Company: FTII
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001641172-25-025250
Chunk: 91

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 2
Chunk 91
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 during the periods reported. Actual results could materially differ from those estimates. As of June 30, 2025, the below
were the critical accounting policies.

Use
of Estimates

The
preparation of unaudited condensed financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited
condensed financial statements and the reported amounts of revenues and expenses during the reporting period.

Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management
considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual
results could differ significantly from those estimates.

10

Class
A Common Stock Subject to Possible Redemption

The
Company accounts for its common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480 “Distinguishing
Liabilities from Equity.” Common stock subject to mandatory redemption is classified as a liability instrument and is measured
at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the
control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control)
is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s
Class A common stock features certain redemption rights that are considered by the Company to be outside of the Company’s control
and subject to the occurrence of uncertain future events. Accordingly, at June 30, 2025 and December 31, 2024, the Class A common stock
subject to possible redemption in the amount of $9,783,099 and $9,080,744, respectively, is presented as temporary equity, outside of
the stockholders’ deficit section of the Company’s unaudited and audited condensed balance sheets . The increase of
$702,355 during the six months ended June 30, 2025 in the Class A common stock subject to possible redemption is due to accretion to
the redemption value of $358,717 and differences between the estimated third redemption and the actual amount paid of $343,638.

As
of June 30, 2025 and December 31,