Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 93

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 93
---
 loans or additional
investments from our Sponsor, shareholders, officers, directors, or third parties. Our officers, directors and Sponsor may, but are not
obligated to, loan us funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet
our working capital needs. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital,
we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing
operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. We cannot provide any assurance that new
financing will be available to us on commercially acceptable terms, if at all. These conditions raise substantial doubt about our ability
to continue as a going concern one year from the issuance date of the unaudited financial statements.

The unaudited financial statements do not include
any adjustments that might result from the outcome of this uncertainty. In connection with our assessment of going concern considerations
in accordance with FASB ASC Topic 205-40, “Presentation of Financial Statements—Going Concern,” management has determined
that mandatory liquidation, should a business combination not occur, and potential subsequent dissolution raises substantial doubt about
our ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance date
of the unaudited financial statements. Our management plans to address this uncertainty through the initial business combination as discussed
above. There is no assurance that our plans to consummate the initial business combination will be successful or successful by the deadline
of completing an initial business combination as described above. The unaudited financial statements do not include any adjustments that
might result from the outcome of this uncertainty.

23

Contractual Obligations

We do not have any long-term debt, capital lease
obligations, operating lease obligations or long-term liabilities, other than an agreement to pay the Sponsor a monthly fee of $10,000
for certain general and administrative services, including office space, utilities and administrative services, provided to the Company.
We began incurring these fees on June 20, 2024 and will continue to incur these fees monthly until the earlier of the completion
of a Business Combination or the Company’s liquidation.

Registration Rights

Pursuant to a registration rights agreement entered into on June 17, 2024, the holders of the insider shares, private placement