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

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material, is disclosed.

10

(f) Cash

Cash consists of cash on hand and cash deposited
with banks. The Company’s cash is maintained at financial institutions in the U.S. Deposits in these financial institutions
may, from time to time, exceed the Federal Deposit Insurance Corporation’s (the “FDIC”) federally insured limit, which
is $250,000. The Company has not incurred any losses in the past for amount over the FDIC limits. As of December 31, 2024 and March 31,
2024, nil and nil deposited with banks was uninsured, respectively.

(g) Accounts Receivable

Accounts receivable includes trade account due
from customers. Accounts receivable is recorded at the invoiced amount less an allowance for any uncollectible accounts and does not bear
interest, which is due after 30 to 90 days, depending on the credit term with the customers. Accounts receivable which
is deemed to be uncollectible is charged off against the allowance after all means of collection have been exhausted and the potential
for recovery is considered remote.

The Company adopt the current expected credit
loss model (“CECL model”) to estimate the expected credit losses, which is determined by multiplying the probability of default.
In determining the probability of default, the Company mainly considers factors such as aging schedule of receivables, migration rate
of receivables, assessment of receivables due from specific identifiable counterparties that are considered at risk or uncollectible,
current market conditions, as well as reasonable and supportable forecasts of future economic conditions.

There was nil and nil allowance for credit losses
as of December 31, 2024 and March 31, 2024, respectively.  

(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 three months ended December 31, 2024 and 2023, the impairment loss