Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 148

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 148
---
, free and clear
of all liens and encumbrances. The Buyers agreed to purchase the shares for total cash consideration of $235,939. There were no contingent
payments, earn-outs, or post-closing adjustments specified in the agreements.

The disposal of these
subsidiaries were not considered discontinued operations under ASC 205-20, as their disposal did not represent a strategic shift
that had a major effect on the Company’s operations and financial results.

As of June 30, 2025, the Company had classified
the assets and liabilities of the subsidiaries that were sold on July 1, 2025 as held for sale in accordance with ASC 360-10. The classification
criteria were met when the management committed to a plan to sell.

31

Summarized Held for Sale Financial Information

A summary of the carrying amounts of major classes of assets and liabilities, which are
included in assets and liabilities held for sale in the consolidated balance sheet, is as follows:

    June 30,  2025  
    March 31, 2025 
  
    ASSETS 

    Cash 
    $68,665  
    $61,548 
  
    Inventories, net 
     95,167  
     195,192 
  
    Prepayments and other receivables 
     —  
     22,096 
  
    Property and equipment, net 
     104,165  
     154,876 
  
    Security deposits 
     40,334  
     73,025 
  
    Operating lease right-of-use assets 
     588,962  
     1,955,765 
  
    Assets held for sale 
    $897,293  
    $2,462,502 

    LIABILITIES 

    Short-term loan payables 
     37,800  
     25,498 
  
    Accrued expenses and other payables 
     15,334  
     — 
  
    Operating lease liabilities – current 
     184,101  
     319,874 
  
    Operating lease liabilities – non-current 
     425,211  
     1,807,075 
  
    Liabilities held for sale 
     662,446  
     2,152,447 

There was $1,092 gain on the sale of subsidiaries on July 1,