Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 119

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 than 10% of total net revenues of the Company
for the three months ended June 30, 2025 and 2024.

For
the three months ended June 30, 2025, the Company’s top two suppliers represented approximately 65% and 12% of total purchases of
the Company, respectively. For the three months ended June 30, 2024, the Company’s top two suppliers represented approximately 41%
and 38% of total purchases of the Company, respectively. As of June 30, 2025, three suppliers accounted for approximately 56%, 23%, and
16% of accounts payable balance, respectively.   As
of March 31, 2025, two suppliers accounted for approximately 63% and 25% of accounts payable balance, respectively.

Concentration of credit risk

Financial instruments that are potentially subject 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.

(t) 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