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

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 10
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 of Elison Virtus Company Limited. Accordingly, we may be deemed to be an investment company
under the Investment Company Act and as such, we would either have to register as an investment company under the Investment Company
Act, obtain exemptive relief from the SEC or modify our investments or organizational structure or our contract rights to fall outside
the definition of an investment company. Registering as an investment company could, among other things, materially adversely affect
our financial condition, business and results of operations, materially limit our ability to borrow funds or engage in other transactions
involving leverage and require us to add directors who are independent of us and otherwise will subject us to additional regulation that
will be costly and time-consuming.

Risks
Related to a Potential Business Acquisition

We
may encounter difficulty locating and consummating a business combination, including as a result of the competitive disadvantages we
have.

We
expect to face intense competition in our search for a revenue-producing business to combine with or acquire. Given the current economic
climate, venture capital firms, larger companies, blank check companies such as special purpose acquisition companies and other investors
are purchasing operating entities or the assets thereof in high volumes and at relatively discounted prices. These parties may have greater
capital or human resources than we do and/or more experience in a particular industry within which we choose to search. Most of these
competitors have a certain amount of liquid cash available to take advantage of favorable market conditions for prospective business
purchaser such as those caused by the recent pandemic. Any delay or inability to locate, negotiate and enter into a business combination
as a result of the relative illiquidity of our current asset or other disadvantages we have relative to our competitors could cause us
to lose valuable business opportunities to our competitors, which would have a material adverse effect on our business.

We
may expend significant time and capital on a prospective business combination that is not ultimately consummated.

The
investigation of each specific target business and any subsequent negotiation and drafting of related agreements, SEC disclosure and
other documents will require substantial amounts of management’s time and attention and material additional costs in connection
with outsourced services from accountants, attorneys, and other professionals. We will likely expend significant time and resources searching
for, conducting due diligence on, and negotiating transaction terms in connection with a proposed business combination that may not ultimately
come to fruition. In such event, all of the time and capital resources expended by the Company in such a pursuit may be lost and unrecover