Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 174

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 174
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 when the Group satisfies the performance
obligation by transferring promised product to the designated free-on-board shipping point. The Group recognizes the accounts receivable
at the time of the sale.

Sales of sports accessories, food and
beverage

The Group is engaged in wholesale of alcoholic
beverages and sale of sporting accessories in the retail market. Revenue is recognized when the product is physically delivered to and
accepted by the customer, and the consideration is paid immediately when the customer purchases the product.

Software service

The Group has contracted with Parametric Technology
Corporation (“ PTC”) to act as a distributor for its software. The Group purchased the subscription account of certain software
from PTC and resold the software usage rights to other customers. The Group recognizes revenue over the duration of the contract with
its customers. The Group is deemed as the principal, recognizing revenue on a gross basis as the Group is primarily responsible for fulfilling
the contract, bears the inventory risk, and has the discretion in establishing the sales price.

F-13

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(q) Revenue recognition
(cont.)

Revenue by categories

The following table disaggregates the Group’s
revenue categories for the years ended December 31, 2024 and 2023:

                                                      For the Years Ended                                            
                                                      December 31,                                                   
                                                      2024                                     2023                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Sales of golf shafts                                $                        35,315,363      $         27,825,905  
  Sales of sports accessories, food and beverage                                  935,593                   904,644  
  Software service                                                                248,688                         -  
  Total revenues                                      $                        36,499,644      $         28,730,549  

Revenue by geography

The following table sets forth disaggregation of revenue by customer
location.

                                    For the Years Ended                                            
                                    December 31,                                                   
                                    2024                                     2023                  
 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Primary geographical markets                                                                     
  United States                     $                        18,877,162      $         16,707,660  
  Vietnam                                                     4,263