Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 633

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 633
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 debt approximate fair values because of the short-term nature of these instruments.

Leases

The Company accounts for its leases and lease modifications under ASC 842, Leases. The Company adopted the new standard effective January 1, 2022, using the modified retrospective approach. This approach allows the Company to initially apply the new accounting standard at the adoption date and to carry forward historical lease classification. There was no cumulative adjustment to retained earnings as a result of adoption of ASC 842.

Under the guidance of ASC 842, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right of use (“ROU”) asset and lease liability. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The lease liability is calculated by discounting fixed lease payments over the lease term at the Company’s incremental borrowing rate as the lease does not provide an implicit rate. For operating leases, the lease expense is recognized on a straight-line basis over the lease term.

The Company has a single lease which is for its corporate office and lab space. The lease is classified as an operating lease. The Company has also elected certain practical expedients which, among other things, allows the Company to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. Variable lease payment amounts that cannot be determined at the commencement of the lease such as the Company’s prorated share of common building expenses which are subject to annual adjustment, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense.

Segment Reporting

Operating segments are defined as components of an entity about which separate discrete information is available for evaluation by the chief operation decision maker in deciding how to allocate resources in assessing performance. The Company has determined that it has one operating segment.

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<div align='center'>CEREVAST MEDICAL, INC.

NOTES TO FINANCIAL STATEMENTS</div>

Net loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock of the Company outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including outstanding stock options and convertible notes, to the extent dilutive. Since the Company was in a loss