Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1225

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 6
Chunk 1225
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 below). As the Company
incurred losses for the year ended March 31, 2025, inclusion of these potential shares of common stock would have reduced the net loss
per share. Therefore, these potential shares were excluded from the calculation of diluted net loss per share.  For the year ended
March 31, 2024, there were no dilutive shares.

(w) Foreign Currencies Translation

Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.
The reporting currency of the Company is United States Dollar ($). The Company’s subsidiary in Canada maintains its books and
records in its local currency, Canadian dollar (CAD), which is the functional currency for this subsidiary as it is the primary currency
of the economic environment in which this entity operates.

In general, for consolidation purposes, assets
and liabilities of subsidiaries whose functional currency is not United States Dollar are translated into United States Dollar
in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within
the statement of stockholders’ equity.

(x) Representative’s Warrants

Upon the closing of the IPO in June 2024, the
Company issued to Benchmark underwriters warrants (the “Representative’s Warrants”) to purchase 25,875 shares
of common stock which warrants are also exercisable on a cashless basis. The Company accounts for these warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ASC 480, Distinguishing Liabilities from
Equity and ASC 815, Derivatives and Hedging. The Company accounts for its warrants as equity that meet all of the criteria (i) require
physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical
settlement or net-share settlement),