Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 51

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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, payroll
tax services, and income tax services, rendered by 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 $75,000 to PJMG as of June 30, 2025, and $45,000
was expensed as consulting expenses during the three months ended June 30, 2025. During the three months ended June 30, 2025, the Company
paid PJMG $45,000 for offering costs related to the Company’s secondary offering which has been deducted from the Company’s
additional paid-in capital. During the three months ended June 30, 2024, $15,000 was expensed as consulting expenses.  

30

14 — DISPOSAL OF SUBSIDIARIES

During the three months ended June 30, 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-c