Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 30

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 30
---
 exercised and converted into ordinary shares.
Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share)
are excluded from the calculation of diluted EPS.

For
the three and nine months ended December 31, 2024, the Company had potential shares of common stock issuable upon the exercise of the
Representative’s Warrants (as defined below). As the Company incurred losses for the three and nine months ended December 31, 2024,
inclusion of these potential shares of common stock would have reduced the net loss per share. Therefore, these potential shares were
excluded from the calculation of diluted net loss per share.  For
the three and nine months ended December 31, 2024, there were no dilutive shares.

(w) Foreign Currencies Translation

Transactions denominated in currencies other than
the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency
using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.
The reporting currency of the Company is United States Dollar ($). The Company’s subsidiary in Canada maintains its books and
records in its local currency, Canadian dollar (CAD), which is the functional currency for this subsidiary as it is the primary currency
of the economic environment in which this entity operates.

In general, for consolidation purposes, assets
and liabilities of subsidiaries whose functional currency is not United States Dollar are translated into United States Dollar
in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within
the statement of stockholders’ equity.

(x) Representative’s Warrants

Upon the closing of the IPO in June 2024, the
Company issued to Benchmark underwriters warrants (the “Representative’s Warrants”) to purchase 129,375 shares
of common stock which warrants are also exercisable on a cashless basis. The Company accounts for these warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in Financial Accounting