Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 332

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 332
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, or in connection with
         the Company’s liquidation. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99,
         redemption provisions not solely within the control of the Company require ordinary
         shares subject to redemption to be classified outside of permanent equity.
       
      The Company’s redeemable ordinary share is subject to SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99.
         If it is probable that the equity instrument will become redeemable, the Company has
         the option to either accrete changes in the redemption value over the period from
         the date of issuance (or from the date that it becomes probable that the instrument
         will become redeemable, if later) to the earliest redemption date of the instrument
         or to recognize changes in the redemption value immediately as they occur and adjust
         the carrying amount of the instrument to equal the redemption value at the end of
         each reporting period. The Company has elected to recognize the changes immediately.
         The accretion or remeasurement is treated as a deemed dividend (i.e., a reduction
         to retained earnings, or in absence of retained earnings, additional paid-in capital).

NOTE 4 – PRIVATE PLACEMENT
       
      Simultaneously with the closing of the Initial Public Offering, the Company consummated
         a private placement of 238,000 Private Placement Units, at a price of $10.00 per Private Placement Unit. Each Private Placement Unit consists of one Private Placement
         Share and one right (“Private Placement Right”). Each Private Placement Right will
         entitle the holder to receive one-tenth (1/10) ordinary share upon consummation of
         the initial business combination.
       
      The Private Placement Units are identical to the Public Units sold in the Initial
         Public Offering except for certain registration rights and transfer restrictions.

NOTE 5 – RELATED PARTY TRANSACTIONS
       
      Founder Shares
       
      In May 2018, the Company issued one ordinary share to the initial shareholder for no consideration.
         On February 20, 2021, the Company cancelled the one share for no consideration and the Sponsor
         purchased 1,150,000 ordinary shares for an aggregate price of $25,000. On September 23, 2021, the Company purchased back all the 1,150,000 shares for