Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 197

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 197
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, including in publicly-available
court filings. Our business is vulnerable to product liability claims, and we may face inherent risk of exposure to claims in the event
our vehicles do not perform or are claimed to not have performed as expected. If our products are defective, malfunction or are used incorrectly
by our customers, it may result in bodily injury, property damage or other injury, including death, which could give rise to product liability
claims against us. For example, our certain EVs use lithium-ion batteries, which, if not appropriately managed and controlled, can rapidly
release energy by venting smoke and flames that can ignite nearby materials. Furthermore, there is some risk of electrocution if individuals
who attempt to repair battery packs do not follow applicable maintenance and repair protocols. Any such damage or injury would likely
lead to product liability claims against us and potentially a safety recall. Any losses that we may suffer from any liability claims and
the effect that any product liability litigation may have upon the brand image, reputation and marketability of our products could have
a material adverse impact on our business, results of operations or financial condition. No assurance can be given that material product
liability claims will not be made in the future against us, or that claims will not arise in the future in excess or outside of our insurance
coverage and contractual indemnities with suppliers and manufacturers. We may not be able to obtain adequate product liability insurance
for our existing or new products or the cost of doing so may be prohibitive. Adverse determinations of material product liability claims
made against us could also harm our reputation and cause us to lose customers and could have a material adverse effect on our business,
prospects, financial condition and operating results.

23

We are dependent upon our executives for
their services and any interruption in their ability to provide their services could cause us to cease operations.

The loss of the services of
any member of our management team, including our CEO, could have a material adverse effect on us. We do not maintain any key man life
insurance on our executives, including our CEO. The loss of the services of any of our executive management could impair our ability
to execute our business plan and growth strategy, as we may not be able to find suitable individuals to replace such personnel on a timely
basis or without incurring increased costs, or at all. Our future success will also depend on our ability to attract, retain and motivate
other highly skilled employees. Competition for personnel in our industry is intense.