Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 212

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 2
Chunk 212
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, 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 and concentration of credit risk

Financial
instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and equivalents and
accounts receivable. The Company places its cash and cash equivalents with banks with high investment grade ratings, limits the amount
of credit exposure with any one bank and conducts ongoing evaluations of the creditworthiness of the banks with which it does business.
To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers.

  (E) Cash and cash equivalents

For
purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with an initial
maturity of less than three months.

  (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 year ended September 30, 2024 and
determined that the Company’ s proportionate economic interest in the investments indicate that the investments were not other
than temporarily impaired. The carrying value of our cost method investments is reported as “investments” on the consolidated
balance sheets. Note 4 contains additional information on our cost method investments.

    F-9

FLYWHEEL
ADVANCED TECHNOLOGY, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

  (G) Fair value of financial instruments

FASB
Codification Topic 825 (ASC Topic 825), “Disclosure about Fair Value of Financial Instruments,” requires certain disclosures
regarding the fair value (“FV”) of financial instruments. The carrying amounts of accounts receivable, other current assets
and prepaid expenses, accounts payable, other payables and accrued liabilities and due to Company companies approximate their FVs because
of the short-term nature of the