Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 142

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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 condensed consolidated
financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated
entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any
unconsolidated entity that provides financing, liquidity, market risk or credit support to itself or engages in leasing, hedging or product
development services with itself.

Contingencies

Legal

From time to time, the Company is a party to certain legal proceedings, as well as certain
asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters,
individually and in the aggregate, are not deemed to be material to the unaudited condensed consolidated financial statements.

The Company’s products and other production facilities as well as the packaging,
storage, distribution, advertising and labeling of its products, are subject to extensive legal and regulatory requirements. For example,
pursuant to the DMV registration requirement, the Company must satisfy the DMV Registration requirements and conduct required testing
for all of its products sold in U.S. Loss of or failure to renew or obtain necessary permits, licenses, registrations, or certificates
could prevent the Company from legally selling its products in the U.S. If the Company were found to be in violation of applicable
laws and regulations, it could be subject to administrative punishment, including fines, injunctions, recalls or asset seizures, as well
as potential criminal sanctions, any of which could have a material adverse effect on its business, financial condition, results of operations
and prospects. As of the date hereof, the Company believes it is in compliance with the relevant regulations in the U.S.

UL Litigation

On or about March 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. On May 21, 2025, the Company and UL entered into a settlement and release agreement (the “Settlement
Agreement”) on mutually acceptable settlement terms. Pursuant to the Settlement Agreement, the Company agreed to pay UL an aggregate
amount of $1,000,000 before November 30, 2025 (Refer to Note 7 — Accrued