Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 31

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 31
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Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment,
is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. During
the three and six months ended September 30, 2025, all holders of the Company’s 2025 Warrants exercised their rights to acquire
common stock. The exercises were completed on a cashless basis pursuant to the terms of the warrant agreements. The exercises did not
generate any cash proceeds to the Company. All share numbers for warrant exercises prior to the reverse stock split have been retroactively
adjusted to reflect the 1-for-5 reverse stock split and 1-for-20 reverse stock split. During the three and six months ended September
30, 2025, 571,912 of the 2025 Warrants were exercised on a cashless basis pursuant to the terms of the warrant agreements, resulting in
the issuance of 410,982 shares of common stock.

The Company accounts for its warrants as equity
that meet all of the criteria (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement
or settlement in its own shares (physical settlement or net-share settlement), the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance and subsequent changes in fair value are not recognized as long as the warrants
continue to be classified as equity.

(y) Held for Sale

The Company classifies assets and liabilities
to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits
to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a
buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes
to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. Management
performs an assessment at least quarterly or when events or changes in business circumstances indicate that a change in classification
may be necessary.

18

Assets and liabilities held for sale are presented
separately within the consolidated balance sheets with any adjustments necessary to measure the disposal group at the lower of its carrying
value or fair value less costs