Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1548

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 8
Chunk 1548
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,047 for consulting
services. $312,047 was expensed as consulting expenses during the year ended March 31, 2025.

Fly E Bike SRL, a company formed
under the laws of the Dominican Republic and in which Mr. Ou holds over 50% of the equity interests, is a distributor for the Company.
During the years ended March 31, 2025 and 2024, Fly E Bike SRL purchased certain EV products from the Company in the amount
of $42,010 and $326,914, respectively. As of March 31, 2025 and 2024, the Company had accounts receivable from Fly E Bike SRL in
the amounts of $37,465 and $326,914, respectively. In addition, during the year ended March 31, 2025, the Company advanced a total
of $143,455 to Fly E Bike SRL. Such advance is unsecured, bears no interest and does not have a maturity date. As of July 15, 2025,
the advance was paid back in full.

In December 2023, the
Company engaged DF Technology US Inc (“DFT”) for certain technology services. Mr. Guo, the Company’s former CFO,
owns over 50% of the equity interest in DFT. As of March 31, 2025 and March 31, 2024, the accumulative payments to DFT for development
of the ERP system were $2,500,000 and $1,554,000, respectively. During the fiscal year of 2025, the Company started to use part of the
ERP system which was valued at $2,310,000 and treated that part as computer hardware and software and started for depreciation. As of
March 31, 2025 and 2024, construction in progress was nil and $275,000, respectively, and primarily relating to the cost incurred to develop
the software by DFT. As of March 31, 2025 and March 31, 2024, the Company had a prepayment of nil and $1,279,000, respectively,
to DFT. In July 2024, the Company engaged DFT, a former related party, to develop a new APP, GO FLY APP, for the rental business. The
total contract price for the GO FLY APP is $500,000, and the GO FLY APP