Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 103

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 3
Chunk 103
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As of March 31, 2025, we were not subject to any material market or
interest rate risk. Following the consummation of our IPO, the net proceeds of our IPO, including amounts in the Trust Account, have been
invested in certain U.S. government securities with a maturity of 180 days or less or in certain money market funds that invest solely
in U.S. treasuries. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest
rate risk. 

25

ITEM 4. CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

Our management evaluated, with the participation
of our current chief executive officer and chief financial officer (our “Certifying Officers”), the effectiveness of our disclosure
controls and procedures as of March 31, 2025, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our
Certifying Officers concluded that, as of March 31, 2025, our disclosure controls and procedures were not effective, because of material
weaknesses in our internal control over financial reporting relating to (1) inadequate segregation of duties within account processes
due to limited personnel, and (2) insufficient written policies and procedure for accounting, IT, financial reporting and record keeping.
Therefore, we performed additional analysis as deemed necessary to ensure that our financial statements were prepared in accordance with
U.S. GAAP. Accordingly, our management believes that the financial statements included in this Report present fairly in all material respects
our financial position, results of operations and cash flows for the periods presented. Management intends to implement measures
to improve our disclosure controls and procedures and our internal control over financial reporting. Specifically, we intend to expand
and improve our review process for complex securities and related accounting standards by enhancing access to accounting literature, identification
of third-party professionals with whom to consult regarding complex accounting applications and consideration of additional staff with