Fri, May 9, 6:01 PM (14 days ago)
### Summary of Flywheel Advanced Technology, Inc. (FWFW) Q1 2025 Financial Performance **Company Overview:** Flywheel Advanced Technology, Inc. (FWFW) is a Nevada-based company that has undergone significant restructuring and strategic shifts. The company is classified as a "shell company" under SEC Rule 405 due to its nominal assets and lack of significant operations. FWFW's primary objective is to achieve long-term growth through a business combination or the successful development of its operating business. **Financial Health and Performance Metrics:** - **Revenue:** FWFW reported no revenue for the three and six months ended March 31, 2025. - **Operating Expenses:** For the three months ended March 31, 2025, operating expenses were $18,539, primarily consisting of professional fees ($17,244) and general and administrative expenses ($1,295). For the six months ended March 31, 2025, operating expenses were $45,252. - **Net Loss:** The net loss for the three months ended March 31, 2025, was $18,539, a decrease of $49,795 compared to the same period in 2024. For the six months ended March 31, 2025, the net loss was $45,252, a decrease of $111,391 compared to the same period in 2024. - **Cash Flow:** FWFW had negative cash flows from operating activities of $110,674 for the six months ended March 31, 2025. The company had no cash and cash equivalents as of March 31, 2025. - **Profit Margins:** Given the lack of revenue, profit margins are not applicable. - **Earnings Changes:** The decrease in net loss is primarily driven by a reduction in professional fees due to the Mega Fortune Disposition completed on July 5, 2024. **Trends and Uncertainties:** - **Operational Changes:** FWFW has undergone significant operational changes, including the sale of its subsidiaries and the appointment of new management. - **Future Operations Impact:** The company's future operations will depend on its ability to secure a business combination or develop a new operating business. The current management is engaged in external business activities and will devote limited time to the company until a suitable opportunity is identified. - **Going Concern:** The company has addressed substantial doubt about its ability to continue as a going concern by entering into arrangements to raise additional capital. **Management Discussion:** - **Strategic Focus:** FWFW's primary objective is to achieve long-term growth through a business combination or the development of its operating business. - **Competitive Landscape:** The company faces significant competition in identifying and pursuing viable business ventures, particularly in the current economic climate. - **Regulatory Compliance:** FWFW is required to file reports with the SEC and may be subject to additional laws or regulations depending on future business acquisitions. **Conclusion:** Flywheel Advanced Technology, Inc. is in a transitional phase, focusing on securing a business combination or developing a new operating business. The company's financial performance for Q1 2025 shows a reduction in net loss, primarily due to the sale of its subsidiaries. However, the lack of revenue and negative cash flows indicate ongoing financial challenges. The company's future success will depend on its ability to navigate the competitive landscape and secure additional capital.