Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 294

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 14
Chunk 294
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 existed at the date of the financial statements, which management considered
in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results
could differ significantly from those estimates.

Concentration
of Credit Risk

Financial
instruments that potentially subject to concentration of credit risk consist of cash and cash held in trust. Cash is comprised of cash
balances with banks and bank deposits, which are insured by the Federal Deposit Insurance Company (“FDIC”), up to $250,000.
The Company did not have cash exceed FDIC limits at December 31, 2024 and December 31, 2023. Cash held in trust is held in an interest-bearing
demand deposit account at a bank insured by FDIC up to $250,000. The Company had $26,197,350 and $61,589,164 of securities in excess
of FDIC limits as of December 31, 2024 and December 31, 2023, respectively

Derivative

The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC 815. “Derivatives and Hedging”. Derivative instruments are initially recorded at fair
value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of operations.
Derivative assets and liabilities are classified in the balance sheets as current or non-current based on whether or not net-cash
settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company accounts for the
warrants in accordance with the guidance contained in ASC 815-40. The Company has determined that the warrants qualify for equity treatment
in the Company’s financial statements.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash
equivalents are carried at cost, which approximates fair value. As of December 31, 2024 and December 31, 2023, the Company had cash of
$56,768 and $17,578, respectively. The Company had no cash equivalents as of December 31, 2024 and December 31, 2023.

Trust
Account

Upon
the closing of the Initial Public Offering and the Private Placement, $117,300,000 ($10.00 per Unit) of the net