Company: FTII
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001641172-25-025250
Chunk: 67

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 67
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 concluded that, as of
June 30, 2025, our disclosure controls and procedures were not effective.

We
do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and
procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the
disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there
are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure
controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all
our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions.

Management’s
Report on Internal Control Over Financial Reporting

Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined
in Exchange Act Rules 13a-15(f) and 15d-15(f)) for us. Under the supervision and with the participation of our Certifying Officers, our
management assessed the effectiveness of our internal control over financial reporting as of March 31, 2025 based on criteria specified
in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based
on our assessment, our management, including our chief executive officer and chief financial officer, concluded that, as of December
31, 2023, the internal control over financial reporting was not effective due to a material weakness related to the accounting of the
Extension Loans in the form of non-interest-bearing promissory notes and related to the calculation of redemption price. Additionally,
based on management’s assessment, we determined that there was a material weakness in our internal control over financial reporting
as of June 30, 2025 due to an entry that we missed to record the amount collected during the clawback process to collect the overpayments
from our redeeming shareholders.

We
have identified a material weakness in our internal control over financial reporting as of June 30, 2025. If we are unable to develop
and maintain an effective system internal control over financial reporting, we may not be able to accurately report our financial results