Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 273

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 2
Chunk 273
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 margin of rental business was 79.8% and nil for the three months ended September 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 September 30, 2025 and 2024:

    For the Three Months Ended September 30, 

    2025  
    2024  
    Change  
    Percentage  Change 
  
    Selling Expenses 
    $1,027,726  
    $2,041,435  
    $(1,013,709) 
     (49.7)%
  
    General and Administrative Expenses 
     997,218  
     2,094,078  
     (1,096,860) 
     (52.4)%
  
    Total Operating Expenses 
    $2,024,944  
    $4,135,513  
    $(2,110,569) 
     (51.0)%
  
    Percentage of Revenue 
     51.8% 
     60.6% 

Total operating expenses were $2.0 million for
the three months ended September 30, 2025, a decrease of $2.1 million, or 51.0%, compared to $4.1 million for the three months
ended September 30, 2024. The increase in operating expenses was attributable to the increase in our depreciation expense, professional
fees, product and software development expenses, as more fully discussed below. 

Selling Expenses 

Selling expenses primarily consist of payroll
expenses, rent, and advertising expenses of retail stores. Total payroll expenses were $0.6 million for the three months ended September
30, 2025, compared to $0.9 million for the three months ended September 30, 2024. Rent was $0.3 million for the three months ended
September 30, 2025, compared to $0.8 million for the three months ended September 30, 2024. Advertising expenses were $15,457 for
the three months ended September 30, 2025, compared to $129,542 for the three months ended September 30, 2024 . The decrease in these expenses was primarily due to the closures and dispositions of retail stores during this quarter.

46

General and