Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 360

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1B
Chunk 360
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4. The increase in payroll expenses was primarily due to the increased number of new employees
hired for business operations in the first three quarters of the year ended March 31, 2025, despite a reduction in headcounts in the
last quarter resulting from closures and dispositions of retail stores. The increase in rental expense was primarily due to the expansion
of retail stores to support the Company’s business growth and operational needs. The rise in advertising expense was mainly driven
by intensified marketing campaigns and promotional activities aimed at enhancing brand visibility. Total commission expenses were $9,980
for the year ended March 31, 2025, compared to $1.1 million for the year ended March 31, 2024. The decrease in the commission expenses
was primarily due to the Company’s discontinuation of marketing referral expenses for promotions as of January 1, 2024.

General and Administrative Expenses

General and administrative expenses increased
during the year ended March 31, 2025 compared to the previous year. Professional fees increased to $2.0 million for the year ended
March 31, 2025, compared to $1.0 million for the year ended March 31, 2024, primarily attributable to the increase in audit fee,
consulting fee, legal fee and IR expenses associated with our initial public offering and ongoing reporting obligations. Payroll
expenses increased to $1.5 million for the year ended March 31, 2025 from $1.1 million for the year ended March 31, 2024 primarily
due to additional employees hired in operation and accounting departments. Insurance expenses increased to $1.1 million for the
year ended March 31, 2025, compared to $0.2 million for the same period of prior year as a result of increased general insurance
of the stores and the purchase of directors and officers liability insurance after initial public offering in the year ended March 31,
2025. Software development fee increased to $0.5 million for the year ended March 31, 2025, compared to $0.3 million for the same period
in prior year due to the increasing development fee of Fly E-Bike app and the increasing maintenance fee of Go Fly App. There were settlement
payments of $1.0 million for the year ended March 31, 2025, in connection with the UL Litigation.

Income Tax Provisions  

Income taxes provision was $0.3