Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 576

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 576
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December 31, 2023 and 2022

Note 2 – Summary of Significant Accounting Policies

Use of estimates

The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash

For cash flow purposes, the Company considers cash and temporary investments with original maturities of three months or less, to be cash. The Company did not have any cash equivalents as of December 31, 2023. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these balances. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash.

Concentration of Credit Risk

Financial instruments which subject the Company to a concentration of credit risk principally consist of cash. The Company maintains its day-to-day operating cash balances with a major financial institution which at times may exceed the federally-insured limits of $250,000. The Company has not experienced any loss as a result of these deposits.

Deferred Offering Costs

The Company capitalizes certain legal, professional accounting and other third-party fees that are directly attributable to the offering of securities as deferred offering costs until such offerings are consummated. After consummation of the security offering, these costs will be recorded in stockholders’ deficit as a reduction of additional paid-in capital generated as a result of the offering. Should the planned security offering be abandoned, the deferred offering costs will be expensed immediately as a charge to other income and expenses in the statement of operations.

Fair Value Measurement

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on the assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

| ● | Level                                                                                      
 1: Unadjusted quoted prices in active markets for identical assets or liabilities.         |
| ● | Level                                                                                      
 2: Other than quoted prices included in Level 1 inputs that are observable for the asset   
 or liability, either directly or indirectly.                                               |
| ● | Level