Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 1912

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 9B
Chunk 1912
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 on property and equipment is calculated
on the straight-line method over the estimated useful lives of the assets. The cost and related accumulated depreciation of assets sold
or otherwise retired are eliminated from 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 former related party which ceased to be the related party on November 6, 2024, for certain technology services, such as enterprise resource
planning system (“ERP system”). During the fiscal year of 2025, the Company reclassified $2,310,000 from construction in process
to computer hardware and software and started for depreciation. As of March 31, 2025 and 2024, construction in progress was nil and
$275,000, respectively, and primarily relating to the cost incurred to develop the software by DFT.

(k) Intangible Assets

Intangible asset is stated at cost less accumulated
amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected
to be consumed or otherwise used up. The balance of intangible asset represents internal use software and property rights. The software
is acquired externally tailored to the Company’s requirements. The Company capitalizes the costs associated with design, development,
acquisition and maintenance of its acquired intangible assets and amortizes these assets over their remaining useful lives on a straight-line
basis. Any further payments made to maintain or develop these assets would be capitalized and amortized over the balance of the useful
life for the assets. 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 intang