Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 27

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 underwriting fee of 2.5% of the gross proceeds of the IPO, or $1,725,000, which will be paid upon the closing of a Business Combination from the amounts held in the Trust Account, subject to the terms of the underwriting agreement.

NOTE 8 – SEGMENT INFORMATION

ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their unaudited financial statement information about operating segments, products, services,
geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information
is available that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding
how to allocate resources and assess performance.

The Company’s CODM has been identified as
the Chief Financial Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources
and assessing financial performance. Accordingly, management has determined that the Company only has one operating segment.

When evaluating the Company’s performance
and making key decisions regarding resource allocation, the CODM reviews key metrics, which includes general and administrative expenses
and interest and dividends earned on assets held in Trust Account which are included in the unaudited statements of operations.

The key measures of segment profit or loss reviewed
by the CODM are interest and dividends earned on assets held in Trust Account and general and administrative expenses. The CODM reviews
interest and dividends earned on assets held in Trust Account to measure and monitor stockholder value and determine the most effective
strategy of investment with the Trust Account funds while maintaining compliance with the trust agreement. General and administrative
expenses are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a business
combination within the business combination period. The CODM also reviews general and administrative costs to manage, maintain and enforce
all contractual agreements to ensure costs are aligned with all agreements and budget.

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NOTE 9 –
SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions
that occurred after the balance sheet date up to the date that the unaudited financial statements were issued. The Company did not identify
any subsequent events that would have required adjustment or disclosure in the unaudited financial statements.

On April 18, 2025, pursuant to the GRT Merger
Agreement, the parties to the GRT Merger Agreement entered into a Mutual Termination Agreement (the “Termination Agreement”)
to terminate the GRT