Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 144

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 144
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 Chief Executive
Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as a result of the material
weakness in internal control over financial reporting noted in below under “ Management’s Report on Internal Controls Over
Financial Reporting.” Our disclosure controls and procedures are designed to ensure that information required to be disclosed in
the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms and that such information is accumulated and communicated to management including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

In designing and evaluating
our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated,
can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and
procedures must reflect the fact that there are resource constraints, and that management is required to apply judgment in evaluating
the benefits of possible controls and procedures relative to their costs.

Management’s Report on Internal Controls
Over Financial Reporting

As disclosed elsewhere in this
Annual Report on Form 20-F, we completed the Business Combination on January 15, 2025. Prior to the Business Combination, we were a shell
company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization or similar
business combination with one or more businesses. As a result, previously existing internal controls are no longer applicable or comprehensive
enough as of the assessment date, because our and the SPAC’s operations prior to the Business Combination were insignificant compared
to those of the consolidated entity post-Business Combination. As a result, management was unable, without incurring unreasonable effort
or expense, to complete a comprehensive assessment of our internal control over financial reporting as of December 31, 2024. Accordingly,
we are excluding management’s report on internal control over financial reporting pursuant to Section 215.02 of the SEC Division
of Corporate Finance’s Regulation S-K Compliance and Disclosure Interpretations.

In connection with the preparation
of the Company consolidated financial statements for the year ended December 31, 2024, the Company has identified errors in financial
reporting for the year ended December 31, 2023, related to the recognition of deferred income taxes and initial offering process (IOP)
expenses. These errors stem from material weaknesses in internal controls relating to 1) an insufficient allocation of resources in