Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 151

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 151
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 of total purchases of
the Company, respectively. For the six months ended September 30, 2024, the Company’s top three suppliers represented 44%, 30% and
11% of total purchases of the Company, respectively. As of September 30, 2025, three suppliers accounted for approximately 42%, 24%, and
21% of accounts payable balance, respectively.   As of March 31, 2025, two suppliers accounted
for approximately 63% and 25% of accounts payable balance, respectively.

Concentration of credit risk

Financial instruments that are potentially subject
to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable
is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally
require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding
the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have any bad debt on
its account receivable.

Financial instruments that potentially expose
the Company to concentrations of credit risk consist principally of cash and cash equivalents, term 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