Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 401

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 7
Chunk 401
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How
the Critical Audit Matter Was Addressed in the Audit

Our
audit procedures related to the valuation models and significant unobservable inputs utilized by the Company to estimate the fair value
of investments included the following, among others:

●We
                                            involved experienced audit team members in the performance of our audit procedures.

●With
                                            the assistance of our fair value specialists, we:

  ○
  Evaluated the valuation models
  and unobservable inputs used by the Company to estimate fair value of these investments.

  ○
  Developed independent fair
  value estimates and compared our estimates to the Company’s estimates of these investments.

●Our
                                            audit procedures related to investment valuations using significant unobservable inputs included,
                                            among others, assessing whether the valuation methodologies used were appropriate and testing
                                            the mathematical accuracy of the valuation models. We obtained management’s valuation
                                            models and compared objective inputs used in the models to agreements or underlying source
                                            documents provided by the Company. We assessed the appropriateness of certain unobservable
                                            inputs and assumptions used in the valuation models by comparing them to underlying support
                                            or available market data and evaluating the appropriateness of adjustments.

/s/
BCRG Group

BCRG
Group (PCAOB ID 7158)

We
have served as the Company’s auditor since 2024.

Irvine,
CA

January 14, 2025

F-1

FLYWHEEL
ADVANCED TECHNOLOGY, INC.

CONSOLIDATED
BALANCE SHEETS

    September
    30, 2024  
    September
    30, 2023 
  
    ASSETS 

    CURRENT ASSETS 

    Prepaid expenses
    and other current assets 
    $3,987  
    $3,667 
  
    Assets
    held for sale 
     -  
     4,620,124 
  
    Total Current Assets 
     3,987  
     4,623,791 

    INVESTMENTS 
     5,422,500  
     - 

    TOTAL
    ASSETS 
    $5,426,487  
    $4,623,791 
  
    LIABILITIES AND
    STOCKHOLDERS’ EQUITY 

    CURRENT LIABILITIES 

    Accrued expenses and other
    current liabilities 
    $80,992  
    $54,894 
  
    Due to