Company: FLYE
Filing Date: 2025-06-02
Form Type: 424B4
Source: 0001213900-25-050035
Chunk: 180

Company: Fly-E Group, Inc.
Filing Date: 2025-06-02
Form: 424B4
Chunk 180
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 non -cancellableoperating leases, and the Company leases its products to customers under non -cancellableoperating leases. Lessor The Company’s lease arrangements include products rentals to customers. The lease term is from one hour to one month. Due to the short -termnature of these arrangements, the Company classifies these leases as operating leases. The Company does not separate lease and non -leasecomponents, such as insurance or roadside assistance provided to the lessee, in its lessor lease arrangements. Lease payments are primarily fixed and are recognized as revenue in the period over which the lease arrangement occurs. Taxes or other fees assessed by governmental authorities that are both imposed on and concurrent with each lease revenue -producingtransaction and collected by the Company from the lessee are excluded from the consideration in its lease arrangements. The Company mitigates residual value risk of its leased assets by performing regular maintenance and repairs, as necessary, and through periodic reviews of asset depreciation rates based on the Company’s ongoing assessment of present and estimated future market conditions. Lessee The Company recognizes right -of -useassets and lease liabilities for all leases at the commencement date of a lease, except for short -termleases and low -valueasset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight -linebasis over the lease terms. Leases with an initial term of 12 months or less are short -termleases and not recognized as operating lease right -of -useassets and operating lease liabilities on the unaudited condensed consolidated balance sheets. The Company recognizes lease expense for short -termleases on a straight -linebasis over the lease term. Right -of -useassets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right -of -useassets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right -of -useassets are presented on a separate line in the unaudited condensed consolidated balance sheets. Right -of -useassets are depreciated using the straight -linemethod from the commencement dates to the earlier of the end of the useful lives of the right -of -useassets or the end of the lease terms. Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in -substancefixed payments,