Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 600

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 3
Chunk 600
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 of (i) December 31, 2023 or (ii) the consummation of the Proposed Offering. On December 29, 2023, the Company and the Sponsor mutually agreed to extend the repayment date
         on the earlier of (i) December 31, 2024 or (ii) the consummation of the Proposed Offering.
       
      On August 30, 2024, the Company issued an unsecured promissory note to the Sponsor, pursuant
         to which the Company may borrow up to an aggregate principal amount of $1,000,000 (the “Promissory Note”). The Promissory Note is non-interest bearing and payable on
         the earlier of (i) December 31, 2025 or (ii) the consummation of the initial business combination.
       
      As of December 31, 2024 and 2023, the principal amount due and owing under the Promissory Notes was $677,851 and $433,554, respectively.
       
      Administrative Services Agreement
       
      The Company is obligated, commencing from the first date that any securities of the
         Company registered on the Company’s registration statement for its Proposed Public Offering are listed on the Nasdaq
         Global Market, to pay Whale Management Corporation a monthly fee of $10,000 for general and administrative services. This agreement will terminate upon completion
         of the Company’s business combination or the liquidation of the trust account to public shareholders. As of December 31, 2024 and 2023, the unpaid balance was $40,000 and $0, respectively, which is included in promissory notes - related party balance.
       
      Working Capital Loans
       
      In order to finance transaction costs in connection with a Business Combination, the
         Sponsor or an affiliate of the Sponsor or certain of the Company’s directors and officers may, but are not obligated to, loan the Company funds as
         may be required (“Working Capital Loans”). If the Company completes a Business Combination,
         the Company would repay the Working Capital Loans out of the proceeds of the Trust
         Account released to the Company. 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