Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 171

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 171
---
414) 
     (37.1)%
  
    Sales-Rental services 
    $48,961  
    $—  
    $48,961  
     100.0%
  
    Total Net Revenues 
    $5,678,010  
    $7,428,212  
    $(1,750,202) 
     (23.6)%

Our net revenues were $5.7 million for the
three months ended December 31, 2024, a decrease of 23.6%, from $7.4 million for the three months ended December 31, 2023. The decrease
in our net revenues was primarily due to the decrease in sales volume by 3,511 units, from 13,500 units sold for the three months ended
December 31, 2023, to 9,989 units sold for the three months ended December 31, 2024.

Our
retail sales revenue decreased by $1.4 million, or 21.9%, from $6.3 million for the three months ended December 31, 2023 to
$4.9 million for the three months ended December 31, 2024. Our wholesale revenue decreased by $0.4 million, or 37.1%, from $1.1million
for the three months ended December 31, 2023 to $0.7 million for the three months ended December 31, 2024. 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,
the management believes that sales have declined as customers opt for oil-powered vehicles over electric vehicles. The decrease in wholesales
revenue was driven primarily by the decrease in orders from the top two customers who closed their retail stores in December 2023.

36

Cost of Revenues

Cost of revenues decreased by 30.0%, from $4.5
million for the three months ended December 31, 2023, to $3.1 million for the three months ended December 31, 2024. The decrease
in cost of revenues was primarily attributable to a reduction in units sold, which declined by 3,511 units, from 13,