Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 146

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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30

14 — DISPOSAL OF SUBSIDIARIES

During the three months ended June 30, 2025, the Company committed to the disposal of certain
subsidiaries. The decision was driven by two primary factors: (1) to simplify the Company’s legal and operational structure, and
(2) to create a more streamlined and transparent organizational structure, thereby reducing the complexity of consolidation across auditing,
finance, and tax reporting. These subsidiaries were not part of a strategic exit from the New York region or the retail industry. Rather,
the disposal was intended to enhance administrative efficiency and align the Company’s structure with its long-term operational
goals.

In December, 2024, the
Company decided to proceed with the disposal plan and sell 100% of its equity interests in subsidiaries FLYMHT INC, FLY14 CORP,
EDISONEBIKE INC, and FLY6AVE INC to third-party individuals (the “Buyers”). On January 1, 2025, the Company entered into
share transfer agreements with the Buyers. Pursuant to the terms of the agreements, the Company agreed to sell, transfer, and assign
all its rights, title, and interests in the shares of the subsidiaries to the Buyers, free and clear of all liens and encumbrances.
The Buyers agreed to purchase the shares for total cash consideration of $635,193. There were no contingent payments, earn-outs, or
post-closing adjustments specified in the agreements. There was $84,302 gain from this disposal. In June, 2025, the Company received
$103,000 from the Buyers.

On March 11, 2025, the management team approved to sell 100% of its equity interests in
subsidiaries FLYEBIKE BROOKLYN INC, FLYMHT659 INC, and FLYBX745 INC to third-party individuals (the “Buyers”). On April 1,
2025, the Company entered into share transfer agreements with the Buyers. Pursuant to the terms of the agreements, the Company agreed
to sell, transfer, and assign all its rights, title, and interests in the shares of the subsidiaries to the Buyers, free and clear of
all liens and encumbrances. The Buyers agreed to purchase the shares for total cash consideration of $310,055. There were no contingent
payments, earn-outs, or post-closing adjustments specified in the agreements. In June 2025