Fly-E Group, Inc. PP&E Disclosure
Property and equipment as of March 31, 2025 and 2024 consisted of the following:
| March 31, 2025 | March 31, 2024 | |||||||
| Furniture & Fixtures | $ | 400,080 | $ | 400,558 | ||||
| Machinery & Equipment | 230,015 | 212,317 | ||||||
| Automobile | 669,902 | 306,607 | ||||||
| Leasehold improvements | 683,595 | 976,870 | ||||||
| Building (ii) | 3,663,215 | |||||||
| Computer hardware and software (i) | 2,310,000 | |||||||
| Construction in progress-Software | 275,000 | |||||||
| Properties for rental business (iii) | 193,963 | |||||||
| Property and Equipment | 8,150,770 | 2,171,352 | ||||||
| Less: Accumulated depreciation | (863,557 | ) | (416,330 | ) | ||||
| Property and Equipment, net | $ | 7,287,213 | $ | 1,755,022 | ||||
| (i) | In December 2023, the Company engaged DFT, a former related party, for certain technology services, such as ERP system. The total contract price for the ERP system is $2,500,000. The ERP system is fully completed and delivered on May 20, 2025. As of March 31, 2025 and 2024, the accumulative payments to DFT for development of the ERP system were $2,446,580 and $1,554,000, respectively. During the fiscal year of 2025, the Company started to use part of the ERP system which was valued at $2,310,000 and treated that part as computer hardware and software and started for depreciation. As of March 31, 2025 and 2024, construction in progress was and $275,000, respectively, and primarily relating to the cost incurred to develop the software by DFT. As of March 31, 2025 and 2024, the Company had a prepayment of $136,580 and $1,279,000, respectively, to DFT (see Note 13 – Long-term prepayment for software development – related parties, net). |
| (ii) | On August 12, 2024, the Company entered into a purchase agreement with He’s Realty Holdings LLC (the “Seller”), a third party, to purchase an office property. The final purchase price of the property was $3,594,000 and closing cost was $69,215. The Company paid $628,211 in cash to the Seller, withdrew $1,235,004 from its line of credit with Peapack-Gladstone Bank, and financed the remaining $1,800,000. On August 13, 2024, the Company’s subsidiary, AOFL LLC, obtained a one-year short-term loan of $1,800,000 from He’s Realty Holdings LLC with an annual interest rate of 6.5%. The principal amount shall be paid to He’s Realty Holdings LLC in one or more installments on or before August 11, 2025, and during the one-year borrowing period, AOFL LLC needs to pay interest of $9,750 to He’s Realty Holdings LLC on a monthly basis. The collateral provided was the office purchased by AOFL LLC. The loan was paid off in full on November 29, 2024. |
| (iii) | In October 2024, the Company started to offer rental services through its subsidiaries, GOBIKE INC, in New York, FLYLA INC, in Log Angeles, and FLYTORONTO CORP, in Toronto. The rental term is from one hour to one month. In New York, the Company offers a single model of E-Bike for rent, FLY 11 PRO GOFLY as of the date of this report. In Log Angeles, the Company offers 31 types of E-Bikes and E-scooters for rent, including FLY AIR2, FLY TANK, and FLY 11 PRO. In Toronto, the Company offers three types of E-Bikes for rent, FLY 7, FLY 11, and FLY 11 PRO. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 15, 2025 | Showing above |
| 2024 | Jun 28, 2024 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.