Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 209

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 209
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,772) 
     (37.2)%

Our net revenues were $9.2 million for the
six months ended September 30, 2025, a decrease of 37.2%, from $14.7 million for the six months ended September 30, 2024. The decrease
in our net revenues was driven by a decrease in total units sold, which decreased by 2,924 units, from 31,936 units for the six months
ended September 30, 2024 to 29,012 units for the six months ended September 30, 2025, and as a result of lowering the selling prices to
reduce aged inventory. From the six months ended September 30, 2024 to the six months ended September 30, 2025, while the number of units
sold of certain other types of products increased, the quantities of motorcycles and batteries sold, which normally contribute significantly
to revenues, decreased by 641 units and 5,332 units, respectively, thereby resulting in an overall decrease in the total number of units
sold.

Our retail sales revenue decreased by $7.0 million,
or 54.7%, from $12.8 million for the six months ended September 30, 2024 to $5.8 million for the six months ended September 30, 2025.
Our wholesale revenue increased by $1.2 million, or 65.5%, from $1.9 million for the six months ended September 30, 2024 to
$3.2 million for the six months ended September 30, 2025. The decrease in retail sales revenue is mainly due to decrease in number of
retail stores during the six months ended September 30, 2025. The increase in wholesales revenue was driven primarily by contributions
from the disposed entities during the six months ended September 30, 2025. Although certain retail stores were sold, these stores continued
to purchase products from the Company, which contributed to the increase of wholesale revenue.   

Cost of Revenues

Cost of revenues decreased by 31.0 %, from $8.7 million
for the six months ended September 30, 2024, to $6.0 million for the six months ended September 30, 2025. The decrease in cost of
revenues was primarily attributable to a reduction in battery sales volume, as discussed previously. These