Company: FWFW
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006388
Chunk: 11

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---

July 5, 2024, the Company and Mega Fortune Company Limited, its wholly-owned subsidiary, completed the sale (the “Mega Fortune
Disposition”) to Mericorn Company Limited (the “Buyer”), of all of the equity associated with the Company ’ s
Mega Fortune Company Limited, which is composed of the Company ’ s subsidiaries, Pontes Fides Company Limited, QBS System Limited
and QBS System Pty Ltd, pursuant to a Share Purchase Agreement, dated as of July 5, 2024. The Mega Fortune Company Limited and its subsidiaries
are engaged in the business of provision of IoT maintenance and support services, IoT BPO services and IoT development services in Hong
Kong and Australia. Under the terms of the Share Purchase Agreement, the Buyer paid HK$56,360,000 (or approximately $7,230,000) by the
transfer of 938 shares of the Buyer’ s wholly owned subsidiary, Elison Virtus Company Limited ( ” Elison ” ) from the
Buyer to the Company for the Mega Fortune Disposition. As of July 5, 2024, the Company determined that the estimated fair value of 938
shares of Elison was $5,422,500 and the share transfer had been completed. the share transfer had been completed. The Company recognized
a pre-tax gain on such sale of $2,452,638. The activities of the three reportable segments, provision of IT maintenance and support services,
IoT BPO services and IoT development services in Hong Kong and Australia have been segregated and reported as

Summarized
results of discontinued operations for the three reportable segments are as follows:

 SCHEDULE
OF DISCONTINUED OPERATIONS

    For the three 

    months ended 

    December 31, 

    2023 
  
    Revenue, net 
    $625,809 
  
    Cost of revenue 
     (414,378)
  
    Operating expenses 
     (220,464)
  
    Other income 
     103,801 
  
    Interest (expenses) income, net 
     (5,186)
  
    Income from discontinued operations before taxes 
     89,582 

    Income taxes 
     (8,604)
  
    Income from discontinued 

    operations, net of tax 
    $80,978 

    Income from discontinued operations, net of tax 
    $80,978