Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 15

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 15
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 and, as a result, we may acquire a target business whose
management does not have the skills, qualifications, or abilities to enable a seamless transition, which could, in turn, negatively impact
our results of operations.

When
evaluating the desirability of a potential business combination, our ability to assess the target business’s management may be
limited due to a lack of time, resources, or information. Our management’s assessment of the capabilities of the target’s
management, therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities expected. Further,
in most cases the target’s management may be expected to want to manage us and replace our Chief Executive Officer. Should the
target’s management not possess the skills, qualifications, or abilities necessary to manage a public company or assist with their
former entity’s merger or combination into ours, the operations and profitability of the post-acquisition business may be negatively
impacted and our shareholders could suffer a reduction in the value of their shares.

-11-

Any
business we acquire will likely lack diversity of operations or geographical reach, and in such case we will be subject to risks associated
with dependence on a single industry or region.

Our
search for a business will likely be focused on entities with a single or limited business activity and/or that operate in a limited
geographic area. While larger companies have the ability to manage their risk by diversifying their operations among different industries
and regions, smaller companies such as ours and the entities we anticipate reviewing for a potential business combination generally lack
diversification, in terms of both the nature and geographic scope of their business. As a result, we will likely be impacted more acutely
by risks affecting the industry or the region in which we operate than we would if our business were more diversified. In addition to
general economic risks, we could be exposed to natural disasters, civil unrest, technological advances, and other uncontrollable developments
that will threaten our viability if and to the extent our future operations are limited to a single industry or region. If we do not
diversify our operations, our financial condition and results of operations will be at risk.

Changes
in laws or regulations, or a failure to comply with the laws and regulations applicable to us, may adversely affect our business, ability
to negotiate and complete a business combination, and results of operations.

We
are subject to laws and regulations enacted by federal, state, and local governments. In addition to SEC regulations, any business we