Company: FTII
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011790
Chunk: 84

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 84
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 reporting period.

Making estimates requires
management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation
or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

 10 

Class A Common Stock Subject to Possible Redemption

The Company accounts
for its common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480 “Distinguishing
Liabilities from Equity.” Common stock subject to mandatory redemption is classified as a liability instrument and is
measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are
either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the
Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’
equity. The Company’s Class A common stock features certain redemption rights that are considered by the Company to be outside
of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at March 31, 2025 and December
31, 2024, the Class A common stock subject to possible redemption in the amount of $9,651,778 and $9,080,744, respectively, is
presented as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed balance sheets.
The increase of $571,034 during the three months ended March 31, 2025 in the Class A common stock subject to possible redemption is
due to accretion to the redemption value of $227,396 and differences between the estimated third redemption and the actual amount
paid of $343,638.

As of March 31, 2025 and
December 31, 2024, the shares of common stock subject to possible redemption reflected on the condensed balance sheets are reconciled
in the following table.  

    Ending Balance as of December 31, 2023 
    $61,226,803 
  
    Redemption of Class A common stock 
     (36,281,990)
  
    Remeasurement of carrying value to redemption value 
     1,518,400 
  
    Redemption amount payable 
     (17,744,312)