Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 53

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 all its rights,
title, and interests in the shares of the subsidiaries to the Buyers, free and clear of all liens and encumbrances. The Buyers agreed
to purchase the shares for total cash consideration of $60,207. There were no contingent payments, earn-outs, or post-closing adjustments
specified in the agreements. In June 2025, the Company received $27,000 from the Buyers. There was no gain or loss on the sale of subsidiaries.

On June 17, 2025, the management team approved
to sell 100% of its equity interests in subsidiaries OFLYO INC, FLYCYCLE INC, and FLYBX2381 INC to third-party individuals (the “Buyers”).
On July 1, 2025, the Company entered into share transfer agreements with the Buyers. Pursuant to the terms of the agreements, the Company
agreed to sell, transfer, and assign all its rights, title, and interests in the shares of the subsidiaries to the Buyers, free and clear
of all liens and encumbrances. The Buyers agreed to purchase the shares for total cash consideration of $235,939. There were no contingent
payments, earn-outs, or post-closing adjustments specified in the agreements.

The disposal of these
subsidiaries were not considered discontinued operations under ASC 205-20, as their disposal did not represent a strategic shift
that had a major effect on the Company’s operations and financial results.

As of June 30, 2025, the Company had classified
the assets and liabilities of the subsidiaries that were sold on July 1, 2025 as held for sale in accordance with ASC 360-10. The classification
criteria were met when the management committed to a plan to sell.

31

Summarized Held for Sale Financial Information

A summary of the carrying amounts of major classes of assets and liabilities, which are
included in assets and liabilities held for sale in the consolidated balance sheet, is as follows:

    June 30,  2025  
    March 31, 2025 
  
    ASSETS 

    Cash 
    $68,665  
    $61,548 
  
    Inventories, net 
     95,167  
     195,192 
  
    Prepayments and other receivables 
     —  
     22,096 
  
    Property and equipment, net 
     104,165