Company: FLYE
Filing Date: 2025-05-05
Form Type: S-1/A
Source: 0001213900-25-039419
Chunk: 181

Company: Fly-E Group, Inc.
Filing Date: 2025-05-05
Form: S-1/A
Chunk 181
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 deferred offering cost of $ was
charged to additional paid-in-capital upon IPO.

F-44

(n) Fair Value Measurements

Fair value is defined as the price that would
be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.
Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value
measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and
consider assumptions that market participants would use when pricing the asset or liability. The following summarizes the three levels
of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable:

| Level-1 | - | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |

| Level-2 | - | Include other inputs that are directly or indirectly observable in the marketplace. |

| Level-3 | - | Unobservable inputs which are supported by little or no market activity. |

The fair value for certain assets and liabilities
such as cash, accounts receivable, other receivables, prepayments and other current assets, short-term loans, accounts payable, contract
liabilities, accrued expenses and other payables, and tax payables have been determined to approximate 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 December 31, 2024 and March 31, 2024.

(o) 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