Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 445

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 7A
Chunk 445
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 Limited and its subsidiaries, Pontes Fides
Company Limited, QBS System Limited and QBS System Pty Ltd ,and related activity have been presented in the accompanying consolidated
statements of operations and cash flows for the years ended September 30, 2024 and 2023 as discontinued operations. See Note 3 - Discontinued
Operations. Unless otherwise specified, disclosures in these consolidated financial statements reflect continuing operations only.

Certain
prior year amounts have been reclassified to conform to current year presentation.

  (B) Principles of Consolidation

The
accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its wholly
owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

    F-8

FLYWHEEL
ADVANCED TECHNOLOGY, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

  (C) Use of estimates

The
preparation of consolidated financial statements in accordance with the U.S. GAAP requires management to make estimates and assumptions
that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions
include the useful lives of property, plant and equipment, revenue recognition, allowance for credit losses, the measurement of lease
liabilities and right-of-use (“ROU”) assets, measurements of assets and obligations related to employee benefits, the nature
and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration,
other obligations for revenue recognition, 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