Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1914

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 9B
Chunk 1914
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 two are considered observable and the third is considered unobservable:

    Level-1
    —
    Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

    Level-2
    — 
    Include other inputs that are directly or indirectly observable in the marketplace.

    Level-3
    — 
    Unobservable inputs which are supported by little or no market activity.

The fair value for certain assets and liabilities
such as cash, accounts receivable, other receivables, prepayments and other current assets, short-term loans, accounts payable, contract
liabilities, accrued expenses and other payables, and tax payables have been determined to approximately carrying amounts due to the short
maturities of these instruments. The Company believes that its long-term loan to a third party approximates the fair value based on current
yields for debt instruments with similar terms. The Company and its subsidiaries did not have any non-financial assets or liabilities
that are measured at fair value on a recurring basis as of March 31, 2025 and 2024.

(o) Revenue Recognition

Product revenue

The Company follows the revenue accounting requirements
of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers. The core principle underlying
the revenue recognition of this ASC allows the Company to recognize revenue that represents the transfer of products and services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company
to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based
on when control of products and services transfers to a customer.

To achieve that core principle, the Company applies
a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract
with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including
variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction
price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the
performance obligation.

F-14

The Company generates substantially all its revenues
from sales of products such as smart E-bikes, E-motorcycles, E-scooters and accessories to the retail and wholesale customers through