Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 42

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 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 based on need, but management intends
to fulfill its fiduciary duties. No significant changes to the number of employees are expected, apart from those resulting from a business
combination.

Competition
and Market Conditions

We
face significant competition in our efforts to identify and pursue a viable business venture. Our primary competitors are expected to
include other organizations established and funded for similar purposes, such as small venture capital firms, blank check companies,
and high-net-worth investors, many of which possess substantially greater financial and operational resources than we do.

17

Given
our limited financial and human resources, we are at a competitive disadvantage relative to many of these entities in acquiring an operating
business or assets essential to initiating operations in a new industry. Furthermore, the economic downturn resulting from the coronavirus
pandemic has intensified competition, as many venture capital firms and individual investors are seeking to acquire businesses at discounted
valuations. This heightened competition presents additional challenges to securing a business. We