Company: FTII
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011790
Chunk: 11

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 11
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 opt out is irrevocable. The Company has elected not to opt out of such extended transition period,
which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company,
as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
This may make comparison of the Company’s financial statements with another public company, which is neither an emerging growth
company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of
the potential differences in accounting standards used.

     F-9 

Note 2 - Summary of Significant Accounting Policies (Continued)

Use of Estimates

The preparation of unaudited
condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial
statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires
management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation
or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

Concentration of Credit Risk

Financial instruments that
potentially subject to concentration of credit risk consist of cash and cash held in trust. Cash is comprised of cash balances with banks
and bank deposits, which are insured by the Federal Deposit Insurance Company (“FDIC”), up to $250,000. The Company did not
have cash exceed FDIC limits at March 31, 2025 and December 31, 2024. Cash held in trust is held in an interest-bearing demand deposit
account at a bank insured by FDIC up to $250,000. The Company had $8,770,580 and $26,197,350 of securities in excess of FDIC limits as
of March 31, 2025 and December 31, 2024, respectively

Derivative

The Company evaluates its financial instruments
to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC 815.
“Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant