Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 171

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1C
Chunk 171
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8 million during the year ended
September 30, 2024 and had minimum cash balance as of its fiscal year end. With that said, the Company is currently in process of entering
into certain arrangements to raise additional capital, which it believes to be probable of occurring as of the date of the filing. As
such, the Company believes that the substantial doubt about our ability to continue as a going concern has been alleviated as a result
of consideration of management’s plans.

  (A) Basis of Presentation

The
accompanying consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”)
“FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting
principles recognized by the FASB to be applied by nongovernmental entities in the preparation of consolidated financial statements in
conformity with generally accepted accounting principles (“GAAP”) in the United States.

The
historical results of our IoT services business, primarily consisting of Mega Fortune Company Limited and its subsidiaries, Pontes Fides
Company Limited, QBS System Limited and QBS System Pty Ltd ,and related activity have been presented in the accompanying consolidated
statements of operations and cash flows for the years ended September 30, 2024 and 2023 as discontinued operations. See Note 3 - Discontinued
Operations. Unless otherwise specified, disclosures in these consolidated financial statements reflect continuing operations only.

Certain
prior year amounts have been reclassified to conform to current year presentation.

  (B) Principles of Consolidation

The
accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its wholly
owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

    F-8

FLYWHEEL
ADVANCED TECHNOLOGY, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

  (C) Use of estimates

The
preparation of consolidated financial statements in accordance with the U.S. GAAP requires management to make estimates and assumptions
that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions
include the useful lives of property, plant and equipment, revenue recognition, allowance for credit losses, the measurement of lease
liabilities and right-of-use (“ROU”) assets, measurements of assets and obligations related to employee benefits, the nature
and timing of the satisfaction of performance obligations, the standalone selling price