Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 177

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 177
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 equity or that are not reflected
in its unaudited condensed consolidated financial statements. Furthermore, the Company does not have any retained or contingent interest
in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company
does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to
itself or engages in leasing, hedging or product development services with itself.

30

Contingencies

Legal 

From time to time, the Company is a party to
certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably
possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the unaudited condensed
consolidated financial statements.

The Company’s products and other production
facilities as well as the packaging, storage, distribution, advertising and labeling of its products, are subject to extensive legal
and regulatory requirements. For example, pursuant to the DMV registration requirement, the Company must satisfy the DMV Registration
requirements and conduct required testing for all of its products sold in U.S. Loss of or failure to renew or obtain necessary permits,
licenses, registrations, or certificates could prevent the Company from legally selling its products in the U.S. If the Company
were found to be in violation of applicable laws and regulations, it could be subject to administrative punishment, including fines,
injunctions, recalls or asset seizures, as well as potential criminal sanctions, any of which could have a material adverse effect on
its business, financial condition, results of operations and prospects. As of the date hereof, the Company believes it is in compliance
with the relevant regulations in the U.S.

Federal securities class action instituted
on September 8, 2025

On September 8, 2025, a federal securities class
action was filed in the United States District Court, Eastern District of New York, by plaintiff Dino Kurt, individually and on behalf
of all others similarly situated, against defendants, the Company, chief executive officer (the “CEO”) Zhou Ou, and former
chief financial officer (the “CFO”) Shiwen Feng. The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange
Act and Rule 10b-5 during the class period spanning from July 15, 2025