| 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. |
