Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 34

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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     306,607 
  
    Leasehold improvements 
     963,759  
     976,870 
  
    Building 
     3,663,215  
     — 
  
    Construction in progress-Software 
     1,910,000  
     275,000 
  
    Properties for rental business 
     65,618  
     — 
  
    Property and Equipment 
     7,959,928  
     2,171,352 
  
    Less: Accumulated depreciation 
     (727,239) 
     (416,330)
  
    Property and Equipment, net 
    $7,232,689  
    $1,755,022 

For the three months ended December 31, 2024 and
2023, the depreciation expenses were $130,000 and $13,229, respectively. For the nine months ended December 31, 2024 and 2023, the depreciation
expenses were $310,910 and $203,788, respectively.

In
December 2023, the Company engaged DFT, a former related party,  for
certain technology services, such as ERP system. The total contract price for the ERP system is $2,500,000, subject to adjustments.
The final delivery of the ERP system is scheduled for May 10, 2025, subject to adjustments mutually agreed upon by the parties in
response to any changes in project scope or unforeseen delays. As of December 31, 2024 and March 31, 2024, the accumulative payments
to DFT for development of the ERP system were $2,446,580 and $1,554,000, respectively. As of December 31, 2024 and March 31, 2024,
construction in progress was $1,910,000 and $275,000, respectively, and primarily relating to the cost incurred to develop the
software by DFT. As of December 31, 2024 and March 31, 2024, the Company had a prepayment of $536,580  and
$1,279,000, respectively, to DFT (see Note 13 – Long-term prepayment for software development – related parties,
net).

On
August 12, 2024, the Company entered into a purchase agreement with He’s Realty Holdings LLC (the “Seller”), a third