Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 60

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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Product Sales Price and Volume

For the three months ended June 30, 2025, our net revenues decreased
by 32.3% to $5.3 million, compared to $7.9 million for the same period in 2024, which was primarily driven by a decrease in total
units sold, which dropped by 6,432 units, from 16,880 units for the three months ended June 30, 2024, to 10,448 units for the three
months ended June 30, 2025, and by the decreased average sales price of EV, which decreased by $93 per EV, from $1,053 in the three
months ended June 30, 2024 to $960 in the three months ended June 30, 2025. The decrease in volume is mainly due to recent
lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery explosion incidents in New
York, customers are less inclined to purchase E-Bikes. Consequently, sales have declined as customers opt for oil-powered vehicles
over electric vehicles. The decrease in volume also attributed in part to the closures and disposition of our retail stores during
the three months ended June 30, 2025. The decrease in average sales price was primarily attributable to changes in product mix and
promotional pricing strategies implemented during the three months ended June 30, 2025.

We currently have a streamlined product portfolio consisting of three
categories, with multiple models and specifications for each category. Our ability to increase the sales price and volume will depend
on our ability to continually enhance our brand to attract customers, as well as our ability to successfully operate our retail stores
and expand our sales network globally. However, our product sales price is influenced by various factors such as market demand and competitors’
pricing, and although we continue working on product improvements and retail expansion, there can be no guarantee of sustained sales
price increase or improved sales volume. If our prices remain stable, increasing sales volume would become important for continued revenue
growth, and failure to do so would significantly impact our ability to grow revenue or improve our financial results.

35

Employees

Our payroll expenses were $1.0 million for the three months ended
June 30, 2025, compared to $1.0 million for the three ended June 30, 2024. As eight stores were sold during the three months ended June
30,