Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 144

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 144
---

warranty guarantees the functionality of a product, the warranty is not accounted for as a separate performance obligation, and thus no
transaction price is allocated to it. Rather, to account for an assurance-type warranty the vendor should estimate and accrue a warranty
liability when the promised good or service is delivered to the customer (see ASC 460-10).

Since the contract price and term are fixed and
enforceable, and an assurance-type warranty guarantees the functionality of a product, and the warranty is not accounted for as a separate
performance obligation, no transaction price is allocated to it. The Company recognizes sales in full at the point in time when the products
are delivered or accepted by the customers, in accordance with the acceptance term specified in the contract. The Company records estimated
future warranty costs under ASC 460. Such estimated costs for warranties are estimated at the time of delivery and these warranties are
not service warranties separately sold by the Company. Generally, the estimated claim rates of warranty are based on actual warranty experience
or the Company’s best estimate. The Company accrued $ and $ of warranty reserves under accrued expenses and other payables
as of March 31, 2024 and 2023, respectively. The Company has no contract assets and contract liabilities balances as of March 31, 2024
and 2023, respectively.

Disaggregated information of revenues by business lines are as follows:

|                    |     | For the Years Ended 
 March 31,           |       2024 |     |   |       2023 |
|:-------------------|:----|:--------------------|-----------:|:----|:--|-----------:|
| Revenues-retail    |     | $                   | 26,389,720 |     | $ | 18,844,921 |
| Revenues-wholesale |     |                     |  5,815,946 |     |   |  2,930,016 |
| Net revenues       |     | $                   | 32,205,666 |     | $ | 21,774,937 |

(p) Selling Expenses

Selling expenses mainly consist of advertising
costs, marketing referring expenses and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising
expenses, which consist primarily of online and offline advertisements, are expenses when the services are received. The advertising expenses
were $ and $ for the years ended March 31, 2024 and 2023, respectively.

F-