Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 141

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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 follows:

Remaining lease term and discount rate:

  Weighted average annual discount rate   7.3%  Weighted average remaining lease term (years)   4.34 years 

The weighted average lease term, discount rates, and remaining lease terms for the operating
leases as of March 31, 2025 were as follows:

Remaining lease term and discount rate:

  Weighted average annual discount rate   7.2%  Weighted average remaining lease term (years)   4.67 years 

The Company leases its
offices, warehouse, and retail stores under non-cancellable operating lease agreements. During the three months ended June 30, 2025,
lease expenses were $0.8 million, including $0.4 million in cost of revenues and $0.4 million in selling expense.
During the three months ended June 30, 2024, lease expenses were $1.1 million, including $0.3 million in cost of revenues,
$0.7 million in rent expense included in selling expense, and $0.1 million in rent expense included in general and
administrative expense.

27

For the three months ended June 30, 2025, the Company terminated 9 leases.

As of June 30, 2025, future minimum lease liabilities, all under office and facilities
non-cancellable operating lease agreements, were as follows:

    Twelve months ending June 30, 
    Operating Lease Liabilities 
  
    2026 
    $2,698,678 
  
    2027 
     2,676,687 
  
    2028 
     2,468,939 
  
    2029 
     1,856,316 
  
    2030 
     387,789 
  
    Thereafter 
     882,555 
  
    Total lease payments 
     10,970,964 
  
    Less: interest 
     (1,647,025)
  
    Present value of lease liabilities 
    $9,323,939 

12 — COMMITMENTS AND CONTINGENCIES

Commitments

The Company has not entered any off-balance sheet financial guarantees or other off-balance
sheet commitments to guarantee the payment obligations of any third parties. The Company has not entered any derivative contracts that
are indexed to its shares and classified as shareholder’s equity or that are not reflected in its unaudited