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

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 receivable, other receivables, prepayments and other current assets,
short-term loans, accounts payable, accrued expenses and other payables, operating lease liabilities – current, and tax payables
have been determined   to
approximately carrying amounts due to the short maturities of these instruments. The Company believes that its long-term loan to a third
party approximates the fair value based on current yields for debt instruments with similar terms. The Company and its subsidiaries did
not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and March 31,
2025.

(n) Revenue Recognition

Product revenue

The Company follows the revenue accounting requirements of Accounting Standards Codification
(“ASC”) Topic 606, Revenue from Contracts with Customers. The core principle underlying the revenue recognition of this
ASC allows the Company to recognize revenue that represents the transfer of products and services to customers in an amount that reflects
the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual
performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of
products and services transfers to a customer.

To achieve that core principle, the Company applies a five-step model to recognize revenue
from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify
the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent
that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance
obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

12

The Company generates substantially all its revenues from sales of products such as smart
E-bikes, E-motorcycles, E-scooters and accessories to the retail and wholesale customers through its wholly owned subsidiaries stores.
In accordance with ASC 606, the Company’s performance obligations are satisfied upon the control of products being passed
to the customer, which is the point in time that the customers are able to direct the use of and obtain substantially all of the economic
benefit of the products or services. The transfer of control typically occurs at a point in time based on consideration of when the customer
has an obligation to pay for the products, and