Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 37

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 37
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States may restrict our ability to protect our technologies and processes from competition. Defending
and enforcing our intellectual property rights may result in litigation, which can be costly and divert management attention and resources.
We plan to apply for patents, additional trademarks and other intellectual property registrations in the United States in the future
to protect our brand and technologies. However, the intellectual property application process is complex and can be time-consuming. Even
after investing significant resources in preparing and filing an application, there is no guarantee that it will be granted. If our efforts
to protect our technologies and intellectual property are inadequate, the value of our brand and other intangible assets may be diminished
and competitors may be able to mimic our cloud services. Any of these events could have a material adverse effect on our business, prospects,
financial condition and operating results.

Improper activities by third parties, exploitation
of encryption technology, new data-hacking tools and discoveries and other events or developments may result in future intrusions into
or compromise of our networks and technology systems.

Our systems, website, data
(wherever stored), software or networks and those of third-party suppliers and service providers, are vulnerable to security breaches,
including unauthorized access, computer viruses or other malicious code and other cyber threats that could have a security impact. We,
our third-party suppliers and service providers may not be able to anticipate evolving techniques used to effect security breaches (which
change frequently and may not be known until launched), or prevent attacks by hackers, including phishing or other cyber-attacks, or prevent
breaches due to employee error or malfeasance, in a timely manner or at all. Cyber-attacks have become far more prevalent in the past
few years, potentially leading to the theft or manipulation of confidential and proprietary information or loss of access to, or
destruction of, data on our or third-party systems, as well as interruptions or malfunctions in our or third parties’ operations.
If a breach occurs within the supply chain, disjointed or delayed response efforts can exacerbate the impact, prolong recovery time, and
increase potential damage to our operations and reputation. In addition, at present, there are no existing contractual agreements delineating
cybersecurity responsibilities between our company and our suppliers or service providers. This absence of clear terms poses a risk wherein
disputes regarding liability and accountability in the event of a security breach may emerge. Such disputes could potentially result in
legal complexities, financial losses, and impeded incident resolution within our supply chain.

We have