Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 82

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 82
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 and our sales and cash collections in Q1 2025 also showed relatively
strong performance. As of December 31, 2024, the Group had unused credit facilities of approximately $8,238,823.

The
consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to continue
operating in the normal course of business and will be able to realize its assets and discharge its liabilities as they become due. As
of December 31, 2024, the Company has continued to incur operating losses and is facing liquidity pressures. Absent any other action,
the Company will require additional liquidity t o continue as a going concern
within twelve months from the issuance of these financial statements.

To address
these uncertainties, management has developed specific plans to improve the Company’s liquidity position. If the Company
is unable to repay the debt as it comes due with cash generated from operations, management plans to refinance its short term obligations
to extend the maturity dates. If the Company is unable to secure longer-term financing on acceptable terms, management will sell certain
non-core land assets, which are expected to generate a sufficient amount of cash to service the short-term obligations as they come due.

Management believes that if these plans are successfully
implemented, they will address the Company’s liquidity needs to enable continuation of operations for the foreseeable future.

Cash Flows Summary

Presented below is a summary
of the Group’s operating, investing, and financing cash flows:

                                                  Years ended                                             
                                                 December 31,                                             
                                                         2024                      2023                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash used in operating activities                            (1,576,129                (11,205,424  
  Net cash used in investing activities                            (4,453,899                (11,592,307  
  Net cash provided by financing activities                         3,711,358                 11,302,462  

Cash Flows Used in Operating Activities

Cash flows generated from operating
activities are typically re-invested to support the growth of the Group’s business. The Group’s operating cash inflows include
cash from sales of its products. These cash inflows are offset by the Group’s payments to suppliers for production materials and
parts used in the Group’s manufacturing process, operating expenses, and interest payments on the Group’s financings.

During
the year ended December 31, 2024 and 202