Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 8

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 8
---
, insurance, general overhead, legal and compliance expenses,
and accounting expenses will require a substantial amount of additional capital. The terms of securities we issue in future capital raising
transactions may be more favorable to new investors, and may include liquidation preferences, superior voting rights or the issuance
of other derivative securities, which could have a further dilutive effect on or subordinate the rights of our current investors. Any
additional capital raised through the sale of equity securities will likely dilute the ownership percentage of our shareholders. Additionally,
any debt securities we issue would likely create a liquidation preference superior that of our current investors and, if convertible
into shares of Common Stock, would also pose the risk of dilution.

-7-

We
may be unable to obtain necessary financing if and when required.

Our
ability to obtain financing, if and when necessary, may be impaired by such factors as the capital markets (both in general and in the
particular industry or industries in which we may choose to operate), our limited operating history and current lack of operations, the
national and global economies, and the condition of the market for microcap securities. Further, economic downturns such as the current
global depression caused by the COVID-19 pandemic may increase our requirements for capital, particularly if such economic downturn persists
for an extended period of time or after we have acquired an operating entity, and may limit or hinder our ability to obtain the funding
we require. If the amount of capital we are able to raise from financing activities, together with any revenues we may generate from
future operations, is not sufficient to satisfy our capital needs, we may be required to discontinue our development or implementation
of a business plan, cancel our search for business opportunities, cease our operations, divest our assets at unattractive prices or obtain
financing on unattractive terms. If any of the foregoing should happen, our shareholders could lose some or all of their investment.

Because
we are still developing our business plan, we do not have any agreement for a business combination.

We
have no current arrangement, agreement or understanding with respect to engaging in a business combination with any specific entity.
We may not be successful in identifying and evaluating a suitable acquisition candidate or in consummating a business combination. We
are neutral as to what industry or segment for any target company. We have not established specific metrics and criteria we will look
for in a target company, and if and when we do we may face difficulty reaching a mutual agreement with any such entity