Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 375

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 6
Chunk 375
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 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:
    Quoted
    prices in active markets for identical assets or liabilities.

    Level
    2:
    Inputs
    other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices
    for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that
    are not active.

    Level
    3:
    Unobservable
    inputs with little or no market data available, which require the reporting entity to develop its own assumptions.

The
Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment
and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on
the most conservative level of input that is significant to the fair value measurement.

As
of September 30, 2024, the following table represents the Company’s fair value hierarchy for items that are required to be measured
at fair value on a recurring basis:

 S