Flywheel Advanced Technology, Inc. reported its financial results for the three months ending December 31, 2024, revealing a net loss of $26,713, a significant decrease from the net loss of $88,310 recorded in the same period of 2023. The company did not generate any revenue during this quarter, consistent with the previous year. Operating expenses also saw a notable reduction, totaling $26,713 compared to $169,288 in the prior year, primarily due to decreased professional fees associated with the acquisition of QBS System in 2023.
The company’s balance sheet as of December 31, 2024, showed total assets of $5,425,452, slightly down from $5,426,487 as of September 30, 2024. Current liabilities increased to $849,931 from $824,253, largely due to an increase in amounts owed to a related party, which rose to $820,295 from $743,261. Stockholders’ equity decreased to $4,575,521 from $4,602,234, reflecting the net loss incurred during the quarter.
In terms of strategic developments, Flywheel Advanced Technology underwent significant organizational changes, including the resignation of CEO Tang Siu Fung and the appointment of Luk Yuen Leung as the new CEO and Chairman of the Board on July 30, 2024. The company also completed the sale of its subsidiary Mega Fortune Company Limited on July 5, 2024, which has led to its classification as a "shell company" under SEC rules. This transition is part of the company's broader strategy to seek new business opportunities and potential acquisitions.
Operationally, the company reported a cash balance of $0 as of December 31, 2024, down from $316,367 a year earlier. Cash used in operating activities was $77,034, a decrease from $355,940 in the same quarter of 2023, primarily due to the impact of discontinued operations. The company reported net cash provided by financing activities of $77,034, attributed to advances from a related party, compared to $54,066 in the previous year.
Looking ahead, Flywheel Advanced Technology aims to achieve long-term growth through potential business combinations or the development of its operating business. Management is currently exploring arrangements to raise additional capital, which they believe will alleviate concerns regarding the company's ability to continue as a going concern. The company has not yet entered into any definitive agreements for acquisitions but maintains flexibility in pursuing various business opportunities.
About FLYWHEEL ADVANCED TECHNOLOGY, INC.
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