Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2340

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 12
Chunk 2340
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 of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the
straight-line method from the commencement dates 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.

(t) Concentration Risk

Concentration of customers and suppliers

No customers individually represented greater
than 10% of total net revenues of the Company for the years ended March 31, 2025 and 2024.

For the year ended March 31, 2025, the Company’s
top two suppliers represented 42% and 32% of total purchases of the Company, respectively. For the year ended March 31, 2024, the Company’s
top three suppliers represented 36%, 21%, and 13% of total purchases of the Company, respectively. As of March 31, 2025, two suppliers
accounted for 63% and 25% of accounts payable balance, respectively. As of March 31, 2024, three suppliers accounted for 31%, 26%,
and 23% of accounts payable balance, respectively.

Concentration of credit risk

Financial instruments that are potentially subject
to credit risk consist principally of accounts receivable. The Company believes the concentration of