Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 202

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 202
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 will record provisions based on an estimate of product warranty claims,
but there is the possibility that actual claims may exceed these provisions and therefore negatively impact our results of operations
or financial condition.

In addition, we may in the
future be required to make product recalls or could be held liable in the event that some of our products do not meet safety standards
or statutory requirements on product safety, even if the defects related to any such recall or liability are not covered by our limited
warranty. The repair and replacement costs that we could incur in connection with a recall could have a material adverse effect on our
business, results of operations or financial condition. Product recalls could also harm our reputation and cause us to lose customers,
particularly if recalls cause consumers to question the safety or reliability of our products, which could have a material adverse effect
on our business, prospects, financial condition and operating results.

If our vehicle owners customize our vehicles
or change the charging infrastructure with aftermarket products, the vehicle may not operate properly, which may create negative publicity
and could harm our business.

Electric vehicle enthusiasts
may seek to “hack” our vehicles to modify their performance, which could compromise vehicle safety systems. Also, customers
may customize their vehicles with after-market parts that can compromise driver safety. We do not test, nor do we endorse, such changes
or products. In addition, the use of improper external cabling or unsafe charging outlets can expose our customers to injury from high
voltage electricity. Such unauthorized modifications could reduce the safety of our vehicles and any injuries resulting from such modifications
could result in adverse publicity which would negatively affect our brand and harm our business, prospects, financial condition and operating
results.

26

Risks Related to Our Securities

An active, liquid and orderly trading market
for our common stock may not develop or be maintained, and our stock price may be volatile.

We cannot predict the nature
of the market for our common stock, and we cannot assure you that an active, liquid or orderly trading market for our common stock will
be maintained. To the extent that an active market does not develop, you may have difficulty in selling any shares of our common stock.
If there is no active, liquid or orderly market for our common stock, the reported bid and asked price at the time you seek to purchase
or sell shares may not reflect the price at which you could either buy or sell shares of our common stock.

Our directors and executive officers will
continue to exercise significant control over us, which will limit your