Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 156

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 8
Chunk 156
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 approach.
The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements.

3 — INVENTORIES, NET

Inventories, net consisted of the following:

    September 30,  2025  
    March 31,  2025 
  
    Batteries 
    $1,524,000  
    $2,084,890 
  
    Electric Vehicles 
     1,848,781  
     3,070,224 
  
    Tires 
     533,907  
     482,364 
  
    Accessories 
     3,600,686  
     1,867,365 
  
    Inventories 
     7,507,374  
     7,504,843 
  
    Inventory reserves 
     (959,087) 
     (1,107,569)
  
    Inventories, net 
    $6,548,287  
    $6,397,274 

Movements of inventory reserves are as follows:

    For the Six Months Ended September 30, 

    2025  
    2024 
  
    Beginning balance 
    $1,107,569  
    $514,021 
  
    Addition 
     569,758  
     330,823 
  
    Write off 
     (718,240) 
     (222,221)
  
    Ending Balance 
    $959,087  
    $622,623 

As of September 30, 2025 and March 31, 2025, the
inventory reserves balance was $959,087 and $1,107,569 respectively. For the three months ended September 30, 2025 and 2024, the impairment
loss was $339,978 and $154,751, respectively. For the six months ended September 30, 2025 and 2024, and impairment loss was $569,758 and
$330,823, respectively.

19

4 — PREPAYMENTS AND OTHER RECEIVABLES

Prepayments and other receivables   as
of September 30, 2025 and March 31, 2025 consisted of the following:

    September 30,  2025  
    March 31,  2025 
  
    Prepaid rent 
    $32,260  
    $