Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 17

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 17
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 operations of $0 during the nine months ended June 30, 2025, compared to net income from discontinued operations
of $125,699 during the nine months ended June 30, 2024. The change was primarily attributable to the Mega Fortune Disposition completed
on July 5, 2024.

20

Net
loss

Net
loss decreased by $123,993 to $70,513 from $194,506 for the nine months ended June 30, 2025, compared to the same period in 2024. This
decrease is primarily driven by decrease in professional fees due to Mega Fortune Disposition completed on July 5, 2024.

Other
comprehensive loss

Foreign
currency translation gain

There
is no foreign currency translation difference for the nine months ended June 30, 2025. Foreign currency translation gain of $6,872 for
the nine months ended June 30, 2024 is incurred on translation of assets and liabilities of discontinued operations in their own reporting
currency which is HK Dollars to the reporting currency of the Company.

Liquidity
and Capital Resources

Comparison
of the Nine months Ended June 30, 2025 and 2024

Our
use of cash was primarily related to discontinued operations including cash used in operating activities and bank borrowings. As of June
30, 2025 and 2024, we had $0 and $156,549 in cash and cash equivalents respectively.

Cash
flows from operating activities generally reflect net loss adjusted for certain non-cash items including depreciation and amortization,
changes in deferred taxes, and changes in allowance of expected credit losses. For the nine months ended June 30, 2025, cash used in
operating activities amounted to $136,764, compared to $695,234 for the same period in 2024. This decrease of $558,470 in cash used during
the nine months ended June 30, 2025 was primarily due to no cash used in operating activities by the discontinued operations.

Cash
flows from investing activities reflect capital expenditure for the purchase of Company’s assets. Cash used in investing activities
during the nine months ended June 30, 2025 was $0 compared to cash used in investing activities of 7,491 mainly due to purchase of property,
plant and equipment during the nine months ended June 30, 2024 by the discontinued operations.

Cash
flows from financing activities generally reflect changes in debt activity during the