Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 281

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 3
Chunk 281
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 2025. In addition, we plan to enhance our IT infrastructure by outsourcing our IT department to a provider to manage PC operations and
system monitoring. Furthermore, we are developing and plan to implement an enterprise resource planning system to streamline sales,
inventory, financial reporting, and order management. We will devote resources to remediate these material weaknesses as we grow and
such resources required for implementing proper internal controls for financial reporting are available. Our management performed
additional analysis as deemed necessary to ensure that our unaudited condensed consolidated financial statements included in this
Report were prepared in accordance with U.S. GAAP. Accordingly, management believes that the unaudited condensed consolidated
financial statements included in this Report present fairly, in all material respects, our financial position, results of operations
and cash flows of the periods presented. 

We do not expect that our disclosure controls
and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met.
Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits
must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation
of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances
of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

46

PART II - Other Information

Item 1. Legal Proceedings.

From time to time, we may be subject to legal
proceedings arising in the ordinary course of business. Regardless of the outcome of any existing or future litigation, litigation can
have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.  

Item 1A. Risk Factors. 

Except for the additional risk factors set forth
below, there have been no material changes to our Risk Factors as disclosed in our Annual Report on Form 10-K for the year ended March
31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and September 30, as filed with the SEC on June 28,
2024, August 16, 202