Company: FWFW
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006388
Chunk: 19

Company: FLYWHEEL ADVANCED TECHNOLOGY, INC.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 ended December 31, 2024, our operating expenses consisted primarily of professional fees of $25,624 and filing and other
fees of $1,089. During the three months ended December 31, 2023, our operating expenses consisted primarily of professional fees arising
from acquisition of QBS System of $168,135 and filing and other fees of $1,153.

All
operating expenses related to the QBS System segment were classified as held for sale or into discontinued operations due to the Mega
Fortune Disposition.

Income
tax expenses

There
is no income tax expenses for the three months ended December 31, 2024 and 2023.

Discontinued
Operations

Net
profit from discontinued operations of $0 during the three months ended December 31, 2024, compared to net profit from discontinued operations
of $80,978 during the three months ended December 31, 2023. The change was primarily attributable to the Mega Fortune Disposition, which
was completed on July 5, 2024.

20

Net
loss

Net
loss decreased by $61,597 to $26,713 from $88,310 for the three months ended December 31, 2024, compared to the same period in 2023.
This decrease is primarily driven by a decrease in professional fees which were incurred for acquisition of QBS System in 2023.

Other
comprehensive income

Foreign
currency translation gain

There
is no foreign currency translation gain for the three months ended December 31, 2024, and 2023.

Liquidity
and Capital Resources

Comparison
of the Three Months Ended December 31, 2024 and 2023

Our
use of cash was primarily related to discontinued operations including cash used in operating activities and bank borrowings. As of December
31, 2024, we had $0 in cash and cash equivalents as compared to $316,367 for the same period ended December 31, 2023.

Cash
flows from operating activities generally reflect the net loss, adjusted for certain non-cash items, including depreciation and amortization,
changes in deferred taxes, and adjustments to the allowance for expected credit losses. For the three months ended December 31, 2024,
cash used in operating activities amounted to $77,034, compared to $355,940 for the same period in 2023. This decrease of $210,840 in
cash used during the