Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 140

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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 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 $974,000 with respect to its net deferred income tax assets as of June 30,
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 June 30, 2025 and March 31, 2025, 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:

    June 30,  2025  
    March 31,  2025 
  
    Operating ROU: 

    ROU assets 
    $8,584,684  
    $10,933,068 
  
    Total operating ROU assets 
    $8,584,684  
    $10,933,068 

    June 30,  2025  
    March 31,  2025 
  
    Operating lease obligations: 

    Current operating lease liabilities 
    $2,106,614  
    $2,617,762 
  
    Non-current operating lease liabilities 
     7,217,325  
     9,106,928 
  
    Total lease liabilities 
    $9,323,939  
    $11,724,690 

The Company had 27 and 36 leases as of June 30, 2025 and March 31, 2025, respectively.

The weighted average lease term, discount rates, and remaining lease terms for the operating
leases as of June 30, 2025 were as