Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 221

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 221
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 that are related to the IPO. Offering costs directly attributable
to the issuance of an equity contract to be classified in temporary equity are recorded as a reduction of equity. Offering costs for equity
contracts that are classified as assets and liabilities are expensed immediately. The Company incurred offering costs amounting to $7,647,620
as a result of the IPO (consisting of $2,600,000 of underwriting fees, $4,550,000 of deferred underwriting fees, and $497,620 of other
offering costs). The Company recorded $7,312,390 of offering costs as a reduction of temporary equity in connection with the Class A
ordinary shares included in the Units. The Company immediately expensed $335,230 of offering costs, during the year ended December 31,
2022, in connection with the Public Warrants, Private Placement Warrants and over-allotment option that were classified as liabilities.

F-46

Class A Shares Subject to Possible Redemption

The Company accounts for its Class A ordinary
shares subject to possible redemption in accordance with the guidance in ASC 480. Ordinary shares subject to mandatory redemption are
classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares
that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain
events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified
as shareholders’ deficit. The Company’s Class A ordinary shares feature certain redemption rights that are considered
to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A ordinary
shares subject to possible redemption is presented as temporary equity, outside of the shareholders’ deficit section of the Company’s
balance sheets.

At December 31, 2024 and 2023, Class A ordinary
shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the Company’s balance sheets. On April 13, 2023, holders of 7,399,517 shares of Class A ordinary shares exercised the
right to redeem such shares for a payment of approximately $77.5 million or approximately $10.47 per share. On October 25, 2023, holders
of the holders of 1,658,610 Class A ordinary shares elected to redeem their shares for cash at a redemption price of approximately $10.