Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 61

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 61
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4, the Company paid PJMG a total of $102,047 and $232,547 for consulting services,
respectively.

34

14 — DISPOSAL OF SUBSIDIARIES

During the three and six months ended September
30, 2025, the Company committed to the disposal of certain subsidiaries. The decision was driven by two primary factors: (1) to simplify
the Company’s legal and operational structure, and (2) to create a more streamlined and transparent organizational structure, thereby
reducing the complexity of consolidation across auditing, finance, and tax reporting. These subsidiaries were not part of a strategic
exit from the New York region or the retail industry. Rather, the disposal was intended to enhance administrative efficiency and align
the Company’s structure with its long-term operational goals.

In December 2024, the Company decided to proceed
with the disposal plan and sell 100% of its equity interests in subsidiaries FLYMHT INC, FLY14 CORP, EDISONEBIKE INC, and FLY6AVE INC
to third-party individuals (the “Buyers”). On January 1, 2025, the Company entered into share transfer agreements with the
Buyers. Pursuant to the terms of the agreements, the Company agreed to sell, transfer, and assign all its rights, title, and interests
in the shares of the subsidiaries to the Buyers, free and clear of all liens and encumbrances. The Buyers agreed to purchase the shares
for total cash consideration of $635,193. There were no contingent payments, earn-outs, or post-closing adjustments specified in the
agreements. There was $84,302 gain from this disposal. During the six months ended September 30, 2025, the Company received $103,000
from the Buyers.

On March 11, 2025, the management team approved
to sell 100% of its equity interests in subsidiaries FLYEBIKE BROOKLYN INC, FLYMHT659 INC, and FLYBX745 INC to third-party individuals
(the “Buyers”). On April 1, 2025, the Company entered into share transfer agreements with the Buyers. Pursuant to the terms
of the agreements, the Company agreed to sell, transfer, and assign all its rights, title, and interests in the shares of the subsidiaries
to the Buyers, free and clear of all liens and encumbrances. The Buyers agreed to purchase the