Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 28

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 indicate that a change in classification may be necessary.

16

Assets and liabilities held for sale are presented separately within the consolidated balance
sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell.
For each period the disposal group remains classified as held for sale, its recoverability is reassessed, and any necessary adjustments
are made to its carrying value.

The Company does not report the results of operations of a business as discontinued operations
as the disposal is not a strategic shift that will have a major effect on its operations and financial results.

(z) Recent accounting pronouncements not yet adopted

The Company considers the applicability and impact
of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under
the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of
an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which
delays the adoption of these accounting standards until they would apply to private companies.

In December 2023, the FASB issued ASU 2023-09,
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in
their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more
details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities
to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate
the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December
15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively.
The Company is currently evaluating the impact of this guidance on its unaudited condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting
Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public
business entities to disclose additional information about specific expense categories in the notes to the financial statements at interim
and annual reporting periods, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization