Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 150

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 150
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 to the earlier of the end of the useful lives of the right-of-use assets or the end of
the lease terms.

Lease liabilities are initially measured at the
present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend
on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease if that rate can be readily determined.
If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate. Subsequently, lease liabilities
are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there
is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those
payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying
amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease
liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on
an index or a rate are recognized as expenses in the periods in which they are incurred.

(s) Concentration Risk

Concentration of customers and suppliers

No customers individually represented greater
than 10% of total net revenues of the Company for the three months ended September 30, 2025 and 2024, and for the six months ended September
30, 2025 and 2024, respectively. As of September 30, 2025, three customers accounted for approximately 14.5%, 10.2%, and 10.2% of accounts
receivable balances, respectively. As of March 31, 2025, three customers accounted for approximately 24.0%, 13.1% and 11.7% of accounts
receivable balances, respectively.

16

For the three months ended September 30, 2025,
the Company’s top one supplier represented approximately 72.0% of total purchases of the Company. For the three months ended September
30, 2024, the Company’s top three suppliers represented 49%, 20%, and 17% of total purchases of the Company, respectively. For the
six months ended September 30, 2025, the Company’s top two suppliers represented approximately 68% and 8%