Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 21

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 21
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 affected. The Company has experienced operating losses and there is no guarantee that the Company can regain and maintain profitability. In the year ended December 31, 2023, the Company recorded approximately US$2.2 million in net losses and approximately US$11.2 million negative cash flow from operating activities. The financial performance of the Company is the result of numerous factors, including: •the weaker demands from our customers for their spending on golf under the impact of slowdown in global economy; and •with the easing of the COVID -19pandemic, golf is no longer the only outdoor sports option after the pandemic. Although the Company’s current business focus is on restoring profitable operations, certain of its costs and expenses may continue to remain elevated in future periods, which could materially and adversely affect its future operating results if the revenue does not increase. The Company may also face increased regulatory compliance costs associated with growth, the launch of new products, and being a public company. The Company’s efforts to grow its business and offer new products have been and may continue to be more costly than it expects, the Company may not be able to increase its revenue enough to offset the increased operating expenses and the investments the Company need to make in its business, and new products may not succeed. The Company may continue to incur significant losses in the future for several reasons, including as a result of the other risks described herein, and unforeseen expenses, difficulties, complications, delays, and other presently unknown events or risks. If the Company continue to be unable to achieve and maintain consistent profitability, this would materially and adversely affect the value of its business and the Company’s securities. The Company may not be able to maintain its engineering, technological and manufacturing expertise. The golf club shafts industry is characterized by changing technology and evolving process development. The continued success of the Company’s business will depend upon its ability to: •hire, retain and expand our pool of qualified engineering and technical personnel; •maintain technological leadership in our industry; 10 •successfully anticipate or respond to changes in manufacturing processes in a cost -effectiveand timely manner; and •successfully anticipate or respond to changes in cost to serve in a cost -effectiveand timely manner The Company cannot be certain that its will develop the capabilities required by the market in the future. The emergence of new technologies, industry standards or customer requirements may render the Company’s equipment, inventory or processes obsolete or non -competitive. The Company may have to acquire new technologies and equipment to remain competitive. The acquisition and implementation of new technologies and