Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 93

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 93
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2025,
our accounts payable were $0.6 million and $1.3 million, respectively. Our accounts payable turnover period decreased to 20 days
for the six months ended September 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.

Our prepayments and other receivables primarily
represent prepayments to vendors and other service providers. These prepayments and receivables increased by $2.3 million, from $3.7 million
as of March 31, 2025, to $5.9 million as of September 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 six months ended September 30, 2025, the Company
made substantial prepayments to vendors to secure inventory for the new services.

51

Our inventories primarily include our EVs, their
accessories and spare parts. As of September 30, 2025 and March 31, 2025, our inventories, net of allowance, were $6.5 million and
$6.4 million, respectively. The increase in inventories was primarily due to our plan for the new rental and maintenance services
business. Our inventory turnover days increased to 273 days in the six months ended September 30, 2025, from 143 days in
the year ended March 31, 2025, which was primarily due to strategic inventory buildup, allowing us to start new services.

As of September 30, 2025 and March 31, 2025, the
total outstanding amount of loan principal was $7.8 million and $7.4 million, respectively. For the six months ended September 30, 2025
and 2024, the interest expenses on our loans amounted to $1.1 million and $91,877, 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 six months ended September 30, 2025 and 2024:

    For the Six Months Ended