Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 122

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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 Company’s liquidity needs
are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions
and equity financings have been utilized to finance the working capital requirements of the Company.

On June 7, 2024, the Company closed the IPO of
2,250,000 shares of the common stock at the price of $4.00 per share, resulting in net proceeds to the Company of $7.9 million after deducting
underwriting discounts and commissions and offering expenses. On June 25, 2024, the Company sold an additional 337,500 shares of common
stock to the underwriters of the IPO for gross proceeds of $1.4 million upon full exercise of the underwriters’ over-allotment option
and received net proceeds of approximately $1.2 million.

As of December 31, 2024, the Company had working
capital of approximately $3.0 million and cash of approximately $1.4 million. During the three and nine months ended December
31, 2024, the Company had net loss of approximately $0.7 million and $2.0 million, respectively. During the nine months
ended December 31, 2024, net cash used in operating activities of the Company was approximately $9.4 million. As of December 31, 2024,
the Company had a current portion of contractual obligation of approximately $8.2 million. Management has determined there is substantial
doubt about its ability to continue as a going concern. Management plans to alleviate the going concern risk through (i) equity financing
to support the Company’s working capital; (ii) other available sources of financing (including debt) from banks and other financial
institutions; and (iii) financial support from the Company’s related parties. There is no assurance that the Company will be successful
in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or
at all. The Company’s inability to secure needed financing when required could require material changes to the Company’s business
plans and could have a material adverse effect on the Company’s ability to continue as a going concern and results of operations.
The unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. The unaudited condensed consolidated financial statements do
not include any adjustments that might