Company: FTII
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011790
Chunk: 83

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 83
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 the IPO of the Company, upon the completion of an initial business combination, the Underwriter is entitled
to a deferred fee of three percent (3.00%) of the gross proceeds of the Offering upon closing of the Business Combination, or
$3,450,000 (“Deferred Commission”). On February 6, 2025, the Company and Longevity executed a Satisfaction and Discharge
of Indebtedness Pursuant to Underwriting Agreement dated February 15, 2022 (the “Discharge Agreement”) the Underwriter.
Under the Discharge Agreement, instead of receiving the full Deferred Commission in cash at the closing of the business combination
with Longevity and other parties thereto, the Underwriter will accept (1) $500,000 in cash at the time of the closing; (2) a
$1,475,000 promissory note executed by the Company and Longevity (“D. Boral Note”) in which the Company (upon closing)
is obligated to pay the Underwriter in cash by the maturity date; and (3) 147,500 shares of the Company’s common stock, which
when multiplied by the $10.00 per share price agreed to between the parties equals $1,475,000 and which shall be issued and
delivered to the Underwriter at the closing. The Discharge Agreement and D. Boral Note have no effect unless the Longevity Business
Combination is consummated. The Discharge Agreement and D. Boral Note have been disclosed by the Company on the Company’s
Current Report on Form 8-K filed with the SEC on February 11, 2025.

Critical Accounting Policies

The preparation of
unaudited condensed financial statements and related disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements, and income
and expenses during the periods reported. Actual results could materially differ from those estimates. As of March 31, 2025, the
below were the critical accounting policies.

Use of Estimates

The preparation of unaudited
condensed financial statements in conformity with 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 unaudited condensed financial
statements and the reported amounts of revenues and expenses during the