Fly-E Group, Inc. Announces Change of Independent Auditor: Key Details for Investors

Fly-E Group, Inc. (Nasdaq: FLYE) has announced a significant development in its corporate governance, with the replacement of its independent registered public accounting firm. This change, disclosed in a Form 8-K filed with the Securities and Exchange Commission (SEC), is a key event that shareholders and potential investors should closely monitor due to its potential implications for the company’s financial reporting and share price.

Key Points from the Announcement

• Change of Auditor: On March 6, 2026, the Audit Committee of the Board of Directors approved the dismissal of Marcum Asia CPAs LLP (“Marcum Asia”) as the company’s independent registered public accounting firm.
• Appointment of New Auditor: The company appointed Fortune CPA, Inc. (“Fortune”) as its new independent registered public accounting firm. Fortune will conduct a quarterly review of Fly-E Group’s financial statements as of December 31, 2025, and audit the consolidated financial statements for the fiscal year ending March 31, 2026.

Details Surrounding the Auditor Change

• No Disagreements Reported: There were no disagreements between Fly-E Group and Marcum Asia on accounting principles, financial statement disclosure, or auditing scope/procedure that would have required mention in Marcum Asia’s audit reports. This reduces the risk of hidden disputes that could impact investor confidence.
• Material Weaknesses Identified: The company disclosed that Marcum Asia had identified material weaknesses in previous audits, as detailed in Fly-E Group’s Form 10-K filed on July 15, 2025. These weaknesses related to:
  • Inadequate financial reporting and accounting personnel with sufficient U.S. GAAP and SEC reporting expertise.
  • Lack of formal internal control policies and independent supervision functions.
  • Insufficient IT controls, particularly around access management, change management, and cyber security.

  While these weaknesses had been reported previously, their continued disclosure is important for investors, as it highlights ongoing efforts to strengthen internal controls.

• No Prior Consultation with Fortune: Neither Fly-E Group nor anyone on its behalf consulted with Fortune CPA, Inc. regarding the application of accounting principles to specific transactions or the content of any audit opinions prior to the appointment.
• SEC Letter from Outgoing Auditor: As per regulatory requirements, Fly-E Group provided Marcum Asia with a copy of the 8-K disclosures and requested a letter addressed to the SEC confirming their agreement with the company’s statements about the auditor change. Marcum Asia’s letter, filed as Exhibit 16.1, states that they agree with the disclosures regarding their firm and are not in a position to agree or disagree with other statements made by Fly-E Group.

Potential Implications for Shareholders

• Potential Share Price Sensitivity: Auditor changes can be viewed by the market as a signal of underlying shifts in financial reporting or corporate governance. While the company states there were no disagreements, the presence of previously reported material weaknesses and the ongoing efforts to address them are important for investors to monitor.
• Ongoing Internal Control Improvements: The company’s ability to resolve the material weaknesses in internal controls and demonstrate improved financial reporting credibility will be closely watched by analysts and institutional investors.
• Regulatory Compliance: As an emerging growth company listed on Nasdaq, Fly-E Group’s compliance with SEC and Nasdaq requirements is critical for continued trading of its shares under the ticker FLYE.

Other Corporate and Compliance Information

• Company Headquarters: 136-40 39th Ave., Suite 202, Queens, NY 11354.
• Business Category: Motor Vehicles & Passenger Car Bodies (SIC 371).
• Emerging Growth Company Status: Fly-E Group is classified as an “emerging growth company” under SEC rules, with the company electing not to use the extended transition period for complying with new or revised financial accounting standards.

Conclusion

The replacement of Marcum Asia CPAs LLP with Fortune CPA, Inc. as Fly-E Group’s independent auditor is a notable corporate event. Investors should pay close attention to upcoming financial reports and any further disclosures related to the remediation of internal control weaknesses. The successful transition to a new auditor and resolution of these issues could improve market confidence, while any delays or new concerns could impact the share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial professionals before making any investment decisions based on the information provided above.

View Fly-E Group, Inc. Historical chart here