Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 67

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 67
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 opportunities that may arise. Accordingly, any shareholders in the Company following a business combination could suffer
a reduction in the value of their shares, and any resulting loss will likely not be recoverable.

We
may attempt to complete a business combination with a private target company about which little information is available, and such target
entity may not generate revenue as expected or otherwise by compatible with us as expected.

In
pursuing our search for a business to acquire, we will likely seek to complete a business combination with a privately held company.
Very little public information generally exists about private companies, and the only information available to us prior to making a decision
may be from documents and information provided directly to us by the target company in connection with the transaction. Such documents
or information or the conclusions we draw therefrom could prove to be inaccurate or misleading. As such, we may be required to make our
decision on whether to pursue a potential business combination based on limited, incomplete, or faulty information, which may result
in our subsequent operations generating less revenue than expected, which could materially harm our financial condition and results of
operations.

Our
ability to assess the management of a prospective target business may be limited and, as a result, we may acquire a target business whose
management does not have the skills, qualifications, or abilities to enable a seamless transition, which could, in turn, negatively impact
our results of operations.

When
evaluating the desirability of a potential business combination, our ability to assess the target business’s management may be
limited due to a lack of time, resources, or information. Our management’s assessment of the capabilities of the target’s
management, therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities expected. Further,
in most cases the target’s management may be expected to want to manage us and replace our Chief Executive Officer. Should the
target’s management not possess the skills, qualifications, or abilities necessary to manage a public company or assist with their
former entity’s merger or combination into ours, the operations and profitability of the post-acquisition business may be negatively
impacted and our shareholders could suffer a reduction in the value of their shares.

-11-

Any
business we acquire will likely lack diversity of operations or geographical reach, and in such case we will be subject to risks associated
with dependence on a single industry or region.

Our
search for a business will likely be focused on entities with a single or limited business activity and/or that operate