Company: FWFW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001641172-25-009382
Chunk: 5

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 8
Chunk 5
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 process of entering into certain arrangements to raise
additional capital, which it believes to be probable of occurring as of the date of the filing. As such, the Company believes that the
substantial doubt about our ability to continue as a going concern has been alleviated as a result of consideration of management’s
plans.

(D) Principles of Consolidation

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

(E) Use of estimates

The preparation of unaudited condensed
consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to income
taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions
that are believed to be reasonable given the quality of information available as of the date of these unaudited condensed consolidated
financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

(F) Investments

The Company applies the cost method
of accounting to investments when it does not have significant influence or a controlling interest in the investee and the fair value
of the investment is not readily determinable. Dividends on cost method investments received are recorded as income.

The Company assesses
investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be
recoverable. Management reviewed the underlying net assets of the investments during the three months and six months ended March 31,
2025 and determined that the Company’s proportionate 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 consolidated balance sheets. Note 4 contains additional information on our cost method investments.

    12

FLYWHEEL ADVANCED TECHNOLOGY,
INC.

NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(G) Earning per share

Basic earnings(loss) per share are
computed by dividing income available to stockholders by the weighted