Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 216

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 216
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-bikes, and E-scooters and selling our product in the United States.
It is critical for us to successfully manage production ramp-up and quality control to deliver to customers in adequate volume and quality.

With respect to branding and marketing, we plan
to raise brand awareness through both traditional and social media channels and connect with customers through physical touchpoints such
as our retail stores and distributors. We believe that effective marketing can boost our brand awareness and contribute to increased
sales. In addition, we intend to provide superior customer experience through our trained technicians who will provide after-sale maintenance
and repair services at our retail stores. An inability to attract new customers would substantially impact our ability to grow revenue
or improve our financial results.

Product Sales Price and Volume

For the year ended March 31, 2025, our net revenues
decreased by 21.0% to $25.4 million, compared to $32.2 million for the same period in 2024, which was primarily driven by a decrease
in total units sold, which dropped by 10,846 units, from 69,611 units for the year ended March 31, 2024, to 58,765 units for the year
ended March 31, 2025. The decrease in volume is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With
an increasing number of lithium-battery explosion incidents in New York, customers are less inclined to purchase E-Bikes.  Consequently,
sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in volume also attributed in part
to the closures and disposition of our retail stores during the year ended March 31, 2025. The average sales price per EV increased by
$29, from $960 in the year ended March 31, 2024 to $989 in the year ended March 31, 2025. These improvements were driven by product upgrades
and enhanced sales channels in the market.

We currently have a streamlined product portfolio
consisting of three categories, with multiple models and specifications for each category. Our ability to increase the sales price and
volume will depend on our ability to continually enhance our brand to attract customers, as well as our ability to successfully operate
our retail stores and expand our sales network both domestically and globally. However, our product sales price is influenced by various
factors such as market demand and competitors’ pricing, and although we continue working on product improvements