Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 68

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 hired for repair
and maintenance business operation in the three months ended December 31, 2024. Total commission expenses were nil for the three months
ended December 31, 2024, compared to $0.6 million for the three months ended December 31, 2023. The decrease in the commission expenses
was primarily due to the Company’s discontinuation of marketing referral expenses for promotions as of January 1, 2024.

General and Administrative Expenses

Various
general and administrative expenses increased during the three months ended December 31, 2024 compared to the same period of the previous
year. Professional fees increased to $0.4 million for the three months ended December 31, 2024, compared to $0.3 million for the
three months ended December 31, 2023, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses
associated with ongoing reporting obligations. Payroll expenses increased to $0.4 million for the three months ended December
31, 2024 from $0.2 million for the three months ended December 31, 2023 primarily due to additional employees hired in operation departments.
Insurance expenses increased to $0.3 million for the three months ended December 31, 2024, compared to $35,050 for the same quarter
of prior year as a result of purchase of the directors and officers liability insurance after initial public offering in the three months
ended December 31, 2024. The development fee increased to $0.1 million for the three months ended December 31, 2024 from nil for the
three months ended December 31, 2023. The increase in development fee was primarily due to the increasing development fee   of
Fly E-Bike app and the increasing maintenance fee of Go Fly App. 

Income Tax Provisions  

Income
taxes benefits were $428,164 for the three months ended December 31, 2024, a change from $87,718 income tax provision for the three months
ended December 31, 2023. This change was due to our negative pre-tax income for
the three months ended December 31, 2024. We recognized a deferred tax asset which can be used to reduce taxes in future periods when
the Company is profitable.

Net Income (Loss)

Net loss was $684,487 for the three months ended
December 31, 2024,