Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 5

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 5
---
 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 $0.07 million, had negative cash flows from operating activities of $0.14 million during the nine
months ended June 30, 2025 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 assets and liabilities at the date of the
unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known
or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of
the date of these unaudited condensed consolidated financial statements. The results of these assumptions provide the basis for making
estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could
differ from these estimates.

    (F)
    Investments

The
Company applies the cost method of accounting to investments when it does not have significant influence or a controlling interest in
the investee and the fair value of the investment is not readily determinable. Dividends on cost method investments received are recorded
as income.

The
Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment
may not be recoverable. Management reviewed the underlying net assets of the investments during the three months and nine months ended
June 30, 2025 and determined that the Company’s proportionate