Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 75

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 of $10.00 per Private Unit generating gross
proceeds of $2,380,000.

Following the IPO and the sale of the Private
Units, a total of $69,000,000 was placed in the Trust Account. We incurred $3,448,233 in transaction costs, including $1,380,000 of underwriting
fees, $1,725,000 of deferred underwriting fees and $343,233 of other offering costs. 

For the three months ended March 31, 2025, net
cash used in operating activities was $183,542. Net income of $577,698 was mainly impacted by interest and dividends earned on cash and
investments held in the trust account of $739,769.

As of March 31, 2025, we had cash and investments
held in the Trust Account of $71,538,905. We intend to use substantially all of the funds held in the Trust Account, including any amounts
representing interest and dividends earned on the Trust Account, excluding deferred underwriting commissions, to complete our Business
Combination. We may withdraw interest from the Trust Account to pay taxes, if any. To the extent that our share capital or debt is used,
in whole or in part, as consideration to complete a Business Combination, the remaining proceeds held in the Trust Account will be used
as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies. 

22

As of March 31, 2025, we had cash of $35,705 held
outside of the Trust Account. We intend to use the funds loaned to us under the 2024 Note (defined below) and the funds held outside the
Trust Account primarily to complete the proposed GFT Business Combination or if necessary, to identify and evaluate alternative target
businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations
of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective
target businesses, and structure, negotiate and complete a business combination.

In order to fund working capital deficiencies
or finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of our Sponsor or certain of our officers
and directors may, but are not obligated to, loan us funds as may be required. Such working capital loans would be evidenced by promissory
notes. If we complete a Business Combination