Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 244

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 3
Chunk 244
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable to smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures designed to ensure
that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without
limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under
the Exchange Act is accumulated and communicated to our Chief Executive Officer and Chief Financial Officer (together, the “Certifying
Officers”), to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Certifying
Officers, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as
defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure
controls and procedures were not effective as of the end of the period covered by this Report due to the material weakness identified
below.

A material weakness is a deficiency, or a combination of deficiencies, in internal control
over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial
statements will not be prevented or detected on a timely basis. The material weaknesses that have been identified in internal control
over financial reporting included our lack of (i) sufficient financial reporting and accounting personnel with appropriate knowledge
of generally accepted accounting principles in the United States of America (the “U.S. GAAP”) and SEC reporting requirements
to properly address complex U.S. GAAP accounting issues and to prepare and review our unaudited condensed consolidated financial statements
and related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements, (ii) formal internal control policies and internal
independent supervision functions to establish formal risk assessment process and internal control framework, and (iii) sufficient controls
designed and implemented in IT environment and IT general control activities, which are mainly associated with areas of logical access
management, change management, computer operation, service organization management as well as cyber security management. To remediate
the material weaknesses, we have engaged a third party consultant to perform internal review and assist us to set up more reliable internal
control processes. The consultant