Company: FWFW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001641172-25-009382
Chunk: 16

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 8
Chunk 16
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31, 2025, our operating expenses consisted primarily of professional fees of $42,868 and filing and other
fees of $2,384. During the six months ended March 31, 2024, our operation expenses consisted primarily of professional fees arising from
acquisition of QBS System of $212,736 and filing and other fees of $2,391.

All
operating expenses related to the QBS System segment were classified as held for sale or into discontinued operations due to the Mega
Fortune Disposition.

20

Income
tax expenses

There
is no income tax expenses for the six months ended March 31, 2025 and 2024.

Discontinued
Operations

Net
profit from discontinued operations of $0 during the six months ended March 31, 2025, compared to net income from discontinued operations
of $59,024 during the six months ended March 31, 2024. The change was primarily attributable to the Mega Fortune Disposition completed
on July 5, 2024.

Net
loss

Net
loss decreased by $111,391 to $45,252 from $156,643 for the six months ended March 31, 2025, compared to the same period in 2024. This
decrease is primarily driven by decrease in professional fees due to Mega Fortune Disposition completed on July 5, 2024.

Other
comprehensive loss

Foreign
currency translation loss

There
is no foreign currency translation loss for the six months ended March 31, 2025. Foreign currency translation gain of $2,999 for the
six months ended March 31, 2024 is incurred on translation of assets and liabilities of discontinued operations in reporting currency
adopted to the reporting currency of the Company.

Liquidity
and Capital Resources

Comparison
of the Six Months Ended March 31, 2025 and 2024

Our
use of cash was primarily related to discontinued operations including cash used in operating activities and bank borrowings. As of March
31, 2025, we had $0 in cash and cash equivalents as compared to $439,518 for the same period ended March 31, 2024.

Cash
flows from operating activities generally reflect net loss adjusted for certain non-cash items including depreciation and amortization,
changes in deferred taxes, and changes in allowance of expected credit losses. For the six months ended March 31, 2025, cash used in