Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 118

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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-use assets and lease liabilities for all leases at the
commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption
where lease payments are recognized as expenses on a straight-line basis over the lease terms. Leases with an initial term of 12 months
or less are short-term leases and not recognized as operating lease right-of-use assets and operating lease liabilities on the consolidated
balance sheets. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term.

Right-of-use assets are initially measured at cost, which comprises the initial measurement
of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and
an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently
measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use
assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement
dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which
comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate. The lease payments
are discounted using the interest rate implicit in a lease if that rate can be readily determined. If that rate cannot be readily determined,
the Company uses the lessee’s incremental borrowing rate. Subsequently, lease liabilities are measured at amortized cost using
the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change
in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease
liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is
reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate
line in the consolidated balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses
in the periods in which they are incurred.

(s) Concentration Risk

Concentration of customers and suppliers

No customers individually represented greater