FLYWHEEL ADVANCED TECHNOLOGY, INC. The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and the related notes and other financial information included elsewhere in this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See "Cautionary Note Regarding Forward-Looking Statements."
Cautionary Note Concerning Factors That May Affect Future Results
This Annual Report, including "Management's Discussion and Analysis of Financial
Condition and Results of Operations" contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The Company
may also make forward-looking statements in other reports filed with the
Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. Words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "should," "could," "forecast" and other words and terms of similar meaning, typically identify such forward-looking statements. In particular, these include, among others, statements relating to:
? the Company's strategy for growth, future revenues, earnings, cash flow, uses
of cash and other measures of financial performance, and market position,
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? worldwide economic, political, and capital markets conditions, such as
interest rates, foreign currency exchange rates, financial conditions of our
suppliers and customers, and natural and other disasters or climate change
affecting the operations of the Company or our suppliers and customers,
? new business opportunities, product development, and future performance or
results of current or anticipated products,
? the scope, nature or impact of acquisition, strategic alliance and divestiture
activities,
? the outcome of contingencies, such as legal and regulatory proceedings,
? future levels of indebtedness, common stock repurchases and capital spending,
? future availability of and access to credit markets,
? asset impairments,
? tax liabilities,
? information technology security, and
? the effects of changes in tax (including the newly enacted Tax Cuts and Jobs
Act), environmental and other laws and regulations in the United States and
other countries in which we operate.
Overview
The Company has no operations or revenue as of the date of this Report. We are
currently in the process of developing a business plan. Management intends to
explore and identify viable business opportunities within the
We do not expect to generate any revenues over the next 12 months, unless we are able to enter into a business combination with an operating company. Our principal business objective for the next 12 months will be to seek, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business presents an opportunity for our shareholders. During the next 12 months we anticipate incurring costs related to filing of Exchange Act reports, and possible costs relating to consummating an acquisition or combination. We believe we will be able to meet these costs through use of funds in our treasury and additional amounts, as necessary, to be loaned by or invested in us by our stockholders, management or other investors.
We intend to contract out certain technical and administrative functions on an as-needed basis in order to conduct our operating activities. Our management team will select and hire these contractors and manage and evaluate their work performance.
Results of Operations
Year Ended
Revenues. During the years ended
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Operating expenses. For the year ended
Loss from operations. As a result of the foregoing, our loss from operations was
Income taxes. Our income tax expenses incurred for the years ended
Net loss. For the year ended
Liquidity and Capital Resources
As of
To date, we have managed to keep our monthly cash flow requirement low for two reasons. First, our officers do not draw a salary at this time. Second, we have been able to keep our operating expenses to a minimum by operating in space provided at no expense by our officers and directors.
We currently have no external sources of liquidity such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.
Our financial statements have been prepared in conformity with accounting
principles generally accepted in
Cash Flows Operating Activities
For the year ended
For the year ended
Investing Activities
Net cash provided by investing activities for the years ended
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Net cash provided by financing activities for the year ended
Future Capital Requirements
Our current available cash and equivalents are not sufficient to satisfy our
liquidity requirements. Our capital requirements for the fiscal year ending
Our plans to finance our operations include seeking equity and debt financing, alliances or other partnership agreements, or other business transactions, that would generate sufficient resources to ensure continuation of our operations.
The sale of equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through the issuance of debt securities or preferred stock, these securities could have rights senior to those of our common stock and could contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations.
Inflation
The amounts presented in our financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.
Going Concern
The accompanying financial statements have been prepared assuming the Company
will continue as a going concern, which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business for the
twelve months following the date of these financial statements. As of
Because the Company does not expect that existing operational cash flow will be
sufficient to fund presently anticipated operations, this raises substantial
doubt about the Company's ability to continue as a going concern. Therefore, the
Company will need to raise additional funds and is currently exploring
alternative sources of financing. Recently the Company being funded by our
related company, Flywheel Financial Strategy (
Off Balance Sheet Arrangements
As of the date of this Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Seasonality
Our operating results are not affected by seasonality.
Inflation
Our business and operating results as reported have not been affected in any
material way by inflation. However, the Company is aware that global inflation
is increasing, and it expects that inflation will affect the Company during
fiscal year ending
Critical Accounting Policies
The
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