Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 89

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 89
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2) of
one (1) warrant of SPAC; (ii) each Class B ordinary share of SPAC that was issued and outstanding immediately prior to
the merger effective time automatically converted into one (1) Class A ordinary share of SPAC and each Class B ordinary
share of SPAC was automatically cancelled and cease to exist; (iii) each Class A ordinary share of SPAC was cancelled in exchange
for the right to receive one (1) ordinary share of us; and (iv) each warrant of SPAC that was outstanding and unexercised automatically
converted into the right to receive one warrant of us, which is on the same terms and conditions as the applicable warrant of SPAC.

In connection with the closing
of the Business Combination, FST Merger Ltd. merged with and into SPAC with SPAC being the surviving company and as a direct, wholly owned
subsidiary of the Company, and SPAC changed its name to “ FST Ltd.”, the Company’s Ordinary Shares commenced trading
on the Nasdaq Global Market under the symbol “ KBSX” on January 16, 2025.

F-55

Accounting for the Transactions

The Transactions will be accounted
for as a reverse merger in accordance with GAAP. Under this method of accounting, SPAC will be treated as the “acquired”
company for financial reporting purposes. This determination was primarily based on FST shareholders expecting to have a majority of the
voting power of the combined company, FST comprising the ongoing operations of the combined entity, FST comprising a majority of the governing
body of the combined company, and FST’s senior management comprising the senior management of the combined company. Accordingly,
for accounting purposes, the Transactions will be treated as the equivalent of FST issuing share for the net assets of SPAC, accompanied
by a recapitalization. The net assets of SPAC will be stated at historical cost, with no goodwill or other intangible assets recorded.
Operations prior to the Transactions will be those of FST.

Basis of Pro Forma Presentation

The following unaudited pro
forma combined consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X as amended
by the final rule, Release No. 33-10786 “ Amendments to Financial Disclosures about Acquired and Disposed Businesses.”
Release No. 33-10786 requires pro forma adjustments that depict the accounting for the transaction (“ Transaction Accounting
Adjustments”) and allows optional