Company: FWFW
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006388
Chunk: 9

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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Company and its wholly owned and majority owned subsidiaries have been prepared in accordance with accounting principles generally accepted
in the United States of America ( ” GAAP ” ) for interim financial information and are presented in accordance with the requirements
of Form 10-Q and Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required
by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the consolidated financial
statements and notes thereto for the year ended September 30, 2024 included in the Company’s Form 10-K. In the opinion of management,
the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary
to present fairly the Company’s financial position, the results of operations and cash flows for the periods presented.

The
operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected
for any other interim period or the full year.

    11

 (C) Going Concern

Pursuant
to the guidance in ASC 205-40 Going Concern, for each annual and interim reporting period an entity’s management must evaluate
whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to
continue as a going concern within one year after the date that the financial statements are issued. To that extent, the Company incurred
a net operating loss of approximately $0.03 million, had negative cash flows from operating activities of $0.08 million during the three
months ended December 31, 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.

 (D) Principles of Consolidation

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

 (E) Use of estimates

The
preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of liabilities and disclosure of contingent