Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 169

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 169
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 in sports equipment business. 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)Basis of presentation and principles of consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter -companybalances and transactions are eliminated upon consolidation. (b)Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenue and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for receivable, the recoverability of long -livedassets and accounting for deferred income taxes and valuation allowance for deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (c)Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short -term, highly liquid investments that are readily convertible to known amounts of cash and have insignificant risk of changes in value related to changes in interest rates and have original maturities of three months or less when purchased. (d)Restricted cash Restricted cash consist of loan guarantee and bank deposits with designated use, which cannot be withdrawn without certain approval or notice. The restricted cash was $401,110 and $81,537 as of December 31, 2023 and 2022, which was loan guarantees. (e)Accounts receivable Accounts receivable is stated at the original amount less an allowance for doubtful receivable. Accounts receivable is recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. On January 1, 2018, the Group adopted ASU 2016 -13, “Financial Instruments — Credit Losses (Accounting Standards Codification (“ASC”) Topic 326): Measurement on Credit Losses on Financial Instruments”, including certain subsequent amendments, transitional guidance and other interpretive guidance within ASU 2018 -19, ASU 2019 -04, ASU 2019 -05, ASU 2019 -11,