Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 18

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 18
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M assesses performance for the Company, monitors budget versus actual results, and determines
how to allocate resources based on consolidated net loss as reported in the consolidated statements of operations and other comprehensive
loss. There are no other expense categories regularly provided to the CODM that are not already included in the primary financial statements
herein.

10

(d) Use of Estimates

In the application of the Company’s accounting
policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors
that are considered relevant. Significant accounting estimates include allowance for inventories. Changes in facts and circumstances
may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the unaudited
condensed consolidated financial statements.

(e) Commitments and Contingencies

In the normal course of business, the Company
is subject to loss contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters,
including, among others, government investigations, shareholder lawsuits, and non-income tax matters.

An accrual for a loss contingency is recognized
when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss
contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material, is disclosed.

(f) Cash

Cash consists of cash on hand and cash deposited
with banks. The Company’s cash is maintained at financial institutions in the U.S. Deposits in these financial institutions
may, from time to time, exceed the Federal Deposit Insurance Corporation’s (the “FDIC”) federally insured limit, which
is $250,000. The Company has not incurred any losses in the past for amount over the FDIC limits. As of September 30, 2025 and March 31,
2025, $1,849,876 and nil deposited with banks was uninsured, respectively.

(g) Accounts Receivable

Accounts receivable includes trade account due
from customers. Accounts receivable is recorded at the invoiced amount less an allowance for any credit loss and does not bear interest,
which is due after 30 to 90 days, depending on the credit