Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 162

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 162
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 June 30, 2025.

Cost of Revenues

Cost of revenues decreased by 35.8%, from $4.8 million
for the three months ended June 30, 2024, to $3.1 million for the three months ended June 30, 2025. 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 sales
volume, as discussed above.

Gross Margin

The following table shows our gross profit and gross margin for the
three months ended June 30, 2025 and 2024:

    For the Three Months Ended June 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Gross Profit 
    $2,261,375  
     3,099,634  
     (838,259) 
     (27.0)%
  
    Gross Margin 
     42.4% 
     39.4% 

Gross profit for the three months ended June 30,
2025 and 2024 was $2.3 million and $3.1 million, respectively. Gross margin was 42.4% and 39.4% for the three months ended June 30,
2025 and 2024, respectively. The increase in gross margin was mainly because of the increased revenues from rental business with higher
margin than our other businesses. Gross margin of rental business was 79.8% and nil for the three months ended June 30, 2025 and 2024,
respectively.

Total Operating Expenses

The following table sets forth the components of our total operating
expenses for the three months ended June 30, 2025 and 2024:

    For the Three Months Ended June 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Selling Expenses 
    $1,321,217  
     1,612,495  
     (291,278) 
     (18.1)%
  
    General and Administrative Expenses 
     2,444,933  
     1,532,638  
     912,295  
     59.5%
  
    Total Operating Expenses 
    $3,766,150  
     3,145