Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 372

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part II, Item 1A
Chunk 372
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Item 1A. Risk Factors. 

Except for the additional risk factors set forth
below, there have been no material changes to our Risk Factors as disclosed in our Annual Report on Form 10-K for the year ended March
31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and September 30, as filed with the SEC on June 28,
2024, August 16, 2024, and November 19, 2024, respectively.

Significant changes
or developments with respect to domestic and international customs, tariffs, and trade policies, corresponding or retaliatory actions
by other countries and related uncertainties could adversely affect our financial results and profitability.

On February 1, 2025, President Trump issued
an executive order imposing a 10% ad valorem tariff on all imports from China, effective February 4, 2025. This tariff applies in
addition to any existing duties, fees, or charges and is expected to remain in effect indefinitely, with the potential for further
increases if China retaliates. As a company that imports raw materials and parts from China, we are subject to these increased
costs, which could have a material adverse impact on our financial condition, results of operations, and profitability. The
additional tariffs may increase our cost of goods sold, reduce our gross margins, and require us to pass higher costs on to
customers, potentially affecting demand for our products. Additionally, supply chain disruptions and delays resulting from the new
tariff policies could impact our ability to procure necessary materials in a timely manner. We will seek to mitigate these risks
through alternative sourcing strategies, price adjustments, or operational efficiencies; however, there is no guarantee that such
measures will fully offset the financial impact of the tariffs. Furthermore, given the evolving nature of U.S. trade policy, there
is uncertainty regarding the duration and scope of these tariffs, as well as the potential for retaliatory measures by China that
could further impact our supply chain and market conditions.

47

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Trading Arrangements

During the quarterly period ended December 31,
2024, none of our directors or officers (as defined in Rule 16a-1(f) promulgated