Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 139

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 $3,565,792  
    $5,049,378 

    Accumulated depreciation 
     (325,705) 
     (460,395)
  
    Operating lease right-of-use assets 
     (3,087,000) 
     (4,494,000)
  
    Total deferred tax liabilities (DTLs) 
     (3,412,705) 
     (4,954,395)
  
    Deferred tax assets, net 
    $153,087  
    $94,983 

    Deferred tax assets (liabilities) – U.S., net 
    $—  
    $— 
  
    Deferred tax assets – Canada, net 
    $153,087  
     94,983 

As of June 30, 2025 and March
31, 2025, the Company had approximately $3.6 million and $5.0 million, respectively, in the DTAs, which respectively included approximately
$0.7 million and $1.5 million related to net operating loss carryforwards that can be used to offset taxable income in future periods,
approximately $3.3 million and $4.8 million related to operating lease liabilities, and approximately $0.4 million and
$0.4 million related to inventory reserve.

As of June 30, 2025 and March 31, 2025, the Company
had approximately $3.4 million and $5.0 million, respectively, in the DTLs, which included approximately $0.3 million and $0.5 million,
respectively related to accumulated depreciation and approximately $3.1 million and $4.5 million related to ROU assets.

26

Deferred tax assets and
liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards.
As of June 30, 2025 and March 31, 2025, the Company recorded $153,087 and $94,983 , respectively, in the net DTAs. The tax losses in
Canada can be carried forward for twenty years to offset future taxable profit. The tax losses of entities in Canada will begin to
expire in 2044, if not utilized. As of June 30, 2025, management considered it more