Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 364

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1B
Chunk 364
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 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 which would have a material adverse effect on
our business, financial condition and results of operations and may materially adversely affect our ability to continue as a going concern.
The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets
or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a
going concern.

Our accounts receivable represent primarily accounts
receivable from distributors that purchased our EVs and other products. As of March 31, 2025 and 2024, our accounts receivable, net of
allowance for credit losses, was $0.5 million and $0.5 million, respectively. Our accounts receivable turnover period increased
from 69 days in the year ended March 31, 2024 to 71 days in the year ended March 31, 2025, which was mainly attributable to the longer
payment terms to dealers.

Our accounts payable represent primarily accounts
payable to suppliers from whom we purchased accessories and components for our products. As of March 31, 2025 and 2024, our accounts
payable were $1.3 million and $1.2 million, respectively. Our accounts payable turnover period increased to 33 days for the year
ended March 31, 2025 from 25 days for the year ended March 31, 2024, which was primarily the result of longer payment cycles.

40

Our prepayments and other receivables primarily
represent prepayments to vendors and other service providers. These prepayments and receivables increased by $3.1 million, from $0.6
million as of March 31, 2024, to $3.7 million as of March 31, 2025. This significant increase is mainly due to the launch of Company’s
E-bike rental services, which required additional inventory. As a result, during the year ended March 31, 2025, the Company made substantial
prepayments to vendors to secure inventory for the new services.

Our inventories primarily include our EVs, their
accessories and spare parts. As of March 31, 2025 and 2024, our inventories, net of allowance, were $6.4 million and $5.4