Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 207

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 207
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 and the Old Sponsor.

The 25,000 Class B ordinary shares that the Old
Sponsor agreed to transfer to EBC (subject to forfeiture) were valued at $1.09 per share or an aggregate of $27,336 as at October 2, 2023,
based on a Monte Carlo Model simulation valuation of the Class B ordinary shares. The amount will be recorded as Compensation Expense
at the close of a Business Combination. The estimated fair value of the forfeiture provision on October 2, 2023, the date of the EBC Letter
Agreement, was immaterial.

On October 2, 2023, in connection with the Sponsor
Sale, EBC issued the EBC Waiver Letter to the Company, pursuant to which, the EBC BCMA (as defined in Note 7) is terminated. Under the
EBC Waiver Letter, the Company agreed that such Class B ordinary shares to be transferred by the Old Sponsor to EBC under the EBC Letter
Agreement will have the same registration rights as the other Class B ordinary shares held by the Old Sponsor.

Upon closing of the Business Combination on January
15, 2025, the Old Sponsor held 700,000 Class B ordinary shares, as a result of which, Old Sponsor transferred 25,000 shares to EBC as
described above.

Debt Financing

On April 13, 2023, the Company issued a non-interest
bearing non-convertible unsecured promissory note to the Old Sponsor for a principal amount of up to $1,050,000 to fund the contributions
to the Company’s Trust Account in connection with the First Extension Amendment and the First Trust Amendment (“ April 2023
Note”). The April 2023 Note was terminated on October 4, 2023 and all amounts outstanding under the April 2023 Note, amounted to
$300,000, are forgiven without any further liability of the Company or the Old Sponsor. The amounts forgiven were recognized as a capital
transaction at October 4, 2023.

On October 25, 2023, the Company issued a non-interest
bearing non-convertible unsecured promissory note (the “ October 2023 Note”) to the New Sponsor, for a principal amount of
up to $1,960,000. As of December 31, 2024, the total outstanding under the October 2023 Note was $1,520,084. Including the