Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 72

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 72
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 in this Prospectus. The Group leases vehicles and plants under various non -cancellableoperating lease agreements. As of June 30, 2024, the minimum future commitments under these agreements are as follows.

| For the year ending December 31,                  
 The remaining of the year ended December 31, 2024 |     | Operating 
 Leases    | 1,184,118 |
|:--------------------------------------------------|:----|:----------|----------:|
| 2025                                              |     |           | 1,443,140 |
| 2026                                              |     |           | 1,185,325 |
| 2027                                              |     |           |   518,373 |
| 2028 and thereafter                               |     |           | 3,006,318 |
| Total lease commitments                           |     | $         | 7,337,274 |

Off-Balance Sheet Arrangements During the periods presented, the Group did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which were established for the purpose of facilitating off -balancesheet arrangements. Critical Accounting Estimates The Group’s consolidated financial statements that are included elsewhere in this Prospectus/prospectus have been prepared using the significant measurement bases. We believe that the following estimates are those most critical to the judgments used in the preparation of our financial statements. Evaluation of inventories Inventories are stated at the lower of cost or estimated net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on the weighted -averagebasis. The Group records inventory write -downsas cost of revenue for excess or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written off. The Group also reviews inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires the determination of the estimated selling price of the inventory

46 less the estimated cost to convert inventory on hand into a finished product. Once inventory is written -down, a new, lower -costbasis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Critical Accounting Policies Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on our audited financial information. The preparation of these financial statements requires us to make estimates and judgments that affect