Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 71

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 our current obligation will depend on the future realization of our current assets.
Management has considered the historical experience, the economy, trends in the retail industry, the expected collectability of the accounts
receivable and the realization of the inventories as of June 30, 2025. Our ability to continue to fund working capital and other capital
requirements may be affected by general economic, competitive and other factors, many of which are outside of our control.

On June 4, 2025, the Company issued 5,719,111
shares of common stock, at a price of $1.2140 per share in its follow-on public offering for gross proceeds of $6.9 million, prior to
deducting the placement agent’s fees and offering expenses payable by the Company.

As of June 30, 2025, the Company had working capital of approximately
$6.0 million and cash of approximately $2.3 million. The main cash outflow for the three months ended June 30, 2025 was from net
loss of $2.0 million, a decrease in accounts payable of $0.9 million, an increase in accounts receivable of $0.6 million, and
an increase in prepayments and other receivables of $1.9 million. As of June 30, 2025, the Company had a current portion of contractual
obligation of approximately $9.3 million. These factors raise substantial doubt as to the Company’s ability to continue as a going
concern. For the next 12 months from the issuance date of this report, we plan to alleviate the going concern risk through (i) equity
financing to support the Company’s working capital; (ii) other available sources of financing (including debt) from banks and other
financial institutions; and (iii) financial support from the Company’s related parties. The issuance and sale of additional equity
would result in further dilution to our stockholders. The incurrence of indebtedness would result in increased fixed obligations and
could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts
or on terms acceptable to us, if at all. In the event that financing sources are not available, or that we are unsuccessful in increasing
our gross profit margin and reducing operating losses, we may be unable to implement our current plans for expansion, repay debt obligations
or respond to competitive pressures, any of