Company: FWFW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023125
Chunk: 46

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 on translation of assets and liabilities of discontinued operations in their own reporting
currency which is HK Dollars to the reporting currency of the Company.

Liquidity
and Capital Resources

Comparison
of the Nine months Ended June 30, 2025 and 2024

Our
use of cash was primarily related to discontinued operations including cash used in operating activities and bank borrowings. As of June
30, 2025 and 2024, we had $0 and $156,549 in cash and cash equivalents respectively.

Cash
flows from operating activities generally reflect net loss adjusted for certain non-cash items including depreciation and amortization,
changes in deferred taxes, and changes in allowance of expected credit losses. For the nine months ended June 30, 2025, cash used in
operating activities amounted to $136,764, compared to $695,234 for the same period in 2024. This decrease of $558,470 in cash used during
the nine months ended June 30, 2025 was primarily due to no cash used in operating activities by the discontinued operations.

Cash
flows from investing activities reflect capital expenditure for the purchase of Company’s assets. Cash used in investing activities
during the nine months ended June 30, 2025 was $0 compared to cash used in investing activities of 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)