Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 83

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 our tax
positions and estimating its tax benefits, which may require periodic adjustments, and which may not accurately forecast actual outcomes.
We will include interest and fines arising from the underpayment of income taxes as a component of the provision for income taxes (if
anticipated). Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period
incurred. For the nine months ended December 31, 2024, the Company accrued $52,122 income tax related penalty included in taxes payable
in the unaudited condensed consolidated balance sheets. For the nine months ended December 31, 2023, $55,604 accrued related to underpayment
of income tax are classified as income tax expense in the period incurred. As of December 31, 2024 and March 31, 2024, we did not have
any significant unrecognized uncertain tax positions.

45

Item 3. Quantitative and Qualitative Disclosures
About Market Risk.

Not applicable for smaller reporting companies.

Item 4. Controls and Procedures.

Disclosure controls and procedures are controls
and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act is accumulated and communicated to our Chief Executive Officer and Chief Financial Officer
(together, the “Certifying Officers”), to allow timely decisions regarding required disclosure.

Under the supervision and with the participation
of our management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our
Certifying Officers concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this
Report due to the material weakness identified below.

A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or
detected on a timely basis. The material weaknesses that have been identified in internal control over financial reporting included
our lack of (i) sufficient