Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 40

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 offering price of $1.214. Each share of common stock was sold together with two
2025 Warrants, with each Existing Warrant to purchase one share of common stock. Each Existing Warrant is exercisable immediately upon
issuance, have an exercise price equal to $1.4565, which is 120% of the offering price and will expire five years from the date of
issuance. Each Existing Warrant is exercisable for one share of common stock, subject to adjustment in the event of stock dividends, stock
splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company’s common stock. A holder
may not exercise any portion of an Existing Warrant to the extent that the holder, together with its affiliates and any other person or
entity acting as a group, would own more than 4.99% of the Company’s outstanding shares of common stock after exercise, as such
ownership percentage is determined in accordance with the terms of the 2025 Warrants, except that upon notice from the holder to the Company,
the holder may waive such limitation up to a percentage, not in excess of 9.99%. The 2025 Warrants are also exercisable on a cashless
basis. 2025 Warrants are classified as equity as they are indexed to the Company’s own stock and meet the criteria for equity classification
according to ASC:815-40. None of the 2025 Warrants were exercised as of June 30, 2025.

23

The fair value of the Existing Warrant, using
the Black-Scholes Model on the date of issuance was $21,296,598. The key inputs into the Black-Scholes Model variables were as follows
at measurement date:

    June 4, 2025 
  
    Stock price 
    $2.7750 
  
    Risk-free interest rate 
     3.93%
  
    Volatility 
     53.92%
  
    Exercise price 
    $1.4565 
  
    Dividend yield 
    $— 

The stock price and exercise prices stated herein
have been retroactively adjusted to reflect the reverse stock split that occurred in July 2025.

The following table summarizes the Company’s
activities and status of the Representative’s Warrants and 2025 Warrants:

     Number of  Warrant   Weighted  Average  Exercise Price   Weighted Average Remaining Term (Years)