Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 192

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 192
---
 12, 2025, UL LLC (“UL”)
filed a complaint against the Company, along with the Company’s certain subsidiaries and certain individuals, in the Eastern District
of New York (the “Complaint”). The Complaint alleges that the Company improperly used UL’s trademark by claiming
certain products were certified by UL. The Complaint seeks $2,000,000 for each instance an allegedly counterfeit UL mark was used
and asserts claims for federal trademark infringement and counterfeiting, unfair competition and false designations of the origin and
false and misleading representations, common law unfair competition, common law unjust enrichment, and unlawful deceptive acts and practices.

On May 21, 2025, Company, along with its
certain subsidiaries and certain individuals, and UL entered into a settlement and release agreement (the “Settlement Agreement”)
on mutually acceptable settlement terms. Pursuant to the Settlement Agreement, the Company and the other defendants agreed to pay UL
an aggregate amount of $1,000,000 before November 30, 2025, and entered into a Consent Judgment and Permanent Injunction pursuant
to which the Company and the other defendants agreed not to offer for sale, sell, or distribute products with UL Marks that were not
tested and certified by UL. During the six months ended September 30, 2025, the Company paid $800,000 to UL. From October 1, 2025 to
the date of this report, the Company paid $200,000 to UL.

The Settlement Agreement fully resolves all pending
litigation between UL and the Company, and each party fully releases the other party from any and all past or present claims, demands,
causes of action, obligations, damages, liabilities, expenses, or compensation of whatever kind or nature, that were or could have been
asserted in connection with the Company’s sales of products with a UL Mark which were not tested and certified by UL.

2025 Reverse Stock Split

On March 10, 2025, the Company held a special
meeting of stockholders. At the special meeting, the stockholders approved a proposal to amend the Company’s amended and restated
certificate of incorporation to effect a reverse stock split of the Company’s issued and outstanding shares of common stock, par
value $0.01 per share, by a ratio in the range of 1-for-2 to 1-for-15, with such ratio to be determined in the discretion of the board
of directors of the