Company: FWFW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001641172-25-009382
Chunk: 24

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 them.

Plan
of Operation

The
Company’s primary objective for the next 12 months and beyond is to achieve long-term growth through a business combination or
the successful development of its operating business. As of the date of this report, the Company has not entered into any definitive
agreements or specific discussions with potential business combination candidates. The Company has unrestricted flexibility in seeking,
analyzing, and participating in potential business opportunities.

Potential
Acquisition Structure

Should
the Company pursue an acquisition, for which no assurances can be given, the structure of the transaction will depend on the specific
opportunity, the needs of the Company, and the negotiating strength of all parties involved. Possible structures include leases, purchase
and sale agreements, licenses, joint ventures, and other contractual arrangements. The Company may participate directly or indirectly
through partnerships, corporations, or other forms of organization. Implementing such structures could involve mergers, consolidations,
or reorganizations, and the Company may not necessarily emerge as the surviving entity.

Following
a reorganization, it is likely that the Company’s current management, board of directors, and stockholders will no longer hold
a majority of voting shares. Existing management and directors may resign, and new management and directors may be appointed without
a stockholder vote.

To
facilitate an acquisition, the Company may issue common stock or other securities. While terms cannot be predicted, acquisitions structured
as “tax-free” reorganizations under the Internal 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.

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