Company: FLYE
Filing Date: 2025-04-22
Form Type: S-1
Source: 0001213900-25-034233
Chunk: 46

Company: Fly-E Group, Inc.
Filing Date: 2025-04-22
Form: S-1
Chunk 46
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 the Warrant Shares would commence on the date following
the date of exercise or on the date of exercise of the Warrant; in either case, the holding period would not include the period during
which the U.S. Holder held the Warrant.

Alternative characterizations
are also possible (including as a taxable exchange of all of the Warrants surrendered by the U.S. Holder for our Warrant Shares received
upon exercise). Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, including when a U.S.
Holder’s holding period would commence with respect to the Warrant Shares received, there can be no assurance which, if any, of
the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S.
Holders should consult their tax advisors regarding the tax consequences of a cashless exercise.

Depending on the circumstances,
certain adjustments to the Warrants may be treated as constructive distributions. An adjustment which has the effect of preventing dilution
pursuant to a bona fide reasonable adjustment formula generally is not taxable. The U.S. Holders of the Warrants would, however, be treated
as receiving a constructive distribution from us if, for example, the adjustment increases the Warrant holders’ proportionate interest
in our assets or earnings and profits (e.g., through an increase in the number of our Common Shares that would be obtained upon exercise
or through a decrease to the exercise price) as a result of a taxable distribution of cash or other property to the holders of our Common
Shares. Any such constructive distribution would generally be subject to tax as described under “U.S. Holders—Taxation of
Distributions” above in the same manner as if the U.S. Holders of the Warrants received a cash distribution from us equal to the
fair market value of such increased interest resulting from the adjustment.

Non-U.S. Holders

This section applies to “Non-U.S.
Holders.” As used herein, the term “Non-U.S. Holder” means a beneficial owner of our Common Shares or Warrants
that is not a U.S. Holder and is not a partnership or other entity classified as a partnership for U.S. federal income tax purposes, but
such term generally does not include an individual who is present in the United States for 183 days or more in the taxable year
of disposition. If you are such an individual, you should consult your tax advisor