Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 38

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 38
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 taken and are taking
steps to monitor and enhance the security of our information technology systems. Furthermore, our board of directors schedules periodic
discussions with management regarding significant risk exposures, including risks related to data privacy and cybersecurity, and assists
in taking steps to mitigate the risk of cyberattacks on us. However, the techniques used by cyber criminals change frequently and often
cannot be recognized until launched against a target; accordingly, we may not be able to anticipate these frequently changing techniques,
implement adequate preventive measures for all of them or remediate any unauthorized access on a timely basis. All preventive measures,
as well as additional measures that may be required to comply with rapidly evolving security standards and protocols imposed by law, regulation,
industry standards or contractual obligations, may cause us to incur substantial expenses. Any unauthorized access into our customers’
sensitive information, data belonging to us or our vendors or employee data, even if we are compliant with industry security standards,
could put us at a competitive disadvantage, result in deterioration of our customers’, vendors’ and employees’ confidence
in us and subject us to investigations, required notifications, potential litigation, liability, fines and penalties and consent decrees,
resulting in a possible material adverse impact on our brand, business, prospects, financial condition and operating results.

25

We may be unable to improve our existing
products and develop and market new products that respond to customer needs and preferences and achieve market acceptance.

We may not be able to compete
as effectively with our competitors, and ultimately satisfy the needs and preferences of our customers unless we can successfully enhance
existing products, develop new innovative products and distinguish our products from our competitors’ products through innovation
and design. Product development requires significant financial, technological and other resources. There can be no assurance that we will
be able to incur a level of investment in research and development that will be sufficient to successfully make us competitive in product
innovation and design. In addition, even if we are able to successfully enhance existing products and develop new products, there is no
guarantee that the markets for our existing products and new products will progress as anticipated. If any of the markets in which our
existing products compete do not develop as expected, our business, prospects, financial condition and operating results could be materially
adversely affected.

We have limited experience servicing our
vehicles, and if we are unable to address the service requirements of our customers, our business could be materially and adversely affected.

We have limited experience
servicing or repairing our vehicles. Serv