Company: FSHPU
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001829126-25-008620
Chunk: 83

Company: Flag Ship Acquisition Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 83
---
2025, we had cash of $18,751
held outside of the Trust Account. We intend to use the funds loaned to us under the 2024 Note (defined below) and the funds held outside
the Trust Account primarily to complete the proposed GFT Business Combination or if necessary, to identify and evaluate alternative target
businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations
of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective
target businesses, and structure, negotiate and complete a business combination.

In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of our Sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. Such working capital loans would be evidenced by promissory notes. If we complete a Business Combination, we may repay such notes out of the proceeds of the Trust Account released to us. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such notes, but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of notes may be convertible into units, at a price of $10.00 per unit, at the option of the lender. The units would be identical to the Private Units.

On August 30, 2024, we issued an unsecured promissory
note (the “2024 Note”) in the principal amount of up to $1,000,000 to our Sponsor pursuant to which we may borrow additional
funds. The 2024 Note bears no interest and is due on the earlier of: (i) December 31, 2025 or (ii) the date on which we consummate our
initial business combination. On August 21, 2025, we and our Sponsor agreed to amend and restate the 2024 Note to solely raise the principal
balance from $1,000,000 to $1,200,000 (the “Amended 2024 Note”). Other than the increased principal amount, the Amended 2024
Note has the same terms as the 2024 Note. As of September 30, 2025, there was $1,170,351 outstanding under the Amended 2024 Note. The
principal balance may be prepaid at any