Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 18

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 18
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 The markets in
which we operate are in their infancy and highly competitive, and we may not be successful in competing in this industry.”

12

Regulation

We are subject to a wide variety
of laws and regulations in the United States. These laws and regulations govern various items directly or indirectly related to our
business, such as labor and employment, anti-discrimination, product liability, vehicle defects, vehicle maintenance and repairs, personal
injury, rider text messaging, service payments, consumer protection, taxation, privacy, data security, intellectual property, competition,
terms of service, mobile application accessibility, insurance, money transmittal, and environmental, health and safety. They are often
complex and subject to varying interpretations, in many cases due to their lack of specificity. As a result, their application in practice
may change or develop over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing
bodies, such as federal, state, and local administrative agencies.

The micromobility industry
is relatively nascent and rapidly evolving. New laws and regulations continue to be adopted, implemented, interpreted and iterated upon
in response to our growing industry and associated technology. As we expand our business into new markets or introduce new offerings into
existing markets, regulatory bodies or courts may claim that (i) we are subject to additional requirements or (ii) we are prohibited
from conducting our business in certain jurisdictions.

Our products may also be subject
to various environmental, health, and safety regulations, including, but not limited to, those regarding product safety and waste management.
For example, we are subject to environmental laws and regulations regarding the handling and disposal of hazardous substances and solid
wastes, including electronic wastes and batteries. These laws regulate the generation, storage, treatment, transportation and disposal
of solid and hazardous waste, and may impose strict, joint and several liability for the investigation and remediation of areas where
hazardous substances may have been released or disposed. For instance, the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (“CERCLA”) and comparable state laws impose liability, without regard to fault or the legality
of the original conduct, on certain classes of persons that contributed to the release of a hazardous substance into the environment.
These persons include current and prior owners or operators of the site where the release of the hazardous substance occurred as well
as companies that disposed or arranged for the disposal of hazardous substances found at the site