Company: FSHPU
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001829126-25-005698
Chunk: 24

Company: Flag Ship Acquisition Corp
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 to SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. The accretion or remeasurement is treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital).

NOTE 4 – PRIVATE PLACEMENT

Simultaneously with the closing of the Initial Public Offering, the Company consummated a private placement of 238,000 Private Placement Units, at a price of $10.00 per Private Placement Unit. Each Private Placement Unit consists of one Private Placement Share and one right (“Private Placement Right”). Each Private Placement Right will entitle the holder to receive one-tenth (1/10) ordinary share upon consummation of the initial business combination.

The Private Placement Units are identical to the Public Units sold in the Initial Public Offering except for certain registration rights and transfer restrictions.

NOTE 5 – RELATED PARTY TRANSACTIONS

Founder Shares

In May 2018, the Company issued one ordinary
share to the initial shareholder for no consideration. On February 20, 2021, the Company cancelled the one share for no consideration
and the Sponsor purchased 1,150,000
ordinary shares for an aggregate price of $25,000.
On September 23, 2021, the Company purchased back all the 1,150,000
shares for $25,000
and reissued 2,875,000
ordinary shares to the Sponsor for $25,000.
On November 29, 2022, our sponsor surrendered 1,150,000
shares for no consideration. The Founder Shares include an aggregate of up to 225,000
shares subject to forfeiture by the Sponsors to the extent that the underwriters’ over-allotment is not exercised in full
or in part, so that the Sponsors will collectively own 20% of the Company’s issued and outstanding shares after the Initial Public
Offer