Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 237

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 237
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 144,000      $              65,000      $                $                 79,000  

The Public Warrants and the Private Placement
Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within liabilities on the balance sheets. The
warrant liabilities were measured at fair value at inception and remeasured on a recurring basis, with changes in fair value presented
within change in fair value of warrant liabilities in the statements of operations.

The Company used a Binomial Option Pricing Model
to value the Private Placement Warrants and a Black-Scholes model to value the overallotment option at the initial measurement date. The
Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one share of Class A ordinary shares
and one-half of one Public Warrant), first to the warrants and overallotment option based on their fair values as determined at initial
measurement, with the remaining proceeds allocated to Class A ordinary shares subject to possible redemption (temporary equity) based
on their fair values at the initial measurement date. The Public Warrants, the Private Placement Warrants and overallotment option were
classified within Level 3 of the fair value hierarchy at the initial measurement dates due to the use of unobservable inputs. Inherent
in pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates
the volatility of its ordinary shares based on historical volatility that matches the expected remaining life of the warrants. The risk-free
interest rate is based on the U. S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining
life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term.

At December 31, 2024 and 2023, the Company used
the quoted price on Over-the-Counter Market (the “ OTC”) to establish the fair value of the Public Warrants.

The Private Placement Warrants were transferred
to a Level 2 from a Level 3 during the year ended December 31, 2023, due to the use of an observable market quote for a similar asset
in an active market. The Private Placement Warrants changed from Level 2 at September 30, 2023 to Level 3 at December 31, 2023 as a result
of the lack of an observable market quote of the Public Warrants on that day. At December 31