Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 122

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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 circumstance outside of the
Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment,
is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

The Company accounts for its warrants as equity
that meet all of the criteria (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement
or settlement in its own shares (physical settlement or net-share settlement), the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance and subsequent changes in fair value are not recognized as long as the warrants
continue to be classified as equity.

(y) Held for Sale

The Company classifies assets and liabilities to be sold (disposal group) as held for sale
in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group
is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively
marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the
sale of the disposal group is generally probable of being completed within one year. Management performs an assessment at least quarterly
or when events or changes in business circumstances indicate that a change in classification may be necessary.

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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,