Company: FSTWF
Filing Date: 2025-07-22
Form Type: F-1/A
Source: 0001213900-25-066660
Chunk: 225

Company: FST Corp.
Filing Date: 2025-07-22
Form: F-1/A
Chunk 225
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 pursuant to ASC 815 -15. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity and measurement of fair value is re -assessedat the end of each reporting period. In accordance with ASC 825 -10“Financial Instruments”, offering costs attributable to the issuance of the derivative warrant liabilities and overallotment option have been allocated based on their relative fair value of total proceeds and are recognized in the statements of operations as incurred. Derivative warrant liabilities are classified as non -currentliabilities as their liquidation is not reasonably expected to require the use of current assets or the creation of current liabilities. The Company accounts for warrants and over -allotmentas either equity -classifiedor liability -classifiedinstruments based on an assessment of the warrant and over -allotmentoption’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board Accounting Standards Codification 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging. The assessment considers whether the warrants and over -allotmentoption are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and over -allotmentoption meet all of the requirements for equity classification under ASC 815, including whether the warrants and over -allotmentoption are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment is conducted at the time of warrant and over -allotmentoption issuance and as of each subsequent quarterly period end date while the warrants and over -allotmentoption are outstanding. For warrants and over -allotmentoption that meet all of the criteria for equity classification, they are recorded as a component of additional paid -incapital at the time of issuance. For warrants and over -allotmentthat do not meet all the criteria for equity classification, they are required to be recorded as a liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants and over -allotmentoption are recognized as a non -cashgain or loss on the statements of operations. The Company accounted for the Public Warrants (see Note 3), Private Placement Warrants (see Note 4) in accordance with the guidance contained in ASC 815 -40. The Warrants are not considered indexed to the Company’s own ordinary shares, and as such, they do not meet the criteria for equity treatment