Company: FLYE
Filing Date: 2025-04-22
Form Type: S-1
Source: 0001213900-25-034233
Chunk: 44

Company: Fly-E Group, Inc.
Filing Date: 2025-04-22
Form: S-1
Chunk 44
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 to a non-corporate U.S. Holder will generally be taxed as qualified
dividend income at the preferential tax rate for long-term capital gains.

A U.S. Holder generally will
recognize capital gain or loss on a sale or other taxable disposition of our Common Shares or Warrants. Any such capital gain or loss
generally will be long-term capital gain or loss if the U.S. Holder’s holding period for such Common Shares or Warrants exceeds
one year. Long-term capital gains recognized by a non-corporate U.S. holder are currently eligible to be taxed preferential rates. The
deductibility of capital losses is subject to limitations.

The amount of gain or loss
recognized on a sale or other taxable disposition generally will be equal to the difference between (i) the sum of the amount of
cash and the fair market value of any property received in such disposition and (ii) the U.S. Holder’s adjusted tax basis in
our Common Shares or Warrants so disposed of. A U.S. Holder’s adjusted tax basis in our Common Shares and Warrants generally will
equal the U.S. Holder’s acquisition cost reduced, in the case of our Common Shares, by any prior distributions treated as a return
of capital. See “U.S. Holders—Exercise, Lapse or Redemption of a Warrant” below for a discussion regarding a U.S. Holder’s
tax basis in Warrant Shares acquired pursuant to the exercise of a Warrant.

Except as discussed below with
respect to the cashless exercise of a Warrant, a U.S. Holder generally will not recognize gain or loss upon the acquisition of a Warrant
Share on the exercise of a Warrant for cash. A U.S. Holder’s initial tax basis in a Warrant Share received upon exercise of the
Warrant generally will equal the sum of the U.S. Holder’s initial investment in the Warrant (that is, the portion of the U.S. Holder’s
purchase price that is allocated to the Warrant, as described above under “—U.S. Federal Income Tax Consequences of the Acquisition
of a Combination of Common Share and Warrants”) and the exercise price of such Warrant. It is unclear whether a U.S. Holder’s
holding period for a Warrant Share received upon exercise of the Warrants will commence on the date of exercise of the Warrant or the
day following the date of exercise of the Warrant; in either case, the holding period will