Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 73

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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million and $6.4 million, respectively.
The decrease in inventories was primarily due to our preparation for the new rental business. Our inventory turnover days increased to
196 days in the quarter ended June 30, 2025, from 143 days in the year ended March 31, 2025, which was primarily due to strategic inventory
buildup, allowing us to start new services.

As of June 30, 2025 and March 31, 2025, the total outstanding amount
of loan principal was $8.7 million and $7.4 million, respectively. For the three months ended June 30, 2025 and 2024, the interest expenses
on our outstanding loans amounted to $546,234 and $68,082, respectively. See Note 8 to the Unaudited Condensed Consolidated Financial
Statements included within this quarterly report for further information on details of our outstanding loans.

The following table summarizes our cash flow data for the three months
ended June 30, 2025 and 2024:

    For the Three
    Months Ended  June 30, 

    2025  
    2024 
  
    Net
    Cash Used in Operating Activities 
    $(5,284,034) 
    $(4,522,164)
  
    Net Cash
    Used in Investing Activities 
     (408,632) 
     (1,066,130)
  
    Net
    Cash Provided by Financing Activities 
     7,171,615  
     8,653,972 
  
    Net
    changes in cash including cash classified within current assets held for sale 
    $1,478,949  
    $3,065,678 

Operating Activities

Net cash used in operating activities for the
three months ended June 30, 2025 was $5.3 million, which was due to net loss of $2.0 million, an increase in accounts receivable
of $0.6 million, a decrease in accounts payable of $0.9 million, a decrease in operating lease liabilities of $0.8 million, a decrease
in accrued expenses and other payables of $0.3 million, and an increase in prepayments and other receivables of $2.0 million, partially
offset by amortization of right-of-use assets of $0.8 million, depreciation expenses of