Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 25

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 deposits, restricted cash, short-term investments, and accounts receivable, net.
The Company’s investment policy requires cash and cash equivalents, term deposits, restricted cash, and short-term investments
to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. The Company regularly
evaluates the credit standing of the counterparties or financial institutions.

(t) Related Parties

A related party is generally defined as (i) any person and or their immediate family
hold 10% or more of the Company’s securities (ii) the Company’s management and/or their immediate family, (iii) someone
that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly
influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there
is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions
involving related parties cannot be presumed to be carried out on an arm’s length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s length transactions unless such representations
can be substantiated.

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(u) Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260,
“Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided
by the weighted average common stock outstanding for the period. Diluted EPS takes into account the potential dilution that could occur
if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. Potential shares of common
stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted EPS.

For the three months ended June 30, 2025 and 2024,
the Company had 11,464,097 and 25,875 potential shares of common stock issuable upon the exercise of the Representative’s Warrants
and 2025 Warrants (as defined below). As the Company incurred losses for the three months ended June 30, 2025 and 2024, inclusion of these
potential shares of