Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 957

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 3
Chunk 957
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of notes payable of $144,443, partially offset by expenses of $1,062,699 and tax expense of $979,344. Investment income was higher in
2023 compared to 2022 due to the increase in interest rates. Expenses were higher in 2023 compared to 2022 due to due diligence costs
related to a potential business combination transaction.

Liquidity
and Capital Resources

In
connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s
Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue
as a Going Concern,” the Company has until August 18, 2025 to complete a Business Combination. It is uncertain that the Company
will be able to consummate an initial Business Combination by this time. If an initial Business Combination is not consummated by this
date and the Company has not exercised its option to extend the deadline, there will be a mandatory liquidation and subsequent dissolution
of the Company. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
The financial statements do not include any adjustments that might result from the Company’s inability to continue as a going concern.

22

The
Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash
equivalents are carried at cost, which approximates fair value. The Company had $56,768 in cash and no cash equivalents as of December
31, 2024.

For
the year ended December 31, 2024, cash used in operating activities was $1,925,582. The net loss of $746,953 was affected by interest
earned on investments held in the trust account of $1,342,491, and changes in operating assets and liabilities provided $163,862 of cash
for operating activities.

For
the year ended December 31, 2023, cash used in operating activities was $1,766,109. The net income of $2,911,502 was affected by interest
earned on investments held in the trust account of $4,809,102, gain on extinguishment of notes payable of $144,443 and changes in operating
assets and liabilities provided $275,934 of cash for operating activities.

For
the year ended December 31, 2024, cash provided by investing activities was $36,859