Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 164

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 initiatives to expand our brand perception with prospective customers. As of February 19, 2025,
we have 36 stores, including 35 retail stores in the U.S and one retail store in Canada. We offer rental services from selected
locations. We also operate one online store, focusing on selling E-motorcycles, E-bikes, and E-scooters and selling our product in the
United States. It is critical for us to successfully manage production ramp-up and quality control to deliver to customers in adequate
volume and quality.

With respect to branding and marketing, we plan
to raise brand awareness through both traditional and social media channels and connect with customers through physical touchpoints such
as our retail stores and distributors. We believe that effective marketing can boost our brand awareness and contribute to increased sales.
In addition, we intend to provide superior customer experience through our trained technicians who will provide after-sale maintenance
and repair services at our retail stores. An inability to attract new customers would substantially impact our ability to grow revenue
or improve our financial results.

Product Sales Price and Volume

For the three months ended December 31, 2024,
our net revenues decreased by 23.6% to $5.7 million, compared to $7.4 million for the same period in 2023, which was primarily driven
by a decrease in total units sold, which dropped by 3,511 units, from 13,500 units for the three months ended December 31, 2023, to 9,989
units for the three months ended December 31, 2024.

For the nine months ended December 31, 2024, our
net revenues decreased by 15.2% to $20.4 million, compared to $24.0 million for the same period in 2023, which was primarily driven by
a decrease in total units sold, which dropped by 7,578 units, from 49,503 units for the nine months ended December 31, 2023, to 41,925
units for the nine months ended December 31, 2024.

In the future, our ability to increase our product
sales price and volume will depend on our ability to innovate in design and technology and offer products that meet the customers’
demand. We currently have a streamlined product portfolio consisting of three categories, with multiple models and specifications for
each category. Moreover, our ability to increase the sales price and volume will depend on our ability to