Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 764

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 3
Chunk 764
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 our IPO for gross proceeds of $1.4
million upon full exercise of the underwriters’ over-allotment option and received net proceeds of $1.2 million. On June 4, 2025,
Company issued 5,719,111 shares of common stock, at a price of $1.2140 per share in its secondary public offering for gross proceeds of
the offering were $6.9 million, prior to deducting the placement agent’s fees and offering expenses payable by the Company.

On July 3, 2025, the Company
implemented a 1-for-5 reverse stock split of its issued and outstanding shares of common stock. The reverse stock split reduced the number
of shares of common stock issued and outstanding from 24,587,500 to 4,917,500 as of March 31, 2025. The par value per share
remained unchanged at $0.01.

As of March 31, 2025, the
Company had working capital of approximately $1.3 million and cash of approximately $0.8 million. The main cash outflow for
the year ended March 31, 2025 was from net loss of $5.3 million, a decrease in tax payable of $1.5 million, an increase in inventories
of $2.5 million, a decrease in operating lease liabilities of $4.9 million, purchase of software from a related party of $0.9 million,
purchase of equipment of $1.6 million and an increase in prepayments and other receivables of $2.5 million. As of March 31,
2025, the Company had a current portion of contractual obligation of approximately $8.9 million. These factors raise substantial doubt
as to the Company’s ability to continue as a going concern. For the next 12 months from the issuance date of this report, we plan
to alleviate the going concern risk through (i) equity financing to support the Company’s working capital; (ii) other available
sources of financing (including debt) from banks and other financial institutions; and (iii) financial support from the Company’s
related parties. The issuance and sale of additional equity would result in further dilution to our stockholders. The incurrence of indebtedness
would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure
you that financing will be available in