Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 20

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 20
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) Property and Equipment, Net  

Property and equipment are stated at cost less
accumulated depreciation and any recorded impairment.

The estimated useful lives are as follows:

  Furniture and fixtures   5 years  Machinery and equipment   5 years  Automobile   5 years  Leasehold improvements   3 – 10 years (shorter of lease term or useful lives)  Buildings   30 years  Computer hardware and software   10 years  Properties used for rental business   2 years 

Depreciation on property and equipment is calculated
on the straight-line method over the estimated useful lives of the assets. The cost and related accumulated depreciation of assets sold
or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations.
Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals, and betterments, which are expected
to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether
subsequent events and circumstances warrant revised estimates of useful lives.

(k) Intangible Assets

Intangible asset is stated at cost less accumulated
amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected
to be consumed or otherwise used up. The balance of intangible asset represents internal use software and property rights. The software
is acquired externally tailored to the Company’s requirements. The Company capitalizes the costs associated with design, development,
acquisition and maintenance of its acquired intangible assets and amortizes these assets over their remaining useful lives on a straight-line
basis. Any further payments made to maintain or develop these assets would be capitalized and amortized over the balance of the useful
life for the assets. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect
of any changes in the estimate being accounted for on a prospective basis.

The estimated useful lives of intangibles assets
are as follows:

    Property
    rights
     
    5-20 years
  
    Software
     
    5 years

12

(l) Impairment of Long-lived Assets

At the end of each reporting period, the Company
reviews the carrying amounts of its property and equipment, intangible assets subject to depreciation and amortization, and right-of-use
assets, to determine whether there is any indication that the carrying