Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 140

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 140
---
 determining the probability of default, the Company mainly considers factors such as aging schedule of receivables, migration rate of receivables, assessment of receivables due from specific identifiable counterparties that are considered at risk or uncollectible, current market conditions, as well as reasonable and supportable forecasts of future economic conditions. The Company concludes that there is no impact over the initial adoption of CECL model, which should be treated as cumulative-effect adjustment on retained earnings as of March 31, 2023. There was niland nilprovision of allowance for credit losses as of March 31, 2024 and 2023, respectively. (h) Inventories, Net Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value using the first-in-first-out method. Adjustments to the carrying value are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Inventory cost consists of the direct cost of merchandise including freight. For the years ended March 31, 2024 and 2023, the impairment loss was $ 456,209and $ 151,378, respectively. (i) Prepayments and Other Receivables Prepayments and other receivables are mainly prepayments to vendors, prepaid expenses paid to service providers, prepaid taxes, advances to employees, and other deposits. Management regularly reviews the aging of such balances and changes in payment and realization trends and records allowances when management believes that the collection of amounts due is at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. As of March 31, 2024 and 2023, no allowance against prepayments and other receivables was recorded. F-13

(j) Property and Equipment, Net

Property and equipment are stated at cost less accumulated depreciation
and any recorded impairment.

The estimated useful lives are as follows:

| Machinery and equipment |     | 5 years                                              |
| Furniture and fixtures  |     | 5 years                                              |
| Leasehold improvements  |     | 3 - 10 years (shorter of lease term or useful lives) |
| Motor vehicles          |     | 5 years                                              |

Depreciation 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