Fri, Aug 16, 8:16 PM (151 days ago)
For the quarter ending June 30, 2024, Fly-E Group, Inc. reported a slight revenue increase to $7.87 million, up 0.4% from $7.84 million in Q2 2023. This growth was primarily driven by a rise in retail sales, which increased by 11.4%, offset by a 40.1% decline in wholesale revenue. Gross profit improved to $3.10 million, reflecting a gross margin of 39.4%, up from 34.7% in the prior year, aided by decreased costs of goods sold, particularly for batteries. However, operating expenses surged by 60.9% to $3.15 million, primarily due to increased payroll and marketing costs associated with expanding retail operations. Consequently, the company incurred a net loss of $179,508 compared to a net income of $440,443 in the same quarter last year. Cash flow showed significant strain, with $4.52 million used in operations, driven by rising inventories and decreased accounts payable. The company raised $9.2 million through its IPO in June 2024, contributing to a cash balance of $4.47 million as of June 30, 2024. Despite these challenges, management believes the company has sufficient liquidity for the next 12 months, although future operational success hinges on effective supply chain management and market conditions.