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Fly-E Group, Inc.

FLYE
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Business Summary

Fly-E Group, Inc. operates in the electric vehicle industry, specifically designing, installing, and selling smart electric motorcycles, electric bikes, electric scooters, and related accessories under the brand Fly E-Bike. The EV industry has experienced significant growth and innovation driven by increasing demand for sustainable transportation, advancements in battery and motor technology, the growing popularity of E-bike sharing services, and government incentives such as tax credits and subsidies. The Asia-Pacific region is the largest market for electric two-wheelers, while North America is expected to experience significant future growth due to government initiatives. The high volume of small package deliveries in major U.S. cities like New York City, Miami, and Dallas, accelerated by e-commerce and the COVID-19 pandemic, has created a favorable environment for E-bike adoption for delivery purposes.

The markets for EVs are highly competitive based on innovation, performance, price, technology, product features, styling, brand recognition, quality, and distribution. Primary competitors named in the filing include Trek Bicycle Corporation, Specialized Bicycle Components, Inc., and Rad Power Bikes Inc., all of which have greater financial and marketing resources. The company believes it is one of the leading providers of E-bikes for food delivery workers in New York City, having established a reputation for consistent delivery of high-quality products and excellent customer service, which has built a loyal customer base among food delivery workers. Competitive advantages cited include early entry into the market in 2018, brand reputation, and innovative products and services.

The company generates revenue through three primary channels: retail sales, wholesale sales, and rental services. For the year ended March 31, 2026, net revenues consisted of retail sales revenue of approximately $6.9 million , wholesale revenue of $11.6 million , and rental services revenue of $0.6 million . Products are sold directly to customers through 4 retail stores in the U.S. and one online store at flyebike.com, as well as through 64 distributors. The rental program, launched in October 2024, is available in New York City and Los Angeles via the Go Fly rental service mobile app and select stores. The company also generates revenue from repair services and the sale of accessories and spare parts.

As of July 23, 2026, the company offered 27 E-motorcycle products , 37 E-bike products , and 38 E-scooter products . The E-motorcycle category includes E-mopeds with a range of 20-70 miles on a single charge and top speeds of 20-38 miles per hour, and the Fly-Tricycle, an electric three-wheel vehicle with a range of 43-62 miles and a top speed of 30 miles per hour. The E-bike category includes City E-bikes with a range of 15-20 miles, foldable E-bikes with a range of 20-25 miles, and standard E-bikes with a range of 20-60 miles. The E-scooter segment offers 38 products with a range of 15-45 miles and top speeds of 15-40 miles per hour. The company also sells a comprehensive line of accessories, spare parts, branded apparel, and performance upgrades.

During the fiscal year ended March 31, 2026, the company completed several significant capital events. On June 2, 2025, it closed a registered direct offering of 285,956 shares of common stock and 571,912 warrants to purchase 571,912 shares of common stock at a combined purchase price of $24.28 , resulting in net proceeds of $6.24 million . On September 18, 2025, the company entered into a securities purchase agreement for 687,500 shares of common stock at $16.0 per share for total consideration of $11,000,000 , receiving net proceeds of $10,996,558 during the year. The company also disposed of an aggregate of 28 subsidiaries for total cash consideration of approximately $2.9 million , of which approximately $0.1 million had been received. Additionally, the company paid $1,000,000 to UL LLC to settle litigation regarding improper use of UL's trademark.

For the fiscal year ended March 31, 2026, total net revenues were $19,063,357 , a decrease of 25.0% compared to $25,427,163 for the prior year. The decrease was primarily driven by a decline in total units sold from 58,765 units in fiscal 2025 to 42,101 units in fiscal 2026, and reductions in selling prices to reduce aged inventory. Gross profit was $4,659,074 , down 55.4% from $10,450,897 in the prior year, with gross margin contracting to 24.4% from 41.1% . Net loss was $9,257,808 , an increase of 75.0% from a net loss of $5,291,159 in fiscal 2025. EBITDA was negative $6,293,512 compared to negative $3,853,007 in the prior year.

Business Outlook

The company plans to enhance its position as a leader in urban mobility by rebuilding trust through enhanced product safety, continuing to innovate with solutions like its battery swap system and Go Fly app, growing its service portfolio through the rental program, and expanding its retail network into key U.S. markets. It intends to expand its sales network internationally, targeting selected overseas markets that offer identified growth opportunities and favorable government policies, such as South America and Europe. The company is also planning to broaden its business by leveraging existing retail stores as logistics hubs for small package delivery, currently seeking business partners, assembling a delivery team, and developing an app for the delivery business.

The company plans to improve brand recognition by maintaining a commitment to exceptional customer service, effectively managing and upgrading retail stores, increasing offerings of accessories such as branded apparel, and collaborating with other lifestyle brands across different industries. It also intends to continue innovation by advancing its product line with cutting-edge design and optimizing user experience, including the development of the Fly E-Bike app, which is expected to include functions such as GPS, navigation, battery and tire pressure management, online shopping, and anti-theft features. As of March 31, 2026, the development of the app is still in the development stage.

The company expects selling, general and administrative expenses to decrease in the foreseeable future as more retail stores are expected to be sold, reducing selling and marketing activities and general and administrative activities. Payroll expenses were $2.5 million for the year ended March 31, 2026, compared to $4.7 million for the prior year, and the company expects a decrease in payroll expenses in the next quarter due to reduced demand for store sales staff following the closure of 8 stores and sale of 24 stores during the year.

The company sources substantially all vehicle components from China and the United States. For the year ended March 31, 2026, over 19% of parts were sourced from China and over 81% from the United States. The company works with two principal vendors, Depcl Corp. and Xiamen Innolabs Technology Co., Ltd., which supplied approximately 70% and 19% of accessories and components, respectively, during the year. The company assembles all vehicles in a leased facility in Maspeth, New York, which is approximately 52,264 square feet under a lease expiring on April 30, 2029 at a current annual rent of approximately $1.2 million . As of July 23, 2026, the company had 12 employees , consisting of 12 full-time employees .The company faces significant headwinds including substantial doubt about its ability to continue as a going concern. As of March 31, 2026, the company had cash of $0.3 million and working capital of $10.0 million . The company had a current portion of contractual obligation of approximately $5.5 million , including short-term loan payables of approximately $3.9 million , current portion of long-term loan payables of approximately $0.1 million , and current portion of operating lease liabilities of approximately $1.5 million . The company became in default of repayment for a loan with Peapack-Gladstone Bank since August 31, 2025, and has entered into forbearance agreements. The company also faces risks from trade tensions between the U.S. and China, as high reciprocal tariffs are in effect between the two countries, and the company sources a significant portion of vehicle components from China.

Risk Factors

There is substantial doubt about the company's ability to continue as a going concern, as it had cash of only $0.3 million as of March 31, 2026, a net loss of $9.3 million for the year, net cash used in operating activities of approximately $13.8 million , and a current portion of contractual obligations of approximately $5.5 million . The company is in default on a $5 million revolving credit facility with Peapack-Gladstone Bank since August 31, 2025, and has entered into forbearance agreements with an interest rate of 12.875% . The company faces a pending securities class action lawsuit seeking monetary damages certified to be in excess of $150,000 , and an SEC investigation initiated on January 21, 2026. The company identified material weaknesses in internal control over financial reporting, including a lack of sufficient accounting personnel with U.S. GAAP knowledge, formal internal control policies, and IT general controls. The company relies heavily on two principal vendors, Depcl Corp. and Xiamen Innolabs Technology Co., Ltd., which supplied approximately 70% and 19% of accessories and components, respectively, during fiscal 2026, and does not maintain long-term contracts with them.

Management Priorities

Management's message emphasizes the company's commitment to rebuilding trust through enhanced product safety, continuing innovation with solutions like the battery swap system and Go Fly app, growing the service portfolio through the rental program, and expanding the retail network into key U.S. markets. The strategic priorities for the period ahead include enhancing the company's position as a leader in urban mobility, improving brand recognition through exceptional customer service and lifestyle brand collaborations, continuing innovation in product design and the Fly E-Bike app, expanding the sales network internationally into markets like South America and Europe, and diversifying service offerings by leveraging retail stores as logistics hubs for small package delivery. Management acknowledges navigating short-term market challenges including temporary fluctuations in consumer sentiment.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Results of Operations
  2. [2] Item 7, MD&A — Results of Operations
  3. [3] Item 7, MD&A — Results of Operations
  4. [4] Item 1, Business — Products
  5. [5] Item 1, Business — Products
  6. [6] Item 1, Business — Products
  7. [7] Item 1, Business — Recent Developments
  8. [8] Item 1, Business — Recent Developments
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  10. [10] Item 1, Business — Recent Developments
  11. [11] Item 1, Business — Recent Developments
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  13. [13] Item 1, Business — Recent Developments
  14. [14] Item 7, MD&A — Liquidity and Capital Resources
  15. [15] Item 1, Business — Recent Developments
  16. [16] Item 1, Business — Recent Developments
  17. [17] Item 1, Business — Recent Developments
  18. [18] Item 1, Business — Recent Developments
  19. [19] Item 7, MD&A — Results of Operations
  20. [20] Item 7, MD&A — Results of Operations
  21. [21] Item 7, MD&A — Results of Operations
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  31. [31] Item 7, MD&A — Results of Operations
  32. [32] Item 7, MD&A — EBITDA
  33. [33] Item 7, MD&A — EBITDA
  34. [34] Item 7, MD&A — Key Factors that Affect Operating Results
  35. [35] Item 7, MD&A — Key Factors that Affect Operating Results
  36. [36] Item 1, Business — Manufacturing and Assembly
  37. [37] Item 1, Business — Manufacturing and Assembly
  38. [38] Item 1, Business — Manufacturing and Assembly
  39. [39] Item 1, Business — Manufacturing and Assembly
  40. [40] Item 2, Properties
  41. [41] Item 2, Properties
  42. [42] Item 2, Properties
  43. [43] Item 1, Business — Employees
  44. [44] Item 1, Business — Employees
  45. [45] Item 7, MD&A — Liquidity and Capital Resources
  46. [46] Item 7, MD&A — Liquidity and Capital Resources
  47. [47] Item 7, MD&A — Liquidity and Capital Resources
  48. [48] Item 7, MD&A — Liquidity and Capital Resources
  49. [49] Item 7, MD&A — Liquidity and Capital Resources
  50. [50] Item 7, MD&A — Liquidity and Capital Resources
  51. [51] Item 1A, Risk Factors — Risks Related to the Company's Business, Operations, and Industry
  52. [52] Item 1A, Risk Factors — Risks Related to the Company's Business, Operations, and Industry
  53. [53] Item 1A, Risk Factors — Risks Related to the Company's Business, Operations, and Industry
  54. [54] Item 1A, Risk Factors — Risks Related to the Company's Business, Operations, and Industry
  55. [55] Item 1, Business — Recent Developments
  56. [56] Item 7, MD&A — Liquidity and Capital Resources
  57. [57] Item 1, Business — Recent Developments
  58. [58] Item 1, Business — Manufacturing and Assembly
  59. [59] Item 1, Business — Manufacturing and Assembly
  60. [60] Item 7, MD&A — Results of Operations
  61. [61] Item 7, MD&A — Results of Operations
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  70. [70] Item 7, MD&A — Results of Operations
  71. [71] Item 7, MD&A — Results of Operations
  72. [72] Item 7, MD&A — Results of Operations
  73. [73] Item 7, MD&A — EBITDA
  74. [74] Item 7, MD&A — EBITDA
  75. [75] Item 7, MD&A — Liquidity and Capital Resources
  76. [76] Item 7, MD&A — Liquidity and Capital Resources
  77. [77] Item 1, Business — Recent Developments
  78. [78] Item 7, MD&A — Liquidity and Capital Resources

Analysis on 7/23/2026