Fly-E Group, Inc.(FLYE) - 2025 Q3 - Quarterly Results

Financial Performance - Net revenues for Q3 FY2025 were $5.7 million, a decrease of 23.6$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$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$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$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$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$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$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$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].