Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 115

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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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 nine months ended December 31, 2024, the Company closed four stores in the U.S. As of February
19, 2025, the Company has opened a total of 36 stores, including 35  retail stores
in the U.S and one retail store in Canada. 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. (“Ctate”), a corporation formed under the laws of the State of New York in 2018. Before merging with
Fly E-Bike, Ctate owned 27 companies, each of which operated a Fly E-Bike store. On September 12, 2022, Ctate and Fly E-Bike, which
was a wholly-owned subsidiary of Ctate, entered into an Agreement and Plan of Merger, pursuant to which Ctate merged into and with Fly
E-Bike, with Fly E-Bike being the surviving corporation (the “Merger”). As a result of the Merger, the original shareholders
of Ctate became the stockholders