Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 130

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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other payables as of December 31, 2024 and March 31, 2024, respectively. The Company has no contract assets and contract liabilities
balances as of December 31, 2024 and March 31, 2024, respectively.

Rental Revenue

The Company operates rental business primarily from the Go Fly rental
mobile app and selected Fly E-Bike stores that provide users with a flexible and affordable e-bike rental option.

The
Company offers rental services through its subsidiaries,
GOBIKE INC and FLYLA INC. All the products available for rent are owned by the Company. The Company leases products to customers, and
as a result, the Company considers itself to be the accounting lessor, as applicable, in these arrangements in accordance with ASC 842.
Rental business operating costs include refunded products repair fee and other operating costs, as applicable. 

Due to the short-term nature of the rental business,
the Company classifies these rentals operating leases. Revenue generated from the rental services is recognized over the rental period,
which is typically one day, one week or more.

Disaggregated information of revenues by business lines are as follows:

    For the Three Months Ended  December 31,  
    For the Nine Months Ended  December 31, 

    2024  
    2023  
    2024  
    2023 
  
    Product revenues - retail (ASC 606) 
    $4,914,741  
    $6,292,490  
    $17,708,735  
    $19,229,491 
  
    Product revenues - wholesale (ASC 606) 
     714,308  
     1,135,722  
     2,618,146  
     4,804,906 
  
    Revenues - rental services (ASC 842) 
     48,961  
     —  
     48,961  
     — 
  
    Net revenues 
    $5,678,010  
    $7,428,212  
    $20,375,842  
    $24,034,397 

(p) 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