Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 167

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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 accounts payable to suppliers
from whom we purchased accessories and components for our products. As of June 30, 2025 and March 31, 2025, our accounts payable were
$0.4 million and $1.3 million, respectively. Our accounts payable turnover period decreased to 30 days for the quarter ended June
30, 2025 from 33 days for the year ended March 31, 2025, which was primarily due to the Company’s accelerated payments to certain suppliers
during the quarter.
The company pay invoices more promptly to ensure continued favorable terms and reliable service.

41

Our
prepayments and other receivables primarily represent prepayments to vendors and other service providers. These prepayments and receivables
increased by $2.6 million, from $3.7 million as of March 31, 2025, to $6.3 million as
of June 30, 2025. This significant increase is mainly due to the launch of Company’s E-bike rental services, which required additional
inventory. As a result, during the three months ended June 30, 2025, the Company made substantial prepayments to vendors to secure inventory
for the new services.

Our inventories primarily include our EVs, their accessories and spare
parts. As of June 30, 2025 and March 31, 2025, our inventories, net of allowance, were $5.9 million and $6.4 million, respectively.
The decrease in inventories was primarily due to our preparation for the new rental business. Our inventory turnover days increased to
196 days in the quarter ended June 30, 2025, from 143 days in the year ended March 31, 2025, which was primarily due to strategic inventory
buildup, allowing us to start new services.

As of June 30, 2025 and March 31, 2025, the total outstanding amount
of loan principal was $8.7 million and $7.4 million, respectively. For the three months ended June 30, 2025 and 2024, the interest expenses
on our outstanding loans amounted to $546,234 and $68,082, respectively. See Note 8 to the Unaudited Condensed Consolidated Financial
Statements included within this quarterly report for further information on details of our outstanding loans.

The following table summarizes our cash flow data for the three months