Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 60

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1A
Chunk 60
---
 will derive a profit from their investment. If we are not successful, our investors will likely lose their entire
investment.

If
we cannot manage our growth effectively, we may not become profitable.

Businesses,
including development stage companies such as ours and/or any operating business or businesses we may acquire, often grow rapidly, and
tend to have difficulty managing their growth. If we are able to acquire an operating business, we will likely need to expand our management
team and other key personnel by recruiting and employing experienced executives and key employees and/or consultants capable of providing
the necessary support.

We
cannot assure you that our management will be able to manage our growth effectively or successfully. Our failure to meet these challenges
could cause us to lose money, and your investment could be lost.

Because
we have limited capital, we may need to raise additional capital in the future by issuing debt or equity securities, the terms of which
may dilute our current investors and/or reduce or limit their liquidation or other rights.

We
may require additional capital to acquire a business. We may not be able to obtain additional capital when required. Future business
development activities, as well as administrative expenses such as salaries, 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