Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2698

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 16
Chunk 2698
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 are considered at risk or uncollectible,
current market conditions, as well as reasonable and supportable forecasts of future economic conditions.

As of March 31, 2025, the Company accrued credit
losses of $116,746, consisting of $41,100 related to accounts receivable from a related party customer and $75,646 related to accounts
receivable from a third party customer. As of March 31, 2024, no credit losses were recognized.

(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, 2025 and 2024, the impairment loss was $870,589 and $456,209, 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, 2025 and 2024, no allowance against prepayments and other receivables was recorded.

F-12

(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
  
    Buildings 
    30 years
  
    Properties used for lease 
    2 years
  
    Computer hardware and software 
    10 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