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Auditor change at Fly-E Group (NASDAQ: FLYE) amid going concern note

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Fly-E Group, Inc. reported that its Audit Committee dismissed Marcum Asia CPAs LLP as independent registered public accounting firm and appointed Fortune CPA, Inc. to review the quarter at December 31, 2025 and audit the fiscal year ending March 31, 2026. Marcum Asia’s audit reports for the fiscal years ended March 31, 2025 and 2024 were unqualified but included an explanatory paragraph about the Company’s ability to continue as a going concern. The Company states there were no disagreements with Marcum Asia on accounting, disclosure, or audit scope, and no reportable events other than previously disclosed material weaknesses in internal control over financial reporting, including insufficient U.S. GAAP expertise, lack of formal internal control policies and supervision, and weaknesses in IT general controls.

Positive

  • None.

Negative

  • None.

Insights

Fly-E changes auditors with no reported disputes but ongoing control weaknesses.

Fly-E Group replaced Marcum Asia with Fortune CPA as its independent auditor for the period including the fiscal year ending March 31, 2026. The company states Marcum Asia’s prior opinions were clean except for a going concern explanatory paragraph.

The filing also reiterates previously disclosed material weaknesses in internal control over financial reporting, including limited U.S. GAAP expertise, lack of formal control frameworks, and IT general control gaps. These factors, together with the going concern emphasis, indicate elevated audit and reporting risk until remediation is demonstrated.

Marcum Asia is reported to have had no disagreements with management, and there were no consultations with Fortune on specific accounting treatments before the engagement, suggesting the change is not tied in this disclosure to a particular accounting dispute.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 6, 2026

 

Fly-E Group, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   001-42122   92-0981080
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer
Identification Number)

 

136-40 39th Avenue, Suite 202    
Flushing, New York   11354
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (929) 410-2770

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common stock, $0.01 par value per share   FLYE   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 

 

 

Item 4.01. Changes in Registrant’s Certifying Accountant. 

 

On March 6, 2026, the Audit Committee of the Board of Directors of Fly-E Group, Inc. (the “Company”) (i) approved the dismissal of Marcum Asia CPAs LLP (“Marcum Asia”) as the Company’s independent registered public accounting firm and (ii) appointed Fortune CPA, Inc. (“Fortune”) as the Company’s independent registered public accounting firm to conduct an quarter review of the Company’s financial statements at December 31, 2025, and audit the Company’s consolidated financial statements as of and for the fiscal year ending March 31, 2026.

 

The audit reports of Marcum Asia on the Company’s consolidated financial statements as of and for the fiscal years ended March 31, 2025 and 2024 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles, except for an explanatory paragraph related to the Company’s ability to continue as a going concern.

 

During the fiscal years ended March 31, 2025 and 2024, and the subsequent interim period through March 6, 2026, there were no: (i) “disagreements,” as that term is defined in Item 304(a)(1)(iv) of Regulation S-K under the Securities Act of 1933 (“Regulation S-K”) with Marcum Asia on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Marcum Asia, would have caused Marcum Asia to make reference to the subject matter of such disagreements in connection with its audit reports on the Company’s consolidated financial statements as of and for the fiscal years ended March 31, 2025 and 2024, or (ii) reportable events within the meaning of Item 304(a)(1)(v) of Regulation S-K, , other than the material weaknesses as reported in its Form 10-K filed with the SEC on July 15, 2025. Such material weaknesses related to our lack of (i) sufficient financial reporting and accounting personnel with appropriate knowledge of generally accepted accounting principles in the United States of America (the “U.S. GAAP”) and SEC reporting requirements to properly address complex U.S. GAAP accounting issues and to prepare and review our consolidated financial statements and related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements, (ii) formal internal control policies and internal independent supervision functions to establish formal risk assessment process and internal control framework, and (iii) sufficient controls designed and implemented in IT environment and IT general control activities, which are mainly associated with areas of logical access management, change management, computer operation, service organization management as well as cyber security management.  

 

The Company has provided Marcum Asia with a copy of the disclosures in this Current Report on Form 8-K, and requested that Marcum Asia provide the Company with a letter addressed to the U.S. Securities and Exchange Commission (the “SEC”) stating whether Marcum Asia agrees to the statements made by the Company herein. A copy of the letter from Marcum Asia addressed to the SEC and dated as of March 12, 2026 is filed as Exhibit 16.1 to this Current Report on Form 8-K.

 

During the fiscal years ended March 31, 2025 and 2024, and the subsequent interim period through March 6, 2026, neither the Company nor anyone on the Company’s behalf consulted with Fortune with respect to either (i)(a) the application of accounting principles to a specified transaction, either completed or proposed, or (b) the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and neither a written report nor oral advice was provided by Fortune to the Company that Fortune concluded was an important factor that the Company consider in reaching a decision as to any accounting, auditing or financial reporting issue, or (ii) any other matter that was the subject of a “disagreement” or a “reportable event” (as these terms are defined in Item 304(a)(1) of Regulation S-K and the related instructions).  

 

1

 

 

Item 9.01. Financial Statements and Exhibits.

 

(c) Exhibits:

 

Exhibit No.   Description
16.1   Letter from Marcum Asia CPAs LLP to the U.S. Securities and Exchange Commission, dated March 12, 2026
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Fly-E Group, Inc.
   
Date: March 12, 2026 By: /s/ Zhou Ou
  Name:  Zhou Ou
  Title: Chief Executive Officer

 

3

 

FAQ

What auditor change did Fly-E Group (FLYE) disclose in this 8-K?

Fly-E Group’s Audit Committee dismissed Marcum Asia CPAs LLP and appointed Fortune CPA, Inc. Fortune will review the quarter at December 31, 2025 and audit the fiscal year ending March 31, 2026, replacing Marcum Asia as independent registered public accounting firm.

Did Marcum Asia issue adverse opinions on Fly-E Group (FLYE) financials?

Marcum Asia’s audit reports for Fly-E Group’s fiscal years ended March 31, 2025 and 2024 were unqualified. However, each report contained an explanatory paragraph highlighting substantial doubt about the company’s ability to continue as a going concern, which signals financial sustainability concerns identified by the auditor.

Were there any disagreements between Fly-E Group (FLYE) and Marcum Asia?

The company reports no disagreements with Marcum Asia on accounting principles, financial statement disclosure, or audit scope during fiscal 2024, fiscal 2025, and through March 6, 2026. It also reports no reportable events other than previously disclosed material weaknesses in internal control over financial reporting.

What internal control weaknesses did Fly-E Group (FLYE) highlight?

Fly-E Group cites material weaknesses including insufficient financial reporting and accounting personnel with U.S. GAAP and SEC expertise, lack of formal internal control policies and independent supervision, and inadequate IT general controls in areas like logical access, change management, operations, service providers, and cyber security management.

Did Fly-E Group (FLYE) consult Fortune CPA before appointing it auditor?

The company states it did not consult Fortune CPA on applying accounting principles to specific transactions, potential audit opinions, or other reportable matters before the engagement. No written or oral advice from Fortune influenced management’s decisions on accounting, auditing, or financial reporting issues.

What additional document related to Marcum Asia did Fly-E Group (FLYE) file?

Fly-E Group filed Exhibit 16.1, a letter from Marcum Asia CPAs LLP to the U.S. Securities and Exchange Commission dated March 12, 2026. This letter responds to the company’s disclosure regarding the change in auditors and is incorporated as part of the 8-K exhibits.

Filing Exhibits & Attachments

4 documents
Fly-E Group Inc

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