Company: FLYE
Filing Date: 2025-04-22
Form Type: S-1
Source: 0001213900-25-034233
Chunk: 27

Company: Fly-E Group, Inc.
Filing Date: 2025-04-22
Form: S-1
Chunk 27
---
 willing to pay in the future for shares of our Common Stock. They could also deter
potential acquirers of our company, thereby reducing the likelihood that you could receive a premium for your Common Stock in an acquisition.

FINRA sales practice requirements may limit a stockholder’s ability to buy and sell our Common Stock.

The Financial Industry Regulatory
Authority (“FINRA”) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must
have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities
to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s
financial status, tax status, investment objectives and other information. Under interpretations of these rules, the FINRA believes that
there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our Common Stock, which may have the effect of reducing
the level of trading activity in our Common Stock. As a result, fewer broker-dealers may be willing to make a market in our Common
Stock, reducing a stockholder’s ability to resell shares of our Common Stock.

<div align='center'>13</div>

Holders of the Warrants will have no rights as a common stockholder until they acquire our Common Stock.

Until
holders of the Warrants acquire shares of our Common Stock upon exercise of the Warrants, the holders will have no rights with respect
to shares of our Common Stock issuable upon exercise of the Warrants. Upon exercise of the Warrants, the holder will be entitled to exercise
the rights of a common stockholder as to the security exercised only as to matters for which the record date occurs after the exercise.

Provisions of the Warrants could discourage an acquisition of us by a third party.

Certain
provisions of the Warrants could make it more difficult or expensive for a third party to acquire us. The Warrants prohibit us from engaging
in certain transactions constituting “fundamental transactions” unless, among other things, the surviving entity assumes our
obligations under the Warrants. These and other provisions of the Warrants offered by this prospectus could prevent or deter a third party
from acquiring us even where the acquisition could be beneficial to you.

A possible “short squeeze” due to a sudden increase in demand of our shares of Common Stock that largely exceeds supply may