Financial Analysis

13 COMMITMENTS AND CONTINGENCIES Commitments The Company has not entered any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. The Company has not entered any derivative contracts that are indexed to its shares and classified as shareholders equity or that are not reflected in its consolidated financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to itself or engages in leasing, hedging or product development services with itself. Contingencies Legal The Company is a party to certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. The Companys products and other production facilities as well as the packaging, storage, distribution, advertising and labeling of its products, are subject to extensive legal and regulatory requirements. For example, pursuant to the DMV registration requirement, the Company must satisfy the DMV Registration requirements and conduct …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated information of revenues by business lines are as follows: For the Years Ended March 31, 2026 2025 Product revenues - retail (ASC 606) $ 6,922,972 $ 21,725,817 Product revenues - wholesale (ASC 606) 11,560,343 3,529,479 Revenues - rental services (ASC 842) 580,042 171,867 Net revenues $ 19,063,357 $ 25,427,163

DisaggregationOfRevenueTableTextBlock

11 INCOME TAX (a) Income Tax Expense The Company conducts business both domestically and internationally and, as a result, the parent company and most of its subsidiaries file a consolidated income tax return in U.S. federal, U.S. states and U.S. Cities, and one of the subsidiaries files a foreign income tax return in certain foreign jurisdictions. The Company will file a consolidated annual U.S. federal tax return for tax year ending March 31, 2026, as well as combined tax returns for New Jersey, New York State, Florida, Texas, California, District of Columbia, Massachusetts, Maryland, and New York City. Most subsidiaries of the Company were incorporated in the State of New York and are subject to the U.S. federal corporate income taxes with a tax rate of 21.0%. The State of New York levies a corporate income tax rate of 8.45% on state-level earnings. In addition, a sum of fixed dollar minimum taxes is imposed on the taxable group members, in accordance with their gross receipts within the State of New York. The City of New York levies a 6.50% city corporate income tax, along with a sum of fixed dollar minimum taxes, applied to taxable group members based on their gross receipts within the city. Five of the Companys subsidiaries are located in New Jersey, which imposes a state income tax rate of 9.0%. Two of the Companys subsidiaries is located in Florida, which imposes a state income tax rate of 5.5%. Two subsidiaries of the Company are located in Texas, which imposes a sta …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

12 LEASES The Company adopted Topic 842 for all periods presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The Companys leases mainly consisted of offices, retail stores, and warehouses. The Companys operating right-of-use (ROU) assets and lease liabilities were as follows: As of March 31, As of March 31, 2026 2025 Operating ROU: ROU assets $ 4,289,237 $ 10,933,068 Total operating ROU assets $ 4,289,237 $ 10,933,068 As of March 31, As of March 31, 2026 2025 Operating lease obligations: Current operating lease liabilities $ 1,507,340 $ 2,617,762 Non-current operating lease liabilities 3,302,325 9,106,928 Total lease liabilities $ 4,809,665 $ 11,724,690 The Company had 9 and 36 leases as of March 31, 2026 and 2025, respectively. The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2026 were as follows: Remaining lease term and discount rate: Weighted average annual discount rate 7.2 % Weighted average remaining lease term (years) 2.93 years The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2025 were as follows: Remaining lease term and discount rate: Weighted average annual discount rate 7.2 % Weighted average remaining lease term (years) 4.67 years The Company leases its offices, warehouse, and retail stores under non-cancellable operating lease agreements. During the year ended March 31, 20 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

9 LOAN PAYABLES A summary of the Companys loans is listed as follows: As of March 31, As of March 31, Lender Due Date 2026 2025 Chase Bank (i) January 12, 2028 $ $ 301 Leaf Capital Funding, LLC (ii) December 31, 2027 34,620 Automobile Loan Honda (iii) June 25, 2027 20,353 Milea Truck Sales of Queens Inc. (iv) August 22, 2027 65,234 106,093 Milea Truck Sales of Queens Inc. (iv) July 26, 2027 45,404 76,779 Peapack-Gladstone Bank (v) March 31, 2026 3,936,058 4,936,058 Velocity Commercial Capital, LLC (vi) December 1, 2054 1,921,240 1,927,729 AOWINV LLC (vii) June 10, 2025 255,000 Stripe, Inc. (ix) December 22, 2026 7,544 Total loan payables 5,975,480 7,356,933 Short-term loan payables (3,936,058 ) (5,191,058 ) Current portion of long-term loan payables (93,980 ) (100,835 ) Total Long-term loan payables $ 1,945,442 $ 2,065,040 (i) On January 12, 2023, the Companys subsidiary, Arfy Corp. obtained a five-year long-term loan of $70,000 from JPMorgan Chase Bank, N.A. with an annual interest rate of 9.8%. Mr. Tong Chen, an original stockholder of the Company, provided a guarantee on this loan. To secure payment and performance of the liabilities, Arfy Corp. pledged to JPMorgan Chase Bank, N.A., a continuing security interest in all of its right, title and interest in all of its properties, whether now owned or hereinafter acquired and whether now existing or hereafter arising. As of March 31, 2026, the Company paid off this loan in full. (ii) On August 24, 2022, Universe King Corp. ob …

LongTermDebtTextBlock · excerpt; the full note is in the filing

14 RELATED PARTY TRANSACTIONS (A) Related party balances Accounts receivable, net a related party Name of Related Party Relationship Nature As of March 31, 2026 As of March 31, 2025 Fly E Bike SRL Zhou Ou (CEO), owns over 50% equity interest of this entity Accounts receivable $ 73,130 $ 78,565 Accounts receivable a related party 73,130 78,565 Less: Allowance for credit losses (41,100 ) (41,100 ) Accounts receivable, net a related party $ 32,030 $ 37,465 During the year ended March 31, 2026, the Company received $5,435 from Fly E Bike SRL. Prepayments and other receivables related parties As of March 31, As of March 31, Name of Related Party Relationship Nature 2026 2025 Fly E Bike SRL Zhou Ou (CEO), owns over 50% equity interest of this entity Other receivables $ 161,560 $ PJMG LLC Ruifeng Guo (former CFO who resigned on November 6, 2024), owns over 50% equity interest of this entity Prepayments 120,000 Prepayments and other receivables related parties $ 161,560 $ 120,000 During the year ended March 31, 2026, the Company advanced $161,560 to Fly E Bike SRL, a distributor the Company works with and in which Mr. Ou holds over 50% of the equity interest. The amount is unsecured, non-interest bearing and repayable on demand. On April 1, 2023, the Company agreed to retain the services of PJMG, a company in which Mr. Guo, the Companys former CFO who resigned on November 6, 2024, holds over 50% of the equity interests as a consultant following the completion of its IPO. PJMG was eng …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (the U.S. GAAP) and regulations of the Securities Exchange Commission (the SEC). The accompanying consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Companys ability to operate profitably, to generate cash flows from operations, and its ability to attract investors and to borrow funds on reasonable economic terms. (b) Principles of Consolidation A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power, or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at board meetings, or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. The accompanying consolidated financial statements include the consolidated financial statements of the Company and its wholly owned subsidiary. A subsidiary is an entity over which the Company has control. Control is achieved when the Company has power over the invest …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

10 STOCKHOLDERS EQUITY Prior to the effectiveness of the stock splits discussed below, the Company was authorized to issue 400 shares of common stock having a par value of $0.01 per share and 40 shares of preferred stock having a par value of $0.01 per share. There were 200 shares of common stock were issued and outstanding prior to the effectiveness of the stock splits. 2024 Stock Split On March 27, 2024, the Companys board of directors approved a 1-for-110,000 stock split of the Companys capital stock. The stock split became effective on April 2, 2024. The par value of the Companys common stock remained unchanged at $0.01 per share, and the number of authorized shares of the Companys capital stock was increased from 440 to 48,400,000, with the number of authorized shares of common stock and preferred stock being increased from 400 to 44,000,000 and from 40 to 4,400,000, respectively. On June 7, 2024, the Company amended and restated the certificate of incorporation to authorize the Company to issue up to 110,000,000 shares. The par value of the Companys common stock remained unchanged at $0.01 per share, and the number of authorized shares of the Companys capital stock increased to 110,000,000, with the number of authorized shares of common stock and preferred stock being increased 100,000,000 and 10,000,000, respectively. On March 10, 2025, the Company amended and restated the certificate of incorporation to authorize the Company to increase the authorized shares of common …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

16 SUBSEQUENT EVENTS The Company has evaluated subsequent events after March 31, 2026, up through July 23, 2026, the date at which the consolidated financial statements were issued. Except for the events mentioned below, the Company did not identify any subsequent events with material financial impact on the Companys consolidated financial statements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

12 COMMITMENTS AND CONTINGENCIES Commitments The Company has not entered any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. The Company has not entered any derivative contracts that are indexed to its shares and classified as shareholders equity or that are not reflected in its unaudited condensed consolidated financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to itself or engages in leasing, hedging or product development services with itself. Contingencies Legal From time to time, the Company is a party to certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the unaudited condensed consolidated financial statements. The Companys products and other production facilities as well as the packaging, storage, distribution, advertising and labeling of its products, are subject to extensive legal and regulatory requirements. For example, pursuant to the DMV registration requirement, the Company …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated information of revenues by business lines are as follows: For the Three Months Ended For the Nine Months Ended December 31, December 31, 2025 2024 2025 2024 Product revenues - retail (ASC 606) $ 648,502 $ 4,914,741 $ 6,438,362 $ 17,708,735 Product revenues - wholesale (ASC 606) 1,810,368 714,308 4,960,467 2,618,146 Revenues - rental services (ASC 842) 190,271 48,961 487,372 48,961 Net revenues $ 2,649,141 $ 5,678,010 $ 11,886,201 $ 20,375,842

DisaggregationOfRevenueTableTextBlock

11 LEASES The Company adopted Topic 842 for all periods presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The leases of the Company mainly consisted of offices, retail stores, and warehouses. The Companys operating right-of-use (ROU) assets and lease liabilities were as follows: December 31, March 31, 2025 2025 Operating ROU: ROU assets $ 4,629,716 $ 10,933,068 Total operating ROU assets $ 4,629,716 $ 10,933,068 December 31, March 31, 2025 2025 Operating lease obligations: Current operating lease liabilities $ 1,454,771 $ 2,617,762 Non-current operating lease liabilities 3,690,922 9,106,928 Total lease liabilities $ 5,145,693 $ 11,724,690 The Company had 9 and 36 leases as of December 31, 2025 and March 31, 2025, respectively. The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of December 31, 2025 were as follows: Remaining lease term and discount rate: Weighted average annual discount rate 7.2 % Weighted average remaining lease term (years) 3.17 years The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2025 were as follows: Remaining lease term and discount rate: Weighted average annual discount rate 7.2 % Weighted average remaining lease term (years) 4.67 years The Company leases its offices, warehouse, and retail stores under non-cancellable operating lease agreements. During the three months ended …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

9 LOAN PAYABLES A summary of the Companys loans is listed as follows: December 31, March 31, Lender Due Date 2025 2025 Chase Bank (i) January 12, 2028 $ $ 301 Leaf Capital Funding, LLC (ii) December 31, 2027 24,863 34,620 Automobile Loan Honda (iii) June 25, 2027 20,353 Milea Truck Sales of Queens Inc. (iv) August 22, 2027 75,830 106,093 Milea Truck Sales of Queens Inc. (iv) July 26, 2027 53,455 76,779 Peapack-Gladstone Bank (v) March 31, 2026 3,936,058 4,936,058 Velocity Commercial Capital, LLC (vi) December 1, 2054 1,922,816 1,927,729 AOWINV LLC (vii) June 10, 2025 255,000 Agile Lending, LLC (viii) November 27, 2025 Stripe, Inc. (ix) April 20, 2026 40,356 Stripe, Inc. (ix) December 22, 2026 Total loan payables 6,053,378 7,356,933 Short-term loan payables (3,936,058 ) (5,191,058 ) Current portion of long-term loan payables (138,550 ) (100,835 ) Long-term loan payables $ 1,978,770 $ 2,065,040 (i) On January 12, 2023, the Companys subsidiary, Arfy Corp. obtained a five-year long-term loan of $70,000 from JPMorgan Chase Bank, N.A. with an annual interest rate of 9.8%. Mr. Tong Chen, an original stockholder of the Company, provided a guarantee on this loan. To secure payment and performance of the liabilities, Arfy Corp. pledged to JPMorgan Chase Bank, N.A., a continuing security interest in all of its right, title and interest in all of its properties, whether now owned or hereinafter acquired and whether now existing or hereafter arising. As of December 31, 2025, the Company p …

LongTermDebtTextBlock · excerpt; the full note is in the filing

13 RELATED PARTY TRANSACTIONS (A) Related party balances Accounts receivable, net a related party Name of Related Party Relationship Nature December 31, 2025 March 31, 2025 Fly E Bike SRL Zhou Ou (CEO), owns over 50% equity interest of this entity Accounts receivable $ 73,130 $ 78,565 Accounts receivable a related party 73,130 78,565 Less: Allowance for credit losses (41,100 ) (41,100 ) Accounts receivable, net a related party $ 32,030 $ 37,465 During the nine months ended December 31, 2025, the Company received $5,435 from Fly E Bike SRL. Prepayments and other receivables related parties December 31, March 31, Name of Related Party Relationship Nature 2025 2025 Fly E Bike SRL Zhou Ou (CEO), owns over 50% equity interest of this entity Other receivables $ 161,560 $ PJMG LLC Ruifeng Guo (former CFO who resigned on November 6, 2024), owns over 50% equity interest of this entity Prepayments 120,000 Prepayments and other receivables related parties $ 161,560 $ 120,000 During the nine months ended December 31, 2025, the Company advanced $161,560 to Fly E Bike SRL, a distributor the Company works with and in which Mr. Ou holds over 50% of the equity interest. The amount is unsecured, non-interest bearing and repayable on demand. On April 1, 2023, the Company agreed to retain the services of PJMG, a company in which Mr. Guo, the Companys former CFO who resigned on November 6, 2024, holds over 50% of the equity interests as a consultant following the completion of its IPO. PJMG was e …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (the U.S. GAAP) and regulations of the Securities Exchange Commission (the SEC). The accompanying unaudited condensed consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Companys ability to operate profitably, to generate cash flows from operations, and its ability to attract investors and to borrow funds on reasonable economic terms. The results of operations for the three and nine months ended December 31, 2025 are not necessarily indicative of results to be expected for any other interim period or for the full fiscal year ending March 31, 2026. Accordingly, these statements should be read in conjunction with the Companys audited consolidated financial statements and note thereto as of and for the years ended March 31, 2025 and 2024. (b) Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financia …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

10 STOCKHOLDERS EQUITY Prior to the effectiveness of the stock splits discussed below, the Company was authorized to issue 400 shares of common stock having a par value of $0.01 per share and 40 shares of preferred stock having a par value of $0.01 per share. There were 200 shares of common stock were issued and outstanding prior to the effectiveness of the stock splits. 2024 Stock Split On March 27, 2024, the Companys board of directors approved a 1-for-110,000 stock split of the Companys capital stock. The stock split became effective on April 2, 2024. The par value of the Companys common stock remained unchanged at $0.01 per share, and the number of authorized shares of the Companys capital stock was increased from 440 to 48,400,000, with the number of authorized shares of common stock and preferred stock being increased from 400 to 44,000,000 and from 40 to 4,400,000, respectively. On June 7, 2024, the Company amended and restated the certificate of incorporation to authorize the Company to issue up to 110,000,000 shares. The par value of the Companys common stock remained unchanged at $0.01 per share, and the number of authorized shares of the Companys capital stock increased to 110,000,000, with the number of authorized shares of common stock and preferred stock being increased 100,000,000 and 10,000,000, respectively. On March 10, 2025, the Company amended and restated the certificate of incorporation to authorize the Company to increase the authorized shares of common …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

15 SUBSEQUENT EVENTS On January 1, 2026, the Company entered into share transfer agreements for the sale of 100% of its equity interests in subsidiaries FLYFLS INC, FLYNJ2 INC., FLYE BIKE NJ3, INC, FLYNJ4 INC. and FLYTORONTO CORP. to third-party buyers for a total cash consideration of $69,420, $68,627, $511,353, $146,473 and $628,151, respectively, with no contingent payments or adjustments. As of April 20, 2026, the Company did not receive any consideration from the third-party individuals. (See Note - 14 DISPOSAL OF SUBSIDIARIES). …

SubsequentEventsTextBlock · excerpt; the full note is in the filing