Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 39

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 39
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icing 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 will record provisions based on an estimate of product warranty claims,
but there is the possibility that actual claims may exceed these provisions and therefore negatively impact our results of operations
or financial condition.

In addition, we may in the
future be required to make product recalls or could be held liable in the event that some of our products do not meet safety standards
or statutory requirements on product safety, even if the defects related to any such recall or liability are not covered by our limited
warranty. The repair and replacement costs that we could incur in connection with a recall could have a material adverse effect on our
business, results of operations or financial condition. Product recalls could also harm our reputation and cause us to lose customers,
particularly if recalls cause consumers to question the safety or reliability of our products, which could have a material adverse effect
on our business, prospects, financial condition and operating results.

If our vehicle owners customize our vehicles
or change the charging infrastructure with aftermarket products, the vehicle may not operate properly, which may create negative publicity
and could harm our business.

Electric vehicle enthusiasts
may seek to “hack” our vehicles to modify their performance, which could compromise vehicle safety systems. Also, customers
may customize their vehicles with after-market parts that can compromise driver safety. We do not test, nor do we endorse, such changes
or products. In addition, the use of improper external cabling or unsafe charging outlets can expose our customers to injury from high
voltage electricity. Such unauthorized modifications could reduce the safety of our vehicles and any injuries resulting from such modifications
could result in adverse publicity which would negatively affect our brand and harm our business, prospects, financial condition and operating
results.

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