Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 171

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 171
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ANIZATION AND PRINCIPAL ACTIVITIES (cont.) In connection with the closing of the Business Combination, the Company’s shares began trading on The Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbol “KBSX” on January 16, 2025. Unless the context otherwise requires, the information below pertains to the Group, the pre -BusinessCombination companies since January 15, 2025. Please refer to Note 16 Subsequent Events for further discussion of the Business Combination. 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)Basis of presentation, principles of consolidation and going concern considerations The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter -companybalances and transactions are eliminated upon consolidation. The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to continue operating in the normal course of business and will be able to realize its assets and discharge its liabilities as they become due. As of December 31, 2024, the Company has continued to incur operating losses and is facing liquidity pressures. Absent any other action, the Company will require additional liquidity to continue as a going concern within twelve months from the issuance of these financial statements. To address these uncertainties, management has developed specific plans to improve the Company’s liquidity position. If the Company is unable to repay the debt as it comes due with cash generated from operations, management plans to refinance its short term obligations to extend the maturity dates. If the Company is unable to secure longer -termfinancing on acceptable terms, management will sell certain non -coreland assets, which are expected to generate a sufficient amount of cash to service the short -termobligations as they come due. Management believes that if these plans are successfully implemented, they will address the Company’s liquidity needs to enable continuation of operations for the foreseeable future. (b)Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates