Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 903

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 4
Chunk 903
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financial statements in conformity with U.S. GAAP, which requires us to make estimates and assumptions. We continually evaluate these
estimates and assumptions based on the most recently available information, our own historical experiences and various other assumptions
that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting
process, actual results could differ from our expectations as a result of changes in our estimates. Some of our accounting policies require
a higher degree of judgment than others in their application and require us to make significant accounting estimates.

Estimated Allowance for Inventories

Our estimated allowance for
the inventory obsolescence reserves is based on our assessment of realization of inventory. Adjustments are recorded to write down the
cost of inventories to the estimated net realizable value due to slow-moving merchandise and obsolescence, which is dependent upon factors
such as inventory aging, historical and forecasted consumer demand, and market conditions that impact pricing. As of March 31, 2025 and
2024, we recorded inventory allowance balance of $1,107,569 and $514,021, respectively.

Item 7A. Quantitative and Qualitative Disclosures
About Market Risk

Not applicable.

Item 8. Financial Statements and Supplementary
Data

The information required
by this item appears beginning on page F-1 of this annual report and is incorporated herein by reference.

Item 9. Changes in and Disagreements with
Accountants on Accounting and Financial Disclosures

Not applicable.

Item 9A. Controls and Procedures

Evaluation
of Disclosure Controls and Procedures

We
maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us
in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal
executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.  

Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our
disclosure controls and procedures as of March 31, 2025. Based on the evaluation of our disclosure controls and procedures, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of March 31,
2025 due to the