Company: FTII
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001641172-25-025250
Chunk: 12

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 12
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,890 and $26,197,350 of securities in excess of
FDIC limits as of June 30, 2025 and December 31, 2024, respectively .

Derivative

The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC 815. “Derivatives and Hedging”. Derivative instruments are initially recorded at fair
value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the unaudited condensed statements
of operations. Derivative assets and liabilities are classified in the unaudited condensed balance sheets as current or non-current based
on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The
Company accounts for the warrants in accordance with the guidance contained in ASC 815-40. The Company has determined that the warrants
qualify for equity treatment in the Company’s unaudited condensed financial statements.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash
equivalents are carried at cost, which approximates fair value. As of June 30, 2025 and December 31, 2024, the Company had cash of $160,723
and $56,768, respectively. The Company had no cash equivalents as of June 30, 2025 and December 31, 2024.

Trust
Account

Upon
the closing of the Initial Public Offering and the Private Placement, $117,300,000 ($10.00 per Unit) of the net proceeds of the Initial
Public Offering and certain of the proceeds of the Private Placement Units was held in the Trust Account located in the United States
with Continental Stock Transfer & Trust Company acting as trustee, and invested only in U.S. government treasury obligations with
a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act,
which will be invested only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the
completion of a Business Combination and (ii) the distribution of the Trust Account as described above. To mitigate the risk that we
might be deemed to be an investment company for purposes of the Investment Company Act, following the 24