Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 335

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 335
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 Otherwise, the Working Capital Loans would be repaid
         only out of funds held outside the Trust Account. In the event that a Business Combination
         does not close, the Company may use a portion of proceeds held outside the Trust Account
         to repay the Working Capital Loans, but no proceeds held in the Trust Account would
         be used to repay the Working Capital Loans. Except for the foregoing, the terms of
         such Working Capital Loans, if any, have not been determined and no written agreements
         exist with respect to such loans. The Working Capital Loans would either be repaid
         upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into units of the post-Business Combination
         entity at a price of $10.00 per unit. The units would be identical to the Private Units.
       
      As of December 31, 2024 and 2023, the Company had no borrowings under the working capital loans.
       
      Related Party Extension Loans
       
      As discussed in Note 1, the Company may extend the period of time to consummate a
         Business Combination up to six times, each by an additional month (for a total of
         21 or 24 months to complete a Business Combination). In order to extend the time available
         for the Company to consummate a Business Combination, the Sponsor or its affiliates
         or designees must deposit into the Trust Account $230,000 (approximately $0.033 per Public Share in either case), up to an aggregate of $2,070,000,
         or $0.30 per Public Share, on or prior to the date of the applicable deadline, for each monthly
         extension. Any such payments would be made in the form of a loan. The terms of the
         promissory note to be issued in connection with any such loans have not yet been negotiated.
         If the Company completes a Business Combination, the Company will repay such loaned
         amounts out of the proceeds of the Trust Account released to the Company. If the Company
         does not complete a Business Combination, the Company will not repay such loans. Furthermore,
         the letter agreement with the initial shareholder contains a provision pursuant to
         which the Sponsor has agreed to waive its right to be repaid for such loans in the
         event that the Company does not complete a Business Combination