Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 189

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 189
---
and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act is accumulated and communicated to our Chief Executive Officer and Chief Financial Officer
(together, the “Certifying Officers”), to allow timely decisions regarding required disclosure.

Under the supervision and with the participation
of our management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our
Certifying Officers concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this
Report due to the material weakness identified below.

A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or
detected on a timely basis. The material weaknesses that have been identified in internal control over financial reporting included
our lack of (i) sufficient financial reporting and accounting personnel with appropriate knowledge of generally accepted
accounting principles in the United States of America (the “U.S. GAAP”) and SEC reporting requirements to
properly address complex U.S. GAAP accounting issues and to prepare and review our consolidated financial statements and
related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements, (ii) formal internal control policies and
internal independent supervision functions to establish formal risk assessment process and internal control framework, and (iii)
sufficient controls designed and implemented in IT environment and IT general control activities, which are mainly associated with
areas of logical access management, change management, computer operation, service organization management as well as cyber security
management. To remediate the material weaknesses, we have engaged a third party consultant to perform internal review and
assist us to set up more reliable internal control processes. The consultant has commenced work in February 2025. In addition, we plan to enhance our IT infrastructure by outsourcing our IT department to a provider to manage PC operations and
system monitoring. Furthermore, we are developing and plan