Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 183

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 183
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 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 $ and $ of warranty reserves under accrued expenses and other payables
as of December 31, 2024 and March 31, 2024, respectively. The Company has no contract assets and contract liabilities balances as of December
31, 2024 and March 31, 2024, 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 and FLYLA INC. 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 Nine Months Ended 
 December 31,              |       2024 |     |   |       2023 |
|:---------------------------------------|:----|:--------------------------|-----------:|:----|:--|-----------:|
| Product revenues - retail (ASC 606)    |     | $                         | 17,708,735 |     | $ | 19,229,491 |
| Product revenues - wholesale (ASC 606) |     |                           |  2,618,146 |     |   |  4,804,906 |
| Revenues - rental services (ASC 842)   |     |                           |     48,961 |     |   |          - |
| Net revenues                           |     | $                         | 20,375,842 |     | $ | 24,034,397 |

(p) Selling Expenses