Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 170

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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583 
  
    UL
    Litigation 
     650,000  
     650,000  
     —  
     —  
     — 
  
    Total
    Contractual Obligations 
    $18,645,977  
     9,336,395  
     4,614,101  
     2,058,217  
     2,637,264 

Off-Balance Sheet Arrangements

We have not entered into any transactions, agreements or other contractual
arrangements that would result in off-balance sheet liabilities.

Quantitative and Qualitative Disclosures about Market Risk

Foreign Exchange Risk

A substantial majority of all of our revenues and expenses are denominated
in U.S. dollars. We do not believe that we currently have any significant direct foreign exchange risk and have not used any derivative
financial instruments to hedge exposure to such risk. In addition, as our business and operation expand in European and other overseas
markets in the future, we may be exposed to increased foreign exchange risks for other currencies.

Interest Rate Risk

Our exposure to interest rate risk primarily relates to the interest
expenses on our short-term and long-term bank borrowings. Our short-term and long-term bank borrowings bear interests at fixed rates.
We have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in market interest rates. However,
our future interest expenses may exceed expectations due to changes in market interest rates. If we were to renew these short-term and
long-term bank borrowings, we might be subject to interest rate risk.

Critical Accounting Estimates

An accounting estimate is considered critical if it requires to be
made based on assumptions about matters that are highly uncertain at the time such estimate is made, and if different accounting estimates
that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur periodically, could materially
impact the unaudited condensed consolidated financial statements.

We prepare our unaudited condensed consolidated financial statements
in conformity with U.S. GAAP, which requires us to make estimates and assumptions. We continually evaluate these estimates and assumptions
based on the most recently available information, our own historical experiences and various other assumptions that we believe to be
reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results
could differ from our expectations as a result of changes in our estimates. Some of our