Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 201

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 201
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sensitive information, data belonging to us or our vendors or employee data, even if we are compliant with industry security standards,
could put us at a competitive disadvantage, result in deterioration of our customers’, vendors’ and employees’ confidence
in us and subject us to investigations, required notifications, potential litigation, liability, fines and penalties and consent decrees,
resulting in a possible material adverse impact on our brand, business, prospects, financial condition and operating results.

25

We may be unable to improve our existing
products and develop and market new products that respond to customer needs and preferences and achieve market acceptance.

We may not be able to compete
as effectively with our competitors, and ultimately satisfy the needs and preferences of our customers unless we can successfully enhance
existing products, develop new innovative products and distinguish our products from our competitors’ products through innovation
and design. Product development requires significant financial, technological and other resources. There can be no assurance that we will
be able to incur a level of investment in research and development that will be sufficient to successfully make us competitive in product
innovation and design. In addition, even if we are able to successfully enhance existing products and develop new products, there is no
guarantee that the markets for our existing products and new products will progress as anticipated. If any of the markets in which our
existing products compete do not develop as expected, our business, prospects, financial condition and operating results could be materially
adversely affected.

We have limited experience servicing our
vehicles, and if we are unable to address the service requirements of our customers, our business could be materially and adversely affected.

We have limited experience
servicing or repairing our vehicles. Servicing electric vehicles is different than servicing traditional vehicles and requires specialized
skills, including training and servicing techniques for electric vehicles. If we are unable to successfully address the servicing requirements
of our customers or establish a market perception that we maintain high-quality support, our reputation could be harmed, we may be subject
to claims from our customers, and our business, prospects, financial condition and operating results may be materially and adversely affected.

Significant product repair and/or replacement
due to product warranty claims or product recalls could have a material adverse impact on our business, results of operations or financial
condition.

We provide a three-month warranty
against defects for our EVs and three-month warranty on the battery. Our warranty will generally require us to repair or replace defective
products during such warranty periods at no cost to the consumer. We