Company: FLYE
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078571
Chunk: 27

Company: Fly-E Group, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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) Warrants

On June 4, 2025, the Company closed of its public
offering and issued 11,438,222 warrants (“2025 Warrants”) to purchase common stock at an exercise price equal to $1.4565.
The 2025 Warrants are also exercisable on a cashless basis. The Company accounts for warrants as either equity-classified or liability-classified
instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB Accounting Standards
Codification ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging. The assessment considers whether the
warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether
the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s
own shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the
Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment,
is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

The Company accounts for its warrants as equity
that meet all of the criteria (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement
or settlement in its own shares (physical settlement or net-share settlement), the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance and subsequent changes in fair value are not recognized as long as the warrants
continue to be classified as equity.

(y) Held for Sale

The Company classifies assets and liabilities to be sold (disposal group) as held for sale
in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group
is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively
marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the
sale of the disposal group is generally probable of being completed within one year. Management performs an assessment at least quarterly
or when events or changes in business circumstances