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Fly-E Group Inc. (FLYE-0.10%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing indicates a decrease in net revenues to $6.8 million from $8.8 million in the same quarter the previous year, primarily due to a reduction in sales volume by 5,850 units.
Retail sales revenue decreased by 12.5% to $5.9 million, while wholesale revenue decreased by 54.8% to $0.9 million, attributed to the closure of stores by top customers.
Cost of revenues decreased by 21.6% to $3.9 million, consistent with the reduction in units sold.
Gross profit for the quarter was $2.9 million, with a gross margin of 42.6%, compared to 42.9% in the previous year.
Selling expenses increased to $2.0 million from $1.6 million, and general and administrative expenses rose to $2.1 million from $1.1 million, due to higher payroll, rent, and professional fees.
The company reported a net loss of $1.1 million, compared to a net income of $0.7 million in the previous year, attributed to decreased revenue and increased operating expenses.
Cash used in operating activities was $9.4 million, with cash used in investing activities at $2.8 million, and cash provided by financing activities at $12.1 million.
Fly-E Group had a working capital of $2.3 million as of September 30, 2024, with a noted substantial doubt about its ability to continue as a going concern.
The filing also details a non-compliance notice from Nasdaq (NDAQ+1.07%) regarding the minimum bid price requirement, with a compliance deadline of March 31, 2025.
Fly-E Group plans to address the going concern risk through equity financing, debt from financial institutions, and financial support from related parties.
The company continues to focus on its rental services and expanding its product offerings in the electric vehicle market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fly-E Group Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.