Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 948

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 4
Chunk 948
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 retail operating divisions are geographically based, have similar economic characteristics and similar expected long-term
financial performance. Because substantially all of the Company’s long-lived assets and revenues are located in and derived from
the U.S., geographical segments are not presented. The Company’s operating segments are reported in one reportable segment. There
are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated
unit level. Based on qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment
Reporting”, the Company considers itself to be operating within one reportable segment. The Company has concluded that consolidated
net (loss) income is the measure of segment profitability. The CODM assesses performance for the Company, monitors budget versus actual
results, and determines how to allocate resources based on consolidated net (loss) income as reported in the consolidated statements of
operations and other comprehensive (loss) income. There are no other expense categories regularly provided to the CODM that are not already
included in the primary financial statements herein.

F-11

(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 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.