Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 102

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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Notes to Unaudited Condensed Consolidated Financial
Statements

1 — DESCRIPTION OF BUSINESS, ORGANIZATION
AND BASIS OF PRESENTATION

Organization and principal activities

Fly-E
Group, Inc. (the “Company” or “Fly-E Group”) was incorporated under the laws of the State of Delaware on November 1,
2022. The Company has no substantive operations other than holding all of the issued and outstanding shares of Fly E-Bike Inc. (“Fly
E-Bike”) and Fly EV, Inc. (“Fly EV”). Fly E-Bike and Fly EV were incorporated under the laws of the State of Delaware
on August 22, 2022 and November 1, 2022, respectively. Fly EV has no substantive operations. The Company, through its wholly
owned subsidiaries, is principally engaged in designing, installing and selling smart electric bikes (“E-bikes”), electric
motorcycles (“E-motorcycles”), electric scooters (“E-scooters”), and related accessories under the brand name
of “Fly E-Bike.” The Company’s principal operations and geographic markets are mainly in the United States of
America (the “U.S.”). During the three months ended June 30, 2025, the Company closed one store in U.S. During the year ended
March 31, 2025, the Company closed four stores in the U.S. As of August 19, 2025, the Company has opened a total of 16 retail stores,
including 15 retail stores in the U.S and one retail store in Canada. The Company offers rental services from selected
locations. The Company also operates one online store, focusing on selling E-motorcycles, E-bikes, and E-scooters. The Company plans
to open another online store focusing on selling gas bikes in the future.

The Company’s business was initially operated
under CTATE INC. (“Ctate”), a corporation formed under the laws of the State of New York in 2018. Before merging with
Fly E-Bike, Ctate owned 27 companies, each of which operated a Fly E-Bike store. On September 12, 2022, Ctate and Fly E-Bike, which
was a wholly-owned subsidiary of Ctate, entered into an Agreement and Plan of Merger, pursuant to which Ctate merged into and with Fly
E-Bike, with Fly E-Bike being the surviving corporation (the “