Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 854

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 3
Chunk 854
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Buyers agreed to purchase the shares for total cash consideration of $635,193. There were no contingent payments, earn-outs, or
post-closing adjustments specified in the agreements. There was $84,302 gain from this disposal. As of March 31, 2025, the Company
did not receive any consideration from the third parties. In June, 2025, the Company received $103,000 from the Buyers.

On March 11, 2025, the management team approved
to sell 100% of its equity interests in subsidiaries FLYEBIKE BROOKLYN INC, FLYMHT659 INC, and FLYBX745 INC to third-party individuals
(the “Buyers”). On April 1, 2025, the Company entered into share transfer agreements with the Buyers. Pursuant to the terms
of the agreements, the Company agreed to sell, transfer, and assign all its rights, title, and interests in the shares of the subsidiaries
to the Buyers, free and clear of all liens and encumbrances. The Buyers agreed to purchase the shares for total cash consideration of
$310,055. There were no contingent payments, earn-outs, or post-closing adjustments specified in the agreements. In June 2025, the Company
received $30,000 from the Buyers.

The
disposal of these subsidiaries   were
not considered discontinued operations under ASC 205-20, as their disposal did not represent a strategic shift that had a major effect
on the Company’s operations and financial results.

As of March 31, 2025, the Company had classified
the assets and liabilities of the subsidiaries that were sold on April, 1, 2025 as held for sale in accordance with ASC 360-10. The classification
criteria were met when the management committed to a plan to sell.

Summarized Held for Sale Financial Information

A summary of the carrying amounts of major classes
of assets and liabilities, which are included in assets and liabilities held for sale in the consolidated balance sheet, is as follows:

    March 31,  2025 
  
    ASSETS 

    Cash 
    $61,548 
  
    Inventories, net 
     195,192 
  
    Prepayments and other receivables 
     22,096 
  
    Property and equipment, net 
     154,876 
  
    Security deposits 
     73,025 
  
    Operating lease right