Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 34

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

    (E)
    Use
    of estimates

The
preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the
unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known
or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of
the date of these unaudited condensed consolidated financial statements. The results of these assumptions provide the basis for making
estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could
differ from these estimates.

    (F)
    Investments

The
Company applies the cost method of accounting to investments when it does not have significant influence or a controlling interest in
the investee and the fair value of the investment is not readily determinable. Dividends on cost method investments received are recorded
as income.

The
Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment
may not be recoverable. Management reviewed the underlying net assets of the investments during the three months and nine months ended
June 30, 2025 and determined that the Company’s proportionate economic interest in the investments indicate that the investments
were not other than temporarily impaired. The carrying value of our cost method investments is reported as “ investments “
on the unaudited condensed consolidated balance sheets. Note 4 contains additional information on our cost method investments.

    11

    (G)
    Earning
    per share

Basic
earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding
during the period. Diluted income per share is computed like basic income per share except that the denominator is increased to include
the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares
were diluted. There were no potentially dilutive securities for 2025 and 2024.

    (H)
    Commitments
    and contingencies

Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources