Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 13

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 13
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 Revenue Code often require issuing controlling interest (80% or more) of
the combined entity’s stock to the acquired company’s stockholders. This could significantly dilute the equity of current
stockholders. Such issuances may coincide with the sale or transfer of controlling interest by principal stockholders. Disclosure to
stockholders about a target company will only be provided if required by applicable law or regulation. The Company will file a current
report on Form 8-K within four business days of a business combination that results in the Company ceasing to be a shell company. This
report will include comprehensive details of the target company, including audited financial statements.

16

It
is anticipated that any new securities issued in connection with a reorganization would rely on exemptions from registration under federal
and state securities laws. In some cases, the Company may agree to register these securities at the time of the transaction or under
specific conditions. The issuance of significant additional securities may depress any trading market that develops for the Company’s
securities.

Stockholder
and Management Considerations

Post-reorganization,
the majority stockholder may no longer control the majority of voting securities. The sole director of the Company may resign, and new
directors may be appointed by the majority stockholder. In cases involving statutory mergers or consolidations, stockholder approval
may be required, potentially causing delays and additional costs. Management may seek to structure transactions to avoid the necessity
of stockholder approval.

The
Company will only proceed with a business opportunity after the negotiation and execution of a written agreement. Such agreements will
typically include representations and warranties, default provisions, closing conditions, cost-sharing terms, remedies, and other customary
provisions. Investigations, negotiations, and execution of agreements will likely incur substantial costs for legal, accounting, and
other professional services. If an opportunity is abandoned, related costs may not be recoverable.

Search
for Business Opportunities

The
Company intends to identify potential business combinations by contacting affiliates, lenders, investment banks, private equity firms,
consultants, and attorneys. The number of contacts made will depend on the opportunities presented. Management anticipates dedicating
substantial time and resources to investigating and negotiating these opportunities. Failure to consummate a transaction may result in
the loss of related costs.

Management
Time and Resources

The
Company’s sole officer and director is engaged in external business activities and anticipates devoting limited time to the Company
until a suitable business opportunity is identified. The time spent on Company matters will vary