Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 32

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 32
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cluding debt) from banks and other financial institutions; and (iii) financial support from the Company’s related parties.
There is no assurance that we will be successful in implementing the foregoing plans or that additional financing will be available to
us on commercially reasonable terms, or at all. Our inability to secure needed financing when required could require material changes
to our business plans and could have a material adverse effect on our ability to continue as a going concern and results of operations.

We identified material weaknesses in our
internal control over financial reporting. If we are unable to remediate these material weaknesses, or identify additional material weaknesses
in the future or otherwise fail to maintain an effective system of internal controls, we may not be able to accurately or timely report
our financial condition or results of operations, which may adversely affect our business and stock price.

In connection with the preparation
and audit of our consolidated financial statements for the year ended March 31, 2025, we identified material weaknesses in our internal
control over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial
reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements
will not be prevented or detected on a timely basis. The material weaknesses that have been identified included our lack of (i) sufficient
financial reporting and accounting personnel with appropriate knowledge of generally accepted accounting principles in the United States
of America (the “U.S. GAAP”) and SEC reporting requirements to properly address complex U.S. GAAP accounting issues
and to prepare and review our consolidated financial statements and related disclosures to fulfill U.S. GAAP and SEC financial reporting
requirements, (ii) formal internal control policies and internal independent supervision functions to establish formal risk assessment
process and internal control framework, and (iii) sufficient controls designed and implemented in IT environment and IT general control
activities, which are mainly associated with areas of logical access management, change management, computer operation, service organization
management as well as cyber security management.

22

In
response to the material weaknesses identified for the year ended March 31, 2025, we are in the process of implementing a number
of measures to address the material weaknesses identified, including but not limited to (i) hiring additional qualified accounting
and financial personnel with appropriate knowledge and experience in U.S. GAAP accounting and SEC reporting; (ii) organizing
regular training