Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 190

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 190
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 the so-called Luhansk People’s Republic by the U.S. and other countries and bodies around the world, as well as the existing
and potential further responses from Russia or other countries to such sanctions, tensions and military actions, has in the past and in
the future could continue to adversely affect the global economy and financial markets and could adversely affect our business, prospects,
financial condition and operating results. Additional potential sanctions and penalties have also been proposed and/or threatened. Although
our operations have not experienced a material adverse impact on supply chain or other aspects of our business from the ongoing conflict
between Russia and Ukraine, during times of war and other major conflicts, we and the third parties upon which we rely may be vulnerable
to a heightened risk of these attacks that could materially disrupt our operations, supply chain, and ability to produce, sell and distribute
our products. We cannot predict the progress or outcome of the conflict in Ukraine or its impacts in Ukraine, Russia or Belarus as the
conflict, and any resulting government reactions, are rapidly developing and beyond our control. The extent and duration of the military
action, sanctions and resulting market disruptions could be significant, could result in increases in commodity, freight, logistics and
input costs and could potentially have substantial impact on the global economy and our business for an unknown period of time.

Substantial increases in the
prices for our materials or prices charged to us would increase our operating costs, and could reduce our margins if we cannot recoup
the increased costs through increased prices. Any attempts to increase prices in response to increased material costs could result in
cancellations of vehicle orders and therefore materially and adversely affect our brand, business, prospects, financial condition and
operating results.

Our vehicles may not perform in line with
customer expectations.

Our vehicles may not perform
in line with customers’ expectations. For example, our vehicles may not have the durability or longevity of other vehicles in the
market, and may not be as easy and convenient to repair as other vehicles on the market. Any product defects or any other failure of our
vehicles to perform as expected could harm our reputation and result in adverse publicity, lost revenue, delivery delays, product recalls,
product liability claims, harm to our brand and reputation, and significant warranty and other expenses, and could have a material adverse
impact on our business, prospects, financial condition and operating results.

19

In addition, the range of our
vehicles on a single charge declines principally as a function of usage, time and charging