Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 194

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 194
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 a “going concern.”

As of December 31, 2024, we had working capital
deficit of $539,737, which indicated a lack of liquidity we needed to sustain operations for a reasonable period of time, which was considered
to be one year from the issuance date of the financial statements. Further, we have incurred and expects to continue to incur significant
costs as a public company (for legal, financial reporting, accounting, and auditing compliance), as well as expenses in connection with
our Proposed Business GRT Combination. We cannot assure you that any efforts to raise capital (if required) or to consummate an initial
business combination (including the Proposed GRT Business Combination) will be successful. We have until 15 months from the closing of
the Initial Public Offering to consummate a Business Combination (subject to nine (9) one-month extension periods). If we do not complete
a Business Combination within such time period, under our Amended and Restated Memorandum and Articles of Association we must cease all
operations, redeem the outstanding public shares and thereafter liquidate and dissolve. There is a possibility that business combination
might not happen within the prescribed period of time. These factors, among others, raise substantial doubt about our ability to continue
as a going concern. The financial statements contained elsewhere in this Annual Report do not include any adjustments that might result
from our inability to continue as a going concern.

Our management has concluded that our disclosure
controls and procedures were not effective, which could adversely affect our ability to report our results of operations and financial
condition accurately and in a timely manner.

Our management is responsible
for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP.
As a newly public company, SEC rules provide that we are not required to include a report of management’s assessment regarding internal
control over financial reporting or an attestation report of our independent registered public accounting firm in this Annual Report on
Form 10-K. Our management is, however, required to evaluate the effectiveness of the design and operation of our disclosure
controls and procedures on a quarterly basis. In our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in this
Annual Report, we reported that our management concluded that our disclosure controls and procedures were not effective due to the existence
of material weaknesses in our internal control over financial reporting