Company: FSTWF
Filing Date: 2025-07-08
Form Type: F-1/A
Source: 0001213900-25-061884
Chunk: 239

Company: FST Corp.
Filing Date: 2025-07-08
Form: F-1/A
Chunk 239
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 Commitment Shares at their fair value at inception, by the redemption price of $11.79 per share. F-55

FST LTD.
(FORMERLY CHENGHE ACQUISITION I CO.)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024 AND 2023 NOTE 6 — PREPAID SHARE FORWARD AGREEMENT (cont.) The Company evaluated the Prepaid Share Forward Agreement according to ASC 480 — Distinguishing Liabilities from Equityand ASC 815 — Derivatives and Hedgingand concluded that, (i) due to the uncertainty of the Business Combination Closing as of December,31, 2024, the Relevant Shares are not required to be accounted for as a liability pursuant to ASC 480 -10. Upon the closing of the Business Combination on January 15, 2025, and prior to the Prepayment in full, the Forward Purchase of Relevant Shares is representative of an obligation to repurchase shares by transferring assets under ASC 480 -10-25-8through 25 -11. Following Prepayment in full, the Company will no longer have an obligation to transfer assets and the Forward Purchase of Relevant Shares will no longer be subject to the accounting requirements of ASC 480, (ii) the embedded put option feature in connection with the Terminated Shares is not indexed to the Company’s own equity because the settlement terms are not fixed, which preclude the embed put option from equity classification. Accordingly, the embedded put option in connection with the Terminated Shares is required to be bifurcated and accounted for separately as an embedded derivative under ASC 815. The Company recognizes the embed put option as an OET derivative liability at fair value on the consolidated balance sheets. Changes in the fair value of OET derivative liability are recorded in the consolidated statements of operations as a component of other income (expense). For the year ended December31, 2024, the company recorded $917,764 fair value changes of the OET derivative liability. The fair value of the OET derivative liability was measure at Black -Scholesmodel, with the key inputs as following:

|                                              |     |   | December 31, 
         2024 |   |     |   | December 27, 2024 
   (Initial Value) |   |
|:---------------------------------------------|:----|:--|-------------:|:--|:----|:--|------------------:|:--|
| Stock price                                  |