Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 184

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 of March 31, 2024, to $2.2 million as of December 31, 2024. 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 nine months ended December 31, 2024, the Company
made substantial prepayments to vendors to secure inventory for the upcoming quarter.

Our inventories primarily include our EVs, their
accessories and spare parts. As of December 31, 2024 and March 31, 2024, our inventories, net of allowance, were $10.0 million and
$5.4 million, respectively. The increase in inventories was primarily due to our preparation for the new rental business. Our
inventory turnover days increased to 183 days in the nine months ended December 31, 2024, from 125 days in the year ended March
31, 2024, which was primarily due to strategic inventory buildup, allowing us to start new services.

As of December 31, 2024 and March 31, 2024, the
total outstanding amount of loan principal was $7.1 million and $1.6 million, respectively. For the three months ended December 31, 2024
and 2023, the interest expenses on our outstanding loans amounted to $135,802 and $31,558, respectively. For the nine months ended
December 31, 2024 and 2023, the interest expenses on our outstanding loans amounted to $247,550 and $82,150, respectively. See Note 8
to the Unaudited Condensed Consolidated Financial Statements included within this quarterly report for further information on details
of our outstanding loans.

The following table summarizes our cash flow data
for the nine months ended December 31, 2024 and 2023:

    For the Nine Months Ended  December 31, 

    2024  
    2023 
  
    Net Cash (Used in) Provided by Operating Activities 
    $(9,413,989) 
    $1,743,987 
  
    Net Cash Used in Investing Activities 
     (2,836,671) 
     (963,304)
  
    Net Cash Provided by Financing Activities 
     12,233,936  
     30,550 
  
    Net Change in Cash