Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 192

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 192
---
  
  Change in deferred tax asset valuation allowance                                               792,545                             340,167  
  Others                                                                                               -                               1,333  
  Income tax expense (benefit)                                      $                            456,246      $                    ( 751,071  
  Effective tax rates                                                                             ( 16.4                                25.7  

As of December 31, 2024 and 2023 the significant
components of the deferred tax assets and deferred tax liabilities are summarized below:

                                                       As of December 31,                                                     
                                                       2024                                     2023                          
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                                                (As Restated)                 
  Deferred tax assets:                                                                                                        
  Net operating loss carried forwards                  $                         2,049,940      $                  1,361,646  
  Allowance for credit losses                                                      285,658                           305,903  
  Inventories                                                                      152,776                            96,538  
  Lease liabilities                                                              1,311,830                                 -  
  Others                                                                            77,379                           118,888  
  Deferred tax assets                                                            3,877,583                         1,882,975  
  Valuation allowance                                                          ( 1,414,090                         ( 733,726  
  Deferred tax assets, net of valuation allowance                                2,463,493                         1,149,249  
  Deferred tax liabilities:                                                                                                   
  Right-of-use assets                                                            1,167,759                                 -  
  Property, plant and equipment                                                    439,166                           293,047  
  Intangible assets                                                                452,084                           370,364  
  Others                                                                            23,592                                 -  
  Deferred tax liabilities                             $                         2,082,601      $                    663,411  

F-27

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

12. INCOME TAXES (cont.)

For the years ended December 31, 2024 and 2023, the valuation allowance
for deferred tax assets is as follows:

                                                                      December 31,                     December 31,               
  Valuation allowance for deferred tax assets, beginning of year                          733,726                        394,573  
  Increases allocated to continuing operations                                            792,545                        340,167