Fly-E Group, Inc.: In-Depth Corporate Profile

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Quick Facts / Company Snapshot

Data Point	Disclosed Information
Official Corporate Name	Fly-E Group, Inc.
Stock Exchange & Ticker	The Nasdaq Capital Market: FLYE
CUSIP Number	343927307
SEC Commission File Number	001-42122
State of Incorporation	Delaware (Incorporated on November 1, 2022)
I.R.S. Employer Identification No.	92-0981080
Principal Executive Headquarters	136-40 39th Avenue, Suite 202, Flushing, New York 11354
Company Contact Phone	(929) 410-2770
Primary Brand Name	Fly E-Bike
Founder & Chief Executive Officer	Zhou Ou
Director & Chief Financial Officer	Lisa Fan
Independent Registered Public Accounting Firm	Fortune CPA, Inc. (Appointed March 6, 2026)
Fiscal Year 2026 Net Revenues	$19,063,357
Fiscal Year 2026 Net Loss	$(9,257,808)
Fiscal Year 2026 EBITDA	$(6,293,512)
Total Consolidated Assets (March 31, 2026)	$29,493,092
Total Stockholders’ Equity (March 31, 2026)	$17,442,404
Common Stock Issued & Outstanding (as of July 23, 2026)	1,632,386 shares
Total Full-Time Employee Count (as of July 23, 2026)	12 employees
Active Directly Operated Retail Footprint	4 stores across NY, MA, CA, and Washington D.C.

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Company Overview

Fly-E Group, Inc. is an electric vehicle (EV) enterprise principally engaged in designing, installing, selling, and renting smart electric motorcycles (“E-motorcycles”), electric bicycles (“E-bikes”), electric scooters (“E-scooters”), and related accessories under the proprietary brand name “Fly E-Bike”. The company’s declared business mission centers on encouraging riders to incorporate eco-friendly transportation into active lifestyles to foster an environmentally friendly urban future.

The enterprise traces its beginnings to 2018, when its first physical retail store was opened in New York City. From inception through mid-2024, the business expanded rapidly, establishing itself as a primary supplier of electric two-wheelers for urban gig-economy and food delivery workers in the New York metropolitan area.

• Founded in 2018, the company built its early operational base directly around the high-density delivery ecosystems of New York City.
• 4 company-operated retail stores were active as of July 23, 2026, located in New York, Massachusetts, California, and Washington, D.C..
• 64 independent distributors across the United States formed the company’s domestic wholesale network.
• A centralized vehicle assembly plant encompassing 52,264 square feet operates in Maspeth, New York.
• Net revenues totaled $19,063,357 for the fiscal year ended March 31, 2026, representing a 25.0% decline from the previous fiscal year.

The business targets urban short-distance travel scenarios by engineering electric micro-mobility hardware with integrated safety, extended battery capacity, and commercial utility. In response to strict regional safety laws and shifting customer requirements, Fly-E Group also developed a smart rental division and an app-enabled battery swap infrastructure.

During fiscal year 2026, Fly-E Group underwent substantial corporate restructuring. In order to reduce corporate overhead, streamline internal financial reporting, and navigate market headwinds following lithium-ion battery safety concerns in New York, the company closed 8 direct stores and divested 24 retail subsidiary entities to third-party operators. This shift transitioned the business model heavily toward wholesale distribution while maintaining a compact core of flagship retail and rental locations.

Business Segments

Fly-E Group, Inc. manages its corporate operations as a single reportable operating segment under U.S. GAAP (ASC 280), as its Chief Operating Decision Maker (the Chief Executive Officer and direct reports) evaluates resource allocation and organizational performance on a consolidated basis. However, the company disaggregates its revenues into three distinct operational revenue streams: Wholesale Sales, Retail Sales, and Rental Services.

Revenue Contribution by Business Stream

Business Revenue Stream	FY 2026 Revenue (USD)	FY 2026 % of Total Revenue	FY 2025 Revenue (USD)	FY 2025 % of Total Revenue	Year-over-Year Change (%)
Wholesale Sales	$11,560,343	60.64% (Calculated by FirmsWorld)	$3,529,479	13.88% (Calculated by FirmsWorld)	+227.5%
Retail Sales	$6,922,972	36.32% (Calculated by FirmsWorld)	$21,725,817	85.44% (Calculated by FirmsWorld)	(68.1)%
Rental Services	$580,042	3.04% (Calculated by FirmsWorld)	$171,867	0.68% (Calculated by FirmsWorld)	+237.5%
Total Net Revenues	$19,063,357	100.00%	$25,427,163	100.00%	(25.0)%

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

                FY 2026 NET REVENUE BREAKDOWN
                
  Wholesale Sales       [████████████████████████████████] 60.64% ($11.56M)
  Retail Sales          [██████████████████] 36.32% ($6.92M)
  Rental Services       [██] 3.04% ($0.58M)

Wholesale Sales Division

The Wholesale Sales division generates revenue through bulk vehicle and component sales to third-party distributors and independently owned retail locations. In fiscal year 2026, wholesale operations became Fly-E Group’s largest revenue contributor, generating $11,560,343 (60.64% of net revenues), compared to $3,529,479 (13.88% of net revenues) in fiscal year 2025.

• 227.5% revenue growth was achieved year-over-year in the wholesale channel.
• Purchases from divested store entities served as the primary growth driver, as formerly owned retail locations continued sourcing inventory under wholesale supply contracts.
• 64 domestic distributors actively purchased vehicles and accessories on a wholesale basis across the United States.
• Upfront cash terms characterize the majority of distributor arrangements, with distributors paying in full prior to delivery, assisting the company’s cash flow management.

Under this commercial model, distributors acquire vehicles at wholesale pricing tiers and manage their own local logistics, storage, and customer distribution. Fly-E Group does not charge upfront franchise fees or ongoing distributor licensing fees.

Retail Sales Division

The Retail Sales division comprises direct consumer transactions conducted across the company’s remaining corporate flagship stores and via its official e-commerce platform at flyebike.com. For the fiscal year ended March 31, 2026, retail sales generated $6,922,972 (36.32% of total revenues), reflecting a sharp 68.1% decline from $21,725,817 (85.44% of total revenues) in fiscal year 2025.

• 68.1% drop in direct retail revenue resulted from corporate store closures and divestitures.
• Safety concerns around lithium-ion batteries in New York led some consumers to delay purchases or seek alternative transit during the fiscal year.
• Price reductions were enacted across direct retail channels to clear aged inventory and adapt to soft consumer sentiment.
• Omnichannel integration allows online shoppers on flyebike.com to inspect products digitally and pick up assembled vehicles at corporate brick-and-mortar storefronts.

Rental Services Division

Launched in October 2024, the Rental Services division offers short-term and flexible micro-mobility rentals to urban riders, particularly commercial delivery couriers. In fiscal year 2026, rental services generated $580,042 (3.04% of net revenues), up 237.5% from $171,867 (0.68% of net revenues) generated during its initial operating period in fiscal year 2025.

• Available in New York City and Los Angeles, the rental system utilizes both physical Fly E-Bike storefronts and the dedicated mobile software application “Go Fly”.
• Flexible rental terms span from one hour to one month, addressing couriers who require compliant equipment without upfront capital outlay.
• Operating lease classification (ASC 842) is applied to rental contracts, recognizing revenue over the active lease duration.
• UL-certified e-bikes are deployed to satisfy strict safety regulations mandated across New York municipal codes.

History and Evolution

Fly-E Group’s commercial origins date back to 2018 in Flushing, New York, where founder Zhou Ou established a business centered on electric two-wheelers tailored to the growing urban delivery workforce. The enterprise operated initially under Ctate Inc., a New York corporation. As delivery logistics expanded across New York City—accelerated substantially by pandemic-era delivery demand in 2020 and 2021—Ctate expanded by establishing individual operating companies for each retail storefront.

  2018           Sept 2022        Dec 2022         June 2024        FY 2025-2026
┌─────────────┐  ┌─────────────┐  ┌─────────────┐  ┌─────────────┐  ┌───────────────┐
│ Ctate Inc.  │─▶│ Merger into │─▶│ Share       │─▶│ Nasdaq IPO  │─▶│ Restructuring │
│ First Store │  │ Fly E-Bike  │  │ Exchange    │  │ ($9.2M Net) │  │ & Divestiture │
│ in New York │  │ Delaware    │  │ (Fly-E Grp) │  │ Symbol:FLYE │  │ of 24 Stores  │
└─────────────┘  └─────────────┘  └─────────────┘  └─────────────┘  └───────────────┘

• August 22, 2022: Fly E-Bike, Inc. was incorporated under Delaware law as a wholly owned subsidiary of Ctate Inc..
• September 12, 2022: Ctate Inc. executed an Agreement and Plan of Merger with Fly E-Bike, Inc., with Fly E-Bike, Inc. surviving as the operating parent entity.
• November 1, 2022: Fly-E Group, Inc. was formed as a Delaware holding corporation, alongside Fly EV, Inc..
• December 21, 2022: A Share Exchange Agreement was completed, whereby Fly-E Group, Inc. acquired 100% of Fly E-Bike, Inc. shares on a 1-for-1 basis, establishing the current holding corporate structure.
• April 2024: The company implemented a 1-for-110,000 forward stock split of authorized and issued common stock, expanding authorized common shares to 44,000,000.
• June 7, 2024: Fly-E Group, Inc. completed its Initial Public Offering (IPO) on the Nasdaq Capital Market under the ticker symbol FLYE, selling 22,500 common shares at $400.00 per share (post-reverse-split adjusted).
• June 25, 2024: Underwriters fully exercised their over-allotment option for 3,375 additional common shares, lifting total net IPO proceeds to approximately $9.2 million.
• August 5, 2024: Secured a $5.0 million revolving credit facility from Peapack-Gladstone Bank to fund operations and inventory.
• October 2024: Officially deployed the “Go Fly” micro-mobility rental division in New York City and Los Angeles.
• March–October 2025: To maintain Nasdaq minimum bid compliance and reorganize equity capital, stockholders and the board approved two successive reverse stock splits: a 1-for-5 split effective July 3, 2025, and a 1-for-20 split effective November 4, 2025.
• Fiscal Year 2026: Executed a comprehensive restructuring program involving the closure of 8 unprofitable stores and the sale of 24 retail subsidiaries to third parties for $2.3 million in aggregate consideration, reorienting the company toward wholesale distribution.

Products and Services

Fly-E Group maintains an expansive vehicle catalog across three primary categories: Electric Motorcycles (E-motorcycles), Electric Bicycles (E-bikes), and Electric Scooters (E-scooters), supported by aftermarket components, maintenance, and rental solutions. As of July 23, 2026, the company offered 102 distinct EV vehicle models across its catalog.

Vehicle & Service Line Revenue Disaggregation

Category / Product Stream	Disclosed Specifications / Models	FY 2026 Revenue Contribution	FY 2026 % of Total Net Revenue
Wholesale EV Hardware & Parts	102 EV models, spare components, batteries	$11,560,343	60.64% (Calculated by FirmsWorld)
Retail EV Hardware & Parts	27 E-motorcycles, 37 E-bikes, 38 E-scooters	$6,922,972	36.32% (Calculated by FirmsWorld)
Rental Services & App Solutions	“Go Fly” rental app, E-bike fleet rentals	$580,042	3.04% (Calculated by FirmsWorld)
Total Net Revenues	Comprehensive Product Portfolio	$19,063,357	100.00%

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Note: The company does not disaggregate net revenues by individual vehicle model or mechanical subclass in its Form 10-K filing; figures are reported by overarching distribution and service channels.

Electric Motorcycles (E-Motorcycles)

The E-motorcycle segment encompasses 27 active products configured into two structural styles: E-mopeds and E-tricycles. For the fiscal year ended March 31, 2026, the company assembled 2,714 E-motorcycles at its Maspeth facility, compared to 4,595 E-motorcycles assembled in fiscal year 2025.

E-Mopeds

The E-moped line comprises eight primary models, including the Fly-7, Fly-10, and Fly-Pro.

• Operating Range: 20 to 70 miles per single charge.
• Maximum Speed: 20 to 38 miles per hour.
• Payload Capacity: 185 to 400 pounds.
• Standard Hardware Features: Remote key fob, anti-theft alarm system, lockable under-seat storage compartment, front and rear hydraulic suspension, full lighting package, and USB phone charging ports.
• Drivetrain Design: Direct electric drivetrain requiring no mechanical clutch or manual gear shifting, paired with large-diameter tires and low seat heights for urban stability.

E-Tricycles

The Fly-Tricycle is a specialized three-wheel, three-passenger enclosed electric vehicle designed for cargo and passenger transport.

• Operating Range: 43 to 62 miles on a single charge.
• Top Speed: 30 miles per hour.
• Payload Rating: 1,239 pounds.
• Cabin Build: Crafted with automotive-grade structural materials for commercial durability.

Electric Bikes (E-Bikes)

The E-bike line consists of 37 models tailored for city commuting, delivery transport, and storage efficiency. During fiscal year 2026, Fly-E Group assembled 6,722 E-bikes, up from 5,974 E-bikes in fiscal year 2025.

City E-Bikes

Designed for short urban transit and delivery, the core City E-Bike features:

• Operating Range: 15 to 20 miles per charge.
• Top Speed: 20 miles per hour.
• Payload Rating: 200 pounds.
• Storage: Integrated under-seat cargo hold.

Foldable E-Bikes

Represented by models such as the Dolphin E-Bike and Air-2, these compact vehicles cater to apartment dwellers and multi-modal transit commuters.

• Operating Range: 20 to 25 miles per charge.
• Top Speed: 23 miles per hour.
• Payload Rating: 250 pounds.
• Design Advantage: Quick-folding structural aluminum/steel frames for compact storage.

Standard E-Bikes

Represented by models such as the Sword Fish E-Bike and Rhino, these feature lightweight diamond frames and multi-speed gear sets.

• Operating Range: 20 to 60 miles per charge.
• Top Speed: 15 to 32 miles per hour.
• Payload Rating: 180 to 250 pounds.

NYC DOT Trade-In Program Model (Fly-11 PRO)

In January 2025, the New York City Department of Transportation (NYC DOT) launched a $2.0 million trade-in program to replace uncertified, fire-hazardous micro-mobility devices. The Fly-11 PRO was officially selected by NYC DOT as a certified replacement model. Deliveries of the Fly-11 PRO to participating retail partners were completed between January and June 2025.

Electric Scooters (E-Scooters)

Fly-E Group offers 38 distinct stand-up and performance E-scooter models, led by the Insurgent E-Scooter, Flytron, H-Max, and H-1. During fiscal year 2026, the company assembled 1,830 E-scooters, compared to 1,557 E-scooters in fiscal year 2025.

• Operating Range: 15 to 45 miles on a single charge.
• Top Speed: 15 to 40 miles per hour.
• Payload Rating: 250 to 330 pounds.
• Braking Technology: Slotted hydraulic disc brakes fabricated from wear-resistant alloys, paired with regenerative electronic braking systems (EBS) to reclaim kinetic energy. Select high-speed models utilize Combined Braking Systems (CBS) to split front and rear disc force.

Accessories, Spare Parts, and Customization

The company markets branded accessories, riding gear, and replacement parts. Offerings include weather-resistant raincoats, protective gloves, knee guards, tail cargo boxes, front baskets, phone brackets, locks, and branded apparel. Performance upgrades include carbon fiber body panel kits, reinforced shock absorbers, high-performance brake calipers, and specialized alloy wheels. Traditional non-electric pedal bicycles are also sold.

After-Sales Repair and Maintenance Services

All corporate retail facilities operate dedicated service stations providing mechanical structure inspections, motor diagnostic checks, electrical wiring maintenance, battery health diagnostics, tire pressure calibration, bodywork repair, and GPS tracking hardware installation.

• Standard Manufacturer Warranty: 3-month limited warranty covering factory defects and cosmetic assembly flaws.
• Battery Warranty: 3-month limited warranty covering manufacturer defects in material and workmanship, offering free battery replacement upon failure verification.
• Warranty Reserve Balance: Accrued warranty liabilities totaled $51,418 as of March 31, 2026, compared to $20,131 as of March 31, 2025.

Go Fly & Smart Mobile App Ecosystem

The company operates the Go Fly rental app, delivered in September 2024, to manage user identification, rentals, and digital billing. In addition, Fly-E Group is developing the Fly E-Bike App, an intelligent mobile platform designed to integrate GPS navigation, remote anti-theft locking, real-time tire pressure tracking, and store locators.

Brand Portfolio

Fly-E Group commercializes its entire hardware lineup, service network, and retail software under the Fly E-Bike brand ecosystem.

Disclosed Brand Identifiers

Brand Name / Mark	Product Category Scope	Registered Jurisdictions	FY 2026 Revenue (USD)	FY 2026 % of Net Revenue
Fly E-Bike	E-bikes, E-motorcycles, E-scooters, Parts	United States, China, Dominican Republic, Panama	$19,063,357	100.00% (Calculated by FirmsWorld)
Go Fly	Micro-mobility software & rental services	United States (Proprietary software asset)	$580,042	3.04% (Calculated by FirmsWorld)

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Fly E-Bike

The core “Fly E-Bike” trademark serves as the consumer-facing umbrella for all retail and wholesale vehicles, components, and storefronts. The brand targets delivery workers and urban commuters by emphasizing durability, battery life, and rapid parts availability.

• United States: 1 registered trademark covering the corporate logo.
• China: 4 registered trademarks covering “FLY E-BIKE”, “FLY EBIKE”, “FLYEBIKE”, and the logo.
• Dominican Republic: 2 registered trademarks covering “FLY E-BIKE” and the logo.
• Panama: 1 registered trademark covering “FLY E-BIKE”.

Go Fly

The “Go Fly” brand designates the company’s rental and software ecosystem. Developed to address NYC fire safety codes, Go Fly provides flexible, certified micro-mobility subscriptions via mobile devices.

Geographical Presence

Fly-E Group conducts the vast majority of its business within the United States, with initial international wholesale activities in the Caribbean.

Disclosed Geographic Operations

Geographic Region / State	Operational Footprint Type	Direct Facilities / Distributors	Disclosed Financial Contribution
United States – New York	Corporate HQ, Maspeth Assembly Plant, Retail Store	Flushing HQ, Maspeth Plant, 1 Retail Store	Net revenues: $19,063,357 (Total US net revenue)
United States – Massachusetts	Direct Retail & Rental Storefront	1 Retail Store (Boston)	Not separately disclosed in the provided source.
United States – California	Direct Retail & Rental Storefront	1 Retail Store (Los Angeles)	Not separately disclosed in the provided source.
United States – Washington, D.C.	Direct Retail Storefront	1 Retail Store	Not separately disclosed in the provided source.
United States – Wholesale Network	Independent Wholesale Distribution	64 Independent Distributors	Wholesale Net Revenue: $11,560,343
International – Dominican Republic	Independent Overseas Distribution	1 Distributor (Fly E Bike SRL)	FY26 purchases: $nil ($42,010 in FY25)
International – Canada	Former Retail Operations (Toronto)	1 Store sold in FY 2026	CAD functional currency; entity disposed

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Note: The company does not break down revenue by individual U.S. state in its financial disclosures.

Regional Operational Profiles

New York Metropolitan Hub

New York serves as Fly-E Group’s corporate and operational core. The company owns its executive offices in Flushing, NY (encumbered by debt) and leases a 52,264-square-foot central assembly plant in Maspeth, NY. This facility receives imported knocked-down components and handles final vehicle assembly, quality inspection, and distribution.

National Retail & Wholesale Network

Beyond New York, the company operates single retail locations in Boston (Massachusetts), Los Angeles (California), and Washington, D.C., each functioning as consumer showrooms, service centers, and rental hubs. The domestic wholesale footprint is supported by 64 third-party distributors across the country.

International Markets

Fly-E Group has pursued entry into international markets with favorable electric mobility policies. The company maintains trademark registrations in Panama and the Dominican Republic, and works with an affiliated distributor, Fly E Bike SRL, in the Dominican Republic. Operations in Canada were divested during fiscal year 2026 with the sale of FLYTORONTO CORP.

Profit and Loss Analysis

For the fiscal year ended March 31, 2026, Fly-E Group generated $19,063,357 in net revenues, representing a 25.0% decrease compared to $25,427,163 in fiscal year 2025. This revenue reduction was driven by a decrease in unit volume from 58,765 units in FY 2025 to 42,101 units in FY 2026, alongside deliberate price reductions to liquidate aged inventory.

Gross profit dropped 55.4% to $4,659,074 in FY 2026 from $10,450,897 in FY 2025, with gross margin compressing from 41.1% to 24.4%. The 16.7 percentage point gross margin contraction reflected lower average selling prices, higher upstream procurement expenses, and a channel shift from high-margin direct retail sales toward lower-margin wholesale transactions.

Total operating expenses decreased 26.1% to $11,097,343 in FY 2026 from $15,010,863 in FY 2025. Selling expenses fell 53.0% to $3,478,740 due to retail store closures, while General and Administrative expenses remained flat at $7,618,603 (+0.1%) due to $1.9 million in inventory clearance write-downs and $0.6 million in ERP software impairment charges. Net loss expanded 75.0% to $(9,257,808).

Consolidated Statements of Operations

Financial Metric (in USD)	FY Ended March 31, 2026	FY Ended March 31, 2025	YoY Change ($)	YoY Change (%)
Retail Sales Revenue	$6,922,972	$21,725,817	$(14,802,844)	(68.1)%
Wholesale Sales Revenue	$11,560,343	$3,529,479	$8,030,863	+227.5%
Rental Services Revenue	$580,042	$171,867	$408,175	+237.5%
Total Net Revenues	$19,063,357	$25,427,163 \vert{} $(6,363,806)	(25.0)%
Cost of Revenues	$(14,404,283) \vert{}$(14,976,266)	$571,983	(3.8)%
Gross Profit	$4,659,074	$10,450,897 \vert{} $(5,791,823)	(55.4)%
Gross Margin (%)	24.4%	41.1%	—	(16.7)% pts
Selling Expenses	$(3,478,740) \vert{}$(7,403,374)	$3,924,634	(53.0)%
General & Administrative Expenses	$(7,618,603) \vert{}$(7,607,489)	$(11,114)	+0.1%
Total Operating Expenses	$(11,097,343) \vert{} $(15,010,863)	$3,913,520	(26.1)%
Loss from Operations	$(6,438,269)	$(4,559,966) \vert{} $(1,878,303)	+41.2%
Operating Margin (%)	(33.8)% (Calculated by FirmsWorld)	(17.9)% (Calculated by FirmsWorld)	—	(15.9)% pts (Calculated by FirmsWorld)
Other (Expenses) / Income, Net	$(684,775)	$10,588	$(695,363)	(6,567.5)%
Interest Expenses, Net	$(1,806,085)	$(405,615) \vert{}$(1,400,470)	+345.3%
Loss Before Income Taxes	$(8,929,129)	$(4,954,993) \vert{} $(3,974,136) (Calculated by FirmsWorld)	+80.2% (Calculated by FirmsWorld)
Income Tax Expenses / (Benefit)	$(328,679)	$(336,166)	$7,487	(2.2)%
Net Loss	$(9,257,808)	$(5,291,159) \vert{} $(3,966,649)	+75.0%
Foreign Currency Translation Adjustment	$13,812	$(27,230)	$41,042 (Calculated by FirmsWorld)	—
Total Comprehensive Loss	$(9,243,996)	$(5,318,389) \vert{} $(3,925,607) (Calculated by FirmsWorld)	+73.8% (Calculated by FirmsWorld)

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Non-GAAP Measure: EBITDA Reconciliation

Non-GAAP EBITDA Metric (in USD)	FY Ended March 31, 2026	FY Ended March 31, 2025	YoY Change ($)	YoY Change (%)
Net Loss (GAAP)	$(9,257,808)	$(5,291,159) \vert{}$(3,966,649)	+75.0%
Add back: Income Tax Provision	$328,679	$336,166	$(7,487)	(2.2)%
Add back: Depreciation Expense	$719,383	$631,280	$88,103	+14.0%
Add back: Interest Expense	$1,806,085	$405,615	$1,400,470	+345.3%
Add back: Amortization Expense	$110,149	$65,091	$45,058	+69.2%
EBITDA (Non-GAAP)	$(6,293,512)	$(3,853,007) \vert{} $(2,440,505)	+63.3%
EBITDA as a % of Revenue	(33.0)%	(15.2)%	—	(17.8)% pts

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Balance Sheet

As of March 31, 2026, Fly-E Group held $29,493,092 in total assets, compared to $33,706,675 on March 31, 2025. Cash stood at $265,236, down from $840,102. Net accounts receivable expanded to $7,049,592 as credit terms were extended to wholesale customers, while net inventory decreased to $2,334,484 following store sales and inventory reserves.

Total liabilities were cut in half to $12,050,688 as of March 31, 2026, down from $23,873,343 as of March 31, 2025. This reduction was driven by lower lease liabilities resulting from store dispositions and principal paydowns on commercial debt. Stockholders’ equity increased to $17,442,404 on March 31, 2026, from $9,833,332 a year earlier, bolstered by $17.4 million in equity proceeds from follow-on and private placement offerings.

Consolidated Balance Sheets

Balance Sheet Item (in USD)	As of March 31, 2026	As of March 31, 2025	YoY Change ($)
CURRENT ASSETS
Cash	$265,236	$840,102	$(574,866) (Calculated by FirmsWorld)
Accounts receivable, net	$7,049,592	$466,187	$6,583,405 (Calculated by FirmsWorld)
Accounts receivable, net – a related party	$32,030	$37,465	$(5,435) (Calculated by FirmsWorld)
Inventories, net	$2,334,484	$6,397,274	$(4,062,790) (Calculated by FirmsWorld)
Prepayments and other receivables	$6,967,596	$3,676,986	$3,290,610 (Calculated by FirmsWorld)
Prepayments and other receivables – related parties	$161,560	$120,000	$41,560 (Calculated by FirmsWorld)
Assets held for sale	$—	$2,462,502 \vert{}$(2,462,502) (Calculated by FirmsWorld)
Total Current Assets	$16,810,498	$14,000,516	$2,809,982 (Calculated by FirmsWorld)
NON-CURRENT ASSETS
Property and equipment, net	$5,792,915	$7,287,213	$(1,494,298) (Calculated by FirmsWorld)
Security deposits	$369,249	$728,450	$(359,201) (Calculated by FirmsWorld)
Deferred tax assets, net	$—	$94,983	$(94,983) (Calculated by FirmsWorld)
Operating lease right-of-use assets	$4,289,237	$10,933,068	$(6,643,831) (Calculated by FirmsWorld)
Intangible assets, net	$431,193	$525,865	$(94,672) (Calculated by FirmsWorld)
Long-term prepayment for software development	$1,800,000 \vert{}$—	$1,800,000 (Calculated by FirmsWorld)
Long-term prepayment for software development – related party	$—	$136,580	$(136,580) (Calculated by FirmsWorld)
TOTAL ASSETS	$29,493,092	$33,706,675 \vert{} $(4,213,583) (Calculated by FirmsWorld)
CURRENT LIABILITIES
Accounts payable	$433,188	$1,272,305	$(839,117) (Calculated by FirmsWorld)
Short-term loan payables	$3,936,058	$5,191,058	$(1,255,000) (Calculated by FirmsWorld)
Current portion of long-term loan payables	$93,980	$100,835	$(6,855) (Calculated by FirmsWorld)
Accrued expenses and other payables	$680,200	$1,366,968	$(686,768) (Calculated by FirmsWorld)
Accrued expenses and other payables – a related party	$225 \vert{}$—	$225 (Calculated by FirmsWorld)
Operating lease liabilities – current	$1,507,340	$2,617,762	$(1,110,422) (Calculated by FirmsWorld)
Taxes payable	$151,930 \vert{}$—	$151,930 (Calculated by FirmsWorld)
Liabilities held for sale	$—	$2,152,447 \vert{}$(2,152,447) (Calculated by FirmsWorld)
Total Current Liabilities	$6,802,921	$12,701,375 \vert{} $(5,898,454) (Calculated by FirmsWorld)
NON-CURRENT LIABILITIES
Long-term loan payables	$1,945,442	$2,065,040	$(119,598) (Calculated by FirmsWorld)
Operating lease liabilities – non-current	$3,302,325	$9,106,928	$(5,804,603) (Calculated by FirmsWorld)
TOTAL LIABILITIES	$12,050,688	$23,873,343 \vert{} $(11,822,655) (Calculated by FirmsWorld)
STOCKHOLDERS’ EQUITY
Preferred stock ($0.01 par value; 10M auth; nil issued) \vert{}$—	$— \vert{}$—
Common stock ($0.01 par value; 300M auth; 1,632,386 shares FY26)	$16,324	$2,459	$13,865 (Calculated by FirmsWorld)
Additional paid-in capital	$27,826,643	$10,987,440	$16,839,203 (Calculated by FirmsWorld)
Shares subscription receivable	$(219,998)	$(219,998)	$—
Accumulated deficit	$(10,153,318)	$(895,510) \vert{}$(9,257,808) (Calculated by FirmsWorld)
Accumulated other comprehensive loss	$(27,247)	$(41,059)	$13,812 (Calculated by FirmsWorld)
Total Stockholders’ Equity	$17,442,404	$9,833,332	$7,609,072 (Calculated by FirmsWorld)
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$29,493,092	$33,706,675 \vert{} $(4,213,583) (Calculated by FirmsWorld)

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Cash Flow Analysis

During the fiscal year ended March 31, 2026, Fly-E Group utilized $13,849,914 in operating cash flows, compared to $10,059,466 used in fiscal year 2025. The increased operating cash drain stemmed from the net loss of $9.3 million, an increase in accounts receivable of $6.8 million due to wholesale customer credit terms, and $1.7 million in lease payments.

Investing activities used $2,485,792 in cash during FY 2026, primarily consisting of $1.8 million in prepayments for ERP software development to Phecda Technology (HK) Limited and $0.4 million in net cash released through subsidiary divestitures.

Financing activities generated $15,685,480 in net cash during FY 2026, driven by $17.4 million in net proceeds raised from the June 2025 registered direct offering and the September 2025 private placement, offset by $3.1 million in commercial debt repayments.

Consolidated Statements of Cash Flows

Cash Flow Statement Line Item (in USD)	FY Ended March 31, 2026	FY Ended March 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$(9,257,808) \vert{}$(5,291,159)
Adjustments for non-cash items:
Loss on disposal of property and equipment	$13,058	$108,593
Gain on termination of operating lease	$—	$(111,564)
Gain on sales and liquidations of subsidiaries	$(1,587,439)	$(84,302)
Impairment loss on property and equipment	$558,063 \vert{}$—
Expected credit losses on accounts receivable	$176,379	$116,746
Depreciation expense	$719,383	$631,280
Amortization expense	$110,149	$65,091
Deferred income taxes benefits	$(42,112)	$(64,829)
Amortization of operating lease right-of-use assets	$1,932,762	$5,084,535
Inventories reserve	$478,019	$870,589
Changes in operating assets and liabilities:
Accounts receivable	$(6,843,808)	$(329,029)
Accounts receivable – a related party	$5,435	$248,349
Inventories	$1,940,751 \vert{}$(2,736,241)
Prepayments and other receivables	$628,903 \vert{}$(2,677,904)
Prepayments for operation services to a related party	$120,000	$(60,000)
Security deposits	$66,550	$(84,605)
Accounts payable	$(839,117)	$91,509
Accrued expenses and other payables	$(472,870)	$460,364
Accrued expenses and other payables – a related party	$225 \vert{}$—
Operating lease liabilities	$(1,674,854) \vert{}$(4,771,518)
Taxes payable	$118,417 \vert{}$(1,525,371)
Net Cash Used in Operating Activities	$(13,849,914) \vert{} $(10,059,466)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of properties and equipment	$(74,609) \vert{}$(1,634,174)
Payments of property rights	$(15,477) \vert{}$—
Proceeds from disposal of properties and equipment	$13,133 \vert{}$—
Prepayment for purchasing software from a related party	$— \vert{}$(1,392,580)
Prepayment for purchasing software	$(1,800,000) \vert{}$—
Cash released from disposal of entities	$(447,279)	$(54,774)
Repayment from a related party	$—	$660,256
Advance to a related party	$(161,560)	$(480,000)
Net Cash Used in Investing Activities	$(2,485,792) \vert{} $(2,901,272)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	$1,959,846	$7,367,795
Repayments of borrowings	$(3,127,434) \vert{}$(3,661,559)
Repayments on other payables – related parties	$—	$(92,229)
Payments of offering costs	$(516,490)	$(282,403)
Net proceeds from issuance of common stock	$17,369,558	$9,154,500
Net Cash Provided by Financing Activities	$15,685,480	$12,486,104
Net changes in cash (including held for sale)	$(650,226)	$(474,634)
Effect of exchange rate changes on cash	$13,812	$(27,230)
Less: net change in cash classified within held for sale	$61,548	$(61,548)
Cash at beginning of period	$840,102	$1,403,514
Cash at End of Period	$265,236	$840,102
Free Cash Flow	Not separately disclosed in the provided source.	Not separately disclosed in the provided source.

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Board of Directors and Leadership Team

Fly-E Group’s executive leadership and board oversee corporate strategy, regulatory compliance, and governance practices.

Leadership Summary

Name	Age	Corporate Roles	Committee Memberships
Zhou Ou	36	Founder, Chief Executive Officer, Chairman of the Board	None
Lisa Fan	46	Chief Financial Officer, Director	None
Leqi Dong	37	Independent Director	Chair of Audit; Member of Compensation & Nominating
Dongperez Hua	64	Independent Director	Chair of Nominating; Member of Audit & Compensation
Chun Min (Max) Lin	54	Independent Director	Chair of Compensation; Member of Audit & Nominating

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Executive Officer Profiles

Zhou Ou – Founder & Chief Executive Officer

Zhou Ou founded Fly-E Group in 2018 and has served as CEO and Chairman since inception. Prior to founding the company, Mr. Ou operated an independent motorcycle repair enterprise for over eight years and held managerial positions in urban food delivery operations. His direct background in mechanical maintenance and gig-economy delivery informed the design of the Fly E-Bike fleet. Mr. Ou received $100,000 in base annual salary in FY 2026 and FY 2025, electing to receive store manager-level compensation to preserve operating capital.

Lisa Fan – Chief Financial Officer & Director

Lisa Fan was appointed CFO and Director in September 2025. Ms. Fan has over two decades of financial experience. From May 2022 to May 2025, she was a financial consultant at Baizan Consulting Firm, guiding private corporate IPO readiness. Previously, she served as Director of Internal Audit at Souche Group (July 2019 to April 2022), managing internal control compliance for U.S. and Hong Kong listings. She earned a bachelor’s degree from Zhejiang Institute of Finance and Economics in 2000 and holds a certification from the Chinese Institute of Certified Public Accountants. Ms. Fan receives an annual compensation of $60,000.

Independent Director Profiles

Leqi Dong – Independent Director & Audit Committee Chairman

Leqi Dong joined the board in September 2025 and serves as Chairman of the Audit Committee. Designated as an SEC Audit Committee Financial Expert, Mr. Dong has served as fund manager and bridge loan originator at Golden Harbor Capital LLC since September 2018. He graduated with a bachelor’s degree from the Zicklin School of Business at Baruch College in 2013.

Dongperez Hua – Independent Director & Nominating Committee Chairman

Dongperez Hua was appointed to the board in October 2025 and serves as Chairman of the Nominating and Corporate Governance Committee. From November 2015 to December 2024, Mr. Hua was Senior Manager at Joyor Vehicles Co., Ltd., overseeing EV research, mass manufacturing, and international distribution across North America and Europe. He holds a bachelor’s degree in Business Administration from Zhuhai College of Science & Engineering (1995).

Chun Min (Max) Lin – Independent Director & Compensation Committee Chairman

Chun Min (Max) Lin joined the board in October 2025 and chairs the Compensation Committee. Mr. Lin has served as Product Director for Spinnr Tech Ltd. since September 2022, and previously held the same role at Royce Tech Ltd.. He holds a master’s degree in graphic communication management and technology from New York University (2022) and a bachelor’s degree from Ming Chuan University (1999).

Subsidiaries, Associates, and Joint Ventures

The consolidated financial statements include Fly-E Group, Inc. and its wholly owned operating and holding subsidiaries. In fiscal year 2026, the company divested 24 corporate store subsidiaries to third-party individuals for total consideration of approximately $2.3 million to reduce operating costs and financial reporting complexity.

Active Consolidated Subsidiaries (as of March 31, 2026)

Subsidiary Legal Entity Name	Jurisdiction	Corporate Role / Activity	Equity Ownership %	Disclosed Net Revenue Contribution
FLY-E GROUP, INC.	Delaware	Parent Holding Company	Parent	$19,063,357 (Consolidated Total)
FLY E-BIKE, INC.	Delaware	Primary Operational Holding Company	100%	Not separately disclosed in the provided source.
FLY EV, INC.	Delaware	Holding Company (No substantive ops)	100%	$nil
UNIVERSE KING CORP	New York	Active Retail & Truck Logistics Entity	100%	Not separately disclosed in the provided source.
FLYEBIKE INC	New York	Active Flagship Retail Storefront	100%	Not separately disclosed in the provided source.
FLYEBIKE WORLD INC.	New York	Active Retail Storefront	100%	Not separately disclosed in the provided source.
FLY DELIVERY INC.	New York	Delivery Services Entity	100%	Not separately disclosed in the provided source.
FLYDC INC.	Washington, D.C.	Active Flagship Retail Storefront	100%	Not separately disclosed in the provided source.
FLYLA INC.	California	Active Retail and Rental Storefront	100%	Not separately disclosed in the provided source.
AOFL LLC	New York	Real Estate Holding Entity (Flushing HQ)	100%	Not separately disclosed in the provided source.
GOBIKE INC	New York	Rental Operations Entity	100%	Not separately disclosed in the provided source.
FLYEBIKE BOSTON INC.	Massachusetts	Active Flagship Retail Storefront	100%	Not separately disclosed in the provided source.
FLYE ELYX INC.	New York	Holding Company	100%	Not separately disclosed in the provided source.

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Divested Operating Subsidiaries (Fiscal Year 2026 Transactions)

Between April 2025 and March 2026, 100% equity interests in 24 store subsidiaries were sold to third-party individuals:

• April 1, 2025: FLYEBIKE BROOKLYN INC, FLYMHT659 INC, and FLYBX745 INC sold for $310,055 total.
• May 1, 2025: ARFY CORP., FLY GC INC., and ESEBIKE INC sold for $156,517 total.
• June 1, 2025: UFOTS CORP and FLYCORONA INC sold for $60,207 total.
• July 1, 2025: OFLYO INC ($57,991), FLYCYCLE INC ($71,301), and FLYBX2381 INC ($106,647).
• August 1, 2025: FLYAM INC ($36,879), FLYTRON INC ($19,959), and MEEBIKE ($39,289).
• September 1, 2025: TKPGO CORP ($1,707), FIYET INC ($1), and FLYCLB INC ($1).
• December 19, 2025: DCMOTOR INC ($1) and FLYNJ1 INC ($1).
• January 1, 2026: FLYFLS INC ($69,420), FLYNJ2 INC ($68,627), FLY E BIKE NJ3, INC ($511,353), FLYNJ4 INC ($146,473), and FLYTORONTO Corp ($628,151).

Other Investments (Including Minority / Portfolio Holdings)

Investment Parameter	Disclosed Status / Information
Minority Holdings (<20% ownership)	Not separately disclosed in the provided source.
Strategic Portfolio Holdings	Not separately disclosed in the provided source.
Fair Value Equity Investments (FVTPL / FVOCI)	Nil / None reported as of March 31, 2026
Joint Ventures	Not separately disclosed in the provided source.

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Fly-E Group does not hold any unconsolidated minority investments, joint ventures, or marketable equity securities on its consolidated balance sheet as of March 31, 2026.

Physical Properties

Fly-E Group manages an asset footprint comprising owned corporate office space, an assembly and logistics facility, and leased retail storefronts.

Comprehensive Property Portfolio

Property Type / Use	Physical Location Address	Approx. Floor Area	Lease / Ownership Terms	Annual Financial Obligation
Corporate Headquarters	136-40 39th Avenue, Suite 202, Flushing, NY 11354	Corporate Office Suite	Owned (Encumbered by mortgage debt)	Mortgage debt with Velocity Commercial Capital
Vehicle Assembly & Warehouse	Maspeth, New York	52,264 square feet	Leased (Expires April 30, 2029)	~$1,200,000 annual lease expense
Flagship Retail Store	New York, NY	Commercial Retail	Leased operating property	Consolidated FY26 retail rent: $1.6M
Flagship Retail Store	Boston, Massachusetts	Commercial Retail	Leased operating property	Included in consolidated retail rent
Flagship Retail & Rental Store	Los Angeles, California	Commercial Retail	Leased operating property	Included in consolidated retail rent
Flagship Retail Store	Washington, D.C.	Commercial Retail	Leased operating property	Included in consolidated retail rent

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

• Total rent expense paid across all retail properties was $1.6 million in FY 2026, compared to $2.9 million in FY 2025.
• Leased facilities are considered sufficient for near-term assembly requirements, though operational scaling may require additional space.

Founders

Zhou Ou founded Fly-E Group in 2018. Prior to establishing the enterprise, Mr. Ou operated an independent motorcycle repair and servicing business for over eight years and served in a managerial capacity within the food delivery sector.

• Founder Background: Direct operational insight into commercial couriers’ equipment reliability needs shaped Fly-E Group’s product roadmap.
• Executive Role: Mr. Ou serves as Chief Executive Officer and Chairman of the Board.
• Financial Alignment: Between April 2024 and March 2026, Mr. Ou personally advanced $961,294 in unsecured working capital funds to the company, which was repaid in full.
• Compensation: Received a store manager-level salary of $100,000 annually in FY 2026 and FY 2025 to preserve company liquidity.

Parent Company Details

Fly-E Group, Inc. operates as the ultimate Delaware holding parent company. The company was incorporated on November 1, 2022, to consolidate operating entities under a unified corporate structure ahead of its Nasdaq IPO. Fly-E Group, Inc. has no substantive operations of its own other than holding 100% of the equity of Fly E-Bike, Inc. and Fly EV, Inc..

Investments and Capital Expenditure Plans

Software & Technology Infrastructure Investments

• ERP System: In December 2023, the company engaged DF Technology US Inc. (“DFT”) to construct a proprietary enterprise resource planning (ERP) platform for $2,500,000. The ERP was delivered on May 20, 2025, with $2,310,000 capitalized in FY 2025 and the final $190,000 capitalized in FY 2026. In FY 2026, the company recorded an impairment loss of $558,063 on this ERP due to technological obsolescence.
• Go Fly Application: In July 2024, the company contracted DFT for $500,000 to develop the Go Fly mobile rental platform, which was completed and delivered on September 5, 2024.
• Next-Generation Cloud ERP & Fly E-Bike App: During FY 2026, Fly-E Group contracted Phecda Technology (HK) Limited, executing a $1,800,000 long-term software prepayment to enhance corporate ERP functions and finalize mobile applications for vehicle telemetry, leasing, and store management.

Research and Development (R&D)

• Research and development costs are expensed as incurred.
• R&D and software development expenses totaled $340,949 in FY 2026, compared to $549,368 in FY 2025, classified within general and administrative expenses.

Physical Capex

• Capital expenditures for physical property, plant, and equipment totaled $74,609 in FY 2026, down from $1,634,174 in FY 2025.

Shareholding Pattern

As of July 23, 2026, Fly-E Group, Inc. had 1,632,386 shares of common stock issued and outstanding, held by 17 stockholders of record.

Beneficial Ownership of Management and Major Shareholders

Beneficial Owner Name / Group	Disclosed Shares Owned	Beneficial Ownership %	Nature of Ownership
Zhou Ou (Founder, CEO & Chairman)	77,000	4.717%	Direct beneficial ownership (Includes restricted shares)
Lisa Fan (CFO & Director)	—	0.0%	Nil
Leqi Dong (Independent Director)	—	0.0%	Nil
Dongperez Hua (Independent Director)	—	0.0%	Nil
Chun Min (Max) Lin (Independent Director)	—	0.0%	Nil
All Directors & Officers as a Group (5 Persons)	77,000	4.717%	Executive Management Holdings
Other Public & Private Investors	1,555,386 (Calculated by FirmsWorld)	95.283% (Calculated by FirmsWorld)	Public float, institutional, and private placement holders
Total Common Stock Outstanding	1,632,386	100.00%	Total Voting Common Stock

Source: Fly-E Group, Inc. Form 10-K Annual Report for the Fiscal Year Ended March 31, 2026.

Notes on Equity & Reverse Splits:

• All share figures reflect the 1-for-5 reverse stock split of July 3, 2025, and the 1-for-20 reverse stock split of November 4, 2025.
• There are 37,000 shares of common stock reserved for issuance under the 2024 Omnibus Incentive Plan. No options or awards were granted under the plan as of March 31, 2026.
• The Representative’s Warrants (Benchmark) cover 1,294 common shares at an exercise price subject to anti-dilution adjustments.

Future Strategy

Management has outlined five strategic initiatives to stabilize operations and re-establish revenue expansion:

• Reinforcing Urban Mobility Leadership: Rebuilding consumer trust through certified battery systems, scaling the Go Fly rental service, and expanding the battery swap network to support commercial delivery riders.
• Expanding Wholesale & Distributor Channels: Expanding wholesale operations across the United States to capture regional demand without incurring retail lease liabilities.
• Digital Ecosystem & Smart Connected Hardware: Completing the Fly E-Bike mobile application with Phecda Technology (HK) Limited to offer real-time telemetry, GPS tracking, and automated maintenance scheduling.
• International Expansion: Entering target international markets with favorable electric mobility policies, specifically in South America and Europe.
• Storefront Logistics Hubs: Piloting the use of retail facilities as local logistics hubs for small package delivery by assembling dedicated delivery teams and integrating logistical software.

Key Strengths

• Early Entrant in Urban Courier Mobility: Established in 2018, the company built early brand recognition and supply relationships within New York City’s commercial delivery workforce.
• Selection for Civic Programs (NYC DOT): The Fly-11 PRO model was selected by the NYC Department of Transportation as an official vehicle for its $2.0 million trade-in safety program.
• Broad Hardware Portfolio: Offers 102 distinct EV models across mopeds, tricycles, commuter e-bikes, and performance scooters.
• Centralized Assembly & Vendor Management: Operates a 52,264 sq ft facility in Maspeth, NY, utilizing centralized vendor management to maintain supply relationships.
• Diversified Omnichannel Revenue: Generates revenue through wholesale distribution, direct e-commerce, and app-based rental services.

Key Challenges and Risks

Going Concern Uncertainty

Fly-E Group incurred a net loss of $9,257,808 in FY 2026 and used $13,849,914 in operating cash flows, ending the period with $265,236 in cash against $5,537,233 in contractual obligations due within one year. Independent auditors Fortune CPA, Inc. and Marcum Asia CPAs LLP issued going-concern explanatory paragraphs in their audit opinions.

Debt Default & Forbearance (Peapack-Gladstone Bank)

On August 5, 2024, the company obtained a $5.0 million credit facility from Peapack-Gladstone Bank. Fly-E Group defaulted on principal repayment on August 31, 2025. A forbearance agreement extended repayment to March 31, 2026, at a 12.875% interest rate. A subsequent forbearance agreement extended the maturity date to June 30, 2026. As of July 23, 2026, the company remains in renewal negotiations.

  August 2024          August 2025          November 2025        May 2026             July 2026
┌─────────────┐      ┌─────────────┐      ┌─────────────┐      ┌─────────────┐      ┌─────────────┐
│ $5.0M Line  │─────▶│ Principal   │─────▶│ First       │─────▶│ Second      │─────▶│ Ongoing     │
│ of Credit   │      │ Default     │      │ Forbearance │      │ Forbearance │      │ Renewal     │
│ Established │      │ Occurs      │      │ (to Mar 26) │      │ (to Jun 26) │      │ Talks       │
└─────────────┘      └─────────────┘      └─────────────┘      └─────────────┘      └─────────────┘

Material Weaknesses in Financial Reporting Controls

Management identified material weaknesses in internal control over financial reporting as of March 31, 2026:

• Insufficient accounting personnel with U.S. GAAP and SEC reporting expertise.
• Lack of formal internal control policies and risk assessment frameworks.
• Deficiencies in IT general controls covering access management and cybersecurity.

Regulatory and Product Liability Risks

• Securities Class Action: A shareholder class action (Kurt v. Fly-E Group, Inc., Zhou Ou, and Shiwen Feng) was filed on September 8, 2025, in EDNY alleging misstatements regarding battery safety disclosures and forecasting. An amended complaint was filed on May 22, 2026.
• Shareholder Derivative Litigation: Consolidated in EDNY under In re Fly-E Group, Inc. Stockholder Derivative Litigation alleging breach of fiduciary duties.
• SEC Investigation: On January 21, 2026, the SEC initiated an investigation involving the company.
• UL Litigation Settlement: Settled a trademark infringement lawsuit with UL LLC on May 21, 2025, paying $1,000,000 and agreeing to a permanent injunction against selling products with uncertified UL marks.

Supplier Concentration & Geopolitical Trade

Fly-E Group relies heavily on two primary suppliers: Depcl Corp. (70.3% of component purchases in FY 2026) and Xiamen Innolabs Technology Co., Ltd. (19.2%). In total, the company sourced 19% of vehicle parts directly from China and 81% domestically in FY 2026. Tariffs and international trade disputes between the U.S. and China pose direct cost risks.

Nasdaq Continued Listing Deficiencies

On July 21, 2026, Nasdaq issued a delinquency notice (Listing Rule 5250(c)(1)) due to the late filing of this Form 10-K. The company has until September 21, 2026, to submit a compliance plan, with a potential extension to January 11, 2027. A previous deficiency regarding the annual shareholder meeting (Listing Rule 5620(a)) was resolved following the AGM on June 17, 2026.

Conclusion and Strategic Outlook

Fly-E Group’s fiscal year 2026 results reflect a major corporate transition, shifting from an owned retail store footprint to a leaner wholesale and rental model. While the divestiture of 24 retail stores reduced selling expenses by 53.0% and expanded wholesale revenues to $11.6 million, the company continues to face a net loss of $9.3 million, liquidity constraints, and ongoing loan forbearance negotiations.

Executing its turnaround strategy will depend on stabilizing its credit arrangements, concluding outstanding regulatory and legal proceedings, resolving Nasdaq compliance requirements, and successfully commercializing its rental and connected app platforms.

Frequently Asked Questions (FAQ)

What does Fly-E Group, Inc. do?

Fly-E Group designs, installs, sells, and rents electric motorcycles, e-bikes, and e-scooters, primarily under the “Fly E-Bike” brand, focusing on urban commuters and delivery couriers.

What is Fly-E Group’s stock ticker and exchange?

Fly-E Group trades on the Nasdaq Capital Market under the ticker symbol FLYE.

How many retail locations does the company operate?

As of July 23, 2026, Fly-E Group operated 4 company-owned flagship retail stores across New York, Massachusetts, California, and Washington, D.C., down from prior years following the sale of 24 retail subsidiaries.

What were Fly-E Group’s revenues and net income for FY 2026?

For the fiscal year ended March 31, 2026, Fly-E Group reported net revenues of $19,063,357 and a net loss of $(9,257,808).

Where does Fly-E Group assemble its electric vehicles?

Final vehicle assembly and testing are conducted at the company’s 52,264-square-foot leased plant in Maspeth, New York.

What is the Go Fly app?

Go Fly is Fly-E Group’s mobile rental software, launched in late 2024 to provide flexible daily and monthly e-bike subscriptions in New York City and Los Angeles.

What caused the shift from retail to wholesale revenue in FY 2026?

The company sold 24 retail store subsidiaries to third-party operators. These newly independent stores continued purchasing inventory from Fly-E Group, growing wholesale revenue by 227.5% while direct retail revenue declined.

Official Site: flyebike.com