Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 227

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 227
---
 2024, the total outstanding under the July
2024 Note was $274,854.

Subsequent to December 31, 2024 to January 10,
2025, the Company withdrew additional $50,000 under the July 2024 Note for working capital purpose. As of January 10, 2025, the total
outstanding balance under the October 2023 Note and July 2024 Note was $1,844,938.

On January 10, 2025, the Company, the New Sponsor,
CayCo and FST entered into a letter agreement (the “ Letter Agreement”), pursuant to which, parties agree that CayCo agrees
to, failing which FST shall, pay to the New Sponsor an amount to equal to $1,844,938, in the following manner: (i) pay, or cause to be
paid, US$300,000 out of the trust account established by the Company with Continental Stock Transfer and Trust Company on the Maturity
Date (the “ First Payment”); (ii) pay, or cause to be paid, US$772,469 on or prior to the date falling 3 month after the Maturity
Date (the “ Second Payment”); and (iii) pay, or cause to be paid, US$772,469 on or prior to the date falling 6 months after
the Maturity Date (the “ Third Payment”).

Upon the closing of the Business Combination on
January 15, 2025, the Company paid $300,000 to the New Sponsor, out of the Trust Account.

Working Capital Loans

In order to finance transaction costs in connection
with an intended initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and
directors may, but are not obligated to, loan the Company funds as may be required (“ Working Capital Loans”). If the Company
completes its initial Business Combination, the Company would repay the Working Capital Loans. In the event that the initial Business
Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital
Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of the Working Capital
Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant at the option of the lender.
The terms of such warrants