Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 120

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 related parties cannot be presumed to be carried out on an arm’s length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s length transactions unless such representations
can be substantiated.

15

(u) Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260,
“Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided
by the weighted average common stock outstanding for the period. Diluted EPS takes into account the potential dilution that could occur
if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. Potential shares of common
stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted EPS.

For the three months ended June 30, 2025 and 2024,
the Company had 11,464,097 and 25,875 potential shares of common stock issuable upon the exercise of the Representative’s Warrants
and 2025 Warrants (as defined below). As the Company incurred losses for the three months ended June 30, 2025 and 2024, inclusion of these
potential shares of common stock would have reduced the net loss per share. Therefore, these potential shares were excluded from the calculation
of diluted net loss per share.  

(v) Foreign Currencies Translation

Transactions denominated in currencies other than the functional currency are translated
into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated
in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the
balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company
is United States Dollar ($). The Company’s subsidiary in Canada maintains its books and records in its local currency, Canadian
dollar (CAD), which is the functional currency for this subsidiary as it is the primary currency of the economic environment in which
this entity operates.

In general, for consolidation purposes, assets and liabilities of subsidiaries whose functional
currency is not United States Dollar are translated into United States Dollar in accordance with ASC Topic 830