Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 116

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 116
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 we are considered a non-resident enterprise under the PRC corporate income tax law and if the PRC tax authorities make adjustments to the taxable income of the transactions under SAT Circular 59 or Circular 698 and Circular 7, our income tax costs associated with such potential acquisitions will be increased, which may have an adverse effect on our financial condition and results of operations.

65

Risks Related to Acquiring and Operating a Business Outside of the United States

If we effect our initial business combination with a company located outside of the United States, we would be subject to a variety of additional risks that may negatively impact our operations.

If we effect our initial
business combination with a company located outside of the United States, such as the Proposed GRT Business Combination, we would be subject
to any special considerations or risks associated with companies operating in the target business’ home jurisdiction, including
any of the following:

    ●
    rules and regulations or currency redemption or corporate withholding taxes on individuals; 

    ●
    laws governing the manner in which future business combinations may be effected; 

    ●
    tariffs and trade barriers; 

    ●
    regulations related to customs and import/export matters; 

    ●
    longer payment cycles; 

    ●
    tax issues, such as tax law changes and variations in tax laws as compared to the United States; 

    ●
    currency fluctuations and exchange controls; 

    ●
    rates of inflation; 

    ●
    challenges in collecting accounts receivable; 

    ●
    cultural and language differences; 

    ●
    employment regulations; 

    ●
    crime, strikes, riots, civil disturbances, terrorist attacks and wars; and 

    ●
    deterioration of political relations with the United States which could result in any number of difficulties, both normal course such as above or extraordinary such as sanctions being imposed. We may not be able to adequately address these additional risks. If we were unable to do so, our operations might suffer. 

If our management following our initial business combination is unfamiliar with United States securities laws, they may have to expend time and resources becoming familiar with such laws, which could lead to various regulatory issues.

Following our initial business combination, any or all of our management could resign from their positions as our officers, and the management of the target business at the time of the business combination will remain in place. Management of the target business may not be familiar with United States securities laws. If new management is unfamiliar with United States securities laws,