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 ...