Company: FLYE
Filing Date: 2025-08-26
Form Type: PRE 14A
Source: 0001213900-25-080827
Chunk: 11

Company: Fly-E Group, Inc.
Filing Date: 2025-08-26
Form: PRE 14A
Chunk 11
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 certain prices. Moreover, the analysts 
 at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower-priced stocks.                        |

| ● | Transaction Costs:    Investors may                                                                                             
 be dissuaded from purchasing stocks below certain prices because brokers’ commissions, as a percentage of the total transaction 
 value, can be higher for lower-priced stocks.                                                                                   |

| ● | Access to Capital Markets:    If                                                                                                         
 our common stock is delisted from Nasdaq, investor demand for additional shares of our common stock could be limited, thereby preventing 
 us from accessing the public equity markets.                                                                                             |

We believe that the Reverse
Split, if effected, could increase analyst and broker interest in our common stock by avoiding these policies and practices. Increasing
visibility of our common stock among a larger pool of potential investors could result in higher trading volumes. We also believe that
the Reverse Split may make our common stock a more attractive and cost-effective investment for many investors, which could enhance
the liquidity of our common stock for our stockholders. These increases in visibility and liquidity could also help facilitate future
financings and give management more flexibility to focus on executing our business strategy, which includes the strategic management of
authorized capital for business purposes.

Accordingly, for these and
other reasons discussed herein, we believe that being able to effect the Reverse Split is in the best interests of the Company and its
stockholders.

Certain Risks Associated with the Reverse Split

There can be no assurance that
the Reverse Split, if completed, will result in the intended benefits described above, including:

The Reverse Split may not increase the price of common stock.We cannot assure you that the proposed Reverse Split will increase
the price of our common stock. We expect that the Reverse Split will increase the market price of our common stock. However, the effect
of the Reverse Split on the market price of our common stock cannot be predicted with any certainty, and the history of reverse stock
splits for other companies is varied, particularly since some investors may view a reverse stock split negatively. It is possible that
the per-share price of our common stock after the Reverse Split will not increase in the same proportion as the reduction in the
number of outstanding shares of common stock following the Reverse Split, and the Reverse Split may not result in a per-share price
that would attract investors who do not trade in lower priced stocks. In addition, although we believe that the Reverse Split may enhance
the marketability of our common stock to certain