Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 33

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 generate non-operating income in the form of interest and dividend income from the amount held in the Trust Account.
We expect that we will incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and
auditing compliance), as well as for due diligence expenses in connection with searching for, and completing, our initial business combination.

For the three months ended March 31, 2025, we
had net income of $577,698, which consisted of interest and dividends earned on cash and investments held in the Trust Account of $739,769,
partially offset by formation and operating expenses of $162,071.

For the three months ended March 31, 2024, we
had a net loss of $75,788, which consisted of formation and operating expenses of $75,788.

Liquidity, Capital Resources and Going Concern

On June 20, 2024, we consummated the IPO
of 6,900,000 Units, generating gross proceeds of $69,000,000. Simultaneously with the closing of the initial public offering, we consummated
the sale of 238,000 private units (the “Private Units”) to the Sponsor at a price of $10.00 per Private Unit generating gross
proceeds of $2,380,000.

Following the IPO and the sale of the Private
Units, a total of $69,000,000 was placed in the Trust Account. We incurred $3,448,233 in transaction costs, including $1,380,000 of underwriting
fees, $1,725,000 of deferred underwriting fees and $343,233 of other offering costs. 

For the three months ended March 31, 2025, net
cash used in operating activities was $183,542. Net income of $577,698 was mainly impacted by interest and dividends earned on cash and
investments held in the trust account of $739,769.

As of March 31, 2025, we had cash and investments
held in the Trust Account of $71,538,905. We intend to use substantially all of the funds held in the Trust Account, including any amounts
representing interest and dividends earned on the Trust Account, excluding deferred underwriting commissions, to complete our Business
Combination. We may withdraw interest from the Trust Account to pay taxes, if any. To the extent that our share capital or debt is used,