Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 263

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 2
Chunk 263
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i) 285,956 shares of our common stock, par value $0.01 and (ii) 571,912 warrants (the “Warrants”)
to purchase 571,912 shares of common stock at a combined purchase price per share and accompanying Warrants of $24.28, resulting
in net proceeds to us of $6.24 million after deducting placement agent fees and offering expenses. All of the shares (including shares
underlying the Warrants) were registered under the Securities Act pursuant to a registration statement on Form S-1, as amended (File
No. 333-286678), which was declared effective by the Securities and Exchange Commission on May 15, 2025. American Trust Investment Services,
Inc. (“ATIS”) acted as the exclusive placement agent for the offering. We paid ATIS aggregate commissions of $219,430 and
incurred offering expenses of $178,625.

On September 18, 2025, the Company entered into a securities purchase
agreement with third-party individuals offering of (i) 687,500 shares of the common stock at the price of $16.0 per share for a total
consideration of $11,000,000. During the Six months ended September 30, 2025, the Company received proceeds of $3,400,000 from the investors.
The remaining net proceeds of $7,596,558 were held in escrow as of September 30, 2025, and were all received in October and November 2025.
The disclosure that the closing of this transaction occurred on September 30, 2025, in the Form 8-K filed with the SEC was incorrect and
is hereby corrected.

Disposal of Certain Subsidiaries

During the six months ended September 30, 2025,
the Company disposed several subsidiaries as part of a disposal plan aimed at simplifying its legal and operational structure and improving
administrative efficiency. The divestitures were not intended to be a strategic withdrawal from any specific geographic region or industry,
but rather a measure to streamline the Company’s corporate structure and reduce complexity in financial reporting. Between April
and September 2025, the Company sold 17 subsidiaries to third-party individuals in multiple transactions, for an aggregated cash consideration
of approximately $0.9 million.  See “Note 14— Disposal of Subsidiaries” in the accompanying consolidated
financial statements for details.

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Key Factors that Affect