Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 19

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 19
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. Under CERCLA, these persons may be
subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment,
for damages to natural resources, and for the costs of certain health studies. CERCLA also authorizes the Environmental Protection Agency
(“EPA”) and, in some instances, third parties to act in response to threats to the public health or the environment and seek
to recover costs incurred from the responsible classes of persons. In the course of ordinary operations, we, through third parties and
contractors, may handle hazardous substances within the meaning of CERCLA and similar state statutes and, as a result, may be jointly
and severally liable for all or part of the costs required to clean up sites at which these hazardous substances have been released into
the environment.

We may also be subject to the
Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes for the generation, storage, or disposal of
solid wastes, which may include hazardous wastes. RCRA regulates both solid and hazardous wastes, but, in particular, imposes strict requirements
on the generation, storage, treatment, transportation and disposal of hazardous wastes. In addition, federal and state laws may require
or otherwise regulate the reuse and recycling of batteries, including lead-acid and lithium-ion batteries, used in our products.

Certain of our products are
also regulated by the U.S. Consumer Product Safety Commission (“CPSC”) pursuant to various federal laws. CPSC can require
the manufacturer of products containing a safety defect to recall or repurchase such products and may also impose fines or penalties on
the manufacturer. Similar laws exist in some states, cities, and other countries in which we sell our products. In 2025, the CPSC proposed
regulations concerning lithium-ion battery safety in micromobility devices. While the rulemaking was later withdrawn, this development
indicates a continued focus on the safety and thermal integrity of battery systems used in electric bikes and scooters, and may result
in future mandatory standards. In April 2025, the House of Representatives passed H.R. 973, the “Setting Consumer Standards for
Lithium-Ion Batteries Act.” If passed by the Senate, the act would give the CPSC 180 days to promulgate micromobility regulations.

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Additionally, in January 2025,
the National Park Service (NPS) issued a proposed rule to restrict the operation of powered mic