Company: FTII
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001493152-25-004006
Chunk: 22

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 3
Chunk 22
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. Based
on our assessment, our management, including our chief executive officer and chief financial officer, concluded that, as of September
30, 2024, the internal control over financial reporting was not effective due to a material weakness related to the accounting of the
Extension Loans in the form of non-interest-bearing promissory notes and related to the calculation of redemption price. Additionally,
based on management’s assessment, we determined that there was a material weakness in our internal control over financial reporting
as of September 30, 2024.

We
have identified a material weakness in our internal control over financial reporting as of December 31,2023. If we are unable to develop
and maintain an effective system internal control over financial reporting, we may not be able to accurately report our financial results
in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating
results.

To
address this material weakness, our management has expended, and will continue to expend, a substantial amount of effort and resources
for the remediation and improvement of our internal control over financial reporting. While we have processes to properly identify and
evaluate the appropriate accounting of extension loans, redemption payments, technical pronouncements and other literature for all significant
or unusual transactions, we will continue to improve these processes to ensure that the nuances of such transactions are effectively
evaluated in the context of the increasingly complex accounting standards. In addition, we are assessing our resource needs as well as
roles and responsibilities with a particular focus on accounting and financial reporting staff and will make additional changes as needed,
but we can offer no assurance that our controls will not require additional review and modification in this future as industry accounting
practices may evolve over time.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect errors or misstatements in our financial
statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

Changes
in Internal Control Over Financial Reporting

There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange
Act) that occurred during the quarter of the fiscal year covered by this Quarterly Report that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.

PART