Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1941

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 9B
Chunk 1941
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 2025 and 2024, the Company
had approximately $5.0 million and $6.0 million, respectively, in the DTAs, which respectively included approximately $1.5 million and
$40,332 related to net operating loss carryforwards that can be used to offset taxable income in future periods, $4.8 million and
$5.8 million related to lease liability, and $0.4 million and $0.2 million related to inventory allowance.

As of March 31, 2025 and 2024, the Company
had approximately $5.0 million and $6.0 million, respectively, which included $0.5 million and $0.5 million, respectively, in
the DTLs that related to accumulated depreciation and $4.5 million and $5.5 million related to ROU assets.

F-27

Deferred tax assets and liabilities are recognized
for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. As of March 31, 2025 and 2024, the
Company recorded approximately $94,983 and $40,199, respectively, in the net DTAs. The tax losses in Canada can be carried forward for
twenty years to offset future taxable profit. The tax losses of entities in Canada will begin to expire in 2044, if not utilized.  
As of March 31, 2025, management considered it more likely than not that the Company will have sufficient taxable income in the future
that will allow the Company to realize these net DTAs.

As a result of the Tax Cuts and Jobs Act (TCJA),
US NOLs arising after December 31, 2017, may be carried forward indefinitely and can offset only up to 80% of taxable income in any future
year. Based upon the Company’s recent taxable loss history, the Company performed an analysis and determined that it was necessary
to establish a valuation allowance of $1,714,000 with respect to its net deferred income tax assets as of and for the fiscal year ended
March 31, 2025.

Uncertain Tax Positions

The Company evaluates each uncertain tax position
(including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits
associated with the tax positions. As of March