Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 133

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 133
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Notes to Unaudited Condensed Consolidated Financial
Statements

1 — DESCRIPTION OF BUSINESS, ORGANIZATION
AND BASIS OF PRESENTATION

Organization and principal activities

Fly-E Group, Inc. (the “Company” or “Fly-E Group”)
was incorporated under the laws of the State of Delaware on November 1, 2022. The Company has no substantive operations other than
holding all of the issued and outstanding shares of Fly E-Bike Inc. (“Fly E-Bike”) and Fly EV, Inc. (“Fly EV”).
Fly E-Bike and Fly EV were incorporated under the laws of the State of Delaware on August 22, 2022 and November 1, 2022, respectively.
Fly EV has no substantive operations. The Company, through its wholly owned subsidiaries, is principally engaged in designing, installing
and selling smart electric bikes (“E-bikes”), electric motorcycles (“E-motorcycles”), electric scooters (“E-scooters”),
and related accessories under the brand name of “Fly E-Bike.” The Company’s principal operations and geographic markets
are mainly in the United States of America (the “U.S.”). During the six months ended September 30, 2025, the Company
closed one store in U.S. During the year ended March 31, 2025, the Company closed four stores in the U.S. As of December 16, 2025, the
Company currently operates a total of 13 retail stores, including 12 retail stores in the U.S and one retail store in Canada.
During the three months ended September 30, 2025, 9 retail stores in the U.S were sold for streamlining the Company’s corporate
structure and reducing complexity in financial reporting and operating costs. These 9 retail stores were operated through certain
subsidiaries of the Company that were disposed of pursuant to share transfer agreements dated July 1, 2025, August 1, 2025, and September
1, 2025, respectively, as discussed in Note 14 to the Unaudited Condensed Consolidated Financial Statements in this Report. The Company
offers rental services from selected locations. The Company also operates one online store, focusing on selling E-motorcycles, E-bikes,
and E-scooters. The Company plans to open another online store focusing on selling gas bikes in the future.

The Company’s business was initially operated
under CTATE INC.