Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 29

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 29
---
 that prevail in arm’s
length transactions unless such representations can be substantiated.

(u) Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”)
in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is
measured as net income divided by the weighted average common stock outstanding for the period. Diluted EPS takes into account the potential
dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares.
Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share)
are excluded from the calculation of diluted EPS.

For the three months ended September 30, 2025
and 2024, the Company had 1,294 and 1,294 potential shares of common stock issuable upon the exercise of the Representative’s Warrants
and 2025 Warrants (as defined below). For the six months ended September 30, 2025 and 2024, the Company had 1,294 and 1,294 potential
shares of common stock issuable upon the exercise of the Representative’s Warrants and 2025 Warrants (as defined below). As the
Company incurred losses for the three and six months ended September 30, 2025 and 2024, 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.  

17

(v) 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-