Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 15

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance. Because
substantially all of the Company’s long-lived assets and revenues are located in and derived from the U.S., geographical segments
are not presented. The Company’s operating segments are reported in one reportable segment. There are no segment managers who are
held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Based on qualitative
and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”,
the Company considers itself to be operating within one reportable segment. The Company has concluded that consolidated net loss is the
measure of segment profitability. The CODM assesses performance for the Company, monitors budget versus actual results, and determines
how to allocate resources based on consolidated net loss as reported in the consolidated statements of operations and other comprehensive
loss. There are no other expense categories regularly provided to the CODM that are not already included in the primary financial statements
herein.

9

(d) Use of Estimates

In the application of the Company’s accounting policies, management is required to
make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant.
Significant accounting estimates include allowance for inventories. Changes in facts and circumstances may result in revised estimates.
Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial
statements.

(e) Commitments and Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as
legal proceedings and claims arising out of its business, which cover a wide range of matters, including, among others, government investigations,
shareholder lawsuits, and non-income tax matters.

An accrual for a loss contingency is recognized when it is probable that a liability has
been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable 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.

(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