Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 186

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 186
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 efficiently
manage these components, could have a material adverse effect on our financial condition and operating results.

We source a significant portion
of our vehicle components from China and then assemble these parts into our products in the United States. We rely on a limited number
of principal vendors who help us source and supply parts used in our vehicles from various suppliers in China. We currently do not maintain
long-term contracts with our suppliers and vendors. While we believe our contract management processes are strong, we nevertheless could
experience difficulties.

If our principal vendors decide
to terminate their partnership with us, experience sourcing failures, or otherwise become unable to provide us with the necessary components
in sufficient quantities, in a timely manner, and on acceptable terms, we may have to delay the production and sale of our products or
find an alternative vendor. Any significant unanticipated demand would require us to procure additional components in a short amount of
time. While we believe that we will be able to secure additional or alternate sources of supply for most of our components in a relatively
short time frame, there is no assurance that we will be able to do so or develop our own replacements for certain highly customized components
of our products.

In addition, if we encounter
unexpected difficulties with our principal vendors, and if we are unable to fill these needs from other vendors in a timely manner, we
could experience production delays and potential loss of access to important technology and parts for producing, servicing and supporting
our vehicles. The loss of any vendors or the disruption in the supply of components from these vendors could lead to design changes and
delays in product deliveries to our customers, which could hurt our relationships with our customers and result in negative publicity,
damage to our brand and a material and adverse effect on our business, prospects, financial condition and operating results.

The current tensions in international trade
policies and rising political tensions, particularly between the United States and China, may adversely impact our business and operating
results.

We source a significant portion
of our vehicle components from China. The application of sanctions, trade restrictions or tariffs by the U.S. or other countries
may adversely impact the industry supply chain. The U.S. government has implemented policies restricting international trade and
investment, such as tariffs, export controls, economic or trade sanctions, and foreign investment filing and approval requirements. These
actions may materially and adversely affect international trade, global financial markets, and the stability of the global economic condition.
In the past, the U.S. government has