Company: FTII
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011790
Chunk: 97

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 4
Chunk 97
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, concluded that, as of December 31, 2023, the internal control over financial
reporting was not effective due to a material weakness related to the accounting of the Extension Loans in the form of non-interest-bearing
promissory notes and related to the calculation of redemption price. Additionally, based on management’s assessment, we determined
that there was a material weakness in our internal control over financial reporting as of March 31, 2025 due to an entry that we missed to record the amount collected during the clawback process to collect the overpayments
from our redeeming shareholders.

We have identified a
material weakness in our internal control over financial reporting as of March 31, 2025. If we are unable to develop and maintain an
effective system internal control over financial reporting, we may not be able to accurately report our financial results in a timely
manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating results.

To address this material
weakness, our management has expended, and will continue to expend, a substantial amount of effort and resources for the remediation and
improvement of our internal control over financial reporting. While we have processes to properly identify and evaluate the appropriate
accounting of extension loans, redemption payments, technical pronouncements and other literature for all significant or unusual transactions,
we will continue to improve these processes to ensure that the nuances of such transactions are effectively evaluated in the context of
the increasingly complex accounting standards. In addition, we are assessing our resource needs as well as roles and responsibilities
with a particular focus on accounting and financial reporting staff and will make additional changes as needed, but we can offer no assurance
that our controls will not require additional review and modification in this future as industry accounting practices may evolve over
time.

Because of its inherent
limitations, internal control over financial reporting may not prevent or detect errors or misstatements in our financial statements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate.

 12 

Changes in Internal
Control over Financial Reporting

There were no changes
in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during
the most recent fiscal quarter covered by this Quarterly Report that have materially affected, or are reasonably