Revenue Performance - For the three months ended December 31, 2024, net revenues decreased by 23.6% to $5.7 million, down from $7.4 million for the same period in 2023, primarily due to a drop in total units sold from 13,500 to 9,989 units [181]. - For the nine months ended December 31, 2024, net revenues decreased by 15.2% to $20.4 million, compared to $24.0 million for the same period in 2023, driven by a decrease in total units sold from 49,503 to 41,925 units [182]. - Total net revenues decreased by 23.6% to $5.7 million for the three months ended December 31, 2024, down from $7.4 million in the same period of 2023 [204]. - Retail sales revenue fell by 21.9% to $4.9 million, while wholesale revenue decreased by 37.1% to $0.7 million, primarily due to reduced consumer interest in E-Bikes following lithium-battery incidents [205]. - Net revenues for the nine months ended December 31, 2024, were $20.4 million, a decrease of 15.2% from $24.0 million in the same period of 2023, driven by a reduction of 7,578 units sold [219]. Production and Product Development - The company produced 728 E-motorcycles, 930 E-bikes, and 200 E-scooters for the three months ended December 31, 2024, and 3,842 E-motorcycles, 5,713 E-bikes, and 1,480 E-scooters for the nine months ended December 31, 2024 [172]. - The company launched a rental program in October 2024, providing e-bike rental services in New York City and Los Angeles, with plans to expand to Miami and Toronto [176]. - The company plans to open a second online store focusing on selling gas bikes in the future, expanding its product offerings [169]. Financial Performance - Gross profit for the three months ended December 31, 2024, was $2.6 million, a decrease of 13.9% from $3.0 million in 2023, with a gross margin increase to 45.1% from 39.0% [209]. - Total operating expenses rose by 26.0% to $3.5 million, driven by increased general and administrative expenses, which surged by 84.7% to $1.6 million [210]. - Net loss for the three months ended December 31, 2024, was $684,487, a significant decline of 3376.8% from a net income of $20,889 in the same period of 2023 [215]. - EBITDA for the three months ended December 31, 2024, was $(804,993), a decrease of 624.8% compared to $153,394 in 2023, with an EBITDA margin of -14.2% [217]. - Net loss for the nine months ended December 31, 2024, was $2.0 million, a decline of $3.2 million or 266.1% from net income of $1.2 million in 2023 [228]. - EBITDA for the nine months ended December 31, 2024, was $(1.9) million, a decrease of $4.2 million compared to $2.2 million in 2023, with an EBITDA margin of negative 9.5% [230]. Expenses and Cost Management - Selling expenses remained relatively stable, increasing slightly by 0.4% to $1.9 million, while advertising expenses surged to $32,681 from $6,629 due to increased marketing efforts [212]. - General and administrative expenses included a rise in professional fees to $0.4 million and insurance expenses to $0.3 million, reflecting the costs associated with being a public company [213]. - Total operating expenses increased by 45.5% to $10.9 million, driven by higher payroll, rent, and professional fees associated with business expansion [224]. - Selling expenses rose by 20.7% to $5.6 million, while general and administrative expenses surged by 86.9% to $5.2 million, reflecting increased operational costs [223]. - Cost of revenues decreased by 30.0% to $3.1 million, primarily due to a reduction in units sold, which fell by 3,511 units to 9,989 units [208]. - Cost of revenues decreased by 19.0%, from $14.6 million in 2023 to $11.8 million in 2024, attributed to favorable pricing from suppliers and reduced battery sales volume [221]. Cash Flow and Working Capital - As of December 31, 2024, the company had cash of $1.4 million and working capital of $3.0 million, with net cash used in operating activities amounting to approximately $9.4 million [231]. - Net cash used in operating activities for the nine months ended December 31, 2024, was $9.4 million, attributed to a net loss of $2.0 million and an increase in inventories of $4.0 million [240]. - The company reported net cash provided by financing activities of $12.2 million for the nine months ended December 31, 2024, including net proceeds from the IPO and loan proceeds [244]. - Total outstanding loan principal increased to $7.1 million as of December 31, 2024, with interest expenses for the nine months amounting to $247,550 [238]. Inventory and Accounts Management - Inventories increased significantly to $10.0 million as of December 31, 2024, up from $5.4 million, primarily due to preparations for a new rental business [237]. - The company's accounts payable increased to $1.3 million as of December 31, 2024, with a turnover period rising from 25 days to 31 days [235]. - As of December 31, 2024, the company's accounts receivable was $0.3 million, with a turnover period reduced from 69 days to 62 days [234]. - The inventory allowance for obsolescence was recorded at $936,030 as of December 31, 2024, up from $514,021 [252]. Tax and Compliance - The company operates in multiple tax jurisdictions, including New York, New Jersey, Texas, Florida, California, Washington, D.C., and Canada, which impacts its income tax expenses [253]. - Deferred tax assets and liabilities are measured using enacted tax rates applicable for differences expected to reverse, reflecting a proactive tax strategy [254]. - The company did not record any valuation allowance for deferred tax assets as of December 31, 2024, and March 31, 2024, suggesting confidence in the realization of these assets [255]. - The company follows a two-step process for uncertain tax positions, ensuring that only positions with a greater than 50% likelihood of being sustained are recognized [256]. - The company has not reported any significant unrecognized uncertain tax positions as of December 31, 2024, indicating a stable tax position [257]. - The company’s income tax expense includes penalties and interest related to underpayment, which are classified as income tax expense in the period incurred [257].

Core Insights - Fly-E Group, Inc. has been selected by the New York City Department of Transportation as the official e-bike for the E-Bike Trade-In Program, with an expected distribution of approximately 400 e-bikes during the pilot period [1][6] Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, electric scooters, and related accessories [9] - The company emphasizes safety and sustainability in its products, particularly the Fly-11 PRO model, which features advanced UL-certified components and a robust battery management system [2][6] Product Features - The Fly-11 PRO was chosen for its advanced safety features, including UL-certified components and superior durability and range, aligning with NYC's commitment to replace uncertified e-bikes and lithium-ion batteries [6] - The program aims to enhance safety and sustainability by ensuring that the e-bikes meet UL 2849 safety standards and feature UL 2271-certified batteries [6] Previous Collaborations - This selection is not Fly-E's first collaboration with NYC; the company previously supported the Equitable Commute Project, gaining valuable expertise in e-bike replacement programs and community engagement [6]

Core Viewpoint - Fly-E Group, Inc. has been selected by the New York City Department of Transportation as the official e-bike provider for the E-Bike Trade-In Program, highlighting the company's commitment to safety and sustainability in electric transportation [1][3]. Group 1: Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, electric scooters, and related accessories under the brand "Fly E-Bike" [4]. - The company emphasizes eco-friendly transportation solutions to promote a more sustainable future [4]. Group 2: Product and Safety Features - The Fly-11 PRO e-bike was chosen for its advanced safety features, including UL-certified components and a robust battery management system, ensuring user safety and durability [2][3]. - NYC DOT plans to distribute approximately 400 e-bikes during the pilot period of the E-Bike Trade-In Program [1]. Group 3: Collaboration and Community Engagement - This selection marks Fly-E's ongoing collaboration with NYC, building on previous support for the Equitable Commute Project, which has provided the company with valuable experience in e-bike replacement programs [3].

Financial Performance - Net revenues for Q2 FY2025 were $6.8 million, a decrease of 22.1% from $8.8 million in Q2 FY2024, primarily due to a drop in sales volume by 5,850 units[3][6]. - Gross profit for Q2 FY2025 was $2.9 million, down 22.8% from $3.8 million in Q2 FY2024, with a gross margin of 42.6% compared to 42.9% in the same period last year[9]. - The company reported a net loss of $1.1 million for Q2 FY2025, compared to a net income of $0.7 million in Q2 FY2024, resulting in a loss per share of $0.05[14][15]. - For the first half of FY2025, net revenues were $14.7 million, an 11.5% decrease from $16.6 million in the same period last year, with total units sold down by 4,067 units[17]. - Retail sales revenue for the first half of FY2025 was $12.8 million, a slight decrease of 1.1% from $12.9 million in the prior year, while wholesale revenue dropped 48.1% to $1.9 million[18]. - Gross profit for the first half of FY2025 was $6.0 million, down 7.4% from $6.5 million, with a gross margin improvement to 40.9% from 39.0%[21]. - Revenues for September 2024 were $6,824,406, a decrease of 22.1% compared to $8,763,839 in September 2023[46]. - Gross profit for the six months ended September 2024 was $6,004,088, down 7.4% from $6,484,014 for the same period in 2023[46]. - The net loss for September 2024 was $(1,142,848), compared to a net income of $746,556 in September 2023[46]. - Net loss for September 2024 was $1,322,356 compared to a net income of $1,186,999 in September 2023, representing a significant decline[49]. - EBITDA for the three months ended September 30, 2024, was $(1,191,234), a decrease of $2,443,529 or 195.1% compared to $1,252,295 in the same period of 2023[51]. Operating Expenses - Total operating expenses increased by 54.5% to $4.1 million in Q2 FY2025, driven by higher payroll, rent, advertising, and professional fees[10]. - Total operating expenses increased to $7,280,646 for the six months ended September 2024, compared to $4,631,845 for the same period in 2023, reflecting a rise of 57.3%[46]. - Interest expenses increased by 81.6% to $91,877 in the six months ended September 30, 2024, compared to $50,592 in the same period of 2023[51]. Cash Flow and Assets - As of September 30, 2024, the company had cash of $1.3 million, with net cash used in operating activities amounting to $9.4 million for the first half of FY2025[29]. - Cash used in operating activities for September 2024 was $(9,412,145), a stark contrast to cash provided of $1,593,868 in September 2023[49]. - Total cash at the end of the period for September 2024 was $1,274,935, up from $1,109,429 in September 2023[49]. - Cash used in investing activities was $(2,845,468) for September 2024, compared to $(526,214) in September 2023, indicating increased investment outflows[49]. - Cash reserves decreased to $1,274,935 in 2024 from $1,403,514 in 2023, a decline of 9.2%[43]. Inventory and Liabilities - The company reported a significant increase in inventories, which rose to $8,596,108 in 2024 from $5,364,060 in 2023, marking a 60.5% increase[43]. - Total current assets increased to $13,170,914 in 2024 from $8,136,208 in 2023, representing a growth of 62.5%[43]. - Total liabilities rose to $24,340,275 in 2024, compared to $22,194,512 in 2023, indicating an increase of 9.7%[43]. - The company reported a significant increase in inventories reserve, totaling $330,823 for September 2024, compared to $159,851 in September 2023[49]. Company Activities and Future Outlook - The company showcased 11 models at the Electrify Expo, including three newly launched e-motorcycle models, attracting over 10,000 attendees and facilitating 1,500 test rides[31][32]. - Forward-looking statements indicate that actual results may differ materially from expectations due to various risks and uncertainties[39]. - The company recognized deferred IPO costs of $502,198 as additional paid-in capital[50]. - The company had net proceeds from the issuance of common stock during the IPO amounting to $9,154,500[49].

Core Viewpoint - Fly-E Group, Inc. reported a decline in revenue and net loss for the second quarter and first half of fiscal year 2025, while maintaining stable gross margins and expanding its product offerings and market presence [1][3][4]. Financial Results - **Second Quarter Financial Results** - Revenue: $6.8 million, down 22.1% from $8.8 million in Q2 2023 [2][5]. - Gross profit: $2.9 million, down 22.8% from $3.8 million in Q2 2023 [2][9]. - Total operating expenses: $4.1 million, up 54.5% from $2.7 million in Q2 2023 [2][10]. - Net loss: $1.1 million, or $0.05 per share, compared to net income of $0.7 million, or $0.03 per share in Q2 2023 [2][13][14]. - EBITDA: negative $1.2 million, compared to positive EBITDA of $1.3 million in Q2 2023 [2][15]. - **First Half Financial Results** - Net revenues: $14.7 million, down 11.5% from $16.6 million in the same period last year [16][17]. - Retail sales revenue: $12.8 million, down 1.1% from $12.9 million in the same period last year [17]. - Wholesale revenue: $1.9 million, down 48.1% from $3.7 million in the same period last year [17][18]. - Gross profit: $6.0 million, down 7.4% from $6.5 million in the same period last year [20]. - Total operating expenses: $7.3 million, up 57.2% from $4.6 million in the same period last year [21]. - Net loss: $1.3 million, compared to net income of $1.2 million for the same period last year [24]. - EBITDA: negative $1.1 million, compared to positive EBITDA of $2.1 million for the same period last year [26]. Market and Product Developments - The company showcased its product lineup at the Electrify Expo in New York, featuring 11 models including e-bikes, e-motorcycles, and e-scooters, with three new e-motorcycle models launched [4][29]. - The e-bike rental service was launched to provide customers with flexible and affordable access to products, aligning with shifting consumer preferences [4]. - The company is expanding into key markets such as Miami, Los Angeles, and Toronto, and is focused on enhancing customer experience through technological innovations [4][31]. Financial Condition - As of September 30, 2024, the company had cash of $1.3 million, with net cash used in operating activities amounting to $9.4 million for the first half of fiscal year 2025 [27]. - Net cash provided by financing activities was $12.1 million for the first half of fiscal year 2025, compared to net cash used in financing activities of $0.3 million for the same period last year [28]. Strategic Focus - The company is committed to eco-friendly innovation and enhancing user experience in product development, aiming to refine offerings based on insights from recent events [31]. - Fly-E's involvement in New York City's Trade-in Program for e-bikes and batteries reflects its commitment to safety standards in the electric vehicle industry [4].

Financial Performance - For the three months ended September 30, 2024, net revenues decreased by 22.1% to $6.8 million, down from $8.8 million in the same period in 2023, primarily due to a drop in total units sold by 5,850 units [213]. - For the six months ended September 30, 2024, net revenues decreased by 11.5% to $14.7 million, compared to $16.6 million for the same period in 2023, driven by a decrease in total units sold by 4,067 units [214]. - Net revenues for the three months ended September 30, 2024, were $6.8 million, a decrease of 22.1% from $8.8 million in the same period of 2023 [242]. - Retail sales revenue decreased by $0.8 million, or 12.5%, from $6.8 million in Q3 2023 to $5.9 million in Q3 2024 [244]. - Wholesale revenue decreased by $1.1 million, or 54.8%, from $2.0 million in Q3 2023 to $0.9 million in Q3 2024 [244]. - Net loss for Q3 2024 was $1.1 million, a change of $1.9 million, or 253.1%, from net income of $0.7 million in Q3 2023 [252]. - Net loss for the six months ended September 30, 2024, was $1.3 million, a change of $2.5 million or 211.4% from net income of $1.2 million in 2023 [267]. - EBITDA for Q3 2024 was $(1.2) million, a decrease of $2.4 million from $1.3 million in Q3 2023, with an EBITDA margin of (17.5)% compared to 14.3% [254]. - EBITDA for the six months ended September 30, 2024, was $(1.1) million, a decrease of $3.2 million compared to $2.1 million in 2023, with an EBITDA margin of negative 7.7% [269]. Operating Expenses - Total operating expenses increased by $1.5 million, or 54.5%, to $4.1 million in Q3 2024 from $2.7 million in Q3 2023 [247]. - Total operating expenses increased by 57.2% to $7.3 million, primarily due to higher payroll, rent, and professional fees associated with business expansion [261]. - Selling expenses increased by 26.1% to $2.0 million in Q3 2024, while general and administrative expenses surged by 97.9% to $2.1 million [247]. Production and Sales - The company produced 1,146 E-motorcycles, 3,270 E-bikes, and 756 E-scooters for the three months ended September 30, 2024 [205]. - The decrease in net revenues was primarily due to a reduction in sales volume by 5,850 units, from 20,906 units in Q3 2023 to 15,056 units in Q3 2024 [242]. Cash Flow and Financing - As of September 30, 2024, the company had cash of $1.3 million and working capital of $2.3 million, with net cash used in operating activities approximately $9.4 million [270]. - The company funded its working capital primarily through equity contributions, IPO proceeds, and bank loans, with future obligations dependent on the realization of current assets [271]. - Net cash used in operating activities for the six months ended September 30, 2024, was $9.4 million, compared to a net cash provided of $1.6 million for the same period in 2023 [279][280]. - Net cash provided by financing activities was $12.1 million for the six months ended September 30, 2024, primarily from IPO proceeds of $9.2 million and loan proceeds of $3.7 million [285]. Inventory and Receivables - As of September 30, 2024, accounts receivable increased to $0.4 million from $0.2 million as of March 31, 2024, with a decrease in accounts receivable turnover period from 69 days to 63 days [273]. - Inventories increased significantly to $8.5 million as of September 30, 2024, from $5.4 million as of March 31, 2024, with inventory turnover days rising from 125 days to 147 days [277]. - Accounts payable decreased to $0.4 million as of September 30, 2024, from $1.2 million as of March 31, 2024, with a reduction in accounts payable turnover period from 25 days to 16 days [275]. Tax and Compliance - The company accrued $98,322 in income tax-related penalties for the six months ended September 30, 2024, compared to $73,817 for the same period in 2023, highlighting an increase in tax compliance issues [302]. - The company has not identified any significant unrecognized uncertain tax positions as of September 30, 2024, indicating a stable tax position [302]. Future Plans and Expansion - As of November 14, 2024, the company operates 37 stores, including 36 in the U.S. and one in Canada, and plans to expand into South America and Europe [202]. - The company launched a new rental program in October 2024, featuring the Fly-E Fly-11 Pro model, with plans to expand to Miami, Toronto, and Los Angeles [209]. Warranty and Reserves - The company accrued $31,036 in warranty reserves as of September 30, 2024, compared to $27,714 as of March 31, 2024 [296]. - The estimated allowance for inventory obsolescence reserves was $622,623 as of September 30, 2024, up from $514,021 as of March 31, 2024, indicating a significant increase in inventory write-downs [295]. - The company regularly reviews warranty reserves to ensure they are adequate for expected future obligations, with adjustments made as necessary based on manufacturing quality and sales volume [296]. Stock and Capital Structure - The company raised $9.0 million in gross proceeds from its IPO on June 7, 2024, with net proceeds of approximately $9.2 million after the underwriters' over-allotment option [208]. - A stock split was executed in April 2024 at a ratio of 1-for-110,000, increasing the number of authorized shares significantly [206]. - The company raised gross proceeds of $9.0 million from the IPO by selling 2,250,000 shares at $4.00 per share, with net proceeds of approximately $7.9 million [272].

Financial Performance - Net revenues for the first quarter of fiscal year 2025 were $7.9 million, a 0.4% increase from $7.8 million in the same period last year[2]. - Gross profit increased by 13.8% to $3.1 million, with a gross margin of 39.4%, up from 34.7% in the same period last year[2][9]. - Retail sales revenue increased by 11.4% to $6.9 million, while wholesale revenue decreased to $1.0 million from $1.7 million[7]. - Total revenues for Q2 2024 reached $7,873,426, a slight increase from $7,842,346 in Q2 2023, representing a growth of approximately 0.4%[25]. - Gross profit for Q2 2024 was $3,099,634, compared to $2,722,715 in Q2 2023, indicating a significant increase of about 14%[25]. - The net loss for Q2 2024 was $179,508, compared to a net income of $440,443 in Q2 2023, marking a substantial decline[25]. - Net loss for the first quarter was $0.2 million, compared to a net income of $0.4 million in the same period last year[13]. - EBITDA was $57,021, significantly down from $820,134 in the same period last year[15]. - EBITDA for the three months ended June 30, 2024, was $57,021, down from $820,134 in the same period last year, reflecting a decline of 93.0%[28]. Cost and Expenses - Cost of revenues decreased by 6.8% to $4.8 million, primarily due to favorable pricing for batteries, with unit costs dropping by 56% from $157.0 to $69.0[8]. - Total operating expenses rose by 60.9% to $3.1 million, driven by increased payroll, rent, and professional fees related to business expansion[10]. - Total operating expenses increased to $3,145,133 in Q2 2024 from $1,955,171 in Q2 2023, reflecting a rise of approximately 60.7%[25]. - The company experienced a 108.7% increase in interest expenses, totaling $68,082 in June 2024, compared to $32,623 in June 2023[28]. - The company reported a significant increase in depreciation expense, which rose to $95,051 in June 2024, compared to $63,668 in June 2023, marking a 49.3% increase[28]. Cash and Assets - As of June 30, 2024, cash increased to $4.5 million from $1.4 million a year earlier, with net cash used in operating activities at $4.5 million[15][16]. - Total current assets increased to $13,870,967 as of June 30, 2024, up from $8,136,208 as of March 31, 2024, representing a growth of approximately 70%[23]. - Total assets reached $35,198,708 as of June 30, 2024, compared to $28,976,334 as of March 31, 2024, indicating an increase of about 21%[23]. - Cash reserves increased significantly to $4,467,868 as of June 30, 2024, compared to $1,403,514 as of March 31, 2024, representing a growth of approximately 218%[23]. - Cash at the end of the period increased to $4,467,868 in June 2024, up from $680,481 in June 2023[27]. Liabilities - Total liabilities decreased to $20,227,819 as of June 30, 2024, down from $22,194,512 as of March 31, 2024, reflecting a reduction of approximately 8.8%[23]. - The company reported a decrease in accounts payable, which fell to $(774,347) in June 2024, compared to an increase of $1,681,224 in June 2023[27]. Business Developments - The company launched a new rental program for e-bikes in New York City and plans to expand this service to Miami, Toronto, and Los Angeles[17]. - The company made prepayments for purchasing software from a related party amounting to $775,000 in June 2024[27]. - The company recorded a cash payment for income taxes of $481,929 in June 2024, compared to $81,268 in June 2023[27]. - The company reported a foreign currency translation adjustment loss of $1,324 in Q2 2024[25]. - The company reported a weighted average number of common stock shares of 22,636,250 for Q2 2024, an increase from 22,000,000 shares in Q2 2023[25].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to _______ Commission file number 001-42122 FLY-E GROUP, INC. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------- ...

Exhibit 99.1 Fly-E Group, Inc. Announces Fiscal Year 2024 Financial Results New York, July 1, 2024 /PR Newswire/ -- Fly-E Group, Inc. (Nasdaq: FLYE) ("Fly-E" or the "Company"), an electric vehicle company engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters, and related accessories, today announced its financial results for the fiscal year ended March 31, 2024. Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, remarked, "We are thrilled ...