Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 483

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 483
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 No such charges were recorded for the years ended
December 31, 2023 and December 31, 2022.

    F-11

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

NOTE
3 – DISCONTINUED OPERATIONS

On
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 discontinued operations
for all periods presented.

The
following table shows calculation of the gain on Sale of Mega Fortune:

 SCHEDULE
OF DISCONTINUED OPERATIONS GAIN ON SALE

    July
    5, 2024 
  
    Fair value of shares of Eilson 
    $5,422,500 
  
    Less: Carrying value of
    net assets disposed 
     2,969,862 
  
    Gain on Sales of Mega
    Fortune 
    $2,452,638 

The following table shows the carrying value of net assets disposed: