Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 90

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 90
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 holder of the cancelled Company Right would have been entitled to receive from the Company assuming
satisfaction of the terms and conditions of such Company Right.

21

As previously disclosed, on October 21, 2024,
we had entered into an Agreement and Plan of Merger (the “GRT Merger Agreement”) with Great Rich Technologies Limited, a public
limited company incorporated under the laws of Hong Kong (“GRT”), and GRT Merger Star Limited, a Cayman Islands company limited
by shares and a wholly-owned subsidiary of GRT (“GRT Merger Sub”). On April 18, 2025, in connection with the execution of
the GFT Merger Agreement, the parties to the GRT Merger Agreement entered into a Mutual Termination Agreement (the “Termination
Agreement”) to terminate the GRT Merger Agreement. The Termination Agreement also provides that each other agreement among the parties
relating to the GRT Merger Agreement is automatically terminated concurrently with the termination of the GRT Merger Agreement. The Termination
Agreement also provides for a mutual release of claims among the parties and their affiliates, except for liabilities arising from or
relating to any knowing or intentional breach of a representation, a warranty or a covenant of the GRT Merger Agreement. No party will
be required to pay a termination fee as a result of the mutual decision to enter into the Termination Agreement.

Results of Operations

Our entire activity since inception up to March
31, 2025 related to our formation, the preparation for the initial public offering, and since the closing of the initial public offering,
the search for a prospective target for our initial business combination and activities in support of consummating our initial business
combination. We will not be generating any operating revenues until the closing and completion of our initial business combination, at
the earliest. We will 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