Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 180

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 180
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359  

(z) Commitments and
contingencies

Liabilities for loss contingencies arising from
claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred
and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is
probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss
if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred.

(aa) Restatement of previously issued
2023 consolidated financial statements

The Group identified errors related to deferred
tax assets for net operating loss carry-forwards and reclassification of deferred tax assets, prepaid expenses related to transaction
fees incurred in connection with the Business Combination and reclassification of certain balance sheet items for the year ended December
31, 2023. As a result, the accompanying 2023 consolidated financial statements as of and for the year ended December 31, 2023, and related
notes hereto, have been restated or revised, as applicable, to correct these errors.

The below tables summarise the adjustments that
were made to correct the errors for the periods presented.

Extract from the consolidated statements of
operations and comprehensive loss

                                             As Previously                       Adjustment                     As Restated                   
  General and administrative expenses        $                    5,279,397      $                 559,572      $                  5,838,969  
  Loss before income tax                                        ( 2,359,110                      ( 559,572                       ( 2,918,682  
  Income tax benefit                                              ( 123,151                      ( 627,920                         ( 751,071  
  Loss for the year                                             ( 2,235,959                         68,348                       ( 2,167,611  
  Total comprehensive loss for the year      $                  ( 2,262,584      $                  68,348      $                ( 2,194,236  

F-18

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Extract from the consolidated balance sheets

                                                 As Previously                      Adjustment                     As Restated                  
  Prepaid expenses and other current assets