Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 113

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 are less than
the carrying value of the asset. If an impairment is identified, the Company will reduce the carrying amount of the asset to its estimated
fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of June 30,
2025 and March 31, 2025, no impairment of long-lived assets was recognized.

(m) Fair Value Measurements

Fair value is defined as the price that would be received for an asset, or paid to transfer
a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques maximize the use of
observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities,
the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants
would use when pricing the asset or liability. The following summarizes the three levels of input required to measure fair value, of
which the first two are considered observable and the third is considered unobservable:

    Level-1
    —
    Observable inputs that reflect quoted prices (unadjusted) for identical
    assets or liabilities in active markets.

    Level-2
    — 
    Include other inputs that are directly or indirectly observable in
    the marketplace.

    Level-3
    — 
    Unobservable inputs which are supported by little or no market activity.

The
fair value for certain assets and liabilities such as cash, accounts receivable, other receivables, prepayments and other current assets,
short-term loans, accounts payable, accrued expenses and other payables, operating lease liabilities – current, and tax payables
have been determined   to
approximately carrying amounts due to the short maturities of these instruments. The Company believes that its long-term loan to a third
party approximates the fair value based on current yields for debt instruments with similar terms. The Company and its subsidiaries did
not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and March 31,
2025.

(n) Revenue Recognition

Product revenue

The Company follows the revenue accounting requirements of Accounting Standards Codification
(“ASC”) Topic 606, Revenue from Contracts with Customers. The core principle underlying the revenue recognition of this
ASC allows the Company to recognize revenue that represents the transfer of products and services to customers in an amount that reflects
the consideration to which the Company expects to