Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 32

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 state and foreign income taxes and to provide more
details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities
to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate
the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December
15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively.
The Company plans to adopt the provisions of this guidance for the fiscal year ending March 31, 2026.

17

Except as mentioned above, the Company does not
believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s
unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows.

3 — INVENTORIES, NET

Inventories, net consisted of the following:

    December 31,  2024  
    March 31,  2024 
  
    Batteries 
    $2,893,576  
    $1,009,228 
  
    Electric Vehicles 
     4,665,639  
     2,634,643 
  
    Tires 
     608,145  
     687,927 
  
    Accessories 
     1,374,298  
     1,546,283 
  
    Inventories 
     9,541,658  
     5,878,081 
  
    Inventory reserves 
     (936,030) 
     (514,021)
  
    Inventories, net 
    $8,605,628  
    $5,364,060 

Movements of inventory reserves are as follows:

    December 31,  2024  
    December 31,  2023 
  
    Beginning balance 
    $514,021  
    $431,363 
  
    Addition 
     678,157  
     287,946 
  
    Write off 
     (256,147) 
     (316,278)
  
    Ending Balance 
    $936,030  
    $403,031 

As of December 31, 2024 and March 31, 2024,
the inventory allowance balance was $