Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2527

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 14
Chunk 2527
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to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable
is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally
require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding
the credit risk of specific customers, historical trends, and other information. Historically, the Company did not have any bad debt on
its account receivable.

Financial instruments that potentially expose
the Company to concentrations of credit risk consist principally of cash and cash equivalents, term deposits, restricted cash, short-term
investments, and accounts receivable, net. The Company’s investment policy requires cash and cash equivalents, term deposits, restricted
cash, and short-term investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any
one issuer. The Company regularly evaluates the credit standing of the counterparties or financial institutions.

F-17

(u) Related Parties

A related party is generally defined as (i) any
person and or their immediate family hold 10% or more of the Company’s securities (ii) the Company’s management and/or
their immediate family, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the
Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered
to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be
individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s length
basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related
parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s
length transactions unless such representations can be substantiated.

(v) Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”)
in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is
measured as net income divided by the weighted average common stock outstanding for the period. Diluted EPS takes into account the potential
dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares.
Potential