Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 39

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 2025, the Company implemented a 1-for-5
reverse stock split of its issued and outstanding shares of common stock. The par value per share remained unchanged at $0.01.

The reverse stock split was accounted for retrospectively
in the accompanying unaudited condensed consolidated financial statements and notes for all periods presented. All references to the number
of shares of common stock, including per share amounts, have been adjusted to reflect the reverse stock split. As of June 30, 2025 and
March 31, 2025, the number of issued and outstanding shares of common stock was 10,636,611 and 4,917,500, respectively.

Representative’s Warrants

Upon the closing of IPO offering in June 2024, the Company issued to Benchmark the representative
of the underwriters warrants to purchase 25,875 shares of common stock. The Representative’s Warrants have an exercise price equal
to $20.00 per share and are exercisable until the date on June 7, 2029, after the date of commencement on December 7, 2024. The Representative’s
Warrants are also exercisable on a cashless basis. As the Representative’s Warrants are considered indexed to the Company’s
own stock and meet the criteria for equity classification according to ASC:815-40, the Representative’s Warrants are classified
as equity.  None of the Representative’s Warrants were exercised as of June 30, 2025.

The fair value of the warrant, using the Black-Scholes Model on the date of issuance was
$274,472. The key inputs into the Black-Scholes Model variables were as follows at measurement date:

    June 7, 2024 
  
    Stock price 
    $20.00 
  
    Risk-free interest rate 
     4.46%
  
    Volatility 
     56.52%
  
    Exercise price 
    $20.00 
  
    Dividend yield 
    $— 

The stock price and exercise prices stated herein have been retroactively adjusted to reflect
the reverse stock split that occurred in July 2025.

Registered Direct Offering Warrants

On June 4, 2025, the Company closed its public
offering of 5,719,111 shares of common stock and 11,438,222 warrants (“2025 Warrants”) to purchase common stock (including
shares of common stock underlying warrants) at a public