Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 166

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 166
---
2025 was from net
loss of $2.0 million, a decrease in accounts payable of $0.9 million, an increase in accounts receivable of $0.6 million, and
an increase in prepayments and other receivables of $1.9 million. As of June 30, 2025, the Company had a current portion of contractual
obligation of approximately $9.3 million. These factors raise substantial doubt as to the Company’s ability to continue as a going
concern. For the next 12 months from the issuance date of this report, we plan to alleviate the going concern risk through (i) equity
financing to support the Company’s working capital; (ii) other available sources of financing (including debt) from banks and other
financial institutions; and (iii) financial support from the Company’s related parties. The issuance and sale of additional equity
would result in further dilution to our stockholders. The incurrence of indebtedness would result in increased fixed obligations and
could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts
or on terms acceptable to us, if at all. In the event that financing sources are not available, or that we are unsuccessful in increasing
our gross profit margin and reducing operating losses, we may be unable to implement our current plans for expansion, repay debt obligations
or respond to competitive pressures, any of which would have a material adverse effect on our business, financial condition and results
of operations and may materially adversely affect our ability to continue as a going concern. The unaudited condensed consolidated financial
statements do not include any adjustments related to the recoverability and classification of recorded assets or the amounts and classification
of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern.

Our accounts receivable represent primarily accounts receivable from
distributors that purchased our EVs and other products. As of June 30, 2025 and March 31, 2025, our accounts receivable, net of allowance
for credit losses, was $1.1 million and $0.5 million, respectively. Our accounts receivable turnover period decreased from 71 days
in the year ended March 31, 2025 to 57 days in the quarter ended June 30, 2025 which was mainly attributable to the implementing stricter
credit policies to customers.

Our accounts payable represent primarily