Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 179

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 179
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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 December 31, 2024 and March 31, 2024, no allowance against prepayments and other receivables was recorded.

(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                                              |

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.

F-43

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 $ and $, 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