Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 59

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 59
---
7,491 mainly due to purchase of property,
plant and equipment during the nine months ended June 30, 2024 by the discontinued operations.

Cash
flows from financing activities generally reflect changes in debt activity during the period. Net cash provided by financing activities
was $136,764 for the nine months ended June 30, 2025 compared to net cash provided by financing activities of $236,963 for the nine months
ended June 30, 2024. Net cash provided by financing activities for the nine months ended June 30, 2025 was primarily attributable to
advance from related party of $136,764. Net cash used in financing activities for the nine months ended June 30, 2024 was attributable
to repayment of borrowings of $81,605 and advances from related party of $318,568.

Management
believes the net cash provided by financing activities will not be sufficient to fund operations for the next 12 months and beyond. The
expenses of the Company are financed by borrowings from a related company. As of June 30, 2025, the Company owes $880,025 to Flywheel
Financial Strategy (Hong Kong) Company Limited. The amount owed is payable on demand and is interest free.

21

Going
Concern

The
Company incurred a net operating loss of approximately $0.07 million, had negative cash flows from operating activities of $0.14 million
during the nine months ended June 30, 2025, and had minimum cash balance as of its fiscal year end. The Company is currently in the 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.

Critical
Accounting Estimates

The
preparation of our consolidated financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions
that impact the amounts reported in our consolidated financial statements and accompanying notes that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant.
Actual results may differ from these estimates.

Recently
issued Accounting Pronouncements

For
the impact of recently issued accounting pronouncements on the Company’s consolidated financial statements, see Note 2 (I) to the
unaudited condensed consolidated financial statements included in “