Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2646

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 15
Chunk 2646
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 DGLG, respectively.

On April 1, 2023, the Company agreed to retain
the services of PJMG, a company in which Mr. Guo, the Company’s former CFO who resigned on November 6, 2024, holds over 50% of the
equity interests as a consultant following the completion of its IPO. To secure these services, the Company prepaid a total of $120,000
to PJMG as of March 31, 2025. During the year ended March 31, 2025, the Company paid PJMG a total of $372,047 for consulting services.
$312,047 was expensed as consulting expenses during the year ended March 31, 2025.

F-31

14 — DISPOSAL OF SUBSIDIARIES

During the year ended March 31, 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. As of March 31, 2025, the Company
did not receive any consideration from the third parties. In June, 2025, the Company received $103,