Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 533

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 1
Chunk 533
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. Consequently, the transfer of the funds in the Trust Account
into an interest-bearing demand deposit account at a bank in February 2024 could reduce the dollar amount our public shareholders would
receive upon any redemption or our liquidation.

In
the event that we are deemed to be an investment company, despite the change in investments in the Trust Account, we may be required
to liquidate the Company, and the longer the period before the investment change, the greater the risk of being considered an investment
company.

We
have incurred and expect to incur significant costs associated with the business combination. Whether or not the business combination
is completed, the incurrence of these costs will reduce the amount of cash available to be used for other corporate purposes by us if
the business combination is not completed.

We
expect to incur significant transaction and transition costs associated with the business combination and operating as a public company
following the closing of the business combination. We may also incur additional costs to retain key employees. Certain transaction expenses
incurred in connection with the business combination, include all legal, accounting, consulting, investment banking and other fees, expenses
and costs, and will be paid by the combined company following the closing of the business combination. Even if the business combination
is not completed, we expect to incur transactions expenses. These expenses will reduce the amount of cash available to be used for other
corporate purposes by us if the business combination is not completed.

A
new 1% U.S. federal excise tax could be imposed on us in connection with future redemptions by us of our shares.

On
August 16, 2022, the IR Act was signed into federal law which provides for, among other things, a 1% excise tax on the fair market value
of stock repurchased by a U.S. corporation beginning in 2023, subject to certain exceptions. The excise tax is imposed on the repurchasing
corporation itself, not its stockholders from which shares are repurchased. The U.S. Department of the Treasury has been given authority
to provide regulations and other guidance to carry out, and prevent the abuse or avoidance of the excise tax. It is unclear at this time
how and to what extent it will apply to SPAC redemptions and liquidations, but since we are a publicly listed Delaware corporation, we
are a “covered corporation” within the meaning of the IR Act. Consequently, our Board believes that, absent additional guidance
and