DISCONTINUED OPERATIONS

6 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 3 – DISCONTINUED OPERATIONS

On July 5, 2024, the Company and Mega Fortune Company Limited, its wholly-owned subsidiary, completed the sale (the “Mega Fortune Disposition”) to Mericorn Company Limited (the “Buyer”), of all of the equity associated with the Company ’ s Mega Fortune Company Limited, which is composed of the Company ’ s subsidiaries, Pontes Fides Company Limited, QBS System Limited and QBS System Pty Ltd, pursuant to a Share Purchase Agreement, dated as of July 5, 2024. The Mega Fortune Company Limited and its subsidiaries are engaged in the business of provision of IoT maintenance and support services, IoT BPO services and IoT development services in Hong Kong and Australia. Under the terms of the Share Purchase Agreement, the Buyer paid HK$56,360,000 (or approximately $7,230,000) by the 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 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.

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Summarized results of discontinued operations for the three reportable segments are as follows:

SCHEDULE OF DISCONTINUED OPERATIONS

		For the three months ended				For the six months ended
		March 31, 2024				March 31, 2024
Revenue, net		$	1,344,142			$	1,970,257
Cost of revenue			(657,732	)			(1,072,212	)
Operating expenses			(826,633	)			(1,047,244	)
Other income			55,741				159,454
Interest (expenses) income, net			(4,945	)			(10,131	)
(Loss)/Income from discontinued operations before			(89,427	)			124
Income taxes			66,932				58,360
(Loss)/Income from discontinued operations, net of tax		$	(22,495	)		$	58,484

Summarized cash flow information for the three reportable segments discontinued operations are as follows:

SCHEDULE OF CASH FLOW INFORMATION

		For the six months ended
		March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Amortization		$	34,435
Depreciation			2,818
Lease amortization			24,556
Allowance of expected credit losses			463,002
Reversal of allowance of expected credit losses			(125,568	)
Deferred income taxes			(60,589	)
Increase in accounts receivable			(513,813	)
Increase in prepaid expenses and other current assets			(281	)
Cash used in assets held for sale			(514,094	)
Increase in accounts payable			50,156
Decrease in operating lease liabilities			(26,811	)
Increase in accrued expenses and other current liabilities			185,779
Increase in income tax payable			(135	)
Cash provided by liabilities held for sale		$	208,989
CASH FLOWS FROM INVESTING ACTIVITIES
Advance to related parties		$	130
Purchase of property, plant and equipment		$	(7,429	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings		$	(54,192	)
Repayment to related party		$	(21,701	)