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

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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  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 “Merger”). As a result of the Merger, the original shareholders
of Ctate became the stockholders of Fly E-Bike and subsequently effectively controlled the combined entity.

On December 21, 2022, Fly-E Group and Fly
E-Bike entered into a Share Exchange Agreement, pursuant to which Fly-E Group acquired all of the issued and outstanding shares of Fly
E-Bike by issuing its shares to the stockholders of Fly E-Bike on a one-for-one basis (the “Share Exchange”). As a result
of the Share Exchange, Fly E-Bike became a wholly owned subsidiary of Fly-E Group.

As a result of the Merger and the Share Exchange,
Fly E-Bike and its subsidiaries are under common control of Fly-E Group, resulting in the consolidation of Fly E-Bike and its subsidiaries,
which was accounted as a reorganization of entities under common control at carrying value. The unaudited condensed consolidated financial
statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the
unaudited condensed consolidated financial statements of Fly-E Group.

On June 7, 2024, the Company issued 2,250,000
shares of common stock, at a price of $4.00 per share in its initial public offering (“IPO”). The gross proceeds of the offering
were $9.0 million, prior to deducting the underwriting discounts, commissions and offering expenses payable by the Company. In addition,
the