Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 89

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 89
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 U.S. national securities exchanges if the PCAOB is unable to inspect its public accounting firm for two consecutive years. The HFCA Act also requires public companies to disclose, among other things, whether they are owned or controlled by a foreign government, specifically, those based in China. Furthermore, the documentation we may be required to submit to the SEC proving certain beneficial ownership requirements and establishing that we are not owned or controlled by a foreign government in the event that we use a foreign public accounting firm not subject to inspection by the PCAOB or where the PCAOB is unable to completely inspect or investigate our accounting practices or financial statements because of a position taken by an authority in the foreign jurisdiction could be onerous and time consuming to prepare. The HFCA Act also requires the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years Therefore, once an issuer is identified as a “Commission-Identified Issuer” for two consecutive years, the SEC is required under the HFCA Act to prohibit the trading of the issuer’s securities on a national securities exchange and in the over-the-counter market.

51

Pursuant to the HFCA Act,
the PCAOB issued a Determination Report on December 16, 2021 which found that the PCAOB is unable to inspect or investigate completely
registered public accounting firms headquartered in (1) mainland China of the PRC because of a position taken by one or more authorities
in mainland China and (2) Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or
more authorities in Hong Kong. In addition, the PCAOB’s report identified the specific registered public accounting firms which
are subject to these determinations. On December 15, 2022, the PCAOB announced that PCAOB has secured complete access to inspect
and investigate public accounting firms headquartered in mainland China and Hong Kong, and vacated previous determinations to the contrary.
However, uncertainties exist with respect to the implementation of this framework and there is no assurance that the PCAOB will be able
to execute, in a timely manner, its future inspections and investigations in a manner that satisfies the Statement of Protocol jointly
signed by the PCAOB, the CSRC and the Ministry of Finance of the PRC. Should PRC authorities obstruct or otherwise fail to facilitate
the PCAOB’s access in any way and at any point in the future, the board of PCAOB will act