What changed in this filing

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Item 1. Business

2025-07-15 compared with 2024-06-28 · 646 added, 502 removed, 88 unchanged (93% of the section changed)

Fly-E Group, Inc.

(“Fly-E Group,”

and collectively with its subsidiaries, the “Company,” “we” or similar terminology), is an electric vehicle (“EV”)

company that is principally engaged in designing, installing and selling smart electric motorcycles (“E-motorcycles”), electric

bikes (“E-bikes”), electric scooters (“E-scooters”) and related accessories under the brand “Fly E-Bike.”

At Fly E-Bike, our commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately

contributing towards building a more environmentally friendly future.

Our first store was established in 2018 in New York.

has grown rapidly since then and we believe we are now one of the leading providers of E-bikes for food delivery workers in New York

As of June 27, 2024, we have 40 stores, including 39 stores in the United States and one store in Canada.

We also operate one

online store at flyebike.com, focusing on selling E-motorcycles, E-bikes and E-scooters, serving customers in the United States.

we plan to open a second online store focusing on selling gas bikes in the future.

We plan to expand our presence in the United States

and extend our business into South America and Europe.

We have a diversified product portfolio that is designed to satisfy

the various demands of our customers and address different urban travel scenarios.

Additionally, we aim to refresh our product offerings

continuously to align with evolving market trends.

As of June 27, 2024, we offered 21 E-motorcycle products, 21 E-bike products and 34

E-scooter products.

We build our smart E-bikes based on advanced and

innovative technologies, including smart technologies, powertrain and battery technologies and automotive inspired functionalities.

to our user-centric philosophy in product design, we collect user feedback and product performance data to develop new products or functionalities

to satisfy unmet demand.

Group,” and collectively with its subsidiaries, the “Company,” “we” or similar terminology), is an electric

vehicle (“EV”) company that is principally engaged in designing, installing and selling smart electric motorcycles (“E-motorcycles”),

electric bikes (“E-bikes”), electric scooters (“E-scooters”) and related accessories under the brand “Fly

E-Bike.” At Fly E-Bike, our commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles,

ultimately contributing towards building a more environmentally friendly future.

Our first store was established

in 2018 in New York.

Our business has grown rapidly since then and we believe we are now one of the leading providers of E-bikes

for food delivery workers in New York City.

As of July 15, 2025, we have 20 stores, including 19 retail stores in the U.S and

one retail store in Canada.

The Company offers rental services from selected locations in New York, Toronto, and Los Angeles.

operate one online store at flyebike.com, focusing on selling E-motorcycles, E-bikes and E-scooters, serving customers in the United States.

In addition, we plan to open a second online store focusing on selling gas bikes in the future.

In addition, we plan to extend our business

into South America and Europe.

We have a diversified product

portfolio that is designed to satisfy the various demands of our customers and address different urban travel scenarios.

Additionally,

we aim to refresh our product offerings continuously to align with evolving market trends.

As of July 15, 2025, we offered 27 E-motorcycle

products, 36 E-bike products and 38 E-scooter products.

We build our smart E-bikes

based on advanced and innovative technologies, including smart technologies, powertrain and battery technologies and automotive inspired

functionalities.

Adhering to our user-centric philosophy in product design, we collect user feedback and product performance data to develop

new products or functionalities to satisfy unmet demand.

All our products are designed to embody themes of style, freedom and technology.

Some of our E-bikes are specifically

designed for food delivery workers and are featured with longer battery life and stable backseat for holding a basket.

In addition, we

designed an easy battery swap system for these E-bikes, allowing food delivery workers to easily replace a fully charged battery at any

of our stores within a minute.

Some of our E-bikes are specifically designed for food delivery workers and are featured with longer battery life and stable backseat

for holding a basket.

In addition, we designed an easy battery swap system for these E-bikes, allowing food delivery workers to easily

replace a fully charged battery at any of our stores within a minute.

Our net revenues were approximately

$25.4 million for the year ended March 31, 2025, consisting of retail sales revenue of approximately $21.7 million, wholesale

revenue of approximately $3.5 million, and rental services revenue of $171,867.

Our net revenues were approximately $32.2 million

for the year ended March 31, 2024, consisting of retail sales revenue of approximately $26.4 million and wholesale revenue of $5.8 million.

Our net revenues were approximately $21.8 million for the year ended March 31, 2023, consisting of retail sales revenue of approximately

$18.8 million and wholesale revenue of approximately $2.9 million.

for the year ended March 31, 2024, consisting of retail sales revenue of approximately $26.4 million and wholesale revenue of

$5.8 million.

Recent Developments

In April 2024, we effected a stock split of our

authorized and all issued and outstanding shares of our common stock and preferred stock at a split ratio of 1-for-110,000,

where the par value of the Company’s common stock remained unchanged at $0.01 per share, and the number of authorized shares of

the Company’s capital stock was increased from 440 to 48,400,000, with the number of authorized shares of common stock and preferred

2024 Stock Split

In April 2024, we effected

a stock split of our authorized and all issued and outstanding shares of our common stock and preferred stock at a split ratio of 1-for-110,000,

where the par value of the Company’s common stock remained unchanged at $0.01 per share, and number of authorized shares of the

Company’s capital stock was increased from 440 to 48,400,000, with the number of authorized shares of common stock and preferred

stock being increased from 400 to 44,000,000 and from 40 to 4,400,000, respectively.

The issued and outstanding shares of our common

stock immediately following the split were increased to 22,000,000.

share number and related data in this annual report has been updated to reflect the stock split referenced above.

Initial Public Offering

On June 7, 2024, we sold 2,250,000 shares of common stock, at a price

of $4.00 per share in our initial public offering (the “IPO”).

The gross proceeds of the offering were $9.0 million, prior

to deducting the underwriting discounts, commissions and offering expenses payable by the Company.

In addition, we granted the underwriters

a 30-day option to purchase an additional 337,500 shares of common stock at the initial public offering price, less underwriting discounts

and commissions, to cover over-allotments.

On June 25, 2024, we sold an additional 337,500 shares of common stock to the underwriter of

our IPO for gross proceeds of $1.4 million upon full exercise of the overallotment option.

Net proceeds received by us from our initial

public offering, including the exercise of the over-allotment option, were approximately $9.2 million.

We also issued to The Benchmark

Company, LLC, the representative of the underwriters, and its designees warrants to purchase 129,375

shares of our common stock.

The issued and outstanding common stock and preferred

stock increased at a split ratio of 1-for-110,000.

On June 7, 2024, we

consummated our initial public officering (the “IPO”) and sold 450,000 shares of common stock, at a price of $20.00 per

The gross proceeds of the offering were $9.0 million, prior to deducting the underwriting discounts, commissions and offering

expenses payable by the Company.

In addition, we granted the underwriters a 30-day option to purchase an additional 67,500 shares

of common stock at the initial public offering price, less underwriting discounts and commissions, to cover over-allotments.

2024, we sold an additional 67,500 shares of common stock to the underwriters of our IPO for gross proceeds of $1.4 million

upon full exercise of the underwriters’ over-allotment option.

Net proceeds received by us from our initial public offering, including

the exercise of the over-allotment option, were approximately $9.2 million.

We also issued to The Benchmark Company, LLC (the “IPO

Representative”), the representative of the IPO underwriters warrants to purchase 25,875 shares.

None of such warrants were

exercised as of the date of this annual report.

Loan and Security Agreement

On August 5, 2024, the

Company, Fly E-Bike, Inc.

(“Fly E-Bike”), a Delaware corporation, and Fly EV, Inc.

(collectively with the Company and Fly

E-Bike, the “Borrower”) entered into a loan and security agreement (the “Loan Agreement”) with Peapack-Gladstone

Bank (the “Lender”).

Pursuant to the Loan Agreement, the Lender made available to the Borrower a $5 million revolving

credit facility (the “Revolving Credit”), which the Borrower will use periodically for operating needs and to help facilitate

acquisitions.

The Loan Agreement has a one-year term.

The principal balance of the loan under the Revolving Credit bears interest at a

per annum rate equal to the term SOFR plus a spread of 3.50%, with a floor of 5.50%.

The Borrower will make interest-only payments quarterly,

starting on November 1, 2024.

The entire amount of outstanding principal and interest is due on August 31, 2025.

As security for the payment

of the loan, the Borrower granted the Lender a continuing lien on and security interest in all assets of the Borrower, including accounts,

chattel paper, documents, instruments, inventory, general intangibles, equipment, fixtures, deposit accounts, goods, letter-of-credit

rights, supporting obligations, investment property, commercial tort claims, property in the Lender’s possession, additions, and

The Borrower paid a non-refundable revolving credit closing fee of $20,000 at closing, agreed to pay an unused line fee of 0.25%

quarterly, and a late charge of 5% on any payments not made within five days of the due date.

Upon an event of default, the Lender

may terminate the Revolving Credit, declare the Borrower’s obligations immediately due and payable, and exercise rights under the

UCC and other applicable laws, including taking possession of the collateral and selling it.

Rental Program

We launched a rental program

to meet the increasing market demand for safe, UL-certified e-bikes in compliance with New York State regulations in October 2024.

The rental service, now available in New York City, Toronto, and Los Angeles via the Go Fly rental service mobile app and select

Fly E-Bike stores, provides users with a flexible and affordable e-bike rental option.

As part of our growth strategy, we plan to expand

the rental service to Miami in the near term.

Trade-in Program

In January 2025, the New York

City Department of Transportation (“NYC DOT”) launched a $2 million trade-in program, allowing eligible food delivery workers

to replace their unsafe e-bikes, e-mobility devices, and batteries with high-quality versions.

Our Fly-11 PRO was chosen as the official

model of NYC DOT and participates in this program.

From January 2025 to June 2025, we participated in this program and

completed the delivery of Fly-11 Pro models to our retail partner participating in the program.

Increase in Authorized Shares

In March 2025, we amended

our amended and restated certificate of incorporation to increase the authorized shares of common stock from 100,000,000 shares to

300,000,000 shares.

UL Litigation

On or about March 12,

2025, UL LLC (“UL”) filed a complaint against the Company, along with the Company’s certain subsidiaries and certain

individuals, in the Eastern District of New York (the “Complaint”).

The Complaint alleges that the Company improperly

used UL’s trademark by claiming certain products were certified by UL.

The Complaint seeks $2,000,000 for each instance an

allegedly counterfeit UL mark was used and asserts claims for federal trademark infringement and counterfeiting, unfair competition and

false designations of the origin and false and misleading representations, common law unfair competition, common law unjust enrichment,

and unlawful deceptive acts and practices.

On May 21, 2025, Company,

along with its certain subsidiaries and certain individuals, and UL entered into a settlement and release agreement (the “Settlement

Agreement”) on mutually acceptable settlement terms.

Pursuant to the Settlement Agreement, the Company and the other defendants

agreed to pay UL an aggregate amount of $1,000,000 before November 30, 2025, and entered into a Consent Judgment and Permanent Injunction

pursuant to which the Company and the other defendants agreed not to offer for sale, sell, or distribute products with UL Marks that were

not tested and certified by UL.

From May 28 to July 15, 2025, the Company paid $350,000 to UL.

The Settlement Agreement fully

resolves all pending litigation between UL and the Company, and each party fully releases the other party from any and all past or present

claims, demands, causes of action, obligations, damages, liabilities, expenses, or compensation of whatever kind or nature, that were

or could have been asserted in connection with the Company’s sales of products with a UL Mark which were not tested and certified

2025 Reverse Stock Split

On March 10, 2025, the Company

held a special meeting of stockholders.

At the special meeting, the stockholders approved a proposal to amend the Company’s amended

and restated certificate of incorporation to effect a reverse stock split of the Company’s issued and outstanding shares of common

stock, par value $0.01 per share, by a ratio in the range of 1-for-2 to 1-for-15, with such ratio to be determined in the discretion of

the board of directors of the Company and with such action to be effected at such time and date, if at all, as determined by the board

of directors within one year after the conclusion of the special meeting.

On June 16, 2025, the board

of directors approved a one-for-five (1:5) reverse stock split of the Company’s issued and outstanding shares of common stock (the

“2025 Reverse Stock Split”).

On July 2, 2025, the Company filed with the Secretary of State of the State of Delaware the Second

Certificate of Amendment to its Certificate of Incorporation (the “Certificate of Amendment”) to effect the 2025 Reverse Stock

The 2025 Reverse Stock Split became effective as of 5:00 p.m., Eastern Time, on July 3, 2025, and the Company’s common stock

began trading on the Nasdaq Stock Market on a split-adjusted basis on July 7, 2025.

After the 2025 Reverse Stock Split, every five (5)

shares of the Company’s issued and outstanding common stock have been automatically converted into one share of common stock, without

any change in the par value per share.

In addition, (i) a proportionate adjustment has been made to the per share exercise price and the

number of shares issuable upon the exercise of all outstanding warrants to purchase shares of common stock, and (ii) the number of shares

reserved for issuance pursuant to the Company’s stock incentive plan has been reduced proportionately.

Any fraction of a share of

common stock created as a result of the 2025 Reverse Stock Split was rounded up to the nearest whole share.

The Company’s common

stock continues to trade on the Nasdaq Capital Market under the symbol “FLYE.” The new CUSIP number for common stock following

the 2025 Reverse Stock Split is 343927208.

Unless otherwise noted,

the share and per share information in this annual report reflects the 2024 Stock Split and the 2025 Reverse Stock Split .

Registered Direct Offering

On June 2, 2025, we closed

our registered direct offering of an aggregate of (i) 5,719,111 shares of our common stock, par value $0.01 and (ii) 11,438,222 warrants

(the “Warrants”) to purchase 11,438,222 shares of common stock at a combined purchase price per share and accompanying

Warrants of $1.2140, resulting in net proceeds to us of $6.24 million after deducting placement agent fees and offering expenses.

the shares (including shares underlying the Warrants) were registered under the Securities Act pursuant to a registration statement on

Form S-1, as amended (File No.

333-286678), which was declared effective by the Securities and Exchange Commission on May 15, 2025.

Trust Investment Services, Inc.

(“ATIS”) acted as the exclusive placement agent for the offering.

We paid ATIS aggregate commissions

of $219,430 and incurred offering expenses of $178,625.

Disposal of Certain Subsidiaries

During the year ended March

31, 2025 and from April to July 2025, the Company disposed several subsidiaries as part of an disposal plan aimed at simplifying its legal

and operational structure and improving administrative efficiency.

The divestitures were not intended to be a strategic withdrawal from

any specific geographic region or industry, but rather a measure to streamline the Company’s corporate structure and reduce complexity

in financial reporting.

Between December 2024 and July 2025, the Company sold 15 subsidiaries to third-party individuals in multiple transactions,

for an aggregated cash consideration of approximately $1.3 million, of which $133,000 has been collected as of July 15, 2025.

“ Note 14— Disposal of Subsidiaries and Note 15-Subsequent Events ” in the accompanying consolidated financial

statements for details.

Our History and Corporate Structure

We initially started our business in 2018 as Ctate

We initially started our business

in 2018 as Ctate Inc.

(“Ctate”), a New York corporation.

Our business has experienced rapid growth since then and we opened multiple retail

stores within a short period of time.

In the interest of efficient management, each retail store was managed by a separate company wholly

owned by Ctate.

Our business has experienced rapid growth since then and we

opened multiple retail stores within a short period of time.

In the interest of efficient management, each retail store was managed by

a separate company wholly owned by Ctate.

Fly E-Bike, Inc.

(“Fly E-Bike”), a

Delaware corporation, was a wholly owned subsidiary of Ctate incorporated on August 22, 2022.

On September 12, 2022, Ctate and

Fly E-Bike entered into an Agreement and Plan of Merger, pursuant to which Ctate merged into and with Fly E-Bike, with Fly E-Bike being

the surviving corporation.

Group, a Delaware corporation, was incorporated on November 1, 2022.

On December 21, 2022, Fly E-Bike, the stockholders of

Fly E-Bike and Fly-E Group entered into a Share Exchange Agreement, pursuant to which Fly-E Group acquired all of the issued and outstanding

shares of Fly E-Bike by issuing its shares to the stockholders of Fly E-Bike on a one-for-one basis (the “Share Exchange”).

As a result of the Share Exchange, Fly E-Bike became a wholly owned subsidiary of Fly-E Group.

Fly-E Group has no substantive operations

other than holding all of the issued and outstanding shares of Fly E-Bike and Fly EV, Inc.

Our business is primarily conducted through

Fly E-Bike and its subsidiaries.

is a Delaware corporation incorporated on November 1, 2022 and currently has no substantive

E-motorcycles, E-bikes and E-scooters are the

two-wheelers that run on electric energy that is converted into mechanical energy rather than running on fuel.

They are chargeable and

eco-friendly automotive solutions.

E-motorcycles and E-bikes are built with solid metal and fiber frames that are combined with mechanical

and electronic components.

E-Bike”), a Delaware corporation, was a wholly owned subsidiary of Ctate incorporated on August 22, 2022.

On September 12,

2022, Ctate and Fly E-Bike entered into an Agreement and Plan of Merger, pursuant to which Ctate merged into and with Fly E-Bike, with

Fly E-Bike being the surviving corporation.

Fly-E Group, a Delaware corporation,

was incorporated on November 1, 2022.

On December 21, 2022, Fly E-Bike, the stockholders of Fly E-Bike and Fly-E Group entered

into a Share Exchange Agreement, pursuant to which Fly-E Group acquired all of the issued and outstanding shares of Fly E-Bike by issuing

its shares to the stockholders of Fly E-Bike on a one-for-one basis (the “Share Exchange”).

As a result of the Share Exchange,

Fly E-Bike became a wholly owned subsidiary of Fly-E Group.

Fly-E Group has no substantive operations other than holding all of the issued

and outstanding shares of Fly E-Bike and Fly EV, Inc.

Our business is primarily conducted through Fly E-Bike and its subsidiaries.

is a Delaware corporation incorporated on November 1, 2022 and currently has no substantive operations.

E-motorcycles, E-bikes and

E-scooters are the two-wheelers that run on electric energy that is converted into mechanical energy rather than running on fuel.

are chargeable and eco-friendly automotive solutions.

E-motorcycles and E-bikes are built with solid metal and fiber frames that are combined

with mechanical and electronic components.

An E-scooter is a plug-in EV powered by electric power.

These scooters offer additional advantages such as

agility, flexibility, versatility and ease of maneuver in high traffic congestion areas.

The EV industry has been experiencing significant

growth and innovation in recent years.

With the advancement of technology and the increasing demand for environmentally friendly

transportation options, E-bikes, E-motorcycles and E-scooters have become popular choices for commuting, leisure and sports.

As the demand

for sustainable transportation options continues to grow, the EV industry is poised for further growth and development.

Some of the major trends driving the growth of

the EV industry include the increasing demand for sustainable transportation options, advancements in battery and motor technology, and

the growing popularity of E-bike sharing services.

Government incentives and regulations, such as tax credits and subsidies for the purchase

of EVs, are also driving the growth of the industry.

The Asia-Pacific region is the largest market

for the electric two-wheelers due to the growing awareness about the benefits of electric vehicles, rising personal disposable income,

growing demand for affordable electric vehicles for short-distance commuting and increasing adoption of smart technologies.

that North America is expected to experience significant growth in the future due to growing government initiatives to raise awareness

of such products among individuals.

City bikes and city E-bikes are popular in big

cities in the United States, such as New York City, Miami and Dallas.

There is also a growing popularity of E-scooters as an

increasing number of EV merchants are launching their businesses in these cities.

The growth of the EV industry is further accelerated

by the rise in small package deliveries in big cities.

New York City is a major commercial hub and the largest metropolitan area

in the United States.

As a result, the volume of small package deliveries in New York City is remarkably high, and it has continued

to grow over the years.

With the rise of E-commerce and online shopping, more and more people in New York City are relying on

package deliveries for their everyday needs, leading to a significant increase in small package delivery volume.

The COVID-19 pandemic

has further accelerated this trend as more people have turned to online shopping.

The high volume of package deliveries in New York

City has led to concerns about traffic congestion and delivery vehicle emissions, which the city is working to address through initiatives

such as congestion pricing and EV incentives.

For short-distance deliveries within urban areas, E-bike delivery can be a more efficient

and environmentally friendly option compared to truck delivery.

E-bikes can navigate through congested city streets, often taking shorter

routes that trucks cannot access, and deliver packages quickly without contributing to traffic congestion or air pollution.

Additionally,

E-bikes are often cheaper to operate and maintain than trucks.

We expect that other large densely populated cities in the United States,

such as Miami and Dallas, face similar challenges and will continue to adopt the use of E-bikes, E-motorcycles, and E-scooters to meet

their delivery needs.

These scooters offer additional advantages

such as agility, flexibility, versatility and ease of maneuver in high traffic congestion areas.

The EV industry has been experiencing

significant growth and innovation in recent years.

With the advancement of technology and the increasing demand for environmentally

friendly transportation options, E-bikes, E-motorcycles and E-scooters have become popular choices for commuting, leisure and sports.

As the demand for sustainable transportation options continues to grow, the EV industry is poised for further growth and development.

Some of the major trends driving

the growth of the EV industry include the increasing demand for sustainable transportation options, advancements in battery and motor

technology, and the growing popularity of E-bike sharing services.

Government incentives and regulations, such as tax credits and subsidies

for the purchase of EVs, are also driving the growth of the industry.

The Asia-Pacific region is

the largest market for the electric two-wheelers due to the growing awareness about the benefits of electric vehicles, rising personal

disposable income, growing demand for affordable electric vehicles for short-distance commuting and increasing adoption of smart technologies.

We believe that North America is expected to experience significant growth in the future due to growing government initiatives to raise

awareness of such products among individuals.

City bikes and city E-bikes

are popular in big cities in the United States, such as New York City, Miami and Dallas.

There is also a growing popularity

of E-scooters as an increasing number of EV merchants are launching their businesses in these cities.

The growth of the EV industry

is further accelerated by the rise in small package deliveries in big cities.

New York City is a major commercial hub and the largest

metropolitan area in the United States.

As a result, the volume of small package deliveries in New York City is remarkably high,

and it has continued to grow over the years.

With the rise of E-commerce and online shopping, more and more people in New York

City are relying on package deliveries for their everyday needs, leading to a significant increase in small package delivery volume.

COVID-19 pandemic has further accelerated this trend as more people have turned to online shopping.

The high volume of package

deliveries in New York City has led to concerns about traffic congestion and delivery vehicle emissions, which the city is working

to address through initiatives such as congestion pricing and EV incentives.

For short-distance deliveries within urban areas, E-bike

delivery can be a more efficient and environmentally friendly option compared to truck delivery.

E-bikes can navigate through congested

city streets, often taking shorter routes that trucks cannot access, and deliver packages quickly without contributing to traffic congestion

or air pollution.

Additionally, E-bikes are often cheaper to operate and maintain than trucks.

We expect that other large densely populated

cities in the United States, such as Miami and Dallas, face similar challenges and will continue to adopt the use of E-bikes, E-motorcycles,

and E-scooters to meet their delivery needs.

Our Strengths

Early Entry into the Market:

entered the EV market early and were able to seize the market opportunities to experience rapid growth.

We started our business in 2018

and were able to leverage the potential created by the thriving E-commerce industry.

Additionally, the COVID-19 lockdown further

amplified the demand for online food and essential item deliveries, creating a favorable environment for the expansion and utilization

of EVs, particularly E-bikes, which further accelerated our business growth.

Early Entry into the

We entered the EV market early and were able to seize the market opportunities to experience rapid

We started our business in 2018 and were able to leverage the potential created by the thriving E-commerce industry.

Additionally,

the COVID-19 lockdown further amplified the demand for online food and essential item deliveries, creating a favorable environment for

the expansion and utilization of EVs, particularly E-bikes, which further accelerated our business growth.

Brand Reputation:

have a strong brand reputation for consistent delivery of high-quality EV products and excellent customer service.

Our brand and

retail stores have become reliable business partners for most food delivery workers, especially in New York City.

As a result, they

have come to recognize our name and trust our services, establishing a loyal customer base for us.

Innovative Products and Services:

continue to offer innovative, differentiated products and services that help set us apart from our competitors.

Since 2018, we have launched

over 67 new products and introduced new versions to our existing products with upgrades to design, motor and battery technology.

Additionally,

we are developing the Fly E-Bike app, which will be used by customers to better manage and enjoy their riding experience.

also developing the Fly E-Bike Care, an extended warranty program that will provide value-added options for our customers in

the near future.

Our brand and retail

stores have become reliable business partners for most food delivery workers, especially in New York City.

As a result, they have

come to recognize our name and trust our services, establishing a loyal customer base for us.

Innovative Products and

We continue to offer innovative, differentiated products and services that help set us apart

from our competitors.

Since 2018, we have launched over 67 new products and introduced new versions to our existing products with upgrades

to design, motor and battery technology.

Additionally, we are developing the Fly E-Bike app, which will be used by customers to better

manage and enjoy their riding experience.

We are also developing the Fly E-Bike Care, an extended warranty program that will provide value-added

options for our customers in the near future.

Our Strategies

Our plan to grow our business using the following

key strategies:

Enhance our position as a leader in urban

We believe we are one of the leading providers of urban mobility solutions for New York

City, particularly for food and package delivery workers.

We intend to leverage this first mover advantage to continue to solidify our

market leadership, by enhancing our brand, continuing to innovate, growing our product and service portfolio and expanding our sales network.

Our plan to grow our business

using the following key strategies:

Enhance our position

as a leader in urban mobility:

We believe we are one of the leading providers of urban mobility solutions

for New York City, particularly for food and package delivery workers.

We intend to leverage this first mover advantage to continue

to solidify our market leadership, by enhancing our brand, continuing to innovate, growing our product and service portfolio and expanding

our sales network.

Improve brand recognition:

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shopping experience by effectively managing and upgrading our retail stores.

In addition, we plan to open more flagship stores in high-traffic retail

locations in New York City and other major cities in the United States to further elevate the quality of our brand messaging.

In addition, we plan to open more flagship stores in high-traffic

retail locations in New York City and other major cities in the United States to further elevate the quality of our brand messaging.

Furthermore, we plan to increase our offerings of accessories, such as introducing more style options to our branded apparel, to further

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Continue our innovation:

will persist in advancing our product line by incorporating cutting-edge design, optimizing user experience and delivering optimal

We are developing our Fly E-Bike app, which we plan to include functions to improve the communication between our customers

and our products.

Additionally, we plan to launch Fly E-Bike Care in the near future, a service designed to function as an insurance

policy and provide customers with continuous maintenance services beyond the manufacturer and battery warranty period.

will persist in advancing our product line by incorporating cutting-edge design, optimizing user experience and delivering optimal performance.

We are developing our Fly E-Bike app, which we plan to include functions to improve the communication between our customers and our products.

Additionally, we plan to launch Fly E-Bike Care in the near future, a service designed to function as an insurance policy and provide

customers with continuous maintenance services beyond the manufacturer and battery warranty period.

Expand our sales network:

to further expand our sales network in the United States and internationally.

As of June 27, 2024, we operate one store in Canada

and 39 retail stores in the United States, spanning across the states of New York, Texas, Florida, Washington D.C., California

plan to expand our sales network internationally.

We intend to enter selected overseas markets that offer identified growth opportunities

and favorable government policies, such as South America and Europe.

As of July 15, 2025, we operate one store in Canada and 19 retail

stores in the United States, spanning across the states of New York, Massachusetts, Maryland, Florida, Washington D.C., California

and New Jersey.

We also operate one online store at flyebike.com, focusing on selling E-motorcycles, E-bikes and E-scooters, serving

customers in the United States.

We also operate one online store at flyebike.com, focusing on selling E-motorcycles, E-bikes and E-scooters, serving customers

in the United States.

In addition, we plan to open a second online store focusing on selling gas bikes in the future.

to significantly increase our footprint in the United States by opening our stores in additional states.

In addition, we intend

to enter selected overseas markets that offer identified growth opportunities and favorable government policies, such as South America

Diversify our service offerings:

are planning to broaden our business by leveraging our existing retail stores as logistics hubs for small package delivery.

We are currently

in the process of seeking business partners, assembling a delivery team and developing an app for the delivery business.

We offer a diverse product portfolio that satisfies

various demands of our customers and addresses different urban travel scenarios.

Following market trends and technological updates, we

continuously develop and add new products into our portfolio to meet our customers’ needs.

We also regularly introduce upgrades

and refreshes to our existing models.

Diversify our service

We are planning to broaden our business by leveraging our existing retail stores as logistics

hubs for small package delivery.

We are currently trying to seek business partners, assemble a delivery team and develop an app for the

delivery business.

We offer a diverse product

portfolio that satisfies various demands of our customers and addresses different urban travel scenarios.

Following market trends and

technological updates, we continuously develop and add new products into our portfolio to meet our customers’ needs.

We also regularly

introduce upgrades and refreshes to our existing models.

E-motorcycles

Our E-motorcycle category consists of 21 different

products, which include a range of E-moped, E-motorcycle and E-tricycle.

Our E-moped product line is one of our most popular,

featuring a range of eight different models.

Our E-mopeds can run an average of 20-70 miles on a single charge, with a top speed

of 20-38 miles per hour.

Our E-motorcycle category consists

of 27 different products, which include a range of E-moped, E-motorcycle and E-tricycle.

Our E-moped product line is

one of our most popular, featuring a range of eight different models.

Our E-mopeds can run an average of 20-70 miles on a single

charge, with a top speed of 20-38 miles per hour.

Additionally, our E-mopeds are capable of holding a payload of 185-400 pounds.

Each E-moped offer several

standard features, including a remote key fob, alarm system, lockable under-seat storage, front and rear suspension, and a complete lighting

Each E-moped offer several standard features, including a remote key fob, alarm system, lockable under-seat storage, front and rear suspension,

and a complete lighting package.

Some models also offer a USB phone charging port for added convenience.

These features make them an ideal choice for delivery

All of our E-mopeds feature a low seat height

and large tires, providing excellent stability at all speeds and on all surfaces.

Moreover, their electric drivetrain requires no clutch

or gears, making them easy to operate for almost anyone.

We also offer E-motorcycles that are designed

for urban commuting and city riding, offering a range of 25-80 miles on a single charge and a top speed of 30-59 miles per hour.

They have a payload capacity of 160-400 pounds and feature a powerful electric motor with multiple riding modes to choose from.

Additionally,

our E-motorcycles are equipped with advanced safety features, including anti-lock brakes and a high-performance suspension system, ensuring

optimal handling and rider safety.

These features make them an ideal

choice for delivery workers.

All of our E-mopeds feature

a low seat height and large tires, providing excellent stability at all speeds and on all surfaces.

Moreover, their electric drivetrain

requires no clutch or gears, making them easy to operate for almost anyone.

We also offer E-motorcycles

that are designed for urban commuting and city riding, offering a range of 25-80 miles on a single charge and a top speed of 30-59

miles per hour.

They have a payload capacity of 160-400 pounds and feature a powerful electric motor with multiple riding modes to

Additionally, our E-motorcycles are equipped with advanced safety features, including anti-lock brakes and a high-performance

suspension system, ensuring optimal handling and rider safety.

(Fly-Tricycle)

The Fly-Tricycle is an electric three-wheel vehicle

that offers three seats.

The interior of this vehicle is crafted with high-quality automotive-grade materials, ensuring long-lasting durability.

The Fly-Tricycle is an electric

three-wheel vehicle that offers three seats.

The interior of this vehicle is crafted with high-quality automotive-grade materials, ensuring

long-lasting durability.

This vehicle can run a range of 43-62 miles on a single charge, with a top speed of 30 miles per hour.

Additionally, the Fly-Tricycle

is capable of holding a payload of 1,239 pounds.

We currently offer 34 different E-bike products,

which include a range of City E-bike, foldable E-bike and standard E-bike.

Additionally,

the Fly-Tricycle is capable of holding a payload of 1,239 pounds.

We currently offer 36 different

E-bike products, which include a range of City E-bike, foldable E-bike and standard E-bike.

(City E-Bike)

Our City E-Bike has a range of 15-20 miles

on a single charge and a maximum speed of 20 miles per hour.

It has a payload capacity of 200 pounds and an under-seat storage area.

Our City E-Bike has a range

of 15-20 miles on a single charge and a maximum speed of 20 miles per hour.

It has a payload capacity of 200 pounds and an under-seat

storage area.

Foldable E-bike

(Dolphin E-Bike)

Our foldable E-bikes, including the Dolphin E-Bike

and the Air-2, are versatile and convenient for folding.

They are capable of running 20-25 miles on a single charge with a top speed

of 23 miles per hour.

Our foldable E-bikes, including

the Dolphin E-Bike and the Air-2, are versatile and convenient for folding.

They are capable of running 20-25 miles on a single charge

with a top speed of 23 miles per hour.

In addition, our foldable E-bikes have a payload capacity of 250 pounds.

They are compact, portable and easy to

store, making them a good choice for people who are conscious of space limitations, such as those who live in small apartments in big

They are compact, portable

and easy to store, making them a good choice for people who are conscious of space limitations, such as those who live in small apartments

in big cities.

Standard E-bike

(Sword Fish E-Bike)

Our standard E-bikes are designed to be lightweight

and come in a variety of different outlook designs, with multiple speed options to choose from.

They offer a range of 20-60 miles

on a single charge, with a top speed range of 15-32 miles per hour, and have a payload capacity of 180-250 pounds.

Our standard E-bikes are designed

to be lightweight and come in a variety of different outlook designs, with multiple speed options to choose from.

They offer a range of 20-60

miles on a single charge, with a top speed range of 15-32 miles per hour, and have a payload capacity of 180-250 pounds.

Our E-scooter segment currently

1 unchanged sentence

(Insurgent E-Scooter)

Our E-scooters offer a range of 15-45 miles

on a single charge and a top speed range of 15-40 miles per hour.

They are also capable of holding a weight range of 250-330

Our E-scooters offer a range

of 15-45 miles on a single charge and a top speed range of 15-40 miles per hour.

They are also capable of holding a weight range

of 250-330 pounds.

Additionally, our smart E-scooters are equipped with hydraulic disc brakes made from special alloys.

The brake discs are slotted

to extend the life of the system.

The hardware of the brakes is complemented by the electronic braking system, which provides for

intelligent braking and recycling kinetic energy.

Certain of our models also employ the combined braking system, which splits braking

force between the front and rear discs to shorten the braking distance at higher speeds.

Accessories and spare parts

We offer a comprehensive line of Fly E-Bike branded

discs are slotted to extend the life of the system.

The hardware of the brakes is complemented by the electronic braking system, which

provides for intelligent braking and recycling kinetic energy.

Certain of our models also employ the combined braking system, which splits

braking force between the front and rear discs to shorten the braking distance at higher speeds.

Accessories and spare parts

We offer a comprehensive line

of Fly E-Bike branded accessories and spare parts.

We also sell traditional bikes.

For accessories, we offer riding gear, such as

raincoats, gloves and knee pads, and accessories that can be installed on our products to enhance their functionality, such as storage

baskets and tail boxes, smart phone holders, backrests and locks, among others.

For accessories, we offer riding

gear, such as raincoats, gloves and knee pads, and accessories that can be installed on our products to enhance their functionality, such

as storage baskets and tail boxes, smart phone holders, backrests and locks, among others.

We also sell branded apparel.

In addition, we provide performance upgrades,

including high-performance upgrade components for wheels, shock absorbers, brake calipers and carbon fiber body panels, among others.

In addition, we provide performance

upgrades, including high-performance upgrade components for wheels, shock absorbers, brake calipers and carbon fiber body panels, among

Fly E-Bike App

We are currently developing the Fly E-Bike app,

which is a management service mobile software for our EVs.

We aim to design an app that will bring users a comprehensive intelligent

experience to create a safer and more satisfying riding life.

We are currently developing

the Fly E-Bike app, which is a management service mobile software for our EVs.

We aim to design an app that will bring users a comprehensive

intelligent experience to create a safer and more satisfying riding life.

The development of the app is still in its preliminary stage.

We have launched

a testing version of the app, which is currently unavailable to our customers.

Once development is completed, the app is expected to include

functions such as GPS, navigation, battery and tire pressure management, online shopping, and anti-theft features.

We have launched a testing version of the app, which is currently unavailable to our customers.

Once development is completed, the app

is expected to include functions such as GPS, navigation, battery and tire pressure management, online shopping, and anti-theft features.

After Sales Services

Our EVs are primarily serviced through our retail

stores, which provide repair, maintenance and bodywork services.

Our regular maintenance services include exterior check, mechanical structure

service, motor system check, electrification service, battery maintenance service, tire pressure check and cleaning services.

provide other value-added services through our retail stores, including GPS add-on and installation, and theft reporting.

Our EVs are primarily serviced

through our retail stores, which provide repair, maintenance and bodywork services.

Our regular maintenance services include exterior

check, mechanical structure service, motor system check, electrification service, battery maintenance service, tire pressure check and

cleaning services.

We also provide other value-added services through our retail stores, including GPS add-on and installation, and theft

Warranty Policy

Manufacturer Warranty

We offer a three-month limited manufacturer’s

warranty on all models of our E-bikes, E-motorcycles and E-scooters.

The warranty period starts on the day the product is delivered

to the customer.

We offer a three-month limited

manufacturer’s warranty on all models of our E-bikes, E-motorcycles and E-scooters.

The warranty period starts on the day the

product is delivered to the customer.

This warranty only covers limited factory defects and minor cosmetic damages.

It does not cover misuse or broken parts

caused by the user or by any other events.

It does not cover

misuse or broken parts caused by the user or by any other events.

Battery Warranty

We also offer a three-month warranty on battery

for any manufacturer defect in material or workmanship.

If a battery becomes faulty within the specified warranty period, we will replace

it free of charge.

We also offer a three-month

warranty on battery for any manufacturer defect in material or workmanship.

If a battery becomes faulty within the specified warranty

period, we will replace it free of charge.

Fly E-Bike Care

We plan to launch our value-added Fly E-Bike Care

program in the near future, which will function as an insurance policy to provide customers with continuous maintenance services beyond

the warranty period mentioned above.

This program will be designed to offer a wider range of coverage than the manufacturer and battery

warranties, including accidental damages caused by customers.

Additionally, we intend to add a “Fly E-Bike Care” feature to

our app, which will send maintenance reminders to users based on their driving behavior and mileage.

We plan to launch our value-added

Fly E-Bike Care program in the near future, which will function as an insurance policy to provide customers with continuous maintenance

services beyond the warranty period mentioned above.

This program will be designed to offer a wider range of coverage than the manufacturer

and battery warranties, including accidental damages caused by customers.

Additionally, we intend to add a “Fly E-Bike Care”

feature to our app, which will send maintenance reminders to users based on their driving behavior and mileage.

Manufacturing and Assembly

We source a significant portion of our vehicle

components from China and the United States.

For the years ended March 31, 2024 and 2023, over 50% and 40% of the parts were

sourced from China, respectively.

For the year ended March 31, 2024 and 2023, we sourced over 40% and over 50% of our vehicle components

from the United States, respectively.

Although we rely on certain principal vendors in China and the United States for most

of our components, we believe there are multiple sources for each of our critical components.

To ensure a secure and reliable supply chain,

we have implemented a centralized vendor management system that consolidates all vendor management activities under a centralized team.

This approach enables us to streamline our purchasing process, enhance our negotiating power and maintain better relationships with our

We are currently working with three principal vendors, Depcl Corp.(previously

known as Fly Wing E-Bike Inc.), Xiamen Innolabs Technology Co., Ltd.

(“XFT”), and Anhui Ineo International Trading Co., Ltd.,

We source substantially all

of our vehicle components from China and the United States.

For the years ended March 31, 2025 and 2024, over 50% and 50%

of the parts were sourced from China, respectively.

For the year ended March 31, 2025 and 2024, we sourced over 40% and over 40%

of our vehicle components from the United States, respectively.

Although we rely on certain principal vendors in China and the United States

for most of our components, we believe there are multiple sources for each of our critical components.

To ensure a secure and reliable

supply chain, we have implemented a centralized vendor management system that consolidates all vendor management activities under a centralized

This approach enables us to streamline our purchasing process, enhance our negotiating power and maintain better relationships with

We are currently working with

two principal vendors, Xiamen Innolabs Technology Co., Ltd.

(“XFT”) and Depcl Corp.

(previously known as Fly Wing E-Bike Inc.),

each of which respectively supplied approximately 42% and 32% of our accessories and components during the year ended March 31, 2025.

During the year ended March 31, 2023, our top three principal vendors included Transpro US Inc., Anhui Ineo International Trading Co.,

and Depcl Corp, each of which respectively supplied approximately 33%, 21% and 12% accessories and components.

Our principal vendors

are responsible for sourcing all the parts used in our vehicles from various suppliers, and they also oversee the quality control process.

We maintain close relationships with our principal vendors to ensure that we have access to high-quality accessories and components for

our EVs at competitive prices and receive reliable and timely deliveries.

We work closely with them to improve our supply chain efficiency

and reduce costs.

Our centralized vendor management system also

helps us to manage risk more effectively by identifying potential risks and developing strategies to mitigate them.

Rather than dealing

with the original suppliers, we monitor the performance of our principal vendors, which enables us to quickly identify and address any

problems and manage the supply resources more efficiently.

Our system ensures each critical product component is supported by at least

three vendors, thereby minimizing the risk of supply chain disruptions.

This approach helps us to reduce the risk of supply chain disruptions,

which can have a significant impact on our business operations.

After importing the accessories and components,

we assemble them into our vehicles in a leased facility located in Brooklyn, New York.

For the year ended March 31, 2023, we

produced 2,039 E-motorcycles, 5,953 E-bikes and 2,279 E-scooters in this facility.

During the year ended March 31, 2024, our top three principal vendors included Depcl Corp, XFT, and Anhui Ineo International Trading

Co., Ltd., each of which respectively supplied approximately 36%, 21% and 13% accessories and components.

Our principal vendors are responsible

for sourcing all the parts used in our vehicles from various suppliers, and they also oversee the quality control process.

close relationships with our principal vendors to ensure that we have access to high-quality accessories and components for our EVs at

competitive prices and receive reliable and timely deliveries.

We work closely with them to improve our supply chain efficiency and reduce

Our centralized vendor management

system also helps us to manage risk more effectively by identifying potential risks and developing strategies to mitigate them.

than dealing with the original suppliers, we monitor the performance of our principal vendors, which enables us to quickly identify and

address any problems and manage the supply resources more efficiently.

Our system ensures each critical product component is supported

by at least three vendors, thereby minimizing the risk of supply chain disruptions.

This approach helps us to reduce the risk of supply

chain disruptions, which can have a significant impact on our business operations.

After importing the accessories

and components, we assemble them into our vehicles in a leased facility located in Maspeth, New York.

For the year ended March 31,

2025, we produced 4,595 E-motorcycles, 5,974 E-bikes and 1,557 E-scooters .

For the year ended March 31, 2024, we produced 8,390

E-motorcycles, 7,638 E-bikes and 3,171 E-scooters at the same facility.

In response to the increasing demand for our products, we are

currently looking to lease a larger assembling facility to replace our current facility in the near future.

E-motorcycles, 7,638 E-bikes and 3,171 E-scooters.

Quality Control

We believe that the quality of our products is

crucial to our continued growth.

We place great emphasis on quality control and have implemented stringent monitoring and quality control

systems to manage our operations.

the parts sourced from China, we rely on our one of our principal vendors in China, XFT, to monitor the factories responsible for manufacturing

these parts used in our vehicles.

We believe that the quality

of our products is crucial to our continued growth.

We place great emphasis on quality control and have implemented stringent monitoring

and quality control systems to manage our operations.

For the parts sourced from

China, we rely on our one of our principal vendors in China, XFT, to monitor the factories responsible for manufacturing these parts used

in our vehicles.

Its duties include the following:

14 unchanged sentences

to conduct random inspections on the products according to the corresponding standards of acceptable quality level.

We also source certain parts used in our vehicles

from the United States.

We also source certain parts

used in our vehicles from the United States.

For these parts, our U.S.

principal vendors and our quality control team perform quality control procedures

similar to those discussed above for our China-sourced parts.

This includes ensuring that the parts meet our quality standards and specifications,

as well as conducting regular factory audits and inspections to identify any potential issues, and ensure ongoing compliance with our

requirements.

We have not experienced any significant product

recall, refunds or other quality control outbreak since we commenced operations.

principal vendors and our quality control team perform

quality control procedures similar to those discussed above for our China-sourced parts.

This includes ensuring that the parts meet our

quality standards and specifications, as well as conducting regular factory audits and inspections to identify any potential issues, and

ensure ongoing compliance with our requirements.

We have not experienced any

significant product recall, refunds or other quality control outbreak since we commenced operations.

Sales and Marketing

We have established an omnichannel retail model network to sell our

products and provide services to our customers.

We currently operate 39 retail stores and work with 80 distributors in the United States

to sell our products.

We have established an omnichannel

retail model network to sell our products and provide services to our customers.

We currently operate 20 retail stores and work with 85

distributors in the United States to sell our products.

In addition, we have our own online store where we promote and sell our products.

Our Fly E-Bike app, which is under

development, can also become a venue where we can advertise our products.

We also leverage our omnichannel retail network to deliver maintenance

and repair services at our retail stores and to collect data for business insights.

We focus on promoting awareness of our brand as

a lifestyle brand with high-quality smart E-bikes, E-motorcycles and E-scooters.

Our brand and products are marketed to retail customers

through digital and experiential activities as well as through more traditional promotional and advertising activities.

We aim to engage

in cost-effective marketing activities by taking advantage of social media and to build an online and offline ecosystem of users that

will promote awareness of our brand.

One key component of our strategy is to expand

our presence on social media platforms.

We currently have accounts on Facebook, Instagram, TikTok and WeChat, on which we frequently post

guides, videos and tutorials that educate people on how to use and maintain E-bikes, E-scooters and E-motorcycles, as well as benefits

of E-mobility.

In terms of offline marketing, we prioritize in-store

promotions and targeted advertising.

This includes offering discounts and special deals in our retail stores, as well as using targeted

advertising to reach potential customers who are likely to be interested in our products.

We also place ads in local newspapers and magazines

and distribute flyers on the streets to promote the opening of new stores.

Additionally, our products have gained significant visibility

among food delivery workers in New York City, who make up the majority of our customer base.

The increasing trend of people ordering

food delivery, particularly during and after the COVID-19 lockdown, has contributed to the widespread visibility of our products in the

Our Fly E-Bike app, which is under development, can also become a venue where we can advertise our products.

We also leverage our omnichannel

retail network to deliver maintenance and repair services at our retail stores and to collect data for business insights.

We focus on promoting awareness

of our brand as a lifestyle brand with high-quality smart E-bikes, E-motorcycles and E-scooters.

Our brand and products are marketed to

retail customers through digital and experiential activities as well as through more traditional promotional and advertising activities.

We aim to engage in cost-effective marketing activities by taking advantage of social media and to build an online and offline ecosystem

of users that will promote awareness of our brand.

One key component of our strategy

is to expand our presence on social media platforms.

We currently have accounts on Facebook, Instagram, TikTok, Xiaohongshu (Rednote),

and WeChat, on which we frequently post guides, videos and tutorials that educate people on how to use and maintain E-bikes, E-scooters

and E-motorcycles, as well as benefits of E-mobility.

In terms of offline marketing,

we prioritize in-store promotions and targeted advertising.

This includes offering discounts and special deals in our retail stores, as

well as using targeted advertising to reach potential customers who are likely to be interested in our products.

We also place ads in

local newspapers and magazines and distribute flyers on the streets to promote the opening of new stores.

Additionally, our products have

gained significant visibility among food delivery workers in New York City, who make up the majority of our customer base.

The increasing

trend of people ordering food delivery, particularly during and after the COVID-19 lockdown, has contributed to the widespread visibility

of our products in the cities.

Our Distribution Channels

Retail Distribution Network

Our sales are conducted through both retail stores

and distributors.

Out of our 39 retail stores in the United States,

28 are situated in New York, while four are in New Jersey, two in Florida, two in Texas, one in California and one in Washington,

Our sales are conducted through

both retail stores and distributors.

Out of our 20 retail stores

in the United States, nine are situated in New York, while four are in New Jersey, two in Florida, one in Maryland, one in Massachusetts,

one in California and one in Washington, D.C.

We also operate one retail store in Canada.

Our retail stores adopt a consistent design and layout and provide a consistent shopping

We closely monitor the sales performance, service level and activities within our retail stores.

We will continue to collect

store operation data such as consumer traffic flow and traffic flow sources, test drive frequencies and sales conversion rate.

This information

helps us adjust store-specific retailing and marketing strategies, thereby increasing per store sales.

In terms of our distributors, most of them are

located in the United States.

Our distributors purchase products from us at a wholesale price, and are responsible for the logistics,

warehousing and distribution to other retail stores.

Our retail stores adopt a consistent design

and layout and provide a consistent shopping experience.

We closely monitor the sales performance, service level and activities within

our retail stores.

We will continue to collect store operation data such as consumer traffic flow and traffic flow sources, test drive

frequencies and sales conversion rate.

This information helps us adjust store-specific retailing and marketing strategies, thereby increasing

per store sales.

In terms of our distributors,

most of them are located in the United States.

Our distributors purchase products from us at a wholesale price, and are responsible

for the logistics, warehousing and distribution to other retail stores.

We do not charge any initial fees or continuing fees to our distributors.

of our distributors make full payments upfront for their orders, which helps us improve cash flow management.

We intend to expand our overseas market and are

currently working with one distributor in the Dominican Republic.

The majority of our distributors make full payments upfront for their orders, which helps us improve cash flow management.

We intend to expand our overseas

market and are currently working with one distributor in the Dominican Republic.

Online Distribution Network

All of our products can be purchased on our website, flyebike.com.

All of our products can be

purchased on our website, flyebike.com.

In addition, we plan to open a second online store focusing on selling gas bikes in the future.

We have adopted an online to offline model that

enables us to seamlessly integrate the online and offline networks to provide a cohesive and consistent experience to our customers.

online platform acts as a conduit for influencing customers and directing sales to our retail stores.

Our customers can conveniently place

orders online and pick up their products at our retail stores.

We have adopted an online to

offline model that enables us to seamlessly integrate the online and offline networks to provide a cohesive and consistent experience

to our customers.

The online platform acts as a conduit for influencing customers and directing sales to our retail stores.

Our customers

acquire customers through multiple channels, including (i) referrals from our existing customers, (ii) our distributors, and

(iii) our marketing and promotional activities.

Due to our strong brand image, loyal customer base and evolving product portfolio,

we believe there are significant growth opportunities across these channels.

No customers account for more than 10% of our revenues for

the years ended March 31, 2024 and 2023.

can conveniently place orders online and pick up their products at our retail stores.

Our Customers

We acquire customers through

multiple channels, including (i) referrals from our existing customers, (ii) our distributors, and (iii) our marketing

and promotional activities.

Due to our strong brand image, loyal customer base and evolving product portfolio, we believe there are significant

growth opportunities across these channels.

No customers account for more than 10% of our revenues for the years ended March 31,

2025 and 2024.

The majority of our customers are food delivery workers in New York City.

group constitutes approximately 70% and 70% of our customer base

for the year ended March 31, 2023 and 2024, respectively.

This group constitutes approximately 72%

and 70% of our customer base for the year ended March 31, 2025 and 2024, respectively.

Environmental Matters

We are subject to federal, state and local environmental

laws and regulations that impose limitations on the discharge of pollutants into the environment and establish standards for the handling,

generation, emission, release, discharge, treatment, storage and disposal of certain materials, substances and wastes and the remediation

of environmental contaminants (collectively, “Environmental Laws”).

In the ordinary course of our assembling processes, we

may use materials or generate waste that are subject to these Environmental Laws.

We endeavor to adhere to all applicable Environmental

Laws and act as necessary to comply with these laws.

We are subject to federal,

state and local environmental laws and regulations that impose limitations on the discharge of pollutants into the environment and establish

standards for the handling, generation, emission, release, discharge, treatment, storage and disposal of certain materials, substances

and wastes and the remediation of environmental contaminants (collectively, “Environmental Laws”).

In the ordinary course

of our assembling processes, we may use materials or generate waste that are subject to these Environmental Laws.

We endeavor to adhere to all

applicable Environmental Laws and act as necessary to comply with these laws.

We maintain an environmental and safety program at our facilities.

The environmental

and safety program includes obtaining environmental permits as required, capturing and appropriately disposing of any waste by-products,

tracking hazardous waste generation and disposal, air emissions, safety situations, material safety data sheet management, storm water

management and recycling, and auditing and reporting on its compliance.

The environmental and safety program includes obtaining environmental permits as required, capturing and appropriately disposing of any

waste by-products, tracking hazardous waste generation and disposal, air emissions, safety situations, material safety data sheet management,

storm water management and recycling, and auditing and reporting on its compliance.

Intellectual Property

We currently hold one trademark in the United

States, which covers our logo.

We also hold four trademarks in China, which cover the names “FLY E-BIKE”, “FLY EBIKE”,

“FLYEBIKE” and our logo.

Additionally, we have two trademarks in the Dominican Republic covering the name “FLY E-BIKE”

and our logo, and one trademark in Panama covering the name “FLY E-BIKE”.

All these trademarks are effective from 2022 to

In addition, we have applied for trademark rights for the name “FLY E-BIKE” in Canada, and the application is currently

Other than the trademarks mentioned above, we

do not own any patents, copyrights or other intellectual property registrations in the United States.

We plan to seek further intellectual

property registrations in the United States in the future.

We currently also seek to protect our trade secrets and other proprietary

information through common law copyright and trademark principles.

There are numerous companies that sell E-bikes,

E-motorcycles and E-scooters in the United States and even more globally.

The markets for EVs are highly competitive based on a number

of factors, including innovation, performance, price, technology, product features, styling, fit and finish, brand recognition, quality

and distribution.

We believe our ability to compete successfully in these markets depends on our ability to capitalize on our competitive

strengths and build brand recognition.

Many companies, which have greater financial and

marketing resources than us, make electric two-wheelers, including Trek Bicycle Corporation, Specialized Bicycle Components, Inc., Specialized

Bicycle Components, Inc.

We currently hold one trademark

in the United States, which covers our logo.

We also hold four trademarks in China, which cover the names “FLY E-BIKE”,

“FLY EBIKE”, “FLYEBIKE” and our logo.

Additionally, we have two trademarks in the Dominican Republic covering

the name “FLY E-BIKE” and our logo, and one trademark in Panama covering the name “FLY E-BIKE”.

All these trademarks

are effective from 2022 to 2033.

Other than the trademarks mentioned

above, we do not own any patents, copyrights or other intellectual property registrations in the United States.

We plan to seek further

intellectual property registrations in the United States in the future.

We currently also seek to protect our trade secrets and other

proprietary information through common law copyright and trademark principles.

There are numerous companies

that sell E-bikes, E-motorcycles and E-scooters in the United States and even more globally.

The markets for EVs are highly competitive

based on a number of factors, including innovation, performance, price, technology, product features, styling, fit and finish, brand recognition,

quality and distribution.

We believe our ability to compete successfully in these markets depends on our ability to capitalize on our

competitive strengths and build brand recognition.

Many companies, which have

greater financial and marketing resources than us, make electric two-wheelers, including Trek Bicycle Corporation, Specialized Bicycle

Components, Inc., Specialized Bicycle Components, Inc.

and Rad Power Bikes Inc.

While we believe we are well positioned in this competitive market, there is no assurance

that our vehicles will be successful in the respective markets in which they compete.

See “ Item 1A.

Risk Factors — Risks

Related to the Company’s Business, Operations, and Industry — The markets in which we operate are in their infancy

and highly competitive, and we may not be successful in competing in this industry .”

We are subject to a wide variety of laws and regulations

in the United States.

These laws and regulations govern various items directly or indirectly related to our business, such as labor

and employment, anti-discrimination, product liability, vehicle defects, vehicle maintenance and repairs, personal injury, rider text

messaging, service payments, consumer protection, taxation, privacy, data security, intellectual property, competition, terms of service,

mobile application accessibility, insurance, money transmittal, and environmental, health and safety.

They are often complex and subject

to varying interpretations, in many cases due to their lack of specificity.

As a result, their application in practice may change or develop

over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing bodies, such as federal,

state, and local administrative agencies.

The micromobility industry is relatively nascent

and rapidly evolving.

New laws and regulations continue to be adopted, implemented, interpreted and iterated upon in response to our growing

industry and associated technology.

As we expand our business into new markets or introduce new offerings into existing markets, regulatory

bodies or courts may claim that (i) we are subject to additional requirements or (ii) we are prohibited from conducting our

business in certain jurisdictions.

Our products may also be subject to various environmental,

health, and safety regulations, including, but not limited to, those regarding product safety and waste management.

For example, we are

subject to environmental laws and regulations regarding the handling and disposal of hazardous substances and solid wastes, including

electronic wastes and batteries.

These laws regulate the generation, storage, treatment, transportation and disposal of solid and hazardous

waste, and may impose strict, joint and several liability for the investigation and remediation of areas where hazardous substances may

have been released or disposed.

For instance, the Comprehensive Environmental Response, Compensation and Liability Act of 1980,

as amended (“CERCLA”) and comparable state laws impose liability, without regard to fault or the legality of the original

conduct, on certain classes of persons that contributed to the release of a hazardous substance into the environment.

These persons include

current and prior owners or operators of the site where the release of the hazardous substance occurred as well as companies that disposed

or arranged for the disposal of hazardous substances found at the site.

Under CERCLA, these persons may be subject to joint and several

strict liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural

resources, and for the costs of certain health studies.

CERCLA also authorizes the Environmental Protection Agency (“EPA”)

and, in some instances, third parties to act in response to threats to the public health or the environment and seek to recover costs

incurred from the responsible classes of persons.

In the course of ordinary operations, we, through third parties and contractors, may

handle hazardous substances within the meaning of CERCLA and similar state statutes and, as a result, may be jointly and severally liable

for all or part of the costs required to clean up sites at which these hazardous substances have been released into the environment.

We may also be subject to the Resource Conservation

and Recovery Act (“RCRA”) and comparable state statutes for the generation, storage, or disposal of solid wastes, which may

include hazardous wastes.

RCRA regulates both solid and hazardous wastes, but, in particular, imposes strict requirements on the generation,

storage, treatment, transportation and disposal of hazardous wastes.

In addition, federal and state laws may require or otherwise regulate

the reuse and recycling of batteries, including lead-acid and lithium-ion batteries, used in our products.

Certain of our products are also regulated by

While we believe we are well positioned in this competitive

market, there is no assurance that our vehicles will be successful in the respective markets in which they compete.

Risk Factors — Risks Related to the Company’s Business, Operations, and Industry — The markets in

which we operate are in their infancy and highly competitive, and we may not be successful in competing in this industry .”

We are subject to a wide variety

of laws and regulations in the United States.

These laws and regulations govern various items directly or indirectly related to our

business, such as labor and employment, anti-discrimination, product liability, vehicle defects, vehicle maintenance and repairs, personal

injury, rider text messaging, service payments, consumer protection, taxation, privacy, data security, intellectual property, competition,

They are often

complex and subject to varying interpretations, in many cases due to their lack of specificity.

As a result, their application in practice

may change or develop over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing

bodies, such as federal, state, and local administrative agencies.

The micromobility industry

is relatively nascent and rapidly evolving.

New laws and regulations continue to be adopted, implemented, interpreted and iterated upon

in response to our growing industry and associated technology.

As we expand our business into new markets or introduce new offerings into

existing markets, regulatory bodies or courts may claim that (i) we are subject to additional requirements or (ii) we are prohibited

from conducting our business in certain jurisdictions.

Our products may also be subject

to various environmental, health, and safety regulations, including, but not limited to, those regarding product safety and waste management.

For example, we are subject to environmental laws and regulations regarding the handling and disposal of hazardous substances and solid

wastes, including electronic wastes and batteries.

These laws regulate the generation, storage, treatment, transportation and disposal

of solid and hazardous waste, and may impose strict, joint and several liability for the investigation and remediation of areas where

hazardous substances may have been released or disposed.

For instance, the Comprehensive Environmental Response, Compensation and Liability

Act of 1980, as amended (“CERCLA”) and comparable state laws impose liability, without regard to fault or the legality

of the original conduct, on certain classes of persons that contributed to the release of a hazardous substance into the environment.

These persons include current and prior owners or operators of the site where the release of the hazardous substance occurred as well

as companies that disposed or arranged for the disposal of hazardous substances found at the site.

Under CERCLA, these persons may be

subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment,

for damages to natural resources, and for the costs of certain health studies.

CERCLA also authorizes the Environmental Protection Agency

(“EPA”) and, in some instances, third parties to act in response to threats to the public health or the environment and seek

to recover costs incurred from the responsible classes of persons.

In the course of ordinary operations, we, through third parties and

contractors, may handle hazardous substances within the meaning of CERCLA and similar state statutes and, as a result, may be jointly

and severally liable for all or part of the costs required to clean up sites at which these hazardous substances have been released into

the environment.

We may also be subject to the

Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes for the generation, storage, or disposal of

solid wastes, which may include hazardous wastes.

RCRA regulates both solid and hazardous wastes, but, in particular, imposes strict requirements

on the generation, storage, treatment, transportation and disposal of hazardous wastes.

In addition, federal and state laws may require

or otherwise regulate the reuse and recycling of batteries, including lead-acid and lithium-ion batteries, used in our products.

Certain of our products are

also regulated by the U.S.

Consumer Product Safety Commission (“CPSC”) pursuant to various federal laws.

CPSC can require the manufacturer

of products containing a safety defect to recall or repurchase such products and may also impose fines or penalties on the manufacturer.

CPSC can require

the manufacturer of products containing a safety defect to recall or repurchase such products and may also impose fines or penalties on

the manufacturer.

Similar laws exist in some states, cities, and other countries in which we sell our products.

Certain of our products are also regulated by

the National Highway Traffic Safety Administration (“NHTSA”) pursuant to various federal laws and regulations.

NHTSA can require

the manufacturer of motor vehicles or motor vehicle equipment containing a safety defect to recall or repurchase such products and may

also impose fines or penalties on the manufacturer.

Certain of our products are also regulated by EPA, and the California Air Resources

Board (“CARB”) for products sold in California.

EPA and CARB can require the manufacturer to recall or repurchase vehicles

that are uncertified or that contain an emission-related defect and may also impose fines or penalties on the manufacturer.

In addition, some of our products may be subject

to local laws and regulations.

For instance, in March 2023, the New York City Council amended its administrative code to require

that all powered bicycles, powered mobility devices including electric scooters, and storage batteries for such mobility devices distributed,

sold, leased, rented, or offered for sale, lease, or rental in New York City must be certified as compliant with the applicable Underwriter

Laboratories (UL) standard, which is a widely recognized standard for safety in electrical products in the United States.

became effective in September 2023.

Additionally, because we receive, use, transmit,

disclose, and store personally identifiable information and other data relating to users on our platform, we are subject to numerous local,

municipal, state, federal, and international laws and regulations that address privacy, data protection, and the collection, storing,

sharing, use, transfer, disclosure, and protection of certain types of data.

Such regulations include the Controlling the Assault of Non-Solicited

Pornography and Marketing Act, the Telephone Consumer Protection Act of 1991, the U.S.

Federal Health Insurance Portability

and Accountability Act of 1996 and Section 5(a) of the Federal Trade Commission Act of 1914.

We plan to sell and distribute our vehicles internationally

through international distributors.

As such, we will be subject to the local laws of each jurisdiction in which we sell our vehicles.

These regulations may result in increased costs and expenses, which may materially and adversely affect our business, results of operations

or financial condition.

As of June 27, 2024, we had 84 employees, consisting

of 57 full-time employees and 27 part-time employees.

Our employees are not represented by a labor organization

or covered by a collective bargaining agreement.

We believe that we maintain a good working relationship with our employees and to date,

we have not experienced any significant labor disputes.

In 2025, the CPSC proposed

regulations concerning lithium-ion battery safety in micromobility devices.

While the rulemaking was later withdrawn, this development

indicates a continued focus on the safety and thermal integrity of battery systems used in electric bikes and scooters, and may result

in future mandatory standards.

In April 2025, the House of Representatives passed H.R.

973, the “Setting Consumer Standards for

Lithium-Ion Batteries Act.” If passed by the Senate, the act would give the CPSC 180 days to promulgate micromobility regulations.

Additionally, in January 2025,

the National Park Service (NPS) issued a proposed rule to restrict the operation of powered micromobility devices within federal parks

to designated routes and signed zones.

If finalized, this rule may limit where our vehicles can operate and require updated operational

compliance within park-adjacent jurisdictions.

Certain of our products are

also regulated by the National Highway Traffic Safety Administration (“NHTSA”) pursuant to various federal laws and regulations.

NHTSA can require the manufacturer of motor vehicles or motor vehicle equipment containing a safety defect to recall or repurchase such

products and may also impose fines or penalties on the manufacturer.

Certain of our products are also regulated by EPA, and the California

Air Resources Board (“CARB”) for products sold in California.

EPA and CARB can require the manufacturer to recall or repurchase

vehicles that are uncertified or that contain an emission-related defect and may also impose fines or penalties on the manufacturer.

In addition, some of our products

may be subject to local laws and regulations.

For instance, in March 2023, the New York City Council amended its administrative

code to require that all powered bicycles, powered mobility devices including electric scooters, and storage batteries for such mobility

devices distributed, sold, leased, rented, or offered for sale, lease, or rental in New York City must be certified as compliant

with the applicable Underwriter Laboratories (UL) standard, which is a widely recognized standard for safety in electrical products in

the United States.

The law became effective in September 2023.

In 2024 and 2025, New York City and New York State introduced

additional laws and enforcement mechanisms addressing the safety of micromobility devices.

These include operating manual requirements,

mandatory in-store safety disclosures, increased FDNY enforcement authority, and penalties for sales of uncertified or modified batteries.

New York City also launched a sidewalk battery charging cabinet program in spring 2025 and is considering legislation that would require

registration and license plates for e-bikes and e-scooters.

Additionally, because we receive,

use, transmit, disclose, and store personally identifiable information and other data relating to users on our platform, we are subject

to numerous local, municipal, state, federal, and international laws and regulations that address privacy, data protection, and the collection,

storing, sharing, use, transfer, disclosure, and protection of certain types of data.

Such regulations include the Controlling the Assault

of Non-Solicited Pornography and Marketing Act, the Telephone Consumer Protection Act of 1991, the U.S.

Federal Health

Insurance Portability and Accountability Act of 1996 and Section 5(a) of the Federal Trade Commission Act of 1914.

We sell and distribute our

vehicles internationally through international distributors.

As such, we will be subject to the local laws of each jurisdiction in which

we sell our vehicles.

These regulations may result in increased costs and expenses, which may materially and adversely affect our business,

results of operations or financial condition.

As of July 15, 2025, we had

64 employees, consisting of 35 full-time employees and 29 part-time employees.

Our employees are not represented

by a labor organization or covered by a collective bargaining agreement.

We believe that we maintain a good working relationship with

our employees and to date, we have not experienced any significant labor disputes.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business