Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 234

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 234
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 A ordinary shares subject to possible redemption (temporary equity) based on their fair values at the initial measurement date. The Public Warrants, the Private Placement Warrants and overallotment option were classified within Level 3 of the fair value hierarchy at the initial measurement dates due to the use of unobservable inputs. Inherent in pricing models are assumptions related to expected share -pricevolatility, expected life and risk -freeinterest rate. The Company estimates the volatility of its ordinary shares based on historical volatility that matches the expected remaining life of the warrants. The risk -freeinterest rate is based on the U.S. Treasury zero -couponyield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. At December 31, 2024 and 2023, the Company used the quoted price on Over -the-CounterMarket (the “OTC”) to establish the fair value of the Public Warrants. The Private Placement Warrants were transferred to a Level 2 from a Level 3 during the year ended December 31, 2023, due to the use of an observable market quote for a similar asset in an active market. The Private Placement Warrants changed from Level 2 at September 30, 2023 to Level 3 at December 31, 2023 as a result of the lack of an observable market quote of the Public Warrants on that day. At December 31, 2024 and 2023 a Monte Carlo simulation methodology was used in estimating the fair value of the Private Placement Warrants. The key inputs for Monte Carlo simulation for the Private Placement Warrants as of December 31, 2024 and 2023 were as follows:

|                         | Input |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |
|:------------------------|:------|:--|-------------:|:--|:----|:--|-------------:|:--|
| Public Warrant Price    |       | $ |         0.04 |   |     | $ |         0.01 |   |
| Risk-free interest rate |       |   |         4.22 | % |     |   |         4.64 | % |
| Expected term (years)   |       |   |         0.65 |   |     |