Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 20

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 was $347,333
and $128,095, respectively. For the nine months ended December 31, 2024 and 2023, the impairment loss was $678,157  and
$287,946, respectively.

11

(i) Prepayments and Other Receivables

Prepayments and other receivables are mainly prepayments
to vendors, prepaid expenses paid to service providers, prepaid taxes, advances to employees, and other deposits. Management regularly
reviews the aging of such balances and changes in payment and realization trends and records allowances when management believes that
the collection of amounts due is at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts
at collection are made. As of December 31, 2024 and March 31, 2024, no allowance against prepayments and other receivables was recorded.

(j) Property
and Equipment, Net  

Property and equipment are stated at cost less accumulated depreciation
and any recorded impairment.

The estimated useful lives are as follows:

    Machinery and equipment
     
    5 years
  
    Furniture and fixtures
     
    5 years
  
    Leasehold improvements
     
    3 – 10 years (shorter of lease term or useful lives)
  
    Motor vehicles
     
    5 years
  
    Buildings  
     
    30 years
  
    Properties used for lease
     
    2 years

Depreciation on property and equipment is calculated
on the straight-line method over the estimated useful lives of the assets. The cost and related accumulated depreciation of assets sold
or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures
for maintenance and repairs are charged to earnings as incurred, while additions, renewals, and betterments, which are expected to extend
the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent
events and circumstances warrant revised estimates of useful lives.

Construction in progress

Direct
costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to
their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment
and software items and the depreciation of these assets commences when the assets are ready for their intended use. In December 2023,
the Company engaged DF Technology US Inc (“D