Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 821

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 3
Chunk 821
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. Revenue generated from the rental services is recognized over the rental period,
which is typically one day, one week or more.

Disaggregated information of revenues by business
lines are as follows:

    For the years Ended  March 31, 

    2025  
    2024 
  
    Product revenues - retail (ASC 606) 
    $21,725,817  
    $26,389,720 
  
    Product revenues - wholesale (ASC 606) 
     3,529,479  
     5,815,946 
  
    Revenues - rental services (ASC 842) 
     171,867  
     — 
  
    Net revenues 
    $25,427,163  
    $32,205,666 

(p) Selling Expenses

Selling expenses mainly consist of advertising
costs, and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising expenses, which consist
primarily of online and offline advertisements, are expenses when the services are received. The advertising expenses were $273,816 and
$64,423 for the years ended March 31, 2025 and 2024, respectively.

F-15

(q) Research and Development Expenses

Research and development expenses include salaries
for the Company’s research and development personnel, as well as related development expenses paid to the third-party development
team. The Company recognizes internal use software acquired and internally developed in accordance with ASC 350-40 “Software—internal
use software”. The Company expenses all costs that are incurred in connection with the planning and implementation phases of development,
and costs that are associated with maintenance of the existing software for internal use. Certain costs associated with developing internal-use
software are capitalized when such costs are incurred within the application development stage of software development. As a result, the
Company expensed the development costs of the Fly E-Bike app as they incurred. For the years ended March 31, 2025 and 2024, development
costs amounted to $549,368 and $292,724, respectively, which were recorded under general and administrative expenses.

(r) Income Taxes

Current income taxes are provided based on net
income/(loss) for financial reporting purposes and adjusted for income and expense items which are not assessable or deductible for income
tax purposes, in accordance with the regulations of the relevant tax jurisdictions.

Deferred taxes are accounted for using the asset
and liability