Company: FWFW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001641172-25-009382
Chunk: 13

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 8
Chunk 13
---
 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.

17

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.

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 anticipate these conditions will persist
until the economy fully recovers.

Even
if we successfully acquire a business or assets to commence operations, we expect to encounter heightened barriers to entry in the chosen
marketplace. These challenges may stem from reduced demand, increased raw material costs, or other economic forces beyond our control.

Regulation

As
of the date of this report, we are required to file reports with the SEC in compliance with Section 13 of the Securities Exchange Act
of 1934 (the “Exchange Act”).

The
direction our management ultimately pursues, along with any future business acquisitions, may subject us to additional laws or regulations.
These may include requirements that necessitate significant compliance expenditures, such as the increasing regulation of privacy at