Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 76

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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, we may repay such notes out of the proceeds of the Trust Account released to us. In the
event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay
such notes, but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of notes may be convertible into
units, at a price of $10.00 per unit, at the option of the lender. The units would be identical to the Private Units.

On August 30, 2024, we issued an unsecured promissory
note (the “2024 Note”) in the principal amount of up to $1,000,000 to our Sponsor pursuant to which we may borrow additional
funds. The 2024 Note bears no interest and is due on the earlier of: (i) December 31, 2025 or (ii) the date on which we consummate our
initial business combination. As of March 31, 2025, there was $850,351 outstanding under the 2024 Note. The principal balance may be prepaid
at any time. Once an amount is drawn down under the 2024 Note, it shall not be available for future drawdown requests even if prepaid.
The 2024 Note is subject to customary events of default, the occurrence of certain of which entitles the Sponsor to declare, by written
notice to us, the unpaid principal balance of the 2024 Note and all other sums payable with regard to the 2024 Note becoming immediately
due and payable.

We have incurred and expect to continue to incur
significant professional costs to remain as a publicly traded company and to incur significant transaction costs in pursuit of the consummation
of a business combination. In order to complete a Business Combination, we will need to raise additional capital through loans or additional
investments from our Sponsor, shareholders, officers, directors, or third parties. Our officers, directors and Sponsor may, but are not
obligated to, loan us funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet
our working capital needs. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital,
we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing
operations, suspending the pursuit of a potential transaction,