Company: FTII
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001641172-25-025250
Chunk: 111

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 4
Chunk 111
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 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
in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating
results.

To
address this material weakness, our management has expended, and will continue to expend, a substantial amount of effort and resources
for the remediation and improvement of our internal control over financial reporting. While we have processes to properly identify and
evaluate the appropriate accounting of extension loans, redemption payments, technical pronouncements and other literature for all significant
or unusual transactions, we will continue to improve these processes to ensure that the nuances of such transactions are effectively
evaluated in the context of the increasingly complex accounting standards. In addition, we are assessing our resource needs as well as
roles and responsibilities with a particular focus on accounting and financial reporting staff and will make additional changes as needed,
but we can offer no assurance that our controls will not require additional review and modification in this future as industry accounting
practices may evolve over time.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect errors or misstatements in our unaudited
condensed financial statements . Also, projections of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures
may deteriorate.

Changes
in Internal Control over Financial Reporting

There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange
Act) during the most recent fiscal quarter covered by this Quarterly Report that have materially affected