Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 110

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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herein.

9

(d) Use of Estimates

In the application of the Company’s accounting policies, management is required to
make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant.
Significant accounting estimates include allowance for inventories. Changes in facts and circumstances may result in revised estimates.
Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial
statements.

(e) Commitments and Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as
legal proceedings and claims arising out of its business, which cover a wide range of matters, including, among others, government investigations,
shareholder lawsuits, and non-income tax matters.

An accrual for a loss contingency is recognized when it is probable that a liability has
been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably
possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range
of possible loss if determinable and material, is disclosed.

(f) Cash

Cash consists of cash on hand and cash deposited with banks. The Company’s cash is
maintained at financial institutions in the U.S. Deposits in these financial institutions may, from time to time, exceed the Federal
Deposit Insurance Corporation’s (the “FDIC”) federally insured limit, which is $250,000. The Company has not incurred
any losses in the past for amount over the FDIC limits. As of June 30, 2025 and March 31, 2025, $920,754 and nil deposited with
banks was uninsured, respectively.

(g) Accounts Receivable

Accounts receivable includes trade account due from customers. Accounts receivable is recorded
at the invoiced amount less an allowance for any credit loss and does not bear interest, which is due after 30 to 90 days,
depending on the credit term with the customers. Accounts receivable which is deemed to be uncollectible is charged off against the allowance
after all means of collection have been exhausted and the potential for recovery is considered remote.

The
Company adopt the current expected credit loss model (“CECL model”) to estimate the expected credit losses, which is determined