Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 492

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1C
Chunk 492
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million for the year ended March 31, 2024 to $21.7 million for the year ended March 31, 2025. Our wholesale
revenue decreased by $2.3 million, or 39.3%, from $5.8 million for the year ended March 31, 2024 to $3.5 million for the year
ended March 31, 2025. The decrease in retail sales revenue is mainly due to recent lithium-battery accidents involving E-Bikes and E-Scooters.
With an increasing number of lithium-battery explosion incidents in New York, customers are less inclined to purchase E-Bikes.  Consequently,
sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in retail sales also attributed in
part to the closures and disposition of our retail stores during the year ended March 31, 2025. The decrease in wholesales revenue was
driven primarily by the closure of stores by the top two customers who closed their stores in December 2023 due to lack of profitability.

Cost of Revenues

Cost of revenues decreased by 21.6%, from $19.1 million for the
year ended March 31, 2024, to $15.0 million for the year ended March 31, 2025. The decrease in cost of revenues was primarily attributable
to more favorable pricing obtained from our suppliers, particularly for batteries, as well as a reduction in sales volume, as discussed
previously. These factors collectively contributed to the overall decrease in cost of revenues. The unit cost for battery decreased by
11%, from $112 in the year ended March 31, 2024, to $99 in the year ended March 31, 2025.

Gross Margin

The following table shows our gross profit and gross margin for the
years ended March 31, 2025 and 2024:

    For the Year Ended March 31, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $10,450,897  
     13,106,546  
     (2,655,649) 
     (20.3)%
  
    Gross Margin 
     41.1% 
     40.7% 

Gross profit for the years ended March 31, 2025
and 2024 was $10