Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 265

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 11
Chunk 265
---

  
    Deferred 
     —  
     — 
  
    Change in valuation allowance 
     (313,922) 
     (162,267)
  
    Income tax provision 
    $274,580  
    $979,344 

In
assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion or all
of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of
future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies
in making this assessment. After consideration of all of the information available, management believes that significant uncertainty
exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the
years ended December 31, 2024 and 2023, the change in the valuation allowance was $313,922 and $162,267, respectively.

 Schedule
of Effective Income Tax Rate Reconciliation

    For the Year Ended  
    For the Year Ended 

    December 31, 2024  
    December 31, 2023 
  
    U.S. federal statutory rate 
     (21.0)% 
     (21.0)%
  
    Valuation allowance 
     66.5% 
     (4.2)%
  
    Income tax provision 
     45.5% 
     (25.2)%

Note
10 – Segment Information

ASC
Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about
operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise
for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker,
or group, in deciding how to allocate resources and assess performance.

The
Company’s chief operating decision maker has been identified as the Chief Executive Officer (“CODM”), who reviews the
operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly,
management has determined that the Company only has one operating segment.

When
evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics,
formation and operational costs and interest earned on cash held