Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 224

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 224
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 December 31, 2023, to 41,925
units for the nine months ended December 31, 2024.

In the future, our ability to increase our product
sales price and volume will depend on our ability to innovate in design and technology and offer products that meet the customers’
demand. We currently have a streamlined product portfolio consisting of three categories, with multiple models and specifications for
each category. Moreover, our ability to increase the sales price and volume will depend on our ability to continually enhance our brand
to attract customers, as well as our ability to successfully operate our retail stores and expand our sales network both domestically
and globally. However, our product sales price is influenced by various factors such as market demand and competitors’ pricing,
and although we continue working on product improvements and retail expansion, there can be no guarantee of sustained sales price increase
or improved sales volume. If our prices remain stable, increasing sales volume would become important for continued revenue growth, and
failure to do so would significantly impact our ability to grow revenue or improve our financial results.

33

Employees

Our payroll expenses were $1.3 million for the three months ended
December 31, 2024, compared to $0.7 million for the three months ended December 31, 2023. Our payroll expenses were $3.6 million
for the nine months ended December 31, 2024, compared to $1.9 million for the nine months ended December 31, 2023. As four stores were
closed during the nine months ended December 31, 2024, we expect a decrease in payroll expenses due to the demand for store sales staff
has decreased. Each of our retail stores has a minimum of two employees, and additional office employees will be hired to support retail
stores in customer service and marketing. In addition, to maintain excellent customer service in our retail stores, each store will have
at least one trained repair professional. Effective management of payroll expenses remains crucial to our ability to grow revenue and
enhance our financial results, especially as we navigate a reduced workforce.

Vendor and Supply Management

During the three months ended December 31, 2024,
we worked with three principal vendors, Xiamen Innolabs Technology Co., Ltd, Depcl Corp. (previously known as Fly Wing E-Bike Inc.), and
Anhui Ineo International Trading Co., each of which respectively supplied approximately 49.6%, 25.4