Company: FSHPU
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001829126-25-003624
Chunk: 23

Company: Flag Ship Acquisition Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 was non-interest bearing and payable on the earlier of (i) December 31, 2021 or (ii) the consummation of the proposed
IPO (the “Proposed Offering”). On February 4, 2022, the Company and the Sponsor mutually agreed to extend the repayment date
to the earlier of (i) December 31, 2022 or (ii) the consummation of the Proposed Offering. On December 2, 2022, the Company and the Sponsor
mutually agreed to increase the principal amount of the Promissory Note to up to $500,000
and extend the repayment date to the earlier 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 to 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 “August 2024 Promissory Note”). The August 2024 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 March 31, 2025 and December 31, 2024, the principal amount due and owing under the August 2024 Promissory Notes was $850,351
and $677,851,
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 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 March 31, 2025 and December 31, 2024, the unpaid balance was $70,000 and $40,000, 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