Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 6

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 6
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 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 unaudited condensed consolidated balance sheets. Note 4 contains additional information on our cost method investments.

    11

    (G)
    Earning
    per share

Basic
earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding
during the period. Diluted income per share is computed like basic income per share except that the denominator is increased to include
the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares
were diluted. There were no potentially dilutive securities for 2025 and 2024.

    (H)
    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.

    (I)
    Recently
    Issued Accounting Standards

There
are no recent accounting pronouncements that impact the Company’s operations.

NOTE
3 – DISCONTINUED OPERATIONS

On
July 5, 2024, the Company and Mega Fortune Company Limited, its wholly-owned subsidiary, completed the sale (the “Mega Fortune
Disposition”) to Mericorn Company Limited (the “Buyer”), of all of the equity associated with the Company ‘ s
Mega Fortune Company Limited, which is composed of the Company ‘ s subsidiaries, Pontes Fides Company Limited, QBS System Limited
and QBS System Pty Ltd, pursuant to a Share Purchase Agreement, dated as of July 5, 2024. The Mega Fortune Company Limited and its subsidiaries
are engaged in the business of provision of IoT maintenance and support services, IoT BPO services and IoT development services in Hong
Kong and Australia. Under the terms of the Share Purchase Agreement, the Buyer paid HK$56,360,000 (or approximately

$7,230,000)
by the transfer of 938 shares of the Buyer’ s wholly owned subsidiary, Elison Virtus Company Limited ( “ Elison “ )
from the Buyer to the Company for the Mega Fortune Disposition. As of July 5, 2024, the