Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 18

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 the Company exercises control and, when applicable,
entities for which the Company has a controlling financial interest. All transactions and balances among the Company and its subsidiaries
have been eliminated upon consolidation.

(c) Segment Information

The Company’s chief operating decision-makers
(i.e., chief executive officer and his direct reports) review financial information presented on a consolidated basis, accompanied by
disaggregated information about revenues by different revenues streams for purposes of allocating resources and evaluating financial performance.
The Company and its subsidiaries offer E-bikes, E-motorcycles, E-scooters and other items and services in its stores. The Company’s
retail operating divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance.
Because substantially all of the Company’s long-lived assets and revenues are located in and derived from the U.S., geographical
segments are not presented. The Company’s operating segments are reported in one reportable segment. There are no segment managers
who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Based
on qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”,
the Company considers itself to be operating within one reportable segment.

(d) Use of Estimates

In the application of the Company’s accounting
policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors
that are considered relevant. Significant accounting estimates include, but not limited to, useful lives of depreciable property and equipment,
impairment of long-lived assets, the realization of deferred income tax assets, allowance for inventories, and discount rate for operating
leases. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such,
differences may be material to the unaudited condensed consolidated financial statements.

(e) Commitments and Contingencies

In the normal course of business, the Company
is subject to loss contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters,
including, among others, government investigations, shareholder lawsuits, and non-income tax matters.

An accrual for a loss contingency is recognized
when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss
contingency is not probable