Overview

Fly-E Group, Inc. (“Fly-E Group” or “the Company”), a manufacturer in the motor vehicle and passenger car bodies sector, has released its unaudited condensed consolidated financial statements for the quarter ended December 31, 2025. The Company is listed on The Nasdaq Stock Market under the ticker symbol FLYE and maintains its principal office in Queens, New York.

Key Financial Highlights

• Net Loss: The Company reported a net loss for the quarter and for the nine-month period ended December 31, 2025. For the three months ended December 31, 2025, the net loss per share was \$(1.18) (basic and diluted). For the nine months ended December 31, 2025, the loss per share was \$(2.78) (basic and diluted). For comparison, the prior periods show even higher losses, reflecting ongoing operational and financial challenges.
• Stock Splits: During 2025, the Company completed significant capital structure changes:
  • A 1-for-5 reverse stock split on July 3, 2025
  • A 1-for-20 reverse stock split on November 4, 2025
  • All share and per share data are presented on a retroactive basis to reflect these splits.
• Share Issuance and Stockholders’ Equity:
  • Common stock issued upon direct offering and public offering was a major source of additional capital, with 285,956 shares issued in a registered direct offering and 245,875 shares issued in the initial public offering.
  • Proceeds from stock issuance were significant, with \$5,856,510 raised in one instance and \$8,369,899 in another.
  • Stockholders’ equity fluctuated throughout the year, with a balance of \$2,459 at several reporting dates but also reaching \$20,991,999 at its peak, indicating large capital inflows and outflows possibly due to financing activities and operating losses.
• Warrants and Other Equity Instruments:
  • The Company recorded the exercise of warrants, resulting in the issuance of 410,982 shares and \$4,110 in proceeds.
  • There were also 687,500 shares issued for other activities, with a recorded value of \$3,400,000, potentially indicating strategic transactions, settlements, or compensation arrangements.
• Cash Flows and Liquidity:
  • Net cash used in investing activities for the nine months ended December 31, 2025, was \$(2,836,671), largely due to advances to related parties and purchases of vehicles and office space funded by loans.
  • The Company continues to use financing activities to support operations, as reflected in the recurring and significant stock issuances.

Key Risks and Forward-Looking Statements

• The Company highlights several risk factors that may impact future performance, including:
  • Ability to maintain compliance with continued listing standards on Nasdaq (potential delisting risk).
  • Changes or uncertainty in domestic and international customs, tariffs, and trade policies.
  • Exposure to currency exchange rate fluctuations and tariffs.
  • Other risks as detailed in the “Risk Factors” section, including operating losses, dependence on capital markets, and strategic execution.
• Shareholders should note: Any failure to maintain Nasdaq listing requirements, or adverse changes in tariffs, trade policy, or capital market conditions, could materially and adversely affect the Company’s share value.

Share Structure and Capital Changes

• The Company’s capital structure has undergone substantial changes in the reporting period:
  • Multiple reverse stock splits (1-for-5 and 1-for-20) were completed in 2025. Reverse splits typically reflect efforts to maintain minimum listing standards or improve market perception, but may also reflect underlying business challenges.
  • A historical 1-for-110,000 split occurred on April 2, 2024, demonstrating significant prior restructuring.
  • These actions have consolidated the share count but may lead to higher volatility and could impact shareholder value, depending on market interpretation.
• The Company has raised significant capital in 2025 through equity offerings, but the recurring net losses highlight ongoing challenges to profitability.

Other Noteworthy Items

• Emerging Growth Company Status: Fly-E Group is identified as a smaller reporting company and an emerging growth company, which may exempt it from certain regulatory requirements and allow for reduced disclosures.
• Continued Operating Losses: The Company continues to operate at a loss, with no indication of near-term profitability. This is a key risk for shareholders and may affect future capital raising activities.
• Related Party Transactions: Significant advances to related parties and non-cash transactions (such as vehicle and office purchases funded by loans) are highlighted, which may draw scrutiny from investors concerned with cash management and corporate governance.

Potential Market Impact and Price-Sensitive Items

• Stock Splits and Capital Structure Changes: The repeated reverse splits and large share issuances are price-sensitive and may affect market perception and valuation.
• Nasdaq Listing Risk: The explicit mention of compliance risks with Nasdaq listing standards should be closely monitored by investors, as delisting could significantly reduce share liquidity and value.
• Ongoing Losses and Dilution: Continued operating losses and reliance on equity financing may result in further dilution of existing shareholders and pressure on the share price.
• Large Capital Raises: The successful raising of capital, while positive for liquidity, also increases outstanding shares and may impact per-share metrics.

Conclusion

Fly-E Group, Inc. remains in a phase of restructuring and capital raising as it pursues a path to profitability. While the Company has demonstrated an ability to access the capital markets, the business continues to report significant losses and faces ongoing risks related to its Nasdaq listing and external economic factors. Investors should closely monitor further disclosures, particularly regarding listing compliance and operational turnaround efforts. Continued dilution and losses may create headwinds for the share price, while any positive developments in profitability or compliance could provide upside.