Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 325

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 3
Chunk 325
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 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 September 30, 2025. Accordingly, we continue to consider these material weaknesses to be
ongoing as of that date.

As of September 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.

54

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