Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 156

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 Company is a party to certain
legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible
losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the unaudited condensed consolidated
financial statements.

The Company’s products and other production
facilities as well as the packaging, storage, distribution, advertising and labeling of its products, are subject to extensive legal and
regulatory requirements. For example, pursuant to the DMV registration requirement, the Company must satisfy the DMV Registration requirements
and conduct required testing for all of its products sold in U.S. Loss of or failure to renew or obtain necessary permits, licenses,
registrations, or certificates could prevent the Company from legally selling its products in the U.S. If the Company were found
to be in violation of applicable laws and regulations, it could be subject to administrative punishment, including fines, injunctions,
recalls or asset seizures, as well as potential criminal sanctions, any of which could have a material adverse effect on its business,
financial condition, results of operations and prospects. As of the date hereof, the Company believes it is in compliance with the relevant
regulations in the U.S.

Inflation

Inflationary factors, such as increases in personnel
and overhead costs, could impair the Company’s operating results. Although the Company does not believe that inflation has had a
material impact on the Company’s financial position or results of operations to date, a high rate of inflation in the future may
have an adverse effect on the Company’s ability to maintain current levels of gross margin and operating expenses as a percentage
of sales revenue if the revenues do not increase with such increased costs.

28

13 — RELATED PARTY TRANSACTIONS

(A) Related party balances

Accounts receivable — related parties

  Name of Related Party  Relationship  Nature  December 31,  2024   March 31,  2024   Fly E Bike SRL  Zhou Ou (CEO), owns over 50% equity interest of this entity  Accounts receivable  $88,885   $326,914   Accounts receivable — related parties        $88,885   $326,914  

During the nine months ended December 31, 2024, the Company received
$285,814 from Fly E Bike SRL.

Prepayments and other receiv