Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 66

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 three months ended December 31, 2023 to $0.7 million for the three months ended December 31, 2024. The decrease in retail sales
revenue is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery
explosion incidents in New York, customers are less inclined to purchase E-Bikes.  Consequently,
the management believes that sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in wholesales
revenue was driven primarily by the decrease in orders from the top two customers who closed their retail stores in December 2023.

36

Cost of Revenues

Cost of revenues decreased by 30.0%, from $4.5
million for the three months ended December 31, 2023, to $3.1 million for the three months ended December 31, 2024. The decrease
in cost of revenues was primarily attributable to a reduction in units sold, which declined by 3,511 units, from 13,500 units sold for
the three months ended December 31, 2023, to 9,989 units sold for the three months ended December 31, 2024.

Gross Margin

The following table shows our gross profit and gross margin for the
three months ended December 31, 2024 and 2023:

    For the Three Months Ended December, 

    2024  
    2023  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $2,561,070  
     2,972,813  
     (411,743) 
     (13.9)%
  
    Gross Margin 
     45.1% 
     39.0% 

Gross profit for the three months ended December
31, 2024 and 2023 was $2.6 million and $3.0 million, respectively. Gross margin was 45.1% and 39.0% for the three months ended December
31, 2024 and 2023, respectively. The increase in gross margin was driven primarily by the increase of the average sale price of the batteries
by 20.0%, from $197 in the nine months ended December 31, 2023 to $236 in the nine months ended December 31, 2024, and the