Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 48

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 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.

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 December 31, 2024 and March 31, 2024, the Company did not have any significant unrecognized
uncertain tax positions.

26

11 — LEASES

The Company adopted Topic 842 for all periods
presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The leases of the Company
mainly consisted of offices, retail stores, and warehouses.

The Company’s operating right-of-use (“ROU”) assets
and lease liabilities were as follows:

    December 31,  2024  
    March 31,  2024 
  
    Operating ROU: 

    ROU assets 
    $14,318,422  
    $16,000,742 
  
    Total operating ROU assets 
    $14,318,422  
    $16,000,742 

    December 31,  2024  
    March 31,  2024 
  
    Operating lease obligations: 

    Current operating lease liabilities 
    $3,151,171  
    $2,852,744 
  
    Non-current operating lease liabilities 
     12,153,196  
     13,986,879 
  
    Total lease liabilities 
    $15,304,367  
    $16,839,623 

The Company
had 34  and 38 leases as of December 31, 2024 and March 31,
2024, respectively.

The weighted average lease term, discount rates,
and remaining lease terms for the operating leases as of December 31, 2024 were as follows:

Remaining lease term and discount rate:

  Weighted average discount rate   6.8%  Weighted average remaining lease term (years)   4.79 years  

The weighted average lease