Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 292

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 4
Chunk 292
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 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 of performance obligations, variable consideration,
other obligations for revenue recognition, and other contingencies. Management believes the estimates used in the preparation of the
consolidated financial statements are reasonable. Although these estimates and assumptions are based upon management’s best knowledge
of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively
in the Company’s consolidated financial statements

  (D) Financial instruments