Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 182

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 182
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issory notes convert the first $6.215                                     
 million of principal into common stock equal to 20% of the total number of shares of Longevity common stock to be outstanding immediately     
 prior to the Target Acquisition and each additional $750,000 of principal notes outstanding will convert into an additional 1% of outstanding 
 Longevity common stock; and                                                                                                                   |

| ● | FutureTech entered into a subscription agreement to issue 1,000,000 shares of FutureTech Common Stock,                                           
 at the closing of the Business Combination for $5.00 per share and gross proceeds of $5.0 million (the “PIPE Investment”).                       
 In addition, FutureTech will place 2,000,000 shares of FutureTech Common Stock into escrow as collateral which will be released to the           
 PIPE Investor on the two-year anniversary of the Closing if and only if the closing price of FutureTech Common Stock on the two-year anniversary 
 of the Closing is less than $7.50 per share, as described elsewhere in this proxy statement/prospectus.                                          |

Expected Accounting Treatment
of Longevity’s Acquisition of the Targets

As noted above,
as part of Longevity’s acquisition of the Targets, Longevity will acquire the outstanding equity interests in each of Aegeria and
Cerevast (“Target Acquisitions”). The Target Acquisitions will be accounted for in accordance with Accounting Standards Codification
Topic 805, Business Combinations (“ASC 805”), with Cerevast considered to be the accounting acquirer. To determine the accounting
for this transaction under U.S. GAAP, a company must assess whether an integrated set of assets and activities will be accounted for as
an acquisition of a business or an asset acquisition. The guidance requires an initial screen test to determine if substantially all of
the relative fair value of the gross assets acquired is concentrated in a single asset or group of similar non-financial assets. If that
screen is met, the set is not a business.

Cerevast is expected
to be the accounting acquirer of the Target Acquisitions based on evaluation of the following facts and circumstances:

| ● | No stockholder will individually appoint the majority of the board of directors: and |

| ● | Cerevast senior management will comprise a majority of the Longevity senior management. |

| 81 |

Longevity is
a shell company formed to effect the Target Acquisitions, and under this method of accounting, Longevity does not meet the definition
of a business.