Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2697

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 16
Chunk 2697
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liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered relevant. Significant accounting estimates include allowance for inventories.
Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such,
differences may be material to the consolidated financial statements.

(e) Commitments and Contingencies

In the normal course of business, the Company
is subject to loss contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters,
including, among others, government investigations, shareholder lawsuits, and non-income tax matters.

An accrual for a loss contingency is recognized
when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss
contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material, is disclosed.

(f) Cash

Cash consists of cash on hand and cash deposited
with banks. The Company’s cash is maintained at financial institutions in the U.S. Deposits in these financial institutions
may, from time to time, exceed the Federal Deposit Insurance Corporation’s (the “FDIC”) federally insured limit, which
is $250,000. The Company has not incurred any losses in the past for amount over the FDIC limits. As of March 31, 2025 and March 31,
2024, nil and nil deposited with banks was uninsured, respectively.

(g) Accounts Receivable

Accounts receivable includes trade account due
from customers. Accounts receivable is recorded at the invoiced amount less an allowance for any credit loss and does not bear interest,
which is due after 30 to 90 days, depending on the credit term with the customers. Accounts receivable which is deemed
to be uncollectible is charged off against the allowance after all means of collection have been exhausted and the potential for recovery
is considered remote.

The Company adopt the current expected credit
loss model (“CECL model”) to estimate the expected credit losses, which is determined by multiplying the probability of default.
In determining the probability of default, the Company mainly considers factors such as aging schedule of receivables, migration rate
of receivables, assessment of receivables due from specific identifiable counterparties that