Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 215

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 215
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 and forbearance fee of the loan, respectively. Up to the date of this report, the Company entered into
forbearance and modification agreement with the bank on November 7, 2025 for extension of repayment deadline with interest rate of 12.875%
to March 31, 2026. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. For the next
12 months from the issuance date of this report, we plan 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. 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 September 30, 2025 and March 31, 2025, our accounts receivable,
net of allowance for credit losses, was $1.5 million and $0.5 million, respectively. Our accounts receivable turnover period decreased
from 71 days in the year ended March 31, 2025 to 69 days in the six months ended September 30, 2025 which was mainly attributable to the
implementing stricter credit policies to customers.

Our accounts payable represent primarily accounts
payable to suppliers from whom we purchased accessories and components for our products. As of September 30, 2025 and March