Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 209

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 209
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 three months ended June 30, 2025. Our wholesale revenue increased by $0.4 million, or 42.3%, from $1.0 million
for the three months ended June 30, 2024 to $1.4 million for the three months ended June 30, 2025. The decrease in retail sales revenue
is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery explosion
incidents in New York, customers are less inclined to purchase E-Bikes. Consequently, sales have declined as customers opt for oil-powered
vehicles over electric vehicles. The decrease in retail sales also attributed in part to the closures and disposition of our retail stores
during the three months ended June 30, 2025. The increase in wholesales revenue was driven primarily by the increase number of our dealers
 during the three months ended June 30, 2025.

Cost of Revenues

Cost of revenues decreased by 35.8%, from $4.8 million
for the three months ended June 30, 2024, to $3.1 million for the three months ended June 30, 2025. The decrease in cost of revenues was
primarily attributable to more favorable pricing obtained from our suppliers, particularly for batteries, as well as a reduction in sales
volume, as discussed above.

Gross Margin

The following table shows our gross profit and gross margin for the
three months ended June 30, 2025 and 2024:

    For the Three Months Ended June 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $2,261,375  
     3,099,634  
     (838,259) 
     (27.0)%
  
    Gross Margin 
     42.4% 
     39.4% 

Gross profit for the three months ended June 30,
2025 and 2024 was $2.3 million and $3.1 million, respectively. Gross margin was 42.4% and 39.4% for the three months ended June 30,
2025 and 2024, respectively. The increase in gross margin was mainly because of the increased revenues from rental business with higher
margin than our other businesses. Gross margin of rental business