Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 2608

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 15
Chunk 2608
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 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 financial institutions
may, from time to time, exceed the Federal Deposit Insurance Corporation’s (the “FDIC”) federally insured limit, which
is $250,000. The Company has not incurred any losses in the past for amount over the FDIC limits. As of March 31, 2025 and March 31,
2024, nil and nil deposited with banks was uninsured, respectively.

(g) Accounts Receivable

Accounts receivable includes trade account due
from customers. Accounts receivable is recorded at the invoiced amount less an allowance for any credit loss and does not bear interest,
which is due after 30 to 90 days, depending on the credit term with the customers. Accounts receivable which is deemed
to be uncollectible is charged off against the allowance after all means of collection have been exhausted and the potential for recovery
is considered remote.

The Company adopt the current expected credit
loss model (“CECL model”) to estimate the expected credit losses, which is determined by multiplying the probability of default.
In determining the probability of default, the Company mainly considers factors such as aging schedule of receivables, migration rate
of receivables, assessment of receivables due from specific identifiable counterparties that are considered at risk or uncollectible,
current market conditions, as well as reasonable and supportable forecasts of future economic conditions.

As of March 31, 2025, the Company accrued credit
losses of $116,746, consisting of $41,100 related to accounts receivable from a related party customer and $75,646 related to accounts
receivable from a third party customer. As of March 31, 2024, no credit losses were recognized.

(h) Inventories, Net

Inventories, consisting of products available
for sale, are stated at the lower of cost or net realizable value using the first-in-first-out method. Adjustments to the carrying value
are recorded for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated net
realizable value based upon assumptions about future demand and market conditions. Inventory cost consists of the direct cost of merchandise
including freight. For the years ended March 31, 2025 and 2024, the impairment loss