Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 72

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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. The decrease in wholesales revenue was driven primarily
by the closure of stores by the top two customers who closed their stores in December 2023 due to lack of profitability.

Cost of Revenues

Cost of revenues decreased by 19.0%, from $14.6 million
for the nine months ended December 31, 2023, to $11.8 million for the nine months ended December 31, 2024. The decrease in cost of revenues
was primarily attributable to more favorable pricing obtained from our suppliers, particularly for batteries, as well as a reduction in
battery sales volume, as discussed previously. These factors collectively contributed to the overall decrease in cost of revenues. The
unit cost for battery decreased by 25%, from $121 in the nine months ended December 31, 2023, to $91 in the nine months ended December
31, 2024.

Gross Margin

The following table shows our gross profit and gross margin for the
nine months ended December 31, 2024 and 2023:

    For the Nine Months Ended December 31, 

    2024  
    2023  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $8,565,158  
     9,456,827  
     (891,669) 
     (9.4)%
  
    Gross Margin 
     42.0% 
     39.3% 

Gross
profit for the nine months ended December 31, 2024 and 2023 was $8.6 million and $9.5 million, respectively. Gross margin was
42.0% and 39.3% for the nine months ended December 31, 2024 and 2023, respectively. The increase in gross margin was driven
primarily by the decrease of the sales of our batteries by $0.9 million, from $2.9 million in the nine months ended December 31,
2023 to $2.0 million in the nine months ended December 31, 2024, and the decrease of the cost for batteries by $1.0 million, from
$2.6 million in the nine months ended December 31, 2023, to $1.6 million in the nine months ended December 31, 2024. The decrease in
gross profit was driven by the decrease of the sales of E