Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 115

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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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 $8,158 and $20,131 of warranty reserves under accrued expenses and other payables as of June 30, 2025
and March 31, 2025, respectively. The Company has no contract assets and contract liabilities balances as of June 30, 2025 and March
31, 2025, respectively.

Rental Revenue

The Company operates rental business primarily from the Go Fly rental mobile app and selected
Fly E-Bike stores that provide users with a flexible and affordable e-bike rental option.

The Company offers rental services through its subsidiaries, GOBIKE INC, FLYLA INC,
and FLYTORONTO CORP. All the products available for rent are owned by the Company. The Company leases products to customers, and as a
result, the Company considers itself to be the accounting lessor, as applicable, in these arrangements in accordance with ASC 842. Rental
business operating costs include refunded products repair fee and other operating costs, as applicable.

Due to the short-term nature of the rental business, the Company classifies these rentals
operating leases. Revenue generated from the rental services is recognized over the rental period, which is typically one day, one week
or more.

Disaggregated information of revenues by business lines are as follows:

    For the Three months Ended  June 30, 

    2025  
    2024 
  
    Product revenues - retail (ASC 606) 
    $3,762,829  
    $6,870,418 
  
    Product revenues - wholesale (ASC 606) 
     1,427,231  
     1,003,008 
  
    Revenues - rental services (