Fly‑E Group, Inc. (NASDAQ: FLYE) received a formal Nasdaq delinquency notice on November 25, 2025, after the exchange determined the company had failed to file its Form 10‑Q for the quarter ended September 30, 2025. The notice was publicly disclosed on December 5, 2025, and it states that the company does not currently satisfy Listing Rule 5250(c)(1). Under the rule, Fly‑E must submit a compliance plan within 60 calendar days—by January 26, 2026—otherwise it risks delisting. Nasdaq may grant an extension of up to 180 days if the plan is accepted, which would push the deadline to May 20, 2026.
Fly‑E’s financials underscore the gravity of the situation. For fiscal 2025, the company reported net revenue of $25.4 million, down 21.5% from $32.2 million in 2024, and a net loss of $5.3 million versus a $1.9 million profit the prior year. Preliminary Q3 2025 revenue fell 42.9% from the same period in 2024, reflecting a sharp decline in sales of its lithium‑battery‑powered e‑bikes and e‑scooters amid safety concerns and a class‑action lawsuit alleging misleading statements about battery safety. The company’s cash position is strained, with negative operating cash flow and a limited runway that has prompted a $6.1 million equity offering in June 2025 to shore up liquidity.
The delinquency notice signals deeper governance and liquidity issues. Nasdaq’s listing staff cited “substantial doubt” about Fly‑E’s ability to continue as a going concern, a warning that the company’s internal controls and financial reporting processes are under scrutiny. The company’s recent 1‑for‑5 reverse stock split, completed on July 3, 2025, and the ongoing lawsuit further erode investor confidence and highlight potential weaknesses in corporate governance. Management has stated it intends to file the overdue Form 10‑Q as soon as the September 30 financial statements are finalized, but the delay suggests significant accounting or control challenges that could prolong the compliance process.
Market reaction to the notice was swift. After the announcement, Fly‑E’s shares fell 8.34% in after‑hours trading, closing at $7.58. Investors reacted to the dual threats of a potential delisting and the company’s deteriorating financial health, which together raise concerns about future capital access and operational viability. The decline reflects the market’s assessment that the delinquency notice is a symptom of broader systemic issues rather than a one‑off filing delay.
The company’s next steps will be critical. A timely, comprehensive compliance plan that addresses Nasdaq’s concerns about internal controls, financial reporting, and governance will be essential to avoid delisting. If Fly‑E fails to regain compliance, shareholders will be notified that the stock may be subject to delisting, and the company will have the opportunity to appeal to a Nasdaq hearings panel. The outcome will have lasting implications for the company’s ability to raise capital, maintain market presence, and continue its operations in the competitive electric‑vehicle accessories market.
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