Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 134

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 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 three and nine months ended December 31, 2024 and 2023.

For the three months ended December 31, 2024,
the Company’s top two suppliers represented 50% and 25% of total purchases of the Company, respectively. For the three months ended
December 31, 2023, the Company’s top three suppliers represented 59%, 34%, and 17% of total purchases of the Company, respectively.
For the nine months ended December 31, 2024, the Company’s top three suppliers represented 45%, 29%, and 10% of total purchases
of the Company, respectively. For the nine months ended December 31, 2023, the Company’s top three suppliers represented 35%, 20%
and 13% of total purchases of the Company, respectively. As of December 31, 2024, two suppliers accounted for 58% and 24% 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 credit risk in its account receivable
is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally
require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding
the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have any bad debt on
its account receivable.

Financial instruments that potentially expose
the Company to concentrations of credit risk consist principally of cash and cash equivalents, term deposits, restricted cash, short-term
investments, and accounts receivable, net. The Company’s investment policy requires cash and cash equivalents, term deposits, restricted
cash, and short-term investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any
one issuer. The Company regularly evaluates the credit standing of the counterparties or financial institutions.

(u) Related Parties

A related party is generally defined as (i)