Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2030

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 9C
Chunk 2030
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 value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend
on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease if that rate can be readily determined.
If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate. Subsequently, lease liabilities
are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there
is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those
payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying
amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease
liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on
an index or a rate are recognized as expenses in the periods in which they are incurred.

(t) Concentration Risk

Concentration of customers and suppliers

No customers individually represented greater
than 10% of total net revenues of the Company for the years ended March 31, 2025 and 2024.

For the year ended March 31, 2025, the Company’s
top two suppliers represented 42% and 32% of total purchases of the Company, respectively. For the year ended March 31, 2024, the Company’s
top three suppliers represented 36%, 21%, and 13% of total purchases of the Company, respectively. As of March 31, 2025, two suppliers
accounted for 63% and 25% of accounts payable balance, respectively. As of March 31, 2024, three suppliers accounted for 31%, 26%,
and 23% of accounts payable balance, respectively.

Concentration of credit risk

Financial instruments that are potentially subject
to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable
is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally
require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding
the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have