Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2639

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 15
Chunk 2639
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2024, the
Company recorded approximately $94,983 and $40,199, respectively, in the net DTAs. The tax losses in Canada can be carried forward for
twenty years to offset future taxable profit. The tax losses of entities in Canada will begin to expire in 2044, if not utilized.  
As of March 31, 2025, management considered it more likely than not that the Company will have sufficient taxable income in the future
that will allow the Company to realize these net DTAs.

As a result of the Tax Cuts and Jobs Act (TCJA),
US NOLs arising after December 31, 2017, may be carried forward indefinitely and can offset only up to 80% of taxable income in any future
year. Based upon the Company’s recent taxable loss history, the Company performed an analysis and determined that it was necessary
to establish a valuation allowance of $1,714,000 with respect to its net deferred income tax assets as of and for the fiscal year ended
March 31, 2025.

Uncertain Tax Positions

The Company evaluates each uncertain tax position
(including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits
associated with the tax positions. As of March 31, 2025 and 2024, the Company did not have any significant unrecognized uncertain
tax positions.

11 — LEASES

The Company adopted Topic 842 for all periods
presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The leases of the Company
mainly consisted of offices, retail stores, and warehouses.

The Company’s operating right-of-use (“ROU”)
assets and lease liabilities were as follows:

    March 31,  2025  
    March 31,  2024 
  
    Operating ROU: 

    ROU assets 
    $10,933,068  
    $16,000,742 
  
    Total operating ROU assets 
    $10,933,068  
    $16,000,742 

    March 31,  2025  
    March 31,  2024 
  
    Operating lease obligations: 

    Current operating lease liabilities 
    $2,617,762  
    $2,852,744 
  
    Non-current operating lease liabilities 
     9,106,928