Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 239

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 2
Chunk 239
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 December 31, 2024. Total commission expenses were $9,980 for the nine months ended December 31, 2024, compared to $1.1 million for
the nine months ended December 31, 2023. The decrease in the commission expenses was primarily due to the Company’s discontinuation of
marketing referral expenses for promotions as of January 1, 2024.

General and Administrative Expenses

General and administrative expenses increased during the nine months
ended December 31, 2024 compared to the previous year. Professional fees increased to $1.7 million for the nine months ended December
31, 2024, compared to $0.7 million for the nine months ended December 31, 2023, primarily attributable to the increase in audit fee,
consulting fee, legal fee and IR expenses associated with our initial public offering and ongoing reporting obligations. Payroll
expenses increased to $1.2 million for the nine months ended December 31, 2024 from $0.7 million for the nine months ended December
31, 2023 primarily due to additional employees hired in operation and accounting departments. Insurance expenses increased to $0.8 million
for the nine months ended December 31, 2024, compared to $0.1 million for the same period of prior year as a result of purchase of
directors and officers liability insurance after initial public offering in the nine months ended December 31, 2024. Software development
fee increased to $0.4 million for the nine months ended December 31, 2024, compared to $0.1 million for the same period in prior year
due to the increasing development fee of Fly E-Bike app and the increasing maintenance fee of Go Fly App.

Income Tax Provisions  

Income
taxes benefits were $0.5 million for the nine months ended December 31, 2024, a change from $0.7 million income tax provision for
the nine months ended December 31, 2023. This change was due to our negative pre-tax income   for
the three months ended December 31, 2024. We recognized a deferred tax asset which can be used to reduce taxes in future periods when
the Company is profitable.

Net Income (Loss)

Net loss was $2.0 million for the nine months
ended December 31, 2024, a change of $3.2 million,