Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 141

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 141
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 the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures
for maintenance and repairs are charged to earnings as incurred, while additions, renewals, and betterments, which are expected to extend
the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent
events and circumstances warrant revised estimates of useful lives.

Construction in progress

Direct costs that are related to the construction
of property, equipment and software and incurred in connection with bringing the assets to their intended use are capitalized as construction
in progress. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these
assets commences when the assets are ready for their intended use. In December 2023, the Company engaged DF Technology US Inc (“DFT”),
a related party, for certain technology services, such as enterprise resource planning system (“ERP system”). As of March
31, 2024, construction in progress was $ and primarily relating to the cost incurred to develop the software from DFT.

(k) Definite-Lived Intangible Assets

The Company owns property rights of certain technologies
and designs that relate to the Underwriter Laboratories certificates issued for its products. The Company capitalizes the costs associated
with design, development, acquisition and maintenance of its acquired property rights and amortizes these assets over their remaining
useful lives on a straight-line basis. Any further payments made to maintain or develop the property rights would be capitalized and amortized
over the balance of the useful life for the property rights. The estimated useful life and amortization method are reviewed at the end
of each reporting period, with the effect of any changes in the estimate being accounted for on a prospective basis.

The estimated useful lives of intangibles assets
are as follows:

| Property rights |     | 5-20 years |

(l) Impairment of Long-lived Assets

At the end of each reporting period, the Company
reviews the carrying amounts of its property, plant and equipment, intangible assets subject to amortization, and right-of-use assets,
to determine whether there is any indication that the carrying value of an asset may not be recoverable. The Company assesses the recoverability
of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated
undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset,