Company: FWFW
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002097
Chunk: 177

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1C
Chunk 177
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transfer of 938 shares of the Buyer’s wholly owned subsidiary, Elison Virtus Company Limited (“Elison”) from the Buyer
to the Company for the Mega Fortune Disposition. As of July 5, 2024, the Company determined that the estimated fair value of 938 shares of Elison was $5,422,500 and
the share transfer had been completed. the share transfer had been completed. The Company recognized a
pre-tax gain on such sale of $2,452,638. The activities of the three reportable segments, provision of IT maintenance and support services,
IoT BPO services and IoT development services in Hong Kong and Australia have been segregated and reported as discontinued operations
for all periods presented.

The
following table shows calculation of the gain on Sale of Mega Fortune:

 SCHEDULE
OF DISCONTINUED OPERATIONS GAIN ON SALE

    July
    5, 2024 
  
    Fair value of shares of Eilson 
    $5,422,500 
  
    Less: Carrying value of
    net assets disposed 
     2,969,862 
  
    Gain on Sales of Mega
    Fortune 
    $2,452,638 

The following table shows the carrying value of net assets disposed:

 SCHEDULE
OF CARRYING VALUE OF NET ASSETS DISPOSED

    July 5, 2024 
  
    Cash and cash equivalents 
    $230,232 
  
    Other current assets 
     1,831,334 
  
    Non-current assets 
     2,335,812 
  
    Bank loans 
     (507,441)
  
    Other liabilities 
     (920,075)
  
    Carrying value of net assets disposed 
    $2,969,862 

The
carrying amounts of the assets and liabilities of the three reportable segments were classified as held for sale in our consolidated
balance sheets as of September 30, 2023. The asset and liability balances as of September 30, 2023 were classified as current as we anticipated
the sale of these assets and liabilities within a one year period. The carrying amounts were as follows:

 SCHEDULE
OF DISCLOSURE OF LONG LIVED ASSETS HELD FOR SALE

    2023 
  
    Cash and cash equivalents 
    $621,001 
  
    Accounts receivable, net of allowances 
     1,431,201