Company: FLYE
Filing Date: 2025-06-02
Form Type: 424B4
Source: 0001213900-25-050035
Chunk: 145

Company: Fly-E Group, Inc.
Filing Date: 2025-06-02
Form: 424B4
Chunk 145
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 no transaction price is allocated to it. The Company recognizes sales in full at the point in time when the products are delivered or accepted by 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 $27,714 and $22,056 of warranty reserves under accrued expenses and other payables as of March 31, 2024 and 2023, respectively. The Company has no contract assets and contract liabilities balances as of March 31, 2024 and 2023, respectively. Disaggregated information of revenues by business lines are as follows:

|                    |     | For the Years Ended 
 March 31,           |       2024 |     |   |       2023 |
|:-------------------|:----|:--------------------|-----------:|:----|:--|-----------:|
| Revenues-retail    |     | $                   | 26,389,720 |     | $ | 18,844,921 |
| Revenues-wholesale |     |                     |  5,815,946 |     |   |  2,930,016 |
| Net revenues       |     | $                   | 32,205,666 |     | $ | 21,774,937 |

(p) Selling Expenses Selling expenses mainly consist of advertising costs, marketing referring expenses and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising expenses, which consist primarily of online and offline advertisements, are expenses when the services are received. The advertising expenses were $64,423 and $49,420 for the years ended March 31, 2024 and 2023, respectively. (q) Software Development Costs ASC Topic 985 -20, Software — Costs of Software to Be Sold, Leased, or Marketed, requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. The development of the Fly E -Bikeapp is still in its preliminary stage and the development of core functions has not yet been completed. As a result, the Company expensed the development costs of the Fly E -Bikeapp as they incurred