Company: FLYE
Filing Date: 2025-04-22
Form Type: S-1
Source: 0001213900-25-034233
Chunk: 43

Company: Fly-E Group, Inc.
Filing Date: 2025-04-22
Form: S-1
Chunk 43
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. Holder’s initial tax basis for U.S. federal income tax purposes in the Common Share and the Warrants that
comprise each such combination. For U.S. federal income tax purposes, each holder of our Common Shares and Warrants must allocate the
purchase price paid by such holder for such securities between the one Common Share and the two Warrants based on the relative fair market
value of each at the time of issuance. Under U.S. federal income tax law, each investor must make its own determination of such value
based on all the relevant facts and circumstances. The price allocated to each Common Share and Warrant should constitute the holder’s
initial tax basis in each such Common Share and Warrant, respectively.

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The foregoing treatment
of our Common Shares and Warrants and a holder’s purchase price allocation are not binding on the IRS or the courts. No assurance
can be given that the IRS or the courts will agree with the characterization described above or the discussion below. Accordingly, each
prospective investor is urged to consult its tax advisor regarding the tax consequences of an investment in our securities. The balance
of this discussion assumes that the characterization of the securities described above is respected for U.S. federal income tax purposes.

U.S. Holders

If we pay distributions in
cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S. Holders of our Common Shares,
such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings
and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits
will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax
basis in our Common Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the Common Shares
and will be treated as described under “U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition
of Our Common Shares and Warrants” below.

Dividends we pay to a corporate
U.S. Holder generally will qualify for the dividends received deduction if certain holding period requirements are met. With certain exceptions
(including, but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations), and
provided certain holding period requirements are met, dividends we pay