Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 188

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 188
---
 to perform its duties, including proper inspections on sample products before mass production, the third-party
manufacturers may fail to manufacture our product components according to our schedule and requirements or at all. The quality of our
products is crucial to our continued growth. If our principal vendor fails to perform its supervising and inspecting duties properly,
our final products could have quality issues, which could result in product recall, return of products and potential lawsuits against
us if our products cause any injuries or damages due to the quality issues. Any occurrence of the foregoing could hurt our relationship
with our customers and result in negative publicity, damage to our brand and a material and adverse effect on our business, prospects,
financial condition and operating results.

Our success will depend on our ability to
economically produce our vehicles at scale, and our ability to produce vehicles of sufficient quality and appeal to customers on schedule
and at scale is unproven.

Our business success will depend
in large part on our ability to economically produce, market and sell our vehicles at sufficient capacity to meet the demands of our customers.
We will need to scale our production capacity in order to successfully implement our growth strategy.

We currently have one facility
in which we assemble all of our products in Maspeth, New York. We have no experience in large-scale production of our vehicles, and
we do not know whether we will be able to develop efficient, automated, low-cost production capabilities and processes, such that we will
be able to meet the quality, price and production standards, as well as the production volumes, required to successfully market our vehicles
and meet our business objectives and customer needs. Any failure to develop and scale our production capability and processes could have
a material adverse effect on our business, prospects, financial condition and operating results.

Changes in our supply chain may result in
increased cost. If we are unsuccessful in our efforts to control and reduce supplier costs and manage inventory at optimal levels, our
operating results will suffer.

As we plan to continue expanding
our business, we expect to include more products and their components in our inventory, which will make it more challenging for us to
manage our inventory effectively and will put more pressure on our warehousing system. Maintaining excessive inventory levels beyond customer
demand can lead to higher inventory carrying costs. High inventory levels may also require us to commit substantial capital resources,
preventing us from using that capital for other important purposes. On the other hand, if we underestimate customer demand or encounter
delays