Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 164

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 164
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.S. Loss of or failure to renew or obtain necessary permits, licenses, registrations, or certificates could prevent the Company from legally selling its products in the U.S. If the Company were found to be in violation of applicable laws and regulations, it could be subject to administrative punishment, including fines, injunctions, recalls or asset seizures, as well as potential criminal sanctions, any of which could have a material adverse effect on its business, financial condition, results of operations and prospects. As of the date hereof, the Company believes it is in compliance with the relevant regulations in the U.S. In March 2025, UL LLC filed a lawsuit in the U.S. District Court for the Southern District of New York against Fly-E Group Inc., its subsidiaries, and certain individuals, alleging unauthorized use of UL’s trademark and misrepresentation of product certification. The claims include trademark infringement, counterfeiting, unfair competition, unjust enrichment, and deceptive business practices. The Company is currently in settlement discussions with UL. If these discussions are not successful, the Company intends to defend the matter in court. Based on management’s assessment, the Company does not currently have strong defenses, and a material loss is considered reasonably possible. No accrual has been recorded as the outcome is not yet probable or reasonably estimable under applicable accounting guidance. F-29 Inflation Inflationary factors, such as increases in personnel and overhead costs, could impair the Company’s operating results. Although the Company does not believe that inflation has had a material impact on the Company’s financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on the Company’s ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if the revenues do not increase with such increased costs.

13 - RELATED PARTY TRANSACTIONS

(A) Related party balances

Accounts receivable - related parties

|                                       | Name of Related Party |                                                             | Relationship |                     | Nature |   | March 31, 
      2024 |     |   | March 31, 
      2023 |
|:--------------------------------------|:----------------------|:------------------------------------------------------------|:-------------|:--------------------|:-------|:--|----------:|:----|:--|----------:|
| Fly E Bike SRL                        |                       | Zhou Ou (CEO), owns over 50% equity interest of this entity |              | Accounts receivable |        | $ |   326,914 |     | $ |   136