Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 196

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 196
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 or at all. We cannot assure you that the measures we have taken to date and
may take in the future, will be sufficient to remediate the control deficiencies that led to our material weaknesses in internal control
over financial reporting, to prevent the identification of significant deficiencies in the future or that they will prevent or avoid
potential future material weaknesses. The effectiveness of our internal control over financial reporting is subject to various inherent
limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the possibility
of human error and the risk of fraud. If we are unable to remediate the material weaknesses, our ability to record, process and report
financial information accurately, and to prepare financial statements within the time periods required of public companies could be adversely
affected which, in turn, may adversely affect our reputation and business and the market price of our common stock. In addition, any
such failures could result in litigation or regulatory actions by the SEC or other regulatory authorities, loss of investor confidence,
delisting of our securities and harm our reputation and financial condition, or diversion of financial and management resources from
the operation of our business.

The markets in which we operate are in their
infancy and highly competitive, and we may not be successful in competing in this industry.

The market of electric two-wheel
vehicles is in its infancy, and we expect it will become more competitive in the future. There is no assurance that our vehicles will
be successful in the respective markets in which they compete. A significant and growing number of established and new companies, as well
as other companies, have entered or are reported to have plans to enter the electric vehicle market. Most of our current and potential
competitors have significantly greater financial, technical, manufacturing, marketing, sales networks and other resources than we do and
may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale and support of their
products. Increased competition could result in lower vehicles sales, price reductions, revenue shortfalls, loss of customers and loss
of market share, which could harm our business, prospects, financial condition and operating results.

An adverse determination in any significant
product liability claim against us could materially adversely affect our business, results of operations or financial condition.

The development, production,
marketing, sale and usage of our vehicles will expose us to significant risks associated with product liability claims. As a provider
of consumer products, we are, from time to time, subject to civil litigation regarding those products