Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 13

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 FLYNJ1 INC   ● A Massachusetts corporation ● Incorporated on January 29, 2025 ● A retail store   100% owned by Fly E-Bike, Inc.   

8

Liquidity and Going Concern

In assessing the Company’s liquidity, the Company monitors and analyzes its cash
on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements,
operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized
to finance the working capital requirements of the Company.

On June 4, 2025, the Company closed a public offering
of (i) 5,719,111 shares of the common stock at the price of $1.2140 per share and (ii) 11,438,222 warrants to purchase 11,438,222 shares
of common stock, resulting in net proceeds to the Company of approximately $6.1 million after deducting placement agent’s fees and
offering expenses. As of June 30, 2025, the Company had working capital of approximately $6.0 million and cash of approximately $2.3 million.
During the three months ended June 30, 2025, the Company had net loss of approximately $2.0 million. During the three months ended June
30, 2025, net cash used in operating activities of the Company was approximately $5.3 million. As of June 30, 2025, the Company had a
current portion of contractual obligation of approximately $9.3 million. Management has determined there is substantial doubt about its
ability to continue as a going concern. Management plans to alleviate the going concern risk through (i) equity financing to support the
Company’s working capital; (ii) other available sources of financing (including debt) from banks and other financial institutions;
and (iii) financial support from the Company’s related parties. There is no assurance that the Company will be successful in implementing
the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. The Company’s
inability to secure needed financing when required could require material changes to the Company’s business plans and could have
a material adverse effect on the Company’s ability to continue as a going concern and results of operations. The unaudited condensed
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation