Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 178

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 178
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FST Corp. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except for share and per share data, or otherwise noted) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Revenue recognition policies for each type of revenue stream are as follows: Sales of golf shafts The Group manufactures golf shafts and sells them to sports brand manufacturers and distributors. The revenue is recognized at a point in time when the Group satisfies the performance obligation by transferring promised product to the designated free -on -boardshipping point. The Group recognizes the accounts receivable at the time of the sale. Sales of sports accessories, food and beverage The Group is engaged in wholesale of alcoholic beverages and sale of sporting accessories in the retail market. Revenue is recognized when the product is physically delivered to and accepted by the customer, and the consideration is paid immediately when the customer purchases the product. Software service The Group has contracted with Parametric Technology Corporation (“PTC”) to act as a distributor for its software. The Group purchased the subscription account of certain software from PTC and resold the software usage rights to other customers. The Group recognizes revenue over the duration of the contract with its customers. The Group is deemed as the principal, recognizing revenue on a gross basis as the Group is primarily responsible for fulfilling the contract, bears the inventory risk, and has the discretion in establishing the sales price. Revenue by categories The following table disaggregates the Group’s revenue categories for the years ended December 31, 2024 and 2023:

|                                                |     | For the Years Ended 
 December 31,        |       2024 |     |   |       2023 |
|:-----------------------------------------------|:----|:--------------------|-----------:|:----|:--|-----------:|
| Sales of golf shafts                           |     | $                   | 35,315,363 |     | $ | 27,825,905 |
| Sales of sports accessories, food and beverage |     |                     |    935,593 |     |   |    904,644 |
| Software service                               |     |                     |    248,688 |     |   |          — |
| Total revenues                                 |     | $                   | 36,499,644 |     | $ | 28,730,549 |

Revenue by geography The following table sets forth disaggregation of revenue by customer location.

| Primary geographical markets |     | For the Years Ended 
 December