Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 412

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1C
Chunk 412
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osed GRT Business Combination”
for details.

Results of Operations

Our entire activity from
inception up to June 20, 2024 was in preparation for the Initial Public Offering. Since the Initial Public Offering, our activity has
been limited to the evaluation of business combination candidates and negotiating the Merger Agreement with GRT and conducting due diligence
and other activities with respect to the Proposed GRT Business Combination. We do not expect to generate any operating revenues until
after the completion of our initial Business Combination. We expect to generate non-operating income in the form of interest income on
marketable securities held after the Initial Public Offering. We expect that we will incur increased expenses as a result of being a public
company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with
searching for, and completing, a Business Combination.  

For the year ended December 31,
2024, we had net income of $909,838, which consisted of dividend income on marketable securities held in the Trust Account of $1,799,136,
offset by expenses of $889,298.

Liquidity
and Capital Resources

On June 20, 2024, we consummated the Initial Public Offering of 6,900,000 Units, generating gross proceeds of $69,000,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 238,000 Private Units to the Sponsor at a price of $10.00 per Private Unit generating gross proceeds of $2,380,000.

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Following the Initial Public
Offering and the sale of the Private Units, a total of $69,000,000 was placed in the Trust Account. We incurred $3,448,233 in transaction
costs, including $1,380,000 of underwriting fees, $1,725,000 of deferred underwriting fees and $343,233 of other offering costs.

For the year ended December 31,
2024, net cash used in operating activities was $876,327. Net income of $909,838 was mainly impacted by dividend earned on marketable
securities held in trust account of $1,799,136.

At December 31, 2024, we had investments held in the Trust Account of $70,799,136. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the