Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 112

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 useful lives)
  
    Buildings
     
    30 years
  
    Computer hardware and software
     
    10 years
  
    Properties used for rental business
     
    2 years

Depreciation on property and equipment is calculated on the straight-line method over the
estimated useful lives of the assets. The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated
from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures for maintenance and repairs
are charged to earnings as incurred, while additions, renewals, and betterments, which are expected to extend the useful life of assets,
are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant
revised estimates of useful lives.

(k) Intangible Assets

Intangible asset is stated at cost less accumulated amortization and amortized in a method
which reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise used up. The
balance of intangible asset represents internal use software and property rights. The software is acquired externally tailored to the
Company’s requirements. The Company capitalizes the costs associated with design, development, acquisition and maintenance of its
acquired intangible assets and amortizes these assets over their remaining useful lives on a straight-line basis. Any further payments
made to maintain or develop these assets would be capitalized and amortized over the balance of the useful life for the assets. The estimated
useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in the estimate
being accounted for on a prospective basis.

The estimated useful lives of intangibles assets are as follows:

    Property rights 
    5-20 years
  
    Software 
    5 years

11

(l) Impairment of Long-lived Assets

At the end of each reporting period, the Company reviews the carrying amounts of its property
and equipment, intangible assets subject to depreciation and amortization, and right-of-use assets, to determine whether there is any
indication that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on
the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future
cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any,