Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 23

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 23
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 developing more wholesale domestic
customers. Our plans call for achieving and sustaining increases in vehicles production and deliveries. Our ability to achieve these plans
will depend upon a number of factors, including our suppliers’ ability to support our needs and our ability to utilize our current
assembling capacity, achieve the planned production yield and further increase capacity as planned while maintaining our desired quality
levels and optimize design and production changes. If we are unable to realize our plans, our brand, business, prospects, financial condition
and operating results could be materially damaged.

We are dependent on a limited number of
principal vendors in China for a significant portion of our vehicle components, and the inability of these vendors to deliver necessary
components of our products according to our schedule and at prices, quality levels and volumes acceptable to us, or our inability to efficiently
manage these components, could have a material adverse effect on our financial condition and operating results.

We source a significant portion
of our vehicle components from China and then assemble these parts into our products in the United States. We rely on a limited number
of principal vendors who help us source and supply parts used in our vehicles from various suppliers in China. We currently do not maintain
long-term contracts with our suppliers and vendors. While we believe our contract management processes are strong, we nevertheless could
experience difficulties.

If our principal vendors decide
to terminate their partnership with us, experience sourcing failures, or otherwise become unable to provide us with the necessary components
in sufficient quantities, in a timely manner, and on acceptable terms, we may have to delay the production and sale of our products or
find an alternative vendor. Any significant unanticipated demand would require us to procure additional components in a short amount of
time. While we believe that we will be able to secure additional or alternate sources of supply for most of our components in a relatively
short time frame, there is no assurance that we will be able to do so or develop our own replacements for certain highly customized components
of our products.

In addition, if we encounter
unexpected difficulties with our principal vendors, and if we are unable to fill these needs from other vendors in a timely manner, we
could experience production delays and potential loss of access to important technology and parts for producing, servicing and supporting
our vehicles. The loss of any vendors or the disruption in the supply of components from these vendors could lead to design changes and
delays in product deliveries to our customers, which could hurt our relationships with our customers and result in negative publicity,
damage