Fly-E Group, Inc. Leases Disclosure

11 — LEASES

 

The Company adopted Topic 842 for all periods presented. At the inception of a contract, the Company determines if the arrangement is, or contains, a lease. The leases of the Company mainly consisted of offices, retail stores, and warehouses.

 

The Company’s operating right-of-use (“ROU”) assets and lease liabilities were as follows:

 

		March 31, 2025				March 31, 2024
Operating ROU:
ROU assets		$	10,933,068			$	16,000,742
Total operating ROU assets		$	10,933,068			$	16,000,742

 

		March 31, 2025				March 31, 2024
Operating lease obligations:
Current operating lease liabilities		$	2,617,762			$	2,852,744
Non-current operating lease liabilities			9,106,928				13,986,879
Total lease liabilities		$	11,724,690			$	16,839,623

 

The Company had 36 and 38 leases as of March 31, 2025 and 2024, respectively.

 

The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2025 were as follows:

 

Remaining lease term and discount rate:

 

Weighted average discount rate			7.2	%
Weighted average remaining lease term (years)			4.67 years

 

The weighted average lease term, discount rates, and remaining lease terms for the operating leases as of March 31, 2024 were as follows:

 

Remaining lease term and discount rate:

 

Weighted average discount rate			6.4	%
Weighted average remaining lease term (years)			5.51 years

 

The Company leases its offices, warehouse, and retail stores under non-cancellable operating lease agreements. During the year ended March 31, 2025, lease expenses were $4.3 million, including $1.4 million in cost of goods-occupancy cost, $2.9 million in rent expense included in selling expense, and $62,527 in rent expense in general and administrative expense. During the year ended March 31, 2024, lease expenses were $3.3 million, including $0.7 million in cost of goods-occupancy cost, $2.4 million in rent expense in selling expense, and $0.2 million in rent expense in general and administrative expense.

For the year ended March 31, 2025, the Company terminated 12 leases.

 

As of March 31, 2025, future minimum lease liabilities, all under office and facilities non-cancellable operating lease agreements, were as follows:

 

As of March 31		Operating Lease Liabilities
2025		$	3,355,040
2026			3,293,360
2027			2,914,613
2028			2,421,343
2029			700,849
Thereafter			1,126,233
Total lease payments			13,811,438
Less: interest			(2,086,748	)
Present value of lease liabilities		$	11,724,690