Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 148

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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less underwriting discounts and commissions, to cover over-allotments. On June 25, 2024, the Company issued an additional 337,500 shares
of common stock to the underwriters for gross proceeds of $1.4 million upon full exercise of the underwriters’ over-allotment option.
Net proceeds received by the Company from the initial public offering, including the exercise of over-allotment option, were approximately
$9.2 million.

Upon the closing of IPO offering in June 2024,
the Company issued to Benchmark the representative of the underwriters warrants to purchase 129,375 shares of common stock. The Representative’s
Warrants have an exercise price equal to $4.00 per share and are exercisable until the date on June 7, 2029, after the date of commencement
on December 7, 2024. The Representative’s Warrants are also exercisable on a cashless basis. As the Representative’s Warrants
are considered indexed to the Company’s own stock and meet the criteria for equity classification according to ASC:815-40, the Representative’s
Warrants are classified as equity.  None of the Representative’s Warrants were exercised as of December 31, 2024.

The fair value of the warrant, using the Black-Scholes
Model on the date of issuance was $274,472. The key inputs into the Black-Scholes Model variables were as follows at measurement date:

    June 7, 2024 
  
    Stock price 
    $4.00 
  
    Risk-free interest rate 
     4.46%
  
    Volatility 
     56.52%
  
    Exercise price 
    $4.00 
  
    Dividend yield 
    $— 

The following table summarizes the Company’s
activities and status of the Representative’s Warrants:

     Number of Warrant   Weighted Average Exercise Price   Weighted Average Remaining Term (Years)   Outstanding as of March 31, 2024   —    —    —   Issued   129,375   $4.00    4.5   Exercised   —    —    —   Forfeited or expired   —    —    —   Outstanding as of December 31, 2024   129,375   $4.00