Company: FTII
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001493152-25-004006
Chunk: 122

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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 and decision usefulness of income tax disclosures. This ASU will be effective for the annual period ending December
31, 2025. The Company is currently assessing what impact, if any, that ASU 2023-09 would have on its financial position, results of operations
or cash flows.

New
Law and Changes

On
August 16, 2022, the Inflation Reduction Act (the “IR Act”) was signed into law, which, beginning in 2023, will impose a
1% excise tax on public company stock buybacks.

The
IR Act imposes a 1% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The
total taxable value of shares repurchased is reduced by the fair market value of any newly issued shares during the taxable year. Redemption
rights are ubiquitous to nearly all SPACs. The Company has recorded a liability on the accompanying unaudited condensed balance sheets
to be in compliance with the IR Act.

Nasdaq
IM-5101-2 requires that the Company, a special purpose acquisition company, complete one or more business combinations within 36 months
of the effectiveness of its initial public offering registration statement, which, in the case of the Company, would be February 14,
2025. If the Company is unable to complete an initial business combination by February 14, 2025 and seeks to extend beyond such 36-month
period, such extension would violate Nasdaq IM-5101-2. Effective on October 7, 2024, Nasdaq Rule 5815 was amended to provide for the
immediate suspension and delisting upon issuance of a delisting determination letter to an issuer for failure to meet the requirements
of Nasdaq IM5101-02. Accordingly, the Company will face immediate suspension and delisting of its securities once the Company receives
a delisting determination letter from Nasdaq after the 36-month window ends on February 14, 2025. Pursuant to Nasdaq Rule 5815, as amended,
Nasdaq may only reverse its delisting determination if it finds that it made a factual error in applying Nasdaq Rule 5815, as amended.

Recently
Issued Accounting Standards

Management
does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company’s unaudited condensed financial statements.

Note
3