Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 894

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 4
Chunk 894
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 March 31, 2025 and 2024:

    For the Year Ended March 31, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Selling Expenses 
    $7,403,374  
     5,914,786  
     1,488,588  
     25.2%
  
    General and Administrative Expenses 
     7,607,489  
     3,931,203  
     3,676,286  
     93.5%
  
    Total Operating Expenses 
    $15,010,863  
     9,845,989  
     5,164,874  
     52.5%
  
    Percentage of Revenue 
     59.0% 
     30.6% 

Total operating expenses were $15.0 million for
the year ended March 31, 2025, an increase of $5.2 million, or 52.5%, compared to $9.8 million for the year ended March 31,
2024. The increase in operating expenses was attributable to the increase in our payroll expenses, rent, professional fees, product and
software development expenses and settlement payments, as more fully discussed below.

38

Selling Expenses 

Selling expenses primarily consist of payroll
expenses, rent, and advertising expenses of retail stores. Total payroll expenses were $3.3 million for the year ended March 31, 2025,
compared to $1.6 million for the year ended March 31, 2024. Rent was $2.9 million for the year ended March 31, 2025, compared to
$2.4 million for the year ended March 31, 2024. Advertising expenses were $0.3 million for the year ended March 31, 2025, compared
to $64,423 for the year ended March 31, 2024. The increase in payroll expenses was primarily due to the increased number of new employees
hired for business operations in the first three quarters of the year ended March 31, 2025, despite a reduction in headcounts in the
last quarter resulting from closures and dispositions of retail stores. The increase in rental expense was primarily due to the expansion
of retail stores to support the Company’s business growth and operational needs. The rise in advertising expense