Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 16

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 16
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.C. We also operate one retail store in Canada. Our retail stores adopt a consistent design
and layout and provide a consistent shopping experience. We closely monitor the sales performance, service level and activities within
our retail stores. We will continue to collect store operation data such as consumer traffic flow and traffic flow sources, test drive
frequencies and sales conversion rate. This information helps us adjust store-specific retailing and marketing strategies, thereby increasing
per store sales.

In terms of our distributors,
most of them are located in the United States. Our distributors purchase products from us at a wholesale price, and are responsible
for the logistics, warehousing and distribution to other retail stores. We do not charge any initial fees or continuing fees to our distributors.
The majority of our distributors make full payments upfront for their orders, which helps us improve cash flow management.

We intend to expand our overseas
market and are currently working with one distributor in the Dominican Republic.

11

Online Distribution Network

All of our products can be
purchased on our website, flyebike.com. In addition, we plan to open a second online store focusing on selling gas bikes in the future.

We have adopted an online to
offline model that enables us to seamlessly integrate the online and offline networks to provide a cohesive and consistent experience
to our customers. The online platform acts as a conduit for influencing customers and directing sales to our retail stores. Our customers
can conveniently place orders online and pick up their products at our retail stores.

Our Customers

We acquire customers through
multiple channels, including (i) referrals from our existing customers, (ii) our distributors, and (iii) our marketing
and promotional activities. Due to our strong brand image, loyal customer base and evolving product portfolio, we believe there are significant
growth opportunities across these channels. No customers account for more than 10% of our revenues for the years ended March 31,
2025 and 2024. The majority of our customers are food delivery workers in New York City. This group constitutes approximately 72%
and 70% of our customer base for the year ended March 31, 2025 and 2024, respectively.

Environmental Matters

We are subject to federal,
state and local environmental laws and regulations that impose limitations on the discharge of pollutants into the environment and establish
standards for the handling, generation, emission, release, discharge, treatment, storage and disposal of certain materials, substances
and wastes and the remediation