Firm Supports Capital Raise to Advance Expansion in Electric MobilityNEW YORK, June 4, 2025 /PRNewswire/ -- American Trust Investment Services, Inc. (ATIS) is pleased to announce its role as the exclusive placement agent for Fly-E Group Inc. (NASDAQ: FLYE) in connection with the company's follow-on public offering.The offering consists of 28,595,553 shares of common stock and 57,191,106 warrants to purchase common stock, with a public offering price of $0.2428 per share and accompanying warrants, for expect ...

Core Viewpoint - Fly-E Group, Inc. has successfully closed a public offering of 28,595,553 shares of common stock and 57,191,106 warrants, raising approximately $6.94 million in gross proceeds, which will be used for inventory purchases, production costs, and working capital [1][2]. Group 1: Offering Details - The public offering price was set at $0.2428 per share, with each share sold together with two warrants, each exercisable at an exercise price of $0.2913 [1][2]. - The offering closed on June 4, 2025, and the warrants are exercisable immediately, expiring on the fifth anniversary of the issuance date [1][2]. Group 2: Use of Proceeds - The net proceeds from the offering will be allocated towards purchasing inventory, covering production costs of vehicles, and supporting working capital needs [2]. Group 3: Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters under the brand "Fly E-Bike," promoting eco-friendly transportation [5].

Core Viewpoint - Fly-E Group, Inc. has announced a public offering of 28,595,553 shares of common stock and 57,191,106 warrants at a price of $0.2428 per share, aiming to raise approximately $6.94 million for inventory and production costs [1][2]. Group 1: Offering Details - The public offering includes common stock sold with two warrants per share, with each warrant exercisable at an exercise price of $0.2913 [1]. - The offering is expected to close on or about June 3, 2025, pending customary closing conditions [2]. - The gross proceeds from the offering are anticipated to be around $6.94 million before deducting fees and expenses [2]. Group 2: Company Overview - Fly-E Group, Inc. specializes in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters under the brand "Fly E-Bike" [6]. - The company's mission is to promote eco-friendly transportation and contribute to a more sustainable future [6]. Group 3: Regulatory Information - The securities are being offered under a registration statement on Form S-1, which was declared effective by the SEC on May 15, 2025 [4]. - A final prospectus will be filed with the SEC and will be available on their website [4].

Financial Performance - Net revenues for Q3 FY2025 were $5.7 million, a decrease of 23.6% from $7.4 million in Q3 FY2024, primarily due to a reduction in sales volume by 3,511 units[4]. - For the nine months ended December 31, 2024, net revenues were $20.4 million, a decrease of 15.2% from $24.0 million for the same period last year[14]. - Retail sales revenue for the nine months ended December 31, 2024, was $17.7 million, down 7.9% from $19.2 million in the same period last year[15]. - For the three months ended December 31, 2024, revenues were $5,678,010, a decrease of 23.6% compared to $7,428,212 for the same period in 2023[39]. Profitability - The company reported a net loss of $0.7 million, or $0.03 per share, in Q3 FY2025, compared to a net income of $20,889, or $0.001 per share, in Q3 FY2024[11][12]. - The company experienced a net loss of $2.0 million for the nine months ended December 31, 2024, compared to a net income of $1.2 million for the same period last year[20]. - The company reported a net loss of $684,487 for the three months ended December 31, 2024, compared to a net income of $20,889 for the same period in 2023[39]. - For the nine months ended December 31, 2024, the company reported a net loss of $2,006,843 compared to a net income of $1,207,888 in the same period of 2023, representing a decline of 266.1%[43]. Expenses - Total operating expenses increased by 26.0% to $3.5 million in Q3 FY2025, compared to $2.8 million in Q3 FY2024, driven by higher payroll, rent, and advertising expenses[9]. - The company’s operating expenses for the three months ended December 31, 2024, were $3,501,349, up from $2,778,824 in the same period in 2023, marking an increase of 26.0%[39]. - The cost of revenues for the nine months ended December 31, 2024, was $11.8 million, a decrease of 19.0% from $14.6 million for the same period last year[16]. - The company experienced a significant increase in depreciation expense, which rose to $310,910 for the nine months ended December 31, 2024, up 52.6% from $203,788 in 2023[45]. - The company reported a substantial increase in interest expenses, which reached $247,550 for the nine months ended December 31, 2024, a rise of 201.3% from $82,150 in 2023[45]. Cash Flow and Assets - Cash and cash equivalents decreased slightly to $1,367,248 as of December 31, 2024, from $1,403,514 as of March 31, 2024[36]. - Cash at the end of the period was $1,367,248, a decrease from $1,173,228 at the end of the same period in 2023[43]. - Cash flows from operating activities showed a net cash used of $(9,413,989) for the nine months ended December 31, 2024, compared to a net cash provided of $1,743,987 in 2023[43]. - Net cash provided by financing activities was $12,233,936 for the nine months ended December 31, 2024, a significant increase from $30,550 in 2023[43]. - The company reported a net cash used in investing activities of $(2,836,671) for the nine months ended December 31, 2024, compared to $(963,304) in 2023[43]. Balance Sheet - Total current assets increased to $12,844,667 as of December 31, 2024, from $8,136,208 as of March 31, 2024, representing a growth of 58.5%[36]. - Total liabilities rose to $24,114,347 as of December 31, 2024, compared to $22,194,512 as of March 31, 2024, indicating an increase of 8.7%[36]. Strategic Initiatives - The company plans to expand its product portfolio and enhance brand influence through international trade shows and strategic partnerships[3]. - In January 2025, the NYC Department of Transportation launched a $2 million trade-in program, with the Fly-11 PRO selected as the official model[26]. Other Financial Metrics - EBITDA is used as a key performance measure, providing insight into the company's operating performance by excluding interest, taxes, depreciation, and amortization[29]. - EBITDA for the nine months ended December 31, 2024, was $(1,939,206), a decrease of $4,165,029 or 187.1% compared to $2,225,823 in 2023[45]. - The company recognized a deferred IPO cost of $502,198 as additional paid-in capital during the reporting period[44]. - The company expects to continue facing challenges in the upcoming quarters, with actual results potentially differing from forward-looking statements due to various risks and uncertainties[32].

Core Viewpoint - Fly-E Group, Inc. reported a significant decline in net revenues and net income for the third quarter and nine months of fiscal year 2025, primarily due to decreased sales volume and consumer sentiment affected by recent battery accidents [2][3][12]. Financial Results Summary Third Quarter Financial Results - Net revenues were $5.7 million, a decrease of 23.6% from $7.4 million in the same period last year [3][7]. - Retail sales revenue was $4.9 million, down 21.9% from $6.3 million year-over-year [4]. - Wholesale revenue was $0.7 million, compared to $1.1 million in the same period last year [4]. - Rental services revenue was $48,961, with no revenue generated in the same quarter last year [4]. - Cost of revenues was $3.1 million, a decrease of 30.0% from $4.5 million year-over-year [5]. - Gross profit was $2.6 million, down 13.9% from $3.0 million in the same period last year, with a gross margin of 45.1%, up from 39.0% [6][7]. - Total operating expenses were $3.5 million, an increase of 26.0% from $2.8 million year-over-year [8]. - Net loss was $0.7 million, or $0.03 per share, compared to net income of $20,889, or $0.001 per share, in the same period last year [9][10]. Nine Months Ended December 31, 2024 Financial Results - Net revenues were $20.4 million, a decrease of 15.2% from $24.0 million in the same period last year [12]. - Retail sales revenue was $17.7 million, down 7.9% from $19.2 million year-over-year [13]. - Wholesale revenue was $2.6 million, a decrease of 45.5% from $4.8 million in the same period last year [13]. - Cost of revenues was $11.8 million, a decrease of 19.0% from $14.6 million year-over-year [16]. - Gross profit was $8.6 million, down 9.4% from $9.5 million in the same period last year, with a gross margin of 42.0%, up from 39.3% [17]. - Total operating expenses were $10.8 million, an increase of 45.5% from $7.4 million year-over-year [18]. - Net loss was $2.0 million, compared to net income of $1.2 million in the same period last year [19]. - Basic and diluted losses per share were $0.08, compared to earnings per share of $0.05 for the same period last year [21]. Business Update - Fly-E's Fly-11 PRO was selected as the official model for the New York City Department of Transportation's $2 million Trade-In Program, aimed at promoting safer e-mobility solutions [2][25]. - The company is focusing on innovation and diversification to drive long-term growth, including expanding its product portfolio and enhancing digital marketing efforts [2]. Financial Condition - As of December 31, 2024, the company had cash of $1.4 million, with net cash used in operating activities amounting to $9.4 million for the nine months ended December 31, 2024 [23]. - Net cash provided by financing activities was $12.2 million for the nine months ended December 31, 2024, compared to $30,550 for the same period last year [24]. EBITDA Analysis - EBITDA was negative $0.8 million for the third quarter of fiscal year 2025, compared to positive EBITDA of $0.2 million in the same period last year [11][39]. - For the nine months ended December 31, 2024, EBITDA was negative $1.9 million, compared to positive EBITDA of $2.2 million for the same period last year [22][39].

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 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].

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]

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].