Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 48

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 48
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 (1:5)
reverse stock split of our issued and outstanding shares of common stock. On July 3, 2025, we filed with the Secretary of State of the
State of Delaware a Certificate of Amendment to our Certificate of Incorporation to effect the 2025 Reverse Stock Split. The 2025 Reverse
Stock Split became effective on July 3, 2025, and our common stock began trading on a split-adjusted basis on Nasdaq on July 7, 2025.
However, there can be no assurance that we will be able to regain such compliance.

If Nasdaq delists our common
stock from trading on its exchange, we and our stockholders could face significant material adverse consequences including:

●limited availability
                                            of market quotations for our securities;

●a determination
                                            that our common stock is a “penny stock,” which will require brokers trading
                                            in our common stock to adhere to more stringent rules, possibly resulting in a reduced level
                                            of trading activity in the secondary trading market for our common stock;

●a limited amount
                                            of analyst coverage; and

●decreased ability
                                            to issue additional securities or obtain additional financing in the future.

FINRA sales practice requirements may limit
a stockholder’s ability to buy and sell our common stock.

The Financial Industry Regulatory
Authority (“FINRA”) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must
have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced
securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s
financial status, tax status, investment objectives and other information. Under interpretations of these rules, the FINRA believes that
there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may have the effect of reducing
the level of trading activity in our common stock. As a result, fewer broker-dealers may be willing to make a market in our common stock,
reducing a stockholder’s ability to resell shares of our common stock.

31

Holders of the Warrants will have no rights
as a common stockholder until they acquire our common stock.

Until holders of the Warrants
acquire shares of our common stock upon exercise of the Warrants, the