Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 211

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 211
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 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 holders will have no rights with respect to shares of our common
stock issuable upon exercise of the Warrants. Upon exercise of the Warrants, the holder will be entitled to exercise the rights of a
common stockholder as to the security exercised only as to matters for which the record date occurs after the exercise.

If securities or industry analysts do not
publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding
our securities adversely, our stock price and trading volume could decline.

The trading market for our
common stock is influenced by the research and reports that industry or securities analysts may publish about us, our business, our market
or our competitors. If any of the analysts who may cover us change their recommendation regarding our common stock adversely, or provide