Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 126

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 years
  
    Furniture and fixtures
     
    5 years
  
    Leasehold improvements
     
    3 – 10 years (shorter of lease term or useful lives)
  
    Motor vehicles
     
    5 years
  
    Buildings  
     
    30 years
  
    Properties used for lease
     
    2 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 the accounts and any gain or loss is included in the consolidated statements of operations. Expenditures
for maintenance and repairs are charged to earnings as incurred, while additions, renewals, and betterments, which are expected to extend
the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent
events and circumstances warrant revised estimates of useful lives.

Construction in progress

Direct
costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to
their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property, equipment
and software items and the depreciation of these assets commences when the assets are ready for their intended use. In December 2023,
the Company engaged DF Technology US Inc (“DFT”), a related party, for certain technology services, such as enterprise resource
planning system (“ERP system”). As of December 31, 2024 and March 31, 2024, construction in progress was $1,910,000   and
$275,000, respectively, and primarily relating to the cost incurred to develop the software by DFT.

(k) Intangible Assets

Intangible asset is stated at cost less accumulated
amortization and amortized in a method which reflects the pattern in which the economic benefits of the intangible asset are expected
to be consumed or otherwise used up. The balance of intangible asset represents internal use software and property rights. The software
is acquired externally tailored to the Company’s requirements. The Company capitalizes the costs associated with design, development,
acquisition and maintenance of its acquired intangible assets and amortizes these assets over their remaining useful lives on a straight-line
basis. Any further payments made to maintain or develop these assets would be capitalized and amortized over the balance of the useful
life for the assets. The