Company: FSHPU
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001829126-25-008620
Chunk: 101

Company: Flag Ship Acquisition Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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 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 time. Once an amount is drawn down under the 2024 Note, it shall not be available for future
drawdown requests even if prepaid. The 2024 Note is subject to customary events of default, the occurrence of certain of which entitles
the Sponsor to declare, by written notice to us, the unpaid principal balance of the 2024 Note and all other sums payable with regard
to the 2024 Note becoming immediately due and payable.

In order to extend the time available for the
Company to consummate a Business Combination, the initial shareholders or their affiliates or designees were initially required to deposit
into the Trust Account $230,000 (approximately $0.033 per public share in either case) on or prior to the date of the applicable
deadline for each one month extension, and up to an aggregate of $2,070,000, or $0.30 per public share. On August 26, 2025, through
the Extraordinary General Meeting, the shareholders approved to reduce the payment from $0.033 per each outstanding public share (for
each monthly extension) to an amount equal to the lesser of (i) $60,000 for all outstanding public shares and (ii) $0.033 for each outstanding
public share. Any such payments would be made in the form of a loan. As of September 30, 2025 and December 31, 2024, the extension loan
balance was $60,000 and $0, respectively, such amounts are included in “Promissory
Notes – Related Party” presented on the balance sheets included in the financial statements filed with this Quarterly Report
on Form 10-Q.

We have incurred and expect to continue to incur significant professional costs to remain as a publicly traded company and to