Company: FLYE
Filing Date: 2025-06-02
Form Type: 424B4
Source: 0001213900-25-050035
Chunk: 147

Company: Fly-E Group, Inc.
Filing Date: 2025-06-02
Form: 424B4
Chunk 147
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3, no penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. (s) Leases The Company accounts for leases in accordance with ASC 842. The Company leases premises for offices, warehouses, and retail stores under non -cancellableoperating leases. 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 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 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, variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease if that rate can be readily determined. If that rate cannot be readily F-17 FLY-E GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) determined, the Company uses the lessee’s incremental borrowing rate. Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right