Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 27

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 27
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 will be incurred. Furthermore, if any issues in complying with those requirements are identiﬁed (for example, if the auditors identify a signiﬁcant deﬁciency or material weaknesses in the internal control over ﬁnancial reporting), FST could incur additional costs to rectify those issues, and the existence of those issues could adversely affect its reputation or investor perceptions. In addition, FST will purchase director and ofﬁcer liability insurance, which has substantial additional premiums. The additional reporting and other obligations 13 imposed by these rules and regulations increase legal and ﬁnancial compliance costs and the costs of related legal, accounting and administrative activities. Advocacy efforts by shareholders and third parties may also prompt additional changes in governance and reporting requirements, which could further increase costs. Management estimates are subject to uncertainty. In preparing consolidated ﬁnancial statements in conformity with GAAP, estimates and assumptions are used by management in determining the reported amounts of assets and liabilities, revenues and expenses recognized during the periods presented and disclosures of contingent assets and liabilities known to exist as of the date of the ﬁnancial statements. These estimates and assumptions must be made because certain information that is used in the preparation of such ﬁnancial statements is dependent on future events, cannot be calculated with a high degree of precision from data available, or is not capable of being readily calculated based on generally accepted methodologies. In some cases, these estimates are particularly difﬁcult to determine and the Company must exercise signiﬁcant judgment. Estimates may be used in management’s assessment of items such as fair values, income taxes, stock -basedcompensation and asset retirement obligations. Actual results for all estimates could differ materially from the estimates and assumptions used by the Company, which could have a material adverse effect on the Company’s business, ﬁnancial condition, results of operations, cash ﬂows and future prospects. Risks Related to Company’s Technology and Intellectual Property Any legal proceedings or claims against the Company could be costly and time-consuming to defend and could harm its reputation regardless of the outcome. The Company is and/or may in the future become subject to legal proceedings and claims that arise in the ordinary course of business, including intellectual property, data privacy, product liability, employment, class action, whistleblower and other litigation claims, and governmental and other regulatory investigations and proceedings. Such matters can be time -consuming, divert management’s attention and resources, cause the Company to incur significant expenses or liability, or require the Company