Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 195

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 195
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 the Securities Act pursuant to a registration statement on Form S-1, as amended (File
No. 333-286678), which was declared effective by the Securities and Exchange Commission on May 15, 2025. American Trust Investment Services,
Inc. (“ATIS”) acted as the exclusive placement agent for the offering. We paid ATIS aggregate commissions of $219,430 and
incurred offering expenses of $178,625.

On September 18, 2025, the Company entered into a securities purchase
agreement with third-party individuals offering of (i) 687,500 shares of the common stock at the price of $16.0 per share for a total
consideration of $11,000,000. During the Six months ended September 30, 2025, the Company received proceeds of $3,400,000 from the investors.
The remaining net proceeds of $7,596,558 were held in escrow as of September 30, 2025, and were all received in October and November 2025.
The disclosure that the closing of this transaction occurred on September 30, 2025, in the Form 8-K filed with the SEC was incorrect and
is hereby corrected.

Disposal of Certain Subsidiaries

During the six months ended September 30, 2025,
the Company disposed several subsidiaries as part of a disposal plan aimed at simplifying its legal and operational structure and improving
administrative efficiency. The divestitures were not intended to be a strategic withdrawal from any specific geographic region or industry,
but rather a measure to streamline the Company’s corporate structure and reduce complexity in financial reporting. Between April
and September 2025, the Company sold 17 subsidiaries to third-party individuals in multiple transactions, for an aggregated cash consideration
of approximately $0.9 million.  See “Note 14— Disposal of Subsidiaries” in the accompanying consolidated
financial statements for details.

40

Key Factors that Affect Operating Results

Our results of operations and financial condition
are affected by the general factors driving the U.S.’s electric two-wheeled vehicles industry, including, among others, the U.S.’s
overall economic growth, the increase in per capita disposable income, the expansion of urbanization, the growth in consumer spending
and consumption upgrades, the competitive environment, governmental policies and initiatives towards electric two-wheeled vehicles, as
well as the general factors affecting the electric two-wheeled vehicles industry