Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 153

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 aggregate
of (i) 5,719,111 shares of our common stock, par value $0.01 and (ii) 11,438,222 warrants (the “Warrants”) to purchase 11,438,222
shares of common stock at a combined purchase price per share and accompanying Warrants of $1.2140, resulting in net proceeds to
us of $6.24 million after deducting placement agent fees and offering expenses. All of the shares (including shares underlying the Warrants)
were registered under the Securities Act pursuant to a registration statement on Form S-1, as amended (File No. 333-286678), which was
declared effective by the Securities and Exchange Commission on May 15, 2025. American Trust Investment Services, Inc. (“ATIS”)
acted as the exclusive placement agent for the offering. We paid ATIS aggregate commissions of $219,430 and incurred offering expenses
of $178,625.

Disposal of Certain Subsidiaries

During the three months ended June 30, 2025 and from July to August
2025, the Company disposed several subsidiaries as part of a disposal plan aimed at simplifying its legal and operational structure and
improving administrative efficiency. The divestitures were not intended to be a strategic withdrawal from any specific geographic region
or industry, but rather a measure to streamline the Company’s corporate structure and reduce complexity in financial reporting.
Between April and August 2025, the Company sold 14 subsidiaries to third-party individuals in multiple transactions, for an aggregated
cash consideration of approximately $1.5 million, of which $112,000 has been collected as of August 19, 2025.  See “Note
14— Disposal of Subsidiaries” in the accompanying consolidated financial statements for details.

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Key Factors that Affect Operating Results

Our results of operations and financial condition are affected by
the general factors driving the U.S.’s electric two-wheeled vehicles industry, including, among others, the U.S.’s overall
economic growth, the increase in per capita disposable income, the expansion of urbanization, the growth in consumer spending and consumption
upgrades, the competitive environment, governmental policies and initiatives towards electric two-wheeled vehicles, as well as the general
factors affecting the electric two-wheeled vehicles industry in overseas markets. Unfavorable changes in any of these general industry
conditions could negatively affect demand for our