Fly-E Group, Inc.(FLYE) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 FY2025 were $6.8 million, a decrease of 22.1$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$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$1.9 million[18]. - Gross profit for the first half of FY2025 was $6.0 million, down 7.4$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$8,763,839 in September 2023[46]. - Gross profit for the six months ended September 2024 was $6,004,088, down 7.4$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$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].