Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 22

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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,582, respectively, which were recorded under general and administrative expenses.

(q) Income Taxes

Current income taxes are provided based on net income/(loss) for financial reporting purposes
and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations
of the relevant tax jurisdictions.

Deferred taxes are accounted for using the asset and liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the unaudited condensed consolidated financial
statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are
recognized for all taxable temporary differences. Deferred tax assets (the “DTAs”) are recognized to the extent that it is
probable that taxable profit will be available against which deductible temporary differences can be utilized.

Deferred tax is calculated using tax rates that are expected to apply to the period when
the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related
to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. DTAs are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all the DTAs will not be realized. Current
income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is “more likely than
not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount
recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not
meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment
of income tax are classified as income tax expense in the period incurred. The tax returns filed in 2018 to 2024 are subject to examination
by any appropriate tax authorities. For the three months ended June 30, 2025 and 2024, the Company accrued nil and $60,076 income tax
related penalty included in current income taxes expenses, respectively.

(r) Leases

The Company accounts for leases in accordance with ASC 842. The Company leases premises
for offices, warehouses, and retail stores under non-cancellable operating leases, and the Company leases its products