for rent, FLY 11