Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 87

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 87
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to the overall decrease in cost of revenues.

48

Gross Margin

The following
table shows our gross profit and gross margin for the six months ended September 30, 2025 and 2024: 

    For the Six Months Ended September 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $3,237,896  
    $6,004,088  
    $(2,766,192) 
     (46.1)%
  
    Gross Margin 
     35.1% 
     40.9% 

Gross profit for the six months ended September
30, 2025 and 2024 was $3.2 million and $6.0 million, respectively. Gross margin was 35.1% and 40.9% for the six months ended September
30, 2025 and 2024, respectively. The decrease in gross margin was driven primarily by the decrease of the average sale price of our EVs
for the six months ended September 30, 2025 when compared with the six months ended September 30, 2024, and increased revenues from rental
business with higher margin than our other businesses.

Total Operating Expenses

The following table sets forth the components
of our total operating expenses for the six months ended September 30, 2025 and 2024:

    For the Six Months Ended September 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Selling Expenses 
    $2,348,943  
    $3,653,930  
    $(1,304,987) 
     (35.7)%
  
    General and Administrative Expenses 
     3,442,151  
     3,626,716  
     (184,565) 
     (5.1)%
  
    Total Operating Expenses 
    $5,791,094  
    $7,280,646  
    $(1,489,552) 
     (20.5)%
  
    Percentage of Revenue 
     62.7% 
     49.5% 

Total operating expenses were $5.8 million
for the six months ended September 30, 2025, a decrease of $1