Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 163

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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,133  
     621,017  
     19.7%
  
    Percentage of Revenue 
     70.7% 
     39.9% 

Total operating
expenses were $3.8 million
for the three months ended June 30, 2025, an increase of $0.6 million, or 19.7%, compared to $3.1 million for the three months
ended June 30, 2024. The increase in operating expenses was attributable to the increase in our depreciation expense, professional fees,
product and software development expenses, as more fully discussed below.

39

Selling Expenses 

Selling expenses primarily consist of payroll expenses, rent, and
advertising expenses of retail stores. Total payroll expenses were $0.6 million for the three months ended June 30, 2025, compared to
$0.6 million for the three months ended June 30, 2024. Rent was $0.4 million for the three months ended June 30, 2025, compared
to $0.7 million for the three months ended June 30, 2024. Advertising expenses were $17,413 for the three months ended June 30,
2025, compared to $68,519 for the three months ended June 30, 2024. The decrease in rental expense was primarily due to the closures
and dispositions of retail stores during this quarter.

General and Administrative Expenses

General and
administrative expenses increased during the three months ended June 30, 2025 compared to the same period of previous year. Professional
fees increased to $1.5 million for the three months ended June 30, 2025, compared to $0.4 million for the three months ended
June 30, 2024, primarily attributable to the increase in audit fee, consulting fee, legal fee and IR expenses associated with our public offering and ongoing reporting obligations. Payroll expenses decreased to $0.2 million for the three months ended June
30, 2025 from $0.4 million for the three months ended June 30, 2024 primarily due to decrease in headcount of office assistants. Depreciation
expense increased to $0.6 million for the three months ended June 30, 2025, compared to $0.2 million for the same period in prior year
due to the increasing cost basis of fixed assets