Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 245

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 3
Chunk 245
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 commenced work in February 2025. We have begun organizing regular training programs for our accounting
personnel, with a focus on U.S. GAAP and SEC reporting requirements, in order to improve the competence and awareness of our finance
team. In addition, we plan to enhance our IT infrastructure by outsourcing our IT department to a provider to manage PC operations and
system monitoring. Furthermore, we are developing and plan to implement an enterprise resource planning system to streamline sales, inventory,
financial reporting, and order management. We will devote resources to remediate these material weaknesses as we grow and such resources
required for implementing proper internal controls for financial reporting are available. We have performed testing to evaluate the operating
effectiveness of these remediation measures. Based on the results of our testing, we concluded that these material weaknesses had not
been fully remediated as of June 30, 2025. Accordingly, we continue to consider these material weaknesses to be ongoing as of that date.

As of June 30, 2025, we believe that our internal controls over financial reporting were
not effective in providing reasonable assurance regarding the reliability of our financial reporting due to the material weaknesses identified
above.

We do not expect that our disclosure controls and procedures will prevent all errors and
all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not
absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls
and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs.
Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can
provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure
controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during
the period covered by this Report that has materially affected, or is reasonably likely to materially affect, our internal control over
financial reporting.

44

PART II - Other Information

Item 1. Legal Proceedings.

From time to time, we may be subject to legal proceedings arising in the ordinary course
of business. Regardless of the outcome of any existing or future litigation, litigation can