Company: FTII
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011790
Chunk: 56

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 56
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2025. We do not participate in transactions that
create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would
have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing
arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial
assets.

Contractual Obligations

We do not have any
long-term debt, capital lease obligations, operating lease obligations or long-term liabilities. Pursuant to the Underwriting
Agreement in relation to the IPO of the Company, upon the completion of an initial business combination, the Underwriter is entitled
to a deferred fee of three percent (3.00%) of the gross proceeds of the Offering upon closing of the Business Combination, or
$3,450,000 (“Deferred Commission”). On February 6, 2025, the Company and Longevity executed a Satisfaction and Discharge
of Indebtedness Pursuant to Underwriting Agreement dated February 15, 2022 (the “Discharge Agreement”) the Underwriter.
Under the Discharge Agreement, instead of receiving the full Deferred Commission in cash at the closing of the business combination
with Longevity and other parties thereto, the Underwriter will accept (1) $500,000 in cash at the time of the closing; (2) a
$1,475,000 promissory note executed by the Company and Longevity (“D. Boral Note”) in which the Company (upon closing)
is obligated to pay the Underwriter in cash by the maturity date; and (3) 147,500 shares of the Company’s common stock, which
when multiplied by the $10.00 per share price agreed to between the parties equals $1,475,000 and which shall be issued and
delivered to the Underwriter at the closing. The Discharge Agreement and D. Boral Note have no effect unless the Longevity Business
Combination is consummated. The Discharge Agreement and D. Boral Note have been disclosed by the Company on the Company’s
Current Report on Form 8-K filed with the SEC on February 11, 2025.

Critical Accounting Policies

The preparation of
unaudited condensed financial statements and related disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported amounts of assets