Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 214

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 214
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 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 accounts payable to suppliers
from whom we purchased accessories and components for our products. As of June 30, 2025 and March 31, 2025, our accounts payable were
$0.4 million and $1.3 million, respectively. Our accounts payable turnover period decreased to 30 days for the quarter ended June
30, 2025 from 33 days for the year ended March 31, 2025, which was primarily due to the Company’s accelerated payments to certain suppliers
during the quarter.
The company pay invoices more promptly to ensure continued favorable terms and reliable service.

41

Our
prepayments and other receivables primarily represent prepayments to vendors and other service providers. These prepayments and receivables
increased by $2.6 million, from $3.7 million as of March 31, 2025, to $6.3 million as
of June 30, 2025. This significant increase is mainly due to the launch of Company’s E-bike rental services, which required additional
inventory. As a result, during the three months ended June 30, 2025, the Company made substantial prepayments to vendors to secure inventory
for the new services.

Our inventories primarily include our EVs, their accessories and spare
parts. As of June 30, 2025 and March 31, 2025, our inventories, net of allowance, were $5.9 million and $6.4 million, respectively.
The decrease in inventories was primarily