Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 177

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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 31, 2024, a decrease of 15.2%, from $24.0 million for the nine months ended December 31, 2023. The decrease
in our net revenues was driven primarily by a decrease in total units sold, which decreased by 7,578 units, from 49,503 units for the
nine months ended December 31, 2023 to 41,925 units for the nine months ended December 31, 2024.

Our
retail sales revenue decreased by $1.5 million, or 7.9%, from $19.2 million for the nine months ended December 31, 2023 to $17.7
million for the nine months ended December 31, 2024. Our wholesale revenue decreased by $2.2 million, or 45.5%, from $4.8 million
for the nine months ended December 31, 2023 to $2.6 million for the nine months ended December 31, 2024. The decrease in retail sales
revenue is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters. With an increasing number of lithium-battery
explosion incidents in New York, customers are less inclined to purchase E-Bikes.  Consequently,
sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in wholesales revenue was driven primarily
by the closure of stores by the top two customers who closed their stores in December 2023 due to lack of profitability.

Cost of Revenues

Cost of revenues decreased by 19.0%, from $14.6 million
for the nine months ended December 31, 2023, to $11.8 million for the nine months ended December 31, 2024. The decrease in cost of revenues
was primarily attributable to more favorable pricing obtained from our suppliers, particularly for batteries, as well as a reduction in
battery sales volume, as discussed previously. These factors collectively contributed to the overall decrease in cost of revenues. The
unit cost for battery decreased by 25%, from $121 in the nine months ended December 31, 2023, to $91 in the nine months ended December
31, 2024.

Gross Margin

The following table shows our gross profit and gross margin for the
nine months ended December 31, 2024 and 2023:

    For the Nine Months Ended