Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 619

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 2
Chunk 619
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 attributed in part
to the closures and disposition of our retail stores during the year ended March 31, 2025. The average sales price per EV increased by
$29, from $960 in the year ended March 31, 2024 to $989 in the year ended March 31, 2025. These improvements were driven by product upgrades
and enhanced sales channels in the market.

We currently have a streamlined product portfolio
consisting of three categories, with multiple models and specifications for each category. Our ability to increase the sales price and
volume will depend on our ability to continually enhance our brand to attract customers, as well as our ability to successfully operate
our retail stores and expand our sales network both domestically and globally. However, our product sales price is influenced by various
factors such as market demand and competitors’ pricing, and although we continue working on product improvements and retail expansion,
there can be no guarantee of sustained sales price increase or improved sales volume. If our prices remain stable, increasing sales volume
would become important for continued revenue growth, and failure to do so would significantly impact our ability to grow revenue or improve
our financial results.

34

Employees

Our payroll expenses were $4.7 million for
the year ended March 31, 2025, compared to $2.9 million for the year ended March 31, 2024. As four stores were closed and four others
were sold during the year ended March 31, 2025, and an additional six stores were sold subsequently, we expect a decrease in payroll
expenses in the next fiscal year due to reduced demand for store sales staff. Each of our retail stores has a minimum of two employees,
and additional office employees will be hired to support retail stores in customer service and marketing. In addition, to maintain excellent
customer service in our retail stores, each store will have at least one trained repair professional. Effective management of payroll
expenses remains crucial to our ability to grow revenue and enhance our financial results, especially as we navigate a reduced workforce.

Vendor and Supply Management

During the year ended March 31, 2025, we worked
with two principal vendors, Xiamen Innolabs Technology Co., Ltd and Depcl Corp., each of which respectively supplied approximately 41.9%
and 32.3% of the accessories and components used in all our products for the year ended March 31, 2025.

We have implemented a centralized vendor management
system that streamlines purchasing