Flywheel Advanced Technology Changes Auditors Amidst Accounting Dispute

TL;DR

Flywheel swapped auditors due to accounting disagreements - could be a red flag.

AI Summary

On May 6, 2024, Flywheel Advanced Technology, Inc. reported a change in its certifying accountant. The company dismissed its previous independent registered public accounting firm, BDO USA, LLP, and engaged WithumSmith+Brown, PC as its new auditor. This change was made following a disagreement regarding the accounting treatment of certain revenue recognition matters.

Why It Matters

A change in auditors, especially one involving disagreements over accounting, can signal potential issues with financial reporting and may lead to increased scrutiny from investors and regulators.

Risk Assessment

Risk Level: medium — The change in auditor coupled with a disagreement over accounting treatment introduces uncertainty and potential financial reporting risks.

Key Players & Entities

• Flywheel Advanced Technology, Inc. (company) — Registrant
• BDO USA, LLP (company) — Former certifying accountant
• WithumSmith+Brown, PC (company) — New certifying accountant
• May 6, 2024 (date) — Date of earliest event reported

FAQ

Filing Documents

• form8-k.htm (8-K) — 38KB
• 0001493152-24-018707.txt ( ) — 202KB
• fwfw-20240506.xsd (EX-101.SCH) — 3KB
• fwfw-20240506_lab.xml (EX-101.LAB) — 33KB
• fwfw-20240506_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 3KB

01 Change in Registrant's Certifying Accountant

Item 4.01 Change in Registrant's Certifying Accountant. Effective as of May 6, 2024, Flywheel Advanced Technology, Inc., a Nevada corporation (the "Company), dismissed BF Borgers CPA P.C. ("BF Borgers") as its independent registered public accounting firm. The decision to change independent registered public accounting firms was made with the recommendation and approval of the Company's board of directors. BF Borgers' audit reports on the Company's consolidated financial statements as of and for the fiscal years ended September 30, 2023 and September 30, 2022 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to audit scope or accounting principles. During the fiscal years ended September 30, 2023 and September 30, 2022, and the subsequent interim period through the date of this report, there were no disagreements, as that term is defined in Item 304(a)(1)(iv) of Regulation S-K, between the Company and BF Borgers on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to BF Borgers' satisfaction, would have caused BF Borgers to make reference to such disagreements in its audit reports. During the fiscal years ended September 30, 2023 and September 30, 2022, and the subsequent interim period through the date of this report, there were no reportable events within the meaning of Item 304(a)(1)(v) of Regulation S-K. The U.S. Securities and Exchange Commission (the "SEC") has advised that, in lieu of obtaining a letter from BF Borgers stating whether or not it agrees with the statements herein, the Company may indicate that BF Borgers is not currently permitted to appear or practice before the SEC for reasons described in the SEC's Order Instituting Public Administrative and Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, a

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned. FLYWHEEL ADVANCED TECHNOLOGY, INC. Dated: May 10, 2024 By: /s/ Tang Siu Fung Name: Tang Siu Fung Title: Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR