Company: FLYE
Filing Date: 2025-06-02
Form Type: 424B4
Source: 0001213900-25-050035
Chunk: 53

Company: Fly-E Group, Inc.
Filing Date: 2025-06-02
Form: 424B4
Chunk 53
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 in net sales, gross profit, gross margin, selling, general and administrative expenses and EBITDA. The key measures that we use to evaluate the performance of our business are set forth below. 34 Net Sales We generate revenue from sales of our EVs, their accessories and spare parts, and provision of repair services at our retail stores. Our net sales comprise gross sales net of discounts and return allowances. We do not record sales taxes as a component of retail revenues as we consider it a pass -throughconduit for collecting and remitting sales taxes. Return allowances, which reduce net revenues, are estimated based on historical experience. E -bikes , E -motorcycles and E -scooters sales.We generate a substantial majority of our revenues from sales of E -bikes, E -motorcyclesand E -scootersdirectly to customers through our online store and retail stores, and to our distributors. Accessories and spare parts sales.We also sell accessories and spare parts for our EVs, such as rear storage boxes and front baskets. In addition, we offer Fly E -Bikebranded accessories and general merchandise, such as decorative car plates, key chains and apparel. Service revenues.We also provide repair services at our retail stores for a fee. Cost of Sales Cost of sales includes product costs, warehouse rent expenses, payroll costs, depreciation costs, inventory reserves, warranty costs, and logistic costs. The logistic costs incurred to receive products from our vendors are included in our inventory and recognized as cost of sales upon sale of products to our customers. Gross Profit and Gross Margin We calculate gross profit as net sales less cost of revenue. Gross margin represents gross profit as a percentage of net sales. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of retail operational expenses, salaries and benefits costs, marketing, advertising, and corporate overhead. Marketing costs primarily consist of advertising and payroll and related expenses for personnel engaged in marketing and selling activities. We expect that our selling and marketing expenses will continue to increase in the foreseeable future, as we plan to further expand our sales network and retail channels, and engage in more selling and marketing activities to enhance our brand and attract more purchases from new and existing customers. General and administrative expenses primarily consist of costs for corporate functions, including payroll and related expenses, facilities and equipment expenses, such as depreciation and amortization expense and rent, and professional fees. We expect that our general and administrative will increase in the foreseeable future, as we hire additional personnel and incur additional expenses related to the anticipated growth