Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 182

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 182
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 share and per share data, or otherwise noted) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (z)Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. (aa) Recent accounting pronouncements The Group is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. Recent accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Group does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial position, results of operations, cash flows or disclosures. 3.ACCOUNTS AND NOTES RECEIVABLE, NET Accounts receivable and notes receivable, net consisted of the following:

|                                    |     | As of December 31, |      2023 |   |     |   |      2022 |   |
|:-----------------------------------|:----|:-------------------|----------:|:--|:----|:--|----------:|:--|
| Accounts receivable, gross         |     | $                  | 4,955,083 |   |     | $ | 6,695,545 |   |
| Notes receivable                   |     |                    |    22,463 |   |     |   |    10,615 |   |
| Allowance for doubtful accounts    |     |                    |  (245,888 | ) |     |   |  (400,797 | ) |
| Accounts and notes receivable, net |     | $                  | 4,731,658 |   |     | $ | 6,305,363 |   |

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