Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 183

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 183
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 Company’s
related parties. The issuance and sale of additional equity would result in further dilution to our stockholders. The incurrence of indebtedness
would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure
you that financing will be available in amounts or on terms acceptable to us, if at all. In the event that financing sources are not available,
or that we are unsuccessful in increasing our gross profit margin and reducing operating losses, we may be unable to implement our current
plans for expansion, repay debt obligations or respond to competitive pressures, any of which would have a material adverse effect on
our business, financial condition and results of operations and may materially adversely affect our ability to continue as a going concern.
The unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification
of recorded assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable
to continue as a going concern.

Our accounts receivable represent primarily accounts
receivable from distributors that purchased our EVs and other products. As of December 31, 2024 and March 31, 2024, our accounts receivable,
net of allowance for credit losses, was $0.3 million and $0.2 million, respectively. Our accounts receivable turnover period
decreased from 69 days in the year ended March 31, 2024 to 62 days in nine months ended December 31, 2024, which was mainly attributable
to a stricter credit policy implemented towards our U.S. distributors.

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Our accounts payable represent primarily accounts
payable to suppliers from whom we purchased accessories and components for our products. As of December 31, 2024 and March 31, 2024, our
accounts payable were $1.3 million and $1.2 million, respectively. Our accounts payable turnover period increased to 31 days for
the nine months ended December 31, 2024 from 25 days for the year ended March 31, 2024, which was primarily the result of the Company
increased its purchase volume during the nine months ended December 31, 2024 without a corresponding acceleration in payment cycles.

Our prepayments and other receivables primarily
represent prepayments to vendors and other service providers. These prepayments and receivables increased by $1.6 million, from $0.6 million
as