Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1248

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 6
Chunk 1248
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 labeling of its products, are subject to extensive legal and
regulatory requirements. For example, pursuant to the DMV registration requirement, the Company must satisfy the DMV Registration requirements
and conduct required testing for all of its products sold in U.S. Loss of or failure to renew or obtain necessary permits, licenses,
registrations, or certificates could prevent the Company from legally selling its products in the U.S. If the Company were found
to be in violation of applicable laws and regulations, it could be subject to administrative punishment, including fines, injunctions,
recalls or asset seizures, as well as potential criminal sanctions, any of which could have a material adverse effect on its business,
financial condition, results of operations and prospects. As of the date hereof, the Company believes it is in compliance with the relevant
regulations in the U.S.

UL Litigation

On or about March 12, 2025, UL LLC (“UL”)
filed a complaint against the Company, along with the Company’s certain subsidiaries and certain individuals, in the Eastern District
of New York (the “Complaint”). The Complaint alleges that the Company improperly used UL’s trademark by claiming certain
products were certified by UL. On May 21, 2025, the Company and UL LLC (“UL”) entered into a settlement and release agreement
(the “Settlement Agreement”) on mutually acceptable settlement terms. Pursuant to the Settlement Agreement, the Company agreed
to pay UL an aggregate amount of $1,000,000 before November 30, 2025 (Refer to Note 7 — Accrued Expenses and other payables).
From May 28 to July 15, 2025, the Company paid $350,000 to UL.

Inflation

Inflationary factors, such as increases in personnel
and overhead costs, could impair the Company’s operating results. Although the Company does not believe that inflation has had a
material impact on the Company’s financial position or results of operations to date, a high rate of inflation in the future may
have an adverse effect on the Company’s ability to maintain current levels of gross margin and operating expenses as a percentage
of sales revenue if the revenues do not increase with such increased costs.

F-29

13 — RELATED PARTY TRANSACTIONS

(A) Related party balances

Accounts receivable, net — related
parties

  Name of Related Party  Relationship  Nature  March 31,  2025   March