Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 333-167130 | |
Entity Registrant Name | FLYWHEEL ADVANCED TECHNOLOGY, INC. | |
Entity Central Index Key | 0001492617 | |
Entity Tax Identification Number | 27-2473958 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 123 West Nye Lane | |
Entity Address, Address Line Two | Suite 455 | |
Entity Address, City or Town | Carson City | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89706 | |
City Area Code | 852 | |
Local Phone Number | 6686-0563 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,691,164 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 504,118 | |
Accounts receivable, net of allowances | 1,248,202 | |
Due from related parties | $ 121,333 | |
Other Receivable, after Allowance for Credit Loss, Related and Nonrelated Party Status [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Prepaid expenses and other current assets | $ 387,788 | |
Income tax refundable | 11,220 | |
Deferred tax assets | 32,608 | |
Total Current Assets | 2,305,269 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 7,480 | |
GOODWILL | 1,854,022 | |
RIGHT-OF-USE ASSETS | 55,590 | |
TOTAL ASSETS | 4,222,361 | |
CURRENT LIABILITIES | ||
Bank loans - current portion | 108,269 | |
Accounts payable | 128,641 | |
Accrued expenses and other current liabilities | 171,832 | 22,920 |
Due to related parties | $ 626,048 | $ 181,210 |
Other Liability, Noncurrent, Related and Nonrelated Party Status [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Operating lease liabilities | $ 52,435 | |
Total current liabilities | 1,087,225 | 204,130 |
LONG-TERM LIABILITIES | ||
Bank loans | 531,865 | |
Operating lease liabilities | 8,996 | |
Total long-term liabilities | 540,861 | |
Total Liabilities | 1,628,086 | 204,130 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.0001 par value 550,000,000, shares authorized, 26,762,164 shares and 17,822,564 issued and outstanding as of March 31, 2023 and September 30, 2022, respectively | 2,676 | 1,782 |
Paid in Capital | 5,662,512 | 2,534,546 |
Accumulated other comprehensive loss | (322) | |
Accumulated deficit | (3,070,591) | (2,740,458) |
Total Stockholders’ Equity | 2,594,275 | (204,130) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 4,222,361 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 550,000,000 | 550,000,000 |
Common stock, shares issued | 26,762,164 | 17,822,564 |
Common stock, shares outstanding | 26,762,164 | 17,822,564 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
REVENUE, NET | $ 36,410 | $ 36,410 | ||
COST OF REVENUE | (88,834) | (88,834) | ||
GROSS LOSS | (52,424) | (52,424) | ||
OPERATING EXPENSES | ||||
Sales and marketing | 8,760 | 8,760 | ||
General and administrative | 259,500 | 53,710 | 285,332 | 91,975 |
Depreciation and amortization | 8,123 | 8,123 | ||
Total Operating Expenses | 276,383 | 53,710 | 302,215 | 91,975 |
OPERATING LOSS | (328,807) | (53,710) | (354,639) | (91,975) |
OTHER INCOME | ||||
Interest income, net | 14 | 14 | ||
Total Other Income | 14 | 14 | ||
Income taxes | (24,492) | (24,492) | ||
NET LOSS | (304,301) | (53,710) | (330,133) | (91,975) |
OTHER COMPREHENSIVE LOSS | ||||
Foreign currency translation loss | (322) | (322) | ||
COMPREHENSIVE LOSS | $ (304,623) | $ (53,710) | $ (330,455) | $ (91,975) |
Net loss per share - basic and diluted: | $ (0.02) | $ (0.03) | $ (0.02) | $ (0.06) |
Weighted average number of shares outstanding | 18,316,465 | 1,622,550 | 16,837,892 | 1,622,550 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] Series A1 Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 30, 2021 | $ 1,000 | $ 162 | $ 2,535,166 | $ (2,536,328) | ||
Balance, shares at Sep. 30, 2021 | 10,000,000 | 1,622,550 | ||||
Net loss | (38,265) | (38,265) | ||||
Balance at Dec. 31, 2021 | $ 1,000 | $ 162 | 2,535,166 | (2,574,593) | (38,265) | |
Balance, shares at Dec. 31, 2021 | 10,000,000 | 1,622,550 | ||||
Balance at Sep. 30, 2021 | $ 1,000 | $ 162 | 2,535,166 | (2,536,328) | ||
Balance, shares at Sep. 30, 2021 | 10,000,000 | 1,622,550 | ||||
Net loss | (91,975) | |||||
Balance at Mar. 31, 2022 | $ 1,000 | $ 162 | 2,535,166 | (2,628,303) | (91,975) | |
Balance, shares at Mar. 31, 2022 | 10,000,000 | 1,622,550 | ||||
Balance at Dec. 31, 2021 | $ 1,000 | $ 162 | 2,535,166 | (2,574,593) | (38,265) | |
Balance, shares at Dec. 31, 2021 | 10,000,000 | 1,622,550 | ||||
Net loss | (53,710) | (53,710) | ||||
Balance at Mar. 31, 2022 | $ 1,000 | $ 162 | 2,535,166 | (2,628,303) | (91,975) | |
Balance, shares at Mar. 31, 2022 | 10,000,000 | 1,622,550 | ||||
Balance at Sep. 30, 2022 | $ 1,782 | 2,534,546 | (2,740,458) | (204,130) | ||
Balance, shares at Sep. 30, 2022 | 17,822,564 | |||||
Net loss | (25,832) | (25,832) | ||||
Balance at Dec. 31, 2022 | $ 1,782 | 2,534,546 | (2,766,290) | (229,962) | ||
Balance, shares at Dec. 31, 2022 | 17,822,564 | |||||
Balance at Sep. 30, 2022 | $ 1,782 | 2,534,546 | (2,740,458) | (204,130) | ||
Balance, shares at Sep. 30, 2022 | 17,822,564 | |||||
Net loss | (330,133) | |||||
Balance at Mar. 31, 2023 | $ 2,676 | 5,662,512 | (322) | (3,070,591) | 2,594,275 | |
Balance, shares at Mar. 31, 2023 | 26,762,164 | |||||
Balance at Dec. 31, 2022 | $ 1,782 | 2,534,546 | (2,766,290) | (229,962) | ||
Balance, shares at Dec. 31, 2022 | 17,822,564 | |||||
Net loss | (304,301) | (304,301) | ||||
Issuance of common stock for acquisition | $ 894 | 3,127,966 | 3,128,860 | |||
Issuance of common stock for acquisition, shares | 8,939,600 | |||||
Exchange difference on translation | (322) | (322) | ||||
Balance at Mar. 31, 2023 | $ 2,676 | $ 5,662,512 | $ (322) | $ (3,070,591) | $ 2,594,275 | |
Balance, shares at Mar. 31, 2023 | 26,762,164 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (330,133) | $ (91,975) |
Adjusted to reconcile net income(loss) to cash provided (used) by operating activities: | ||
Depreciation | 8,123 | |
Provision for bad debts | 112,675 | |
Deferred income taxes | (24,492) | |
Increase/(decrease) in: | ||
Accounts receivable | 64,469 | 26,649 |
Prepaid expenses and other current assets | (510) | |
Accounts payable | (86,294) | |
Accrued expenses and other current liabilities | 114,517 | |
Net cash used in operating activities | (141,645) | (65,326) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash acquired from purchase of a subsidiary | 565,211 | |
Net cash provided by investing activities | 565,211 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Advances from related party | 80,703 | 65,326 |
Net cash provided by financing activities | 80,703 | 65,326 |
NET INCREASE IN CASH AND EQUIVALENTS | 504,269 | |
EFFECT OF EXCHANGE RATES ON CASH | (151) | |
AT BEGINNING OF PERIOD | ||
CASH AND EQUIVALENTS AT END OF PERIOD | 504,118 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | ||
Cash paid for interest |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE- 1 ORGANIZATION AND BUSINESS BACKGROUND Flywheel Advanced Technology, Inc. (formerly known as Pan Global Corp.) (“the Company”) was incorporated in the state of Nevada on April 30, 2010. On July 13, 2021, a Stock Purchase Agreement was entered into between NYJJ Hong Kong Limited (Seller) and Sparta Universal Industrial Ltd. (Purchaser), wherein the Purchaser purchased 10,000,000 0.0001 As a result, the Purchaser became an approximately 90% holder of the voting rights of the issued and outstanding shares of the Company, on a fully-diluted basis, and became the controlling shareholder. At the effective date of transfer, David Lazar ceased to be the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer and Chairman of the Board of as Directors, and the Company appointed Tang Siu Fung as President, Chief Executive Officer, and Chairman of the Board of Directors; Cheng Sin Yi as Secretary, and Treasurer; Tin Sze Wai as Director; Ip Tsz Ying as Director; Ho Yiu Chung as Director; and Lai Chi Chuen as Director. On November 21, 2021, Board of directors and majority shareholder approved the change of the Company’s name to “Flywheel Advanced Technology, Inc.”. On July 13, 2022, the Company was advised by Financial Industry Regulatory Authority (“FINRA”) that a 1:100 reverse stock split 1:100 reverse stock split 1,551,550 155,155,000 On August 5, 2022, the Company was informed by the FINRA that the new ticker symbol of the Company is “FWFW”. On September 15, 2022, the Company filed with the Secretary of State of the State of Nevada an Amendment (the “Amendment”) to the Certificate of Designation for the Series A-1 Preferred Stock (the “Preferred Stock”). The Amendment was approved by the Board of Directors of the Company and Sparta Universal Industrial Ltd. (“Sparta”), the sole holder of all the 10,000,000 Pursuant to the Amendment, the conversion rate of the Preferred Stock was changed to provide that each share of Preferred Stock shall be convertible, at the option of the holder, into 1.62 fully paid and nonassessable shares of the Company’s common stock. The Amendment was necessary as the terms of the Certificate of Designation for the Preferred Stock expressly provided that the conversion ratio of 162 shares of common stock for each share of Preferred Stock would not be reduced in the event of a stock split or other capitalization of the Company. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED On September 15, 2022, the Company’s outstanding 10,000,000 converted on a one for 1.62 basis into 16,200,000 common shares. Concurrently these Preferred Stock were cancelled. On November 30, 2022, the Company incorporated Blue Print Global, Inc. (“Blue Print”) in the British Virgin Islands to establish an operation to source the supply and sale of warehouse patrol robots. The Company holds 70% of Blue Print, and the balance is held by two individuals unrelated to the Company, with each party holding 15%. On December 7, 2022, Blue Print entered into an Agency Agreement (the “Agency Agreement”) with International Supply Chain Alliance Co., Ltd. of Hong Kong (“ISCA”). Pursuant to the Agency Agreement, Blue Print appointed ISCA as its authorized agent to distribute warehouse patrol robots in the People’s Republic of China (“China”). The Agency Agreement is valid for five years and will be automatically renewed for another five years unless a written non-renewal notice is provided by either party at least 30 days before the expiration date. However, there is no early termination option in the Agency Agreement. On December 15, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with QBS System Limited, a limited company incorporated under the laws of Hong Kong (“QBS System”), and its shareholder, QBS Flywheel Limited, a company incorporated under the laws of Australia (the “Seller”). On March 22, 2023, the Seller transferred and assigned to the Company all of the issued and outstanding shares of QBS System in exchange for 8,939,600 0.0001 QBS System was incorporated in Hong Kong on April 14, 2011 with limited liability and its principal activities are providing Internet of Things (“IoT”) solutions and services across industries. Its IoT solutions help clients build applications using available IoT device, sensors, framework and platform, to integrate the available hardware and software solution with clients’ existing landscape or implement a new IoT solution for enterprises. QBS System provides a full-range IoT services comprising consulting development and implementation, analytics, support, and evolution. It has a business portfolio providing IoT integration solution services, IoT maintenance, support services, IoT projects and ventures Business Process Outsourcing (“BPO”) services, and approximately six periods of experience in Hong Kong providing IoT software and hardware engineering services. Clients range across various industries, such as logistics and supply chain management, food & beverage, automation and smart building. The applications of QBS System’s IoT Solution include connected equipment in the enterprise (“Enterprise IoT”) and industrial assets such as machines, robots, or even workers in smart factories and industrial facilities (“Industrial IoT”, the essential component of Industry 4.0). FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED QBS System formed a wholly owned subsidiary, QBS System Pty Ltd (“QBS System Pty”) in Australia on May 8, 2020 and its principal activities are providing computer network systems design and integration services. We use the terms “Company”, “we” and “us” to refer to both Flywheel Advanced Technology, Inc. and its subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) Basis of Presentation The accompanying unaudited interim consolidated financial statements (“CFS”) have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification ™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. As of July 14, 2022, the 1:100 reverse stock split (B) Management’s Representation of Interim Consolidated financial statements The accompanying unaudited interim consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual consolidated financial statements. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. (C) Principles of Consolidation The accompanying CFS are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED (D) Use of estimates The preparation of CFS in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the CFS. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, revenue recognition, allowance for credit losses, valuation allowances for deferred tax assets, the measurement of lease liabilities and right-of-use (“ROU”) assets, measurements of assets and obligations related to employee benefits, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration, other obligations for revenue recognition, income tax uncertainties and other contingencies. Management believes the estimates used in the preparation of the CFS are reasonable, and management has made assumptions about the possible effects of the ongoing COVID-19 pandemic on critical and significant accounting estimates. Although these estimates and assumptions are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s CFS. (E) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and equivalents and accounts receivable. The Company places its cash and cash equivalents with banks with high investment grade ratings, limits the amount of credit exposure with any one bank and conducts ongoing evaluations of the creditworthiness of the banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers. (F) Cash and cash equivalents For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with an initial maturity of less than three months. (G) Accounts receivable and allowance for expected credit losses Accounts receivable are recorded net of allowances for expected credit losses. The Company follows ASC Topic 326, Financial Instruments-Credit Losses. Accounts receivable and contract assets are in the scope for which assessment is made. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future. Accounts receivable balances are written-off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED (H) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization and accumulated impairment loss. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are expensed. Depreciation is provided on a straight-line basis, less estimated residual value over the assets’ estimated useful lives. The estimated useful lives are 5 years (I) Right-of-use asset In accordance with FASB Codification Topic 842 (ASC Topic 842), Leases, right-of-use (ROU) asset is stated at cost, less accumulated amortisation. Amortization is provided on a straight-line basis, less estimated residual value over the assets’ estimated useful lives. The estimated useful live is the term of the leases. (J) Long-lived assets In accordance with FASB Codification Topic 360 (ASC Topic 360), “Accounting for the impairment or disposal of Long-Lived Assets”, long-lived assets and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. The Company reviews property and equipment to determine that carrying values are not impaired. (K) Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business combination. The Company evaluates its goodwill for potential impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. The Company’s divisions are at the operating segment level, which is the level the Company’s management conducts regular reviews of the operating results. Goodwill created by acquiring a foreign operation is converted from foreign entity’s functional currency to Company’s reporting currency using the spot rate prevailing at the reporting date. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED (L) Leases ASC Topic 842 requires a lessee to record a ROU asset and a lease liability for all leases with terms longer than 12 months. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company determines the lease term by assuming the exercise of renewal options that are reasonably certain. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When the Company’s contracts contain lease and non-lease components, the Company accounts for both components as a single lease component. Refer to Note 8. Impact of COVID-19 In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. The Company has elected to not evaluate leases under the lease modification accounting framework for concessions that result from effects of the COVID-19 pandemic. The Company has accounted for rent abatement as a negative lease payment in the affected period. (M) Fair value of financial instruments FASB Codification Topic 825 (ASC Topic 825), “Disclosure about Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value (“FV”) of financial instruments. The carrying amounts of accounts receivables, other current assets and prepaid expenses, accounts payable, other payables and accrued liabilities and due to Company companies approximate their FVs because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. (N) Revenue recognition The Company’s revenue is comprised mainly the following services: IoT software and hardware development service, BPO service and IT support and maintenance service. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED Revenues from IoT software and hardware development are measured based on the skills, estimate time, cost of outsourcing, human resources and materials required for the project which are specified in a quotation or contract with a customer and exclude discounts and amounts collected on behalf of third parties. Revenues recognized under quotation or contracts generally when persuasive evidence of an arrangement exists, services have been performed and collection of amounts billed is fixed, based on the achievement of milestone in contract and is reasonably assured. Revenues from BPO services are measured based on headcounts, rate of each headcount, skill level and whether the headcount is engaged on a full-time or part-time basis. Revenues are recognized under quotations or contracts generally when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues from IoT maintenance and support services are measured based on the skills, hardware/material required and estimate time required for the project. Revenue are recognized over time as services are provided and extended service plans are recognized over the performance period of the service contract or quotation as the obligation represents a stand-ready obligation to the customer. The Company follows ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from services by: (1) identifying the contract (if any) with a customer; (2) identifying the performance obligations in the contract (if any); (3) determining the transaction price; (4) allocating the transaction price to each performance obligation in the contract (if any); and (5) recognizing revenue when each performance obligation is satisfied. The Company has no outstanding contracts with any of its customers as of March 31, 2023 and September 30, 2022. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. The Company generally invoices a client after performance of services. Payments are due as per contract terms. (O) Cost of revenue Cost of revenue primarily consists of sub-contracting fee, engineers salary and purchases of equipment used or installed as part of the project. It also includes operational expenses, which consist of facilities maintenance expenses, travel and living expenses, IT expenses, and consulting and certain other expenses. Consulting charges represent the cost of consultants and contract resources with specialized skills who are directly responsible for the performance of services for clients and travel and other billable costs related to the Company’s clients. Recurring direct costs for services are recognized as incurred. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 (P) Foreign currency translation The Company’s CFS and statements of cash flows are reported in United States dollars (“US$”), the Company’s reporting currency. The functional currency for the Company is Hong Kong dollars (“HK$”). The functional currency for the Company’s subsidiary organized in Australian is the Australian dollars (“A$”). The translation of the functional currencies of the Company and its subsidiary into US$ is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of the Company and its subsidiary denominated in currencies other than the functional currency of the Company and subsidiary are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of the Company and its subsidiary in currencies other than the Company’s and the Subsidiary’s functional currencies are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. The exchange rates used to translate amounts in HK$ and AU$ into US$ for the purposes of preparing the financial statements were as follows: SCHEDULE OF EXCHANGE RATES March 31, 2023 September 30, 2022 Balance sheet items, except for common stock, additional paid-in capital and retained earnings, as of period end US$1=HK$ 7.84988 Not applicable US$1=AUD 1.49313 Not applicable For the Three Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable For the Six Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 (Q) Other comprehensive (loss)/income The foreign currency translation gain or loss resulting from translation of the financial statements expressed in HK$ and AU$ to US$ is reported as other comprehensive income or loss in the statements of operations and stockholders’ equity. (R) Employee benefit plans Contributions to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. Refer to Note 14. (S) Income taxes The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25” ). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. (T) Earning per share Basic earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the period. Diluted income per share is computed like basic income per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially dilutive securities for 2023 and 2022. (U) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 (V) Segments The Company operates in three reportable segments, provision of IoT maintenance and support services, IoT BPO services and IoT development services in Hong Kong and Australia. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Refer to Note 15. (W) Recently Issued Accounting Standards There are no recently announced, but not yet effective accounting pronouncements that are expected to have a material impact to the Company as of March 31, 2023. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 6 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITION | NOTE 3 – BUSINESS ACQUISITION On March 22, 2023, the Company acquired 100% Pursuant to the Share Exchange Agreement, the Company acquired from the Seller all of the issued and outstanding shares in the capital stock of QBS System, and as consideration therefor, the Company issued and sold to the Seller upon the closing of the Acquisition an aggregate number of 8,939,600 The table below summarizes the fair value of the consideration transferred in the acquisition: SCHEDULE OF FAIR VALUE OF THE CONSIDERATION TRANSFERRED IN ACQUISITION Purchase consideration Amount Common Stock - 8,939,600 shares 0.35 $ 3,128,860 Common Stock - 8,939,600 0.35 $ 3,128,860 FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 The provisional allocation of the purchase price of QBS System to the assets acquired and liabilities assumed, based on their relative fair values, is as follows: SCHEDULE OF ASSET ACQUIRED AND LIABILITIES ASSUMED Purchase consideration $ 3,128,860 Cash and equivalents $ 565,449 Other current assets 1,934,505 Property and Equipment 15,610 Deferred tax 8,123 Right-of-use assets 55,619 Total assets acquired 2,579,306 Bank loans (640,467 ) Other liabilities (664,001 ) Total liabilities assumed (1,304,468 ) Fair value of net assets acquired 1,274,838 Goodwill $ 1,854,022 The acquisition produced $ 1,854,022 The purchase price allocation is considered provisional as the Company finalizes its determination relating to the valuation of assets and liabilities and key assumptions, approaches and judgements with respect to intangible assets acquired and the related tax effects. Intangibles acquired were remeasured at March 31, 2023 using the applicable spot rate. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
CASH AND EQUIVALENTS
CASH AND EQUIVALENTS | 6 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND EQUIVALENTS | NOTE 4 – CASH AND EQUIVALENTS Cash is composited of the following SCHEDULE OF CASH March 31, September 30, 2023 2022 Cash at bank $ 502,445 $ - Cash on hand 1,673 - Total $ 504,118 $ - Cash $ 504,118 $ - |
ACCOUNTS RECEIVABLE, NET OF ALL
ACCOUNTS RECEIVABLE, NET OF ALLOWANCES | 6 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCES | NOTE 5 – ACCOUNTS RECEIVABLE, NET OF ALLOWANCES Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, September 30, 2023 2022 Accounts receivable $ 1,532,901 $ - Less: allowance for expected credit losses 284,699 - Accounts receivable, net $ 1,248,202 $ - The movement in “Allowance for expected credit losses” for six months ended March 31, 2023 and 2022 was as follows: March 31, March 31, 2023 2022 Balance at beginning of period Provision from acquisition $ 172,036 $ - Provision during the period 112,675 - Translation adjustment (12 ) - Balance at end of period $ 284,699 $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 6 – PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS CONSISTED March 31, September 30, 2023 2022 Advisory fees prepaid for business development $ 323,099 $ - Deposits 15,813 - Advance to suppliers 46,449 - Other receivables 1,440 - Others 987 - Total Prepaid expenses and other current assets $ 387,788 $ - |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7 – PROPERTY, PLANT AND EQUIPMENT, NET The following is a summary of property and equipment: SCHEDULE OF PROPERTY AND EQUIPMENT CONSISTED March 31, September 30, 2023 2022 Furniture and Fixtures $ 23,705 $ - Computer Equipment 69,377 - Property and equipment, gross 93,082 - Less: accumulated depreciation 85,602 - Property and equipment, net $ 7,480 $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 2023 | |
Leases | |
LEASES | NOTE 8– LEASES The Company leases offices. Rental contract is for periods of 36 months. The lease agreement has no covenants. Accumulated ROU assets and amortization are as follows : SCHEDULE OF LEASE EXPENSE March 31, September 30, Operating lease cost - office $ 137,647 $ - Less: accumulated amortization 82,057 - ROU assets, net $ 55,590 $ - The following is leases liabilities: SCHEDULE OF LEASE LIABILITIES March 31, September 30, Current portion $ 52,435 $ - Non-current portion 8,996 - Total operating lease current and non current $ 61,431 $ - The following is a summary of the weighted remaining leases term and the weighted average discount rate for the Company’s leases at March 31, 2023 and September 30, 2022: SCHEDULE OF WEIGHTED REMAINING LEASES TERM AND THE WEIGHTED AVERAGE DISCOUNT RATE LEASES March 31, September 30, Weighted average remaining lease term Operating leases 1.17 Not applicable Weighted average discount rate Operating leases 5 % Not applicable During six months ended March 31, 2023, cash paid for operating leases liabilities was $Nil. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 The Company’s leases have remaining lease terms inclusive of renewal or termination options that the Company is reasonably certain to exercise. The following table summarizes the maturity of the Company’s operating lease liabilities as of March 31, 2023: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR OPERATING LEASES Period Ending March 31 2023 $ 54,090 2024 9,015 Total operating lease payments 63,105 Less: Imputed interest 1,674 Total operating lease liabilities $ 61,431 There were no corresponding impairment charges during the periods ended March 31, 2023 and 2022 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 9 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES March 31, September 30, Accrued expenses $ 83,316 $ 22,920 Accrued employee cost 72,676 - Sales tax payable 15,840 - Total accrued expenses and other current liabilities $ 171,832 $ 22,920 |
BANK LOANS
BANK LOANS | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 10 - BANK LOANS A summary of the Company’s loans payable is as follows SCHEDULE OF LOANS PAYABLE March 31, September 30, Bank loans HK$ 3,550,000 (a) $ 357,134 $ - HK$ 1,450,000 (b) 165,203 - HK$ 1,000,000 (c) 117,797 - Total $ 640,134 $ - Current portion $ 108,269 $ - Non-current portion 531,865 - Total $ 640,134 $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 (a) On April 27, 2020, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK$ 3,550,000 3,550,000 2.5% 5.25% (b) On October 10, 2020, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK$ 1,450,000 1,450,000 2.5% 5.25% (c) On June 28, 2021, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK 1,000,000 1,000,000 2.5% 5.25% Fund-based and non-fund-based credit facilities with banks are available for operational requirements in the form of overdrafts and short-term loans. As of March 31, 2023, the limits available were $ 766,602 640,134 |
INCOME TAX
INCOME TAX | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 11 - INCOME TAX The income tax benefit for the six months ended March 31, 2023 and 2022 is summarized as follows: SCHEDULE OF INCOME TAX BENEFIT 2023 2022 Current tax expense: Hong Kong profits tax Provision for the period $ - $ - One-off tax deduction - - Deferred tax benefit: Hong Kong profits tax - - Deferred tax benefit (24,492 ) - Total income taxes $ (24,492 ) $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 Hong Kong profits tax was provided in the CFS on the estimated assessable profit for the first HK$ 2 8.25 2 16.5 100 1,284 Subsidiary in Australia is subject to a tax rate of 25 50 37 A reconciliation of the provision for income taxes compared with the amount at the tax rate for the six months ended March 31, 2023 and 2022 was as follows: SCHEDULE OF PROVISION FOR INCOME TAXES 2023 2022 Loss before income tax expense $ (354,625 ) $ (91,975 ) Tax charge at the applicable tax rate at 8.25 2 16.5 2 $ (35,911 ) $ - Tax effect of expenses not deductible 388 - Tax effect of exempted bank interest income not taxable (2 ) - Tax effect of tax losses carried forward 34,217 - Others (23,184 ) - Total income taxes $ (24,492 ) $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 The components and movements in deferred tax (assets) liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Accelerated allowance for losses Total At September 30, 2022 $ - $ - $ - Deferred taxation from acquisition (2,420 ) 10,563 8,143 Deferred taxation credited to statement of operations 1,307 23,185 24,492 Translation difference 7 (34 ) (27 ) At March 31, 2023 $ (1,106 ) $ 33,714 $ 32,608 |
EQUITY
EQUITY | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 12 - EQUITY On March 22, 2023, The Company issued 8,939,600 0.0001 3,128,860 0.35 |
NET REVENUE
NET REVENUE | 6 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
NET REVENUE | NOTE 13 - NET REVENUE Disaggregation of revenue: SCHEDULE OF DISAGGREGATION OF REVENUE For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 IoT projects and ventures BPO services $ 9,109 $ - $ 9,109 $ - IoT software and hardware engineering services 482 - 482 - IoT maintenance and support services 26,819 - 26,819 - Net revenue $ 36,410 $ - $ 36,410 $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 6 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | NOTE 14 - EMPLOYEE BENEFITS The Company contributes to a Mandatory Provident Fund plan which is available to all employees in Hong Kong. Mandatory contributions for the both employees and employers to the plan are payable at 5% 193 1,500 916 7,100 1,110 1,111 Employees of the Company’ s Australian subsidiary are entitled to receive retirement benefits from the Emergency Services Superannuation Scheme in Australia. The benefit amounts are calculated based on the member’s periods of service and final average salary. The total contributions made for such employee benefits was $ 0 0 |
SEGMENTS
SEGMENTS | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTS | NOTE 15 - SEGMENTS The Company has identified its operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer (being the chief operating decision maker) in assessing performance and determining the allocation of resources. The Company operates in three reportable segments; provision of IoT maintenance and support services, IoT projects and ventures BPO services and IoT software and hardware engineering services in Hong Kong. The accounting policies of the segments are the same as described in the summary of significant accounting policies. The Company evaluates segment performance based on income from operations. All inter-company transactions between segments have been eliminated. As a result, the components of operating income for one segment may not be comparable to another segment. The following is a summary of the Company’s segment information as of and for the three months and six months ended March 31, 2023: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT IoT BPO services IoT development services IoT maintenance and support services Total Reportable segments For the three months ended March 31, 2023 Revenues $ 9,109 $ 26,819 $ 482 $ 36,410 Cost of revenue 10,957 71,585 6,292 88,834 Gross loss (1,848 ) (44,766 ) (5,810 ) (52,424 ) Net Loss from operations (82,260 ) (242,194 ) (4,353 ) (328,807 ) Depreciation and amortization 2,032 5,983 108 8,123 FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 IoT BPO services IoT development services IoT maintenance and support services Total Reportable segments For the six months ended March 31, 2023 Revenues $ 9,109 $ 26,819 $ 482 $ 36,410 Cost of revenue 10,957 71,585 6,292 88,834 Gross loss (1,848 ) (44,766 ) (5,810 ) (52,424 ) Net Loss from operations (88,723 ) (261,221 ) (4,695 ) (354,639 ) Depreciation and amortization 2,032 5,983 108 8,123 March 31, September 30, Segment of assets IoT BPO services $ 1,056,344 $ - IoT development services 3,110,121 - IoT maintenance and support services 55,896 - Total $ 4,222,361 $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS The Company advanced to a related company, Wolf Asia Pty Limited, of $ 87,065 The Company advanced to a related company, QBS Flywheel Limited, of $ 34,268 The Company owed a related party $ 71,184 The Company owed a related company, QBS Group Limited, of $ 292,951 The Company owed a related company, Flywheel Financial Strategy (Hong Kong) Company Limited of $ 261,913 FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 Due from related parties consisted of the following: SCHEDULE OF AMOUNT DUE FROM RELATED PARTIES March 31, September 30, 2023 2022 Amount due from Wolf Asia Pty Limited $ 87,065 $ - Amount due from QBS Flywheel Limited 34,268 - Due from related parties $ 121,333 $ - Due to related parties consisted of the following: March 31, September 30, 2023 2022 Amount due to a director $ 71,184 $ - Amount due to QBS Group Limited 292,951 - Amount due to Flywheel Financial Strategy (Hong Kong) Company Limited 261,913 - Due to related parties $ 626,048 $ - |
CONCENTRATIONS AND RISKS
CONCENTRATIONS AND RISKS | 6 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 17 - CONCENTRATIONS AND RISKS During the three months and six months ended March 31, 2023 and 2022, 100% of the Company’s assets were located in Pacific Asia. Net revenue from geographic areas based on the location of the Company’s service delivery centres for the three months and six months ended March 31, 2023 and 2022 is as follows. SCHEDULE OF NET REVENUE FROM GEOGRAPHIC AREAS BASED ON THE LOCATION OF THE COMPANY 2023 2022 2023 2022 For the Three Months Ended For the Six Months Ended March 31, March 31, 2023 2022 2023 2022 Hong Kong $ 36,410 $ - $ 36,410 $ - Australia - - - - Total $ 36,410 $ - $ 36,410 $ - |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (A) Basis of Presentation The accompanying unaudited interim consolidated financial statements (“CFS”) have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification ™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. As of July 14, 2022, the 1:100 reverse stock split |
Management’s Representation of Interim Consolidated financial statements | (B) Management’s Representation of Interim Consolidated financial statements The accompanying unaudited interim consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual consolidated financial statements. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with US GAAP have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. |
Principles of Consolidation | (C) Principles of Consolidation The accompanying CFS are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED |
Use of estimates | (D) Use of estimates The preparation of CFS in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the CFS. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, revenue recognition, allowance for credit losses, valuation allowances for deferred tax assets, the measurement of lease liabilities and right-of-use (“ROU”) assets, measurements of assets and obligations related to employee benefits, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration, other obligations for revenue recognition, income tax uncertainties and other contingencies. Management believes the estimates used in the preparation of the CFS are reasonable, and management has made assumptions about the possible effects of the ongoing COVID-19 pandemic on critical and significant accounting estimates. Although these estimates and assumptions are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s CFS. |
Financial instruments and concentration of credit risk | (E) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and equivalents and accounts receivable. The Company places its cash and cash equivalents with banks with high investment grade ratings, limits the amount of credit exposure with any one bank and conducts ongoing evaluations of the creditworthiness of the banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers. |
Cash and cash equivalents | (F) Cash and cash equivalents For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with an initial maturity of less than three months. |
Accounts receivable and allowance for expected credit losses | (G) Accounts receivable and allowance for expected credit losses Accounts receivable are recorded net of allowances for expected credit losses. The Company follows ASC Topic 326, Financial Instruments-Credit Losses. Accounts receivable and contract assets are in the scope for which assessment is made. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future. Accounts receivable balances are written-off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED |
Property, plant and equipment, net | (H) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization and accumulated impairment loss. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are expensed. Depreciation is provided on a straight-line basis, less estimated residual value over the assets’ estimated useful lives. The estimated useful lives are 5 years |
Right-of-use asset | (I) Right-of-use asset In accordance with FASB Codification Topic 842 (ASC Topic 842), Leases, right-of-use (ROU) asset is stated at cost, less accumulated amortisation. Amortization is provided on a straight-line basis, less estimated residual value over the assets’ estimated useful lives. The estimated useful live is the term of the leases. |
Long-lived assets | (J) Long-lived assets In accordance with FASB Codification Topic 360 (ASC Topic 360), “Accounting for the impairment or disposal of Long-Lived Assets”, long-lived assets and certain identifiable intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows related to the long-lived assets. The Company reviews property and equipment to determine that carrying values are not impaired. |
Goodwill | (K) Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business combination. The Company evaluates its goodwill for potential impairment annually during the fourth quarter and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. The Company’s divisions are at the operating segment level, which is the level the Company’s management conducts regular reviews of the operating results. Goodwill created by acquiring a foreign operation is converted from foreign entity’s functional currency to Company’s reporting currency using the spot rate prevailing at the reporting date. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED |
Leases | (L) Leases ASC Topic 842 requires a lessee to record a ROU asset and a lease liability for all leases with terms longer than 12 months. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company determines the lease term by assuming the exercise of renewal options that are reasonably certain. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When the Company’s contracts contain lease and non-lease components, the Company accounts for both components as a single lease component. Refer to Note 8. Impact of COVID-19 In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. The Company has elected to not evaluate leases under the lease modification accounting framework for concessions that result from effects of the COVID-19 pandemic. The Company has accounted for rent abatement as a negative lease payment in the affected period. |
Fair value of financial instruments | (M) Fair value of financial instruments FASB Codification Topic 825 (ASC Topic 825), “Disclosure about Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value (“FV”) of financial instruments. The carrying amounts of accounts receivables, other current assets and prepaid expenses, accounts payable, other payables and accrued liabilities and due to Company companies approximate their FVs because of the short-term nature of the instruments. The management of the Company is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial statements. |
Revenue recognition | (N) Revenue recognition The Company’s revenue is comprised mainly the following services: IoT software and hardware development service, BPO service and IT support and maintenance service. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 UNAUDITED Revenues from IoT software and hardware development are measured based on the skills, estimate time, cost of outsourcing, human resources and materials required for the project which are specified in a quotation or contract with a customer and exclude discounts and amounts collected on behalf of third parties. Revenues recognized under quotation or contracts generally when persuasive evidence of an arrangement exists, services have been performed and collection of amounts billed is fixed, based on the achievement of milestone in contract and is reasonably assured. Revenues from BPO services are measured based on headcounts, rate of each headcount, skill level and whether the headcount is engaged on a full-time or part-time basis. Revenues are recognized under quotations or contracts generally when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured. Revenues from IoT maintenance and support services are measured based on the skills, hardware/material required and estimate time required for the project. Revenue are recognized over time as services are provided and extended service plans are recognized over the performance period of the service contract or quotation as the obligation represents a stand-ready obligation to the customer. The Company follows ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from services by: (1) identifying the contract (if any) with a customer; (2) identifying the performance obligations in the contract (if any); (3) determining the transaction price; (4) allocating the transaction price to each performance obligation in the contract (if any); and (5) recognizing revenue when each performance obligation is satisfied. The Company has no outstanding contracts with any of its customers as of March 31, 2023 and September 30, 2022. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. The Company generally invoices a client after performance of services. Payments are due as per contract terms. |
Cost of revenue | (O) Cost of revenue Cost of revenue primarily consists of sub-contracting fee, engineers salary and purchases of equipment used or installed as part of the project. It also includes operational expenses, which consist of facilities maintenance expenses, travel and living expenses, IT expenses, and consulting and certain other expenses. Consulting charges represent the cost of consultants and contract resources with specialized skills who are directly responsible for the performance of services for clients and travel and other billable costs related to the Company’s clients. Recurring direct costs for services are recognized as incurred. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
Foreign currency translation | (P) Foreign currency translation The Company’s CFS and statements of cash flows are reported in United States dollars (“US$”), the Company’s reporting currency. The functional currency for the Company is Hong Kong dollars (“HK$”). The functional currency for the Company’s subsidiary organized in Australian is the Australian dollars (“A$”). The translation of the functional currencies of the Company and its subsidiary into US$ is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of the Company and its subsidiary denominated in currencies other than the functional currency of the Company and subsidiary are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of the Company and its subsidiary in currencies other than the Company’s and the Subsidiary’s functional currencies are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. The exchange rates used to translate amounts in HK$ and AU$ into US$ for the purposes of preparing the financial statements were as follows: SCHEDULE OF EXCHANGE RATES March 31, 2023 September 30, 2022 Balance sheet items, except for common stock, additional paid-in capital and retained earnings, as of period end US$1=HK$ 7.84988 Not applicable US$1=AUD 1.49313 Not applicable For the Three Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable For the Six Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
Other comprehensive (loss)/income | (Q) Other comprehensive (loss)/income The foreign currency translation gain or loss resulting from translation of the financial statements expressed in HK$ and AU$ to US$ is reported as other comprehensive income or loss in the statements of operations and stockholders’ equity. |
Employee benefit plans | (R) Employee benefit plans Contributions to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. Refer to Note 14. |
Income taxes | (S) Income taxes The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25” ). Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period included the enactment date. |
Earning per share | (T) Earning per share Basic earnings(loss) per share are computed by dividing income available to stockholders by the weighted average number of shares outstanding during the period. Diluted income per share is computed like basic income per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential shares had been issued and if the additional shares were diluted. There were no potentially dilutive securities for 2023 and 2022. |
Commitments and contingencies | (U) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 |
Segments | (V) Segments The Company operates in three reportable segments, provision of IoT maintenance and support services, IoT BPO services and IoT development services in Hong Kong and Australia. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Refer to Note 15. |
Recently Issued Accounting Standards | (W) Recently Issued Accounting Standards There are no recently announced, but not yet effective accounting pronouncements that are expected to have a material impact to the Company as of March 31, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF EXCHANGE RATES | The exchange rates used to translate amounts in HK$ and AU$ into US$ for the purposes of preparing the financial statements were as follows: SCHEDULE OF EXCHANGE RATES March 31, 2023 September 30, 2022 Balance sheet items, except for common stock, additional paid-in capital and retained earnings, as of period end US$1=HK$ 7.84988 Not applicable US$1=AUD 1.49313 Not applicable For the Three Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable For the Six Months Ended 2023 2022 Amounts included in the statements of operations and cash flows for the period US$1=HK$ 7.84901 Not applicable US$1=AUD 1.49816 Not applicable |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF FAIR VALUE OF THE CONSIDERATION TRANSFERRED IN ACQUISITION | The table below summarizes the fair value of the consideration transferred in the acquisition: SCHEDULE OF FAIR VALUE OF THE CONSIDERATION TRANSFERRED IN ACQUISITION Purchase consideration Amount Common Stock - 8,939,600 shares 0.35 $ 3,128,860 Common Stock - 8,939,600 0.35 $ 3,128,860 |
SCHEDULE OF ASSET ACQUIRED AND LIABILITIES ASSUMED | The provisional allocation of the purchase price of QBS System to the assets acquired and liabilities assumed, based on their relative fair values, is as follows: SCHEDULE OF ASSET ACQUIRED AND LIABILITIES ASSUMED Purchase consideration $ 3,128,860 Cash and equivalents $ 565,449 Other current assets 1,934,505 Property and Equipment 15,610 Deferred tax 8,123 Right-of-use assets 55,619 Total assets acquired 2,579,306 Bank loans (640,467 ) Other liabilities (664,001 ) Total liabilities assumed (1,304,468 ) Fair value of net assets acquired 1,274,838 Goodwill $ 1,854,022 |
CASH AND EQUIVALENTS (Tables)
CASH AND EQUIVALENTS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
SCHEDULE OF CASH | Cash is composited of the following SCHEDULE OF CASH March 31, September 30, 2023 2022 Cash at bank $ 502,445 $ - Cash on hand 1,673 - Total $ 504,118 $ - Cash $ 504,118 $ - |
ACCOUNTS RECEIVABLE, NET OF A_2
ACCOUNTS RECEIVABLE, NET OF ALLOWANCES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, September 30, 2023 2022 Accounts receivable $ 1,532,901 $ - Less: allowance for expected credit losses 284,699 - Accounts receivable, net $ 1,248,202 $ - The movement in “Allowance for expected credit losses” for six months ended March 31, 2023 and 2022 was as follows: March 31, March 31, 2023 2022 Balance at beginning of period Provision from acquisition $ 172,036 $ - Provision during the period 112,675 - Translation adjustment (12 ) - Balance at end of period $ 284,699 $ - |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS CONSISTED | Prepaid expenses and other current assets consisted of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS CONSISTED March 31, September 30, 2023 2022 Advisory fees prepaid for business development $ 323,099 $ - Deposits 15,813 - Advance to suppliers 46,449 - Other receivables 1,440 - Others 987 - Total Prepaid expenses and other current assets $ 387,788 $ - |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT CONSISTED | The following is a summary of property and equipment: SCHEDULE OF PROPERTY AND EQUIPMENT CONSISTED March 31, September 30, 2023 2022 Furniture and Fixtures $ 23,705 $ - Computer Equipment 69,377 - Property and equipment, gross 93,082 - Less: accumulated depreciation 85,602 - Property and equipment, net $ 7,480 $ - |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Leases | |
SCHEDULE OF LEASE EXPENSE | Accumulated ROU assets and amortization are as follows : SCHEDULE OF LEASE EXPENSE March 31, September 30, Operating lease cost - office $ 137,647 $ - Less: accumulated amortization 82,057 - ROU assets, net $ 55,590 $ - |
SCHEDULE OF LEASE LIABILITIES | The following is leases liabilities: SCHEDULE OF LEASE LIABILITIES March 31, September 30, Current portion $ 52,435 $ - Non-current portion 8,996 - Total operating lease current and non current $ 61,431 $ - |
SCHEDULE OF WEIGHTED REMAINING LEASES TERM AND THE WEIGHTED AVERAGE DISCOUNT RATE LEASES | The following is a summary of the weighted remaining leases term and the weighted average discount rate for the Company’s leases at March 31, 2023 and September 30, 2022: SCHEDULE OF WEIGHTED REMAINING LEASES TERM AND THE WEIGHTED AVERAGE DISCOUNT RATE LEASES March 31, September 30, Weighted average remaining lease term Operating leases 1.17 Not applicable Weighted average discount rate Operating leases 5 % Not applicable |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR OPERATING LEASES | The Company’s leases have remaining lease terms inclusive of renewal or termination options that the Company is reasonably certain to exercise. The following table summarizes the maturity of the Company’s operating lease liabilities as of March 31, 2023: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR OPERATING LEASES Period Ending March 31 2023 $ 54,090 2024 9,015 Total operating lease payments 63,105 Less: Imputed interest 1,674 Total operating lease liabilities $ 61,431 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Accrued expenses and other current liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES March 31, September 30, Accrued expenses $ 83,316 $ 22,920 Accrued employee cost 72,676 - Sales tax payable 15,840 - Total accrued expenses and other current liabilities $ 171,832 $ 22,920 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LOANS PAYABLE | A summary of the Company’s loans payable is as follows SCHEDULE OF LOANS PAYABLE March 31, September 30, Bank loans HK$ 3,550,000 (a) $ 357,134 $ - HK$ 1,450,000 (b) 165,203 - HK$ 1,000,000 (c) 117,797 - Total $ 640,134 $ - Current portion $ 108,269 $ - Non-current portion 531,865 - Total $ 640,134 $ - FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 (a) On April 27, 2020, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK$ 3,550,000 3,550,000 2.5% 5.25% (b) On October 10, 2020, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK$ 1,450,000 1,450,000 2.5% 5.25% (c) On June 28, 2021, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK 1,000,000 1,000,000 2.5% 5.25% |
INCOME TAX (Tables)
INCOME TAX (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX BENEFIT | The income tax benefit for the six months ended March 31, 2023 and 2022 is summarized as follows: SCHEDULE OF INCOME TAX BENEFIT 2023 2022 Current tax expense: Hong Kong profits tax Provision for the period $ - $ - One-off tax deduction - - Deferred tax benefit: Hong Kong profits tax - - Deferred tax benefit (24,492 ) - Total income taxes $ (24,492 ) $ - |
SCHEDULE OF PROVISION FOR INCOME TAXES | A reconciliation of the provision for income taxes compared with the amount at the tax rate for the six months ended March 31, 2023 and 2022 was as follows: SCHEDULE OF PROVISION FOR INCOME TAXES 2023 2022 Loss before income tax expense $ (354,625 ) $ (91,975 ) Tax charge at the applicable tax rate at 8.25 2 16.5 2 $ (35,911 ) $ - Tax effect of expenses not deductible 388 - Tax effect of exempted bank interest income not taxable (2 ) - Tax effect of tax losses carried forward 34,217 - Others (23,184 ) - Total income taxes $ (24,492 ) $ - |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The components and movements in deferred tax (assets) liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Accelerated allowance for losses Total At September 30, 2022 $ - $ - $ - Deferred taxation from acquisition (2,420 ) 10,563 8,143 Deferred taxation credited to statement of operations 1,307 23,185 24,492 Translation difference 7 (34 ) (27 ) At March 31, 2023 $ (1,106 ) $ 33,714 $ 32,608 |
NET REVENUE (Tables)
NET REVENUE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | Disaggregation of revenue: SCHEDULE OF DISAGGREGATION OF REVENUE For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 IoT projects and ventures BPO services $ 9,109 $ - $ 9,109 $ - IoT software and hardware engineering services 482 - 482 - IoT maintenance and support services 26,819 - 26,819 - Net revenue $ 36,410 $ - $ 36,410 $ - |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT IoT BPO services IoT development services IoT maintenance and support services Total Reportable segments For the three months ended March 31, 2023 Revenues $ 9,109 $ 26,819 $ 482 $ 36,410 Cost of revenue 10,957 71,585 6,292 88,834 Gross loss (1,848 ) (44,766 ) (5,810 ) (52,424 ) Net Loss from operations (82,260 ) (242,194 ) (4,353 ) (328,807 ) Depreciation and amortization 2,032 5,983 108 8,123 FLYWHEEL ADVANCED TECHNOLOGY, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2023 and 2022 IoT BPO services IoT development services IoT maintenance and support services Total Reportable segments For the six months ended March 31, 2023 Revenues $ 9,109 $ 26,819 $ 482 $ 36,410 Cost of revenue 10,957 71,585 6,292 88,834 Gross loss (1,848 ) (44,766 ) (5,810 ) (52,424 ) Net Loss from operations (88,723 ) (261,221 ) (4,695 ) (354,639 ) Depreciation and amortization 2,032 5,983 108 8,123 March 31, September 30, Segment of assets IoT BPO services $ 1,056,344 $ - IoT development services 3,110,121 - IoT maintenance and support services 55,896 - Total $ 4,222,361 $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF AMOUNT DUE FROM RELATED PARTIES | Due from related parties consisted of the following: SCHEDULE OF AMOUNT DUE FROM RELATED PARTIES March 31, September 30, 2023 2022 Amount due from Wolf Asia Pty Limited $ 87,065 $ - Amount due from QBS Flywheel Limited 34,268 - Due from related parties $ 121,333 $ - Due to related parties consisted of the following: March 31, September 30, 2023 2022 Amount due to a director $ 71,184 $ - Amount due to QBS Group Limited 292,951 - Amount due to Flywheel Financial Strategy (Hong Kong) Company Limited 261,913 - Due to related parties $ 626,048 $ - |
CONCENTRATIONS AND RISKS (Table
CONCENTRATIONS AND RISKS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF NET REVENUE FROM GEOGRAPHIC AREAS BASED ON THE LOCATION OF THE COMPANY | Net revenue from geographic areas based on the location of the Company’s service delivery centres for the three months and six months ended March 31, 2023 and 2022 is as follows. SCHEDULE OF NET REVENUE FROM GEOGRAPHIC AREAS BASED ON THE LOCATION OF THE COMPANY 2023 2022 2023 2022 For the Three Months Ended For the Six Months Ended March 31, March 31, 2023 2022 2023 2022 Hong Kong $ 36,410 $ - $ 36,410 $ - Australia - - - - Total $ 36,410 $ - $ 36,410 $ - |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - $ / shares | Mar. 22, 2023 | Dec. 15, 2022 | Nov. 30, 2022 | Sep. 15, 2022 | Jul. 14, 2022 | Jul. 13, 2022 | Jul. 13, 2021 | Mar. 31, 2023 | Sep. 30, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Reverse stock split | 1:100 reverse stock split | 1:100 reverse stock split | |||||||
Common stock, shares outstanding | 1,551,550 | 26,762,164 | 17,822,564 | ||||||
Preferred stock, shares outstanding | 10,000,000 | ||||||||
Preferred stock, conversion basis | converted on a one for 1.62 basis into 16,200,000 common shares. Concurrently these Preferred Stock were cancelled. | ||||||||
Description of percentage holding | The Company holds 70% of Blue Print, and the balance is held by two individuals unrelated to the Company, with each party holding 15%. | ||||||||
Shares new issues | 8,939,600 | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Prior To Reverse Stock Split [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Common stock, shares outstanding | 155,155,000 | ||||||||
Share Exchange Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Shares new issues | 8,939,600 | ||||||||
Common stock, par value | $ 0.0001 | ||||||||
Series A1 Preferred Stock [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Preferred stock, shares outstanding | 10,000,000 | ||||||||
Series A1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Number of shares issued | 10,000,000 | ||||||||
Preferred stock, par value | $ 0.0001 | ||||||||
Preferred stock, voting rights | As a result, the Purchaser became an approximately 90% holder of the voting rights of the issued and outstanding shares of the Company, on a fully-diluted basis, and became the controlling shareholder. |
SCHEDULE OF EXCHANGE RATES (Det
SCHEDULE OF EXCHANGE RATES (Details) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
United States Dollar And Hong Kong Dollar [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Foreign currency exchange rate | 7.84988 | 7.84988 |
Foreign currency exchange rate | 7.84901 | 7.84901 |
United States Dollar And Australian Dollar [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Foreign currency exchange rate | 1.49313 | 1.49313 |
Foreign currency exchange rate | 1.49816 | 1.49816 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | Jul. 14, 2022 | Jul. 13, 2022 | Mar. 31, 2023 |
Accounting Policies [Abstract] | |||
Reverse stock split | 1:100 reverse stock split | 1:100 reverse stock split | |
Estimated useful lives | 5 years |
SCHEDULE OF FAIR VALUE OF THE C
SCHEDULE OF FAIR VALUE OF THE CONSIDERATION TRANSFERRED IN ACQUISITION (Details) - QBS System Limited [Member] | Mar. 22, 2023 USD ($) |
Business Acquisition [Line Items] | |
Purchase consideration | $ 3,128,860 |
Share Exchange Agreement [Member] | |
Business Acquisition [Line Items] | |
Purchase consideration | $ 3,128,860 |
SCHEDULE OF FAIR VALUE OF THE_2
SCHEDULE OF FAIR VALUE OF THE CONSIDERATION TRANSFERRED IN ACQUISITION (Details) (Parenthetical) | Mar. 22, 2023 $ / shares shares |
Business Acquisition [Line Items] | |
Share price | $ 0.35 |
Share Exchange Agreement [Member] | QBS System Limited [Member] | |
Business Acquisition [Line Items] | |
Number of shares, issued | shares | 8,939,600 |
Share price | $ 0.35 |
SCHEDULE OF ASSET ACQUIRED AND
SCHEDULE OF ASSET ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) | Mar. 22, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,854,022 | ||
QBS System Limited [Member] | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 3,128,860 | ||
Cash and equivalents | 565,449 | ||
Other current assets | 1,934,505 | ||
Property and Equipment | 15,610 | ||
Deferred tax | 8,123 | ||
Right-of-use assets | 55,619 | ||
Total assets acquired | 2,579,306 | ||
Bank loans | (640,467) | ||
Other liabilities | (664,001) | ||
Total liabilities assumed | (1,304,468) | ||
Fair value of net assets acquired | 1,274,838 | ||
Goodwill | $ 1,854,022 |
BUSINESS ACQUISITION (Details N
BUSINESS ACQUISITION (Details Narrative) - USD ($) | Mar. 22, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,854,022 | ||
QBS System Limited [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 1,854,022 | ||
Share Exchange Agreement [Member] | QBS System Limited [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 100% | ||
Number of shares, issued | 8,939,600 |
SCHEDULE OF CASH (Details)
SCHEDULE OF CASH (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash at bank | $ 502,445 | |
Cash on hand | 1,673 | |
Cash | $ 504,118 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Credit Loss [Abstract] | |||
Accounts receivable | $ 1,532,901 | ||
Less: allowance for expected credit losses | 284,699 | ||
Accounts receivable, net | 1,248,202 | ||
Balance at beginning of period Provision from acquisition | 172,036 | ||
Provision during the period | 112,675 | ||
Translation adjustment | (12) | ||
Balance at end of period | $ 284,699 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS CONSISTED (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Prepaid Expenses And Other Current Assets | ||
Advisory fees prepaid for business development | $ 323,099 | |
Deposits | 15,813 | |
Advance to suppliers | 46,449 | |
Other receivables | 1,440 | |
Others | 987 | |
Total Prepaid expenses and other current assets | $ 387,788 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT CONSISTED (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 93,082 | |
Less: accumulated depreciation | 85,602 | |
Property and equipment, net | 7,480 | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,705 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 69,377 |
SCHEDULE OF LEASE EXPENSE (Deta
SCHEDULE OF LEASE EXPENSE (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Leases | ||
Operating lease cost - office | $ 137,647 | |
Less: accumulated amortization | 82,057 | |
ROU assets, net | $ 55,590 |
SCHEDULE OF LEASE LIABILITIES (
SCHEDULE OF LEASE LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Leases | ||
Current portion | $ 52,435 | |
Non-current portion | 8,996 | |
Total operating lease current and non current | $ 61,431 |
SCHEDULE OF WEIGHTED REMAINING
SCHEDULE OF WEIGHTED REMAINING LEASES TERM AND THE WEIGHTED AVERAGE DISCOUNT RATE LEASES (Details) | Mar. 31, 2023 |
Leases | |
Weighted-average remaining lease term - Operating leases (in years) | 1 year 2 months 1 day |
Weighted-average discount rate - Operating leases | 5% |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR OPERATING LEASES (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Leases | ||
Period Ending March 31 2023 | $ 54,090 | |
2024 | 9,015 | |
Total operating lease payments | 63,105 | |
Less: Imputed interest | 1,674 | |
Total operating lease liabilities | $ 61,431 |
SCHEDULE OF ACCRUED EXPENSES AN
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 83,316 | $ 22,920 |
Accrued employee cost | 72,676 | |
Sales tax payable | 15,840 | |
Total accrued expenses and other current liabilities | $ 171,832 | $ 22,920 |
SCHEDULE OF LOANS PAYABLE (Deta
SCHEDULE OF LOANS PAYABLE (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total | $ 640,134 | ||
Current portion | 108,269 | ||
Non-current portion | 531,865 | ||
3 Years Loan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total | [1] | 357,134 | |
5 Years Loan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total | [2] | 165,203 | |
8 Years Loan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total | [3] | $ 117,797 | |
[1]On April 27, 2020, the QBS System was granted a bank loan from Bank of China (Hong Kong) Limited of HK$ 3,550,000 3,550,000 2.5% 5.25% 1,450,000 1,450,000 2.5% 5.25% 1,000,000 1,000,000 2.5% 5.25% |
SCHEDULE OF LOANS PAYABLE (De_2
SCHEDULE OF LOANS PAYABLE (Details) (Parenthetical) - HKD ($) | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 28, 2021 | Oct. 10, 2020 | Apr. 27, 2020 |
3 Years Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | $ 3,550,000 | ||||
3 Years Loan [Member] | QBS System [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | 3,550,000 | $ 3,550,000 | |||
3 Years Loan [Member] | QBS System [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.25% | 2.50% | |||
5 Years Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | 1,450,000 | ||||
5 Years Loan [Member] | QBS System [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | 1,450,000 | $ 1,450,000 | |||
5 Years Loan [Member] | QBS System [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.25% | 2.50% | |||
8 Years Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | 1,000,000 | ||||
8 Years Loan [Member] | QBS System [Member] | |||||
Debt Instrument [Line Items] | |||||
Bank loan | $ 1,000,000 | $ 1,000,000 | |||
8 Years Loan [Member] | QBS System [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.25% | 2.50% |
BANK LOANS (Details Narrative)
BANK LOANS (Details Narrative) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Bank overdrafts | $ 502,445 | |
QBS System [Member] | ||
Bank overdrafts | 766,602 | |
Short-term loans | $ 640,134 |
SCHEDULE OF INCOME TAX BENEFIT
SCHEDULE OF INCOME TAX BENEFIT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for the period | ||||
One-off tax deduction | ||||
Hong Kong profits tax | ||||
Deferred tax benefit | (24,492) | |||
Total income taxes | $ (24,492) | $ (24,492) |
SCHEDULE OF PROVISION FOR INCOM
SCHEDULE OF PROVISION FOR INCOME TAXES (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 HKD ($) | Mar. 31, 2022 USD ($) | |
Operating Loss Carryforwards [Line Items] | |||||
Loss before income tax expense | $ (354,625) | $ (91,975) | |||
at 8.25% on first HK$2million of profit and at 16.5% on profit above HK$2million | $ (35,911) | ||||
Assessable profit percentage | 16.50% | 16.50% | |||
Assessable profit | $ 2,000,000 | $ 2 | |||
Tax effect of expenses not deductible | 388 | ||||
Tax effect of exempted bank interest income not taxable | (2) | ||||
Tax effect of tax losses carried forward | 34,217 | ||||
Others | (23,184) | ||||
Total income taxes | $ (24,492) | $ (24,492) | |||
First Hong Kong Profits Tax [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Assessable profit percentage | 8.25% | 8.25% | |||
Assessable profit | $ 2,000,000 | $ 2 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Valuation Allowance [Line Items] | ||
At March 31, 2023 | $ 32,608 | |
Deferred taxation from acquisition | 8,143 | |
Deferred taxation credited to statement of operations | 24,492 | |
Translation difference | (27) | |
Accelerated Depreciation Allowances [Member] | ||
Valuation Allowance [Line Items] | ||
At March 31, 2023 | (1,106) | |
Deferred taxation from acquisition | (2,420) | |
Deferred taxation credited to statement of operations | 1,307 | |
Translation difference | 7 | |
Allowance For Expected Credit Losses [Member] | ||
Valuation Allowance [Line Items] | ||
At March 31, 2023 | $ 33,714 | |
Deferred taxation from acquisition | 10,563 | |
Deferred taxation credited to statement of operations | 23,185 | |
Translation difference | $ (34) |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) $ in Millions, $ in Millions | 6 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 AUD ($) | Mar. 31, 2023 HKD ($) | Mar. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||
Assessable profit | $ 2,000,000 | $ 2 | ||
Assessable profit percentage | 16.50% | 16.50% | 16.50% | |
One off tax reduction percentage | 100% | |||
One off tax reduction | $ 1,284 | |||
Tax rate | 25% | 25% | 25% | |
Current federal tax expense (benefit) | $ 37,000,000 | $ 50 | ||
First Hong Kong Profits Tax [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Assessable profit | $ 2,000,000 | $ 2 | ||
Assessable profit percentage | 8.25% | 8.25% | 8.25% |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 22, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | |||
Shares issed | 8,939,600 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Purchase consideration | $ 3,128,860 | $ 3,128,860 | |
Closing price | $ 0.35 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 36,410 | $ 36,410 | ||
IOT Projects And Ventures BPO Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 9,109 | 9,109 | ||
IOT Software And Hardware Engineering Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 482 | 482 | ||
IoT Maintenance and Support Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 26,819 | $ 26,819 |
EMPLOYEE BENEFITS (Details Narr
EMPLOYEE BENEFITS (Details Narrative) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 HKD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | 5% | 5% | |
Minimum income for employee contribution | $ 916 | $ 7,100 | |
Employee Benefits | $ 1,110 | 1,111 | |
Total Employee benefits | $ 0 | 0 | |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Monthly contribution employer | $ 193 | $ 1,500 |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 36,410 | $ 36,410 | |||
Cost of revenue | 88,834 | 88,834 | |||
Gross loss | (52,424) | (52,424) | |||
Net Loss from operations | (328,807) | (53,710) | (354,639) | (91,975) | |
Depreciation and amortization | 8,123 | 8,123 | |||
Total | 4,222,361 | 4,222,361 | |||
IoT BPO Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,109 | 9,109 | |||
Cost of revenue | 10,957 | 10,957 | |||
Gross loss | (1,848) | (1,848) | |||
Net Loss from operations | (82,260) | (88,723) | |||
Depreciation and amortization | 2,032 | 2,032 | |||
Total | 1,056,344 | 1,056,344 | |||
IoT Development Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 26,819 | 26,819 | |||
Cost of revenue | 71,585 | 71,585 | |||
Gross loss | (44,766) | (44,766) | |||
Net Loss from operations | (242,194) | (261,221) | |||
Depreciation and amortization | 5,983 | 5,983 | |||
Total | 3,110,121 | 3,110,121 | |||
IT Maintenance And Support Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 482 | ||||
Cost of revenue | 6,292 | ||||
Gross loss | (5,810) | ||||
Net Loss from operations | (4,353) | ||||
Depreciation and amortization | 108 | ||||
IoT Maintenance and Support Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 482 | ||||
Cost of revenue | 6,292 | ||||
Gross loss | (5,810) | ||||
Net Loss from operations | (4,695) | ||||
Depreciation and amortization | 108 | ||||
Total | $ 55,896 | $ 55,896 |
SCHEDULE OF AMOUNT DUE FROM REL
SCHEDULE OF AMOUNT DUE FROM RELATED PARTIES (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 121,333 | |
Due to related parties | 626,048 | |
Wolf Asia Pty Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 87,065 | |
QBS Flywheel Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 34,268 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 71,184 | |
QBS Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 292,951 | |
Flywheel Financial Strategy Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 261,913 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Related Party Transaction [Line Items] | ||
Amount advances to the related company | $ 121,333 | |
Amount advances from the related company | 626,048 | |
Wolf Asia Pty Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount advances to the related company | 87,065 | |
QBS Flywheel Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount advances to the related company | 34,268 | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Amount advances from the related company | 71,184 | |
QBS Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount advances from the related company | 292,951 | |
Flywheel Financial Strategy Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount advances from the related company | $ 261,913 |
SCHEDULE OF NET REVENUE FROM GE
SCHEDULE OF NET REVENUE FROM GEOGRAPHIC AREAS BASED ON THE LOCATION OF THE COMPANY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Total | $ 36,410 | $ 36,410 | ||
HONG KONG | ||||
Total | 36,410 | 36,410 | ||
AUSTRALIA | ||||
Total |