Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 448

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 7A
Chunk 448
---
 income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered
or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in
the period included the enactment date.

  (L) Earning per share

Basic
earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding
during the year. Diluted income per share is computed like basic income per share except that the denominator is increased to include
the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares
were diluted. There were no potentially dilutive securities for 2024 and 2023.

  (M) Commitments and contingencies

Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred
in connection with such liabilities are expensed as incurred.

  (N) Recently Issued Accounting Standards

There
are no recently announced, but not yet effective accounting pronouncements that are expected to have a material impact to the Company
as of September 30, 2024 and 2023.

(O)
Fair Value of Financial Instruments

The
assets and liabilities are valued using a fair market basis as defined in the Financial Accounting Standards Board (“FASB”)
Accounting Standards Update (“ASU”) ASC 820, Fair Value Measurement. Fair value is the price the Company would receive to
sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company
uses a three-level hierarchy established by the FASB that prioritizes fair value measurements based on the types of inputs used for the
various valuation techniques (market approach, income approach and cost approach). The levels of the fair value hierarchy are described
below:

    Level
    1: