Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 111

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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by multiplying the probability of default. In determining the probability of default, the Company mainly considers factors such as aging
schedule of receivables, migration rate of receivables, assessment of receivables due from specific identifiable counterparties that are
considered at risk or uncollectible, current market conditions, as well as reasonable and supportable forecasts of future economic conditions. As
of June 30, 2025 and March 31, 2025, the Company provided allowance for credit losses   of
$116,746, consisting of $41,100 related to accounts receivable from a related party customer and $75,646 related to accounts receivable
from a third party customer, respectively.

(h) Inventories, Net

Inventories, consisting of products available for sale, are stated at the lower of cost
or net realizable value using the first-in-first-out method. Adjustments to the carrying value are recorded for estimated obsolescence
or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions
about future demand and market conditions. Inventory cost consists of the direct cost of merchandise including freight. For the three
months ended June 30, 2025 and 2024, the impairment loss was $229,780 and $176,072, respectively.

(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 June 30, 2025 and March 31, 2025, no allowance for credit losses provided
  against prepayments and other
receivables was recorded.

10

(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:

    Furniture and fixtures
     
    5 years
  
    Machinery and equipment
     
    5 years
  
    Automobile
     
    5 years
  
    Leasehold improvements
     
    3 – 10 years (shorter of lease term or