Core Viewpoint - Fly-E Group, Inc. reported a significant decline in net revenues for the first quarter of fiscal year 2026, primarily due to decreased sales volume and average sales price of electric vehicles, while wholesale revenue showed growth driven by an expanded dealer network [2][3][4]. Financial Summary - Net revenues were $5.3 million, a decrease of 32.3% from $7.9 million year-over-year [3][6]. - Retail sales revenue fell to $3.8 million, down 45.2% from $6.9 million in the same period last year [4]. - Wholesale revenue increased to $1.4 million, up 42.3% from $1.0 million year-over-year [4]. - Rental services revenue was $0.1 million, with no revenue generated in the same quarter last year [4]. Cost and Profitability - Cost of revenues decreased to $3.1 million, down 35.8% from $4.8 million year-over-year [5]. - Gross profit was $2.3 million, a decrease of 27.0% from $3.1 million in the same period last year, with a gross margin of 42.4%, up from 39.4% [6][7]. - The gross margin for the rental services business was notably high at 79.8% [7]. Operating Expenses - Total operating expenses increased to $3.8 million, up 19.7% from $3.1 million year-over-year, driven by higher depreciation, professional fees, and product development expenses [8]. Net Loss - The net loss for the quarter was $2.0 million, an increase of 1,019.0% from $0.2 million in the same period last year [9][10]. - Basic and diluted losses per share were $0.30, compared to $0.04 in the same period last year [10]. EBITDA - EBITDA was negative $1.3 million, compared to positive EBITDA of $57,021 in the same period last year, reflecting a significant decline in operational performance [11][26]. Financial Condition - As of June 30, 2025, the company had cash of $2.3 million, an increase from $0.8 million as of March 31, 2025 [12]. Balance Sheet Highlights - Total assets were $33.8 million, slightly up from $33.7 million as of March 31, 2025 [20]. - Total liabilities decreased to $20.1 million from $23.9 million [20]. Revenue Drivers - The decline in retail sales revenue was attributed to safety concerns related to lithium-battery accidents, leading customers to prefer oil-powered vehicles [4]. - The increase in wholesale revenue was primarily due to the expansion of the dealer network [4]. Strategic Focus - The company aims to enhance its geographic presence, improve product offerings, and maintain rigorous safety standards to address market challenges and meet the demand for eco-friendly mobility solutions [2].