Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 24

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 1
Chunk 24
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 For the Six Months Ended  September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Product revenues-retail (ASC 606) 
    $2,027,031  
    $5,923,576  
    $5,789,860  
    $12,793,994 
  
    Product revenues-wholesale (ASC 606) 
     1,722,868  
     900,830  
     3,150,099  
     1,903,838 
  
    Revenues - rental services (ASC 842) 
     158,963  
     —  
     297,101  
     — 
  
    Net revenues 
    $3,908,862  
    $6,824,406  
    $9,237,060  
    $14,697,832 

14

(o) Selling Expenses

Selling expenses mainly consist of advertising
costs, 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 $15,457 and
$129,542 for the three months ended September 30, 2025 and 2024, respectively. The advertising expenses were $32,870 and $198,061 for
the six months ended September 30, 2025 and 2024, respectively.

(p) Research and Development Expenses

Research and development expenses include salaries
for the Company’s research and development personnel, as well as related development expenses paid to the third-party development
team. The Company recognizes internal use software acquired and internally developed in accordance with ASC 350-40 “Software—internal
use software”. The Company expenses all costs that are incurred in connection with the planning and implementation phases of development,
and costs that are associated with maintenance of the existing software for internal use. Certain costs associated with developing internal-use
software are capitalized when such costs are incurred within the application development stage of software development. As a result, the
Company expensed the development costs of the Fly E-Bike app as they incurred. For the three months ended September 30, 2025 and 2024,
development costs amounted to $100,895 and $163,866, respectively, which were included in general and