Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 54

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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In December 2023, the Company engaged DFT
for development of certain technology services. Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, owns over
50% of the equity interest in DFT. In July 2024, the Company engaged DFT for development of a new APP, GO FLY APP, for the rental
business. The total contract price for the GO FLY APP is $500,000, and the GO FLY APP was delivered on September 5, 2024.

(C) Other Related Party Transactions

On March 6, 2021, the Company and DGLG entered
into an engagement letter, pursuant to which the Company engaged DGLG as a consultant to assist the Company in its IPO planning, financing
and tax services. Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, is a partner at DGLG. Under
the terms of the engagement agreement with DGLG, the Company has agreed to compensate DGLG for consulting services based on an hourly
fee arrangement. DGLG’s consulting fees were nil and $100,000 for the three months ended December 31, 2024 and December 31, 2023,
respectively, and $225,000 and $100,000 for the nine months ended December 31, 2024 and 2023, respectively. In addition, during the three
and nine months ended December 31, 2024, the Company paid DGLG a total of $9,000 and $37,400 for tax services, including sales tax services,
payroll tax services, and income tax services, rendered by DGLG, respectively.

On April 1, 2023, the Company agreed to
retain the services of PJMG, a company in which Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, holds over
50% of the equity interests as a consultant following the completion of its IPO. To secure these services, the Company prepaid a
total of $165,000 to PJMG as of December 31, 2024. $105,000 was expensed as consulting expenses during the three months ended
December 31, 2024. $165,000 was expensed as consulting expenses during the nine months ended December 31, 2024. During the