Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 431

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1C
Chunk 431
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 is no cap or ceiling
on the reimbursement of out-of-pocket expenses incurred by such persons in connection with activities on our behalf.

On
January 28, 2021, the Company issued an unsecured promissory note to the Sponsor, pursuant to which the Company may borrow up
to an aggregate principal amount of $300,000 (the “Promissory Note”). On December 2, 2022, the Company and the
Sponsor mutually agreed to increase the principal amount up to $500,000. On December 29, 2023, the Company amended and restated
the Promissory Note. The Amended and Restated Promissory Note is non-interest bearing and payable on the earlier of consummation of
an initial public offering of our securities or December 31, 2024. As of the date of closing our initial public offering, we
had borrowed $500,640 under the promissory note with our sponsor. These loans are non-interest bearing, unsecured and were
originally due and payable in connection with our public offering. The loan was repaid on June 20, 2024. On August 30,
2024, we issued the 2024 Note for up to $1,000,000 to our sponsor which is due the earlier of the closing of our initial business
combination and December 31, 2025. Related party loan balance as of December 31, 2024 was $667,851. The issuance of the
2024 Note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as
amended.

In addition, in order to
finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain
of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete an initial business combination,
we would repay such loaned amounts. In the event that the initial business combination does not close, we may use a portion of the working
capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for such repayment.
Up to $1,500,000 of such loans may be convertible into units at a price of $10.00 per unit (which, for example, would result in the holders
being issued 150,000 ordinary shares and 150,000 rights to