Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 62

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 62
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, representing an increase of 16.9%. This increase was primarily attributable to an increase in total revenue. Gross profit margin decreased to 43.1% for the year ended December31, 2024, as compared to 46.8% for the year ended December31, 2023. The decrease of gross profit margin was primarily due to: (i) the product mix in fiscal year 2024 had lower unit sale price; (ii) the increase of unit cost in fiscal year 2024, since our production volume in 2024 was relatively low, resulting in higher fixed costs were allocated to the cost per unit of the product in 2024. Selling Expenses Selling expenses increased by $1,338,772, or 14.6%, from $9,194,267 for the year ended December31, 2023 to $10,533,039 for the year ended December31, 2024. In order to enhance customer experience, the Group opened its KBS Taipei Flagship Store on August1, 2024, leading to increase of store -openingexpenses, personnel expenses, and other selling expenses. Besides, FST America established a machining tool department in 2024, resulting in higher personnel expenses and operating expenses. General and Administrative Expenses General and administrative expenses increased to $7,527,952 for the year ended December31, 2024 from $5,838,969 for the year ended December31, 2023, representing a 28.9% increase. This increase was primarily due to the increase related to transaction fees and professional fees incurred in connection with the Business Combination for the year ended December31, 2024. Research and Development Expenses Research and development expenses decreased to $1,296,969 for the year ended December31, 2024 from $1,529,690 for the year ended December31, 2023, representing a 15.2% decrease. This decrease was primarily attributable to the reclassification of software purchase fee for the year ended December31, 2024. The Group provided software service to Factory Automation Technology Co., Ltd., a related party, and purchased related software from Parametric Technology Corporation, a third party. The Group recorded the software service income as other income and recorded software purchase fee as research and development expenses for the year ended December31, 2023. In fiscal year 2024, the Group became an authorized agent of Parametric Technology Corporation to resell software usage rights to customers and the Group