Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 56

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the unaudited financial statement.

Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of
circumstances that existed at the date of the unaudited financial statement, which management considered in formulating its
estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

    ●
    Cash and cash equivalents 

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had cash balance of $35,705 and $76,747 as of March 31, 2025 and December 31, 2024, respectively. The Company has no cash equivalents as of March 31, 2025 and December 31, 2024.

    ●
    Cash and investments held in trust account 

As of March 31, 2025 and December 31, 2024, the
Company had $71,538,905 and $70,799,136, respectively, in cash and investments held in the Trust Account comprised of money market funds
that invest in U.S. government securities. Investments in money market funds are presented on the unaudited balance sheets at fair value
at the end of each reporting period. Earnings on investments held in the Trust Account are included in interest and dividends earned on
investments held in the Trust Account in the unaudited statement of operations. The estimated fair value of cash and investments held
in the Trust Account is determined using available market information.

    10

    ●
    Rights accounting 

Rights — Except in cases where the Company is not the surviving company in a Business Combination, each holder of a right will automatically receive one-tenth (1/10) of one ordinary share upon consummation of a Business Combination, even if the holder of a right redeemed all shares held by him, her or it in connection with a Business Combination or an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to its pre-business combination activities. In the event that the Company will not be the surviving company upon completion of a Business Combination, each holder of a right will be required to affirmatively redeem his, her or its