Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 203

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 203
---
5,519,000 | ) |
| Total deferred tax liabilities (DTLs)         |     |   |   (5,366,881 | ) |     |   | (6,001,133 | ) |
| Total deferred tax assets, net                |     | $ |      895,206 |   |     | $ |     35,199 |   |
| Deferred tax assets (liabilities) - U.S., net |     | $ |      833,000 |   |     | $ |     (5,000 | ) |
| Deferred tax assets - Canada, net             |     | $ |       62,206 |   |     |   |     40,199 |   |

As of December 31, 2024 and March 31, 2024, the
Company had approximately $ million and $ million, respectively, in the DTAs, which respectively included approximately $ million
and $ related to net operating loss carryforwards that can be used to offset taxable income in future periods, $ million and
$ million related to lease liability, and $ million and $ million related to inventory allowance.

As of December 31, 2024 and March 31, 2024, the
Company had approximately $ million and $ million, respectively, which included $ million and $ million, respectively, in
the DTLs that related to accumulated depreciation and $ million and $ million related to ROU assets.

Deferred tax assets and liabilities are recognized
for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. As of December 31, 2024 and March 31,
2024, the Company recorded approximately $ and $, respectively, in the net DTAs. The tax losses in Canada can be carried forward
for to offset future taxable profit. The tax losses of entities in Canada will begin to expire in 2044, if not utilized.
As of December 31, 2024, management considered it more likely than not that the Company will have sufficient taxable income in the future
that will allow the Company to realize these net DTAs.

As a result of the Tax Cuts and Jobs Act (TCJA),
US NOLs arising after December 31, 2017, may be carried forward indefinitely and can offset only up to % of taxable income in any future
year.

Uncertain Tax