Company: FSHPU
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001829126-25-008620
Chunk: 38

Company: Flag Ship Acquisition Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 September 30, 2024,
we had a net income of $432,463, which consisted of interest and dividends income earned in investments held in Trust Account of $989,243,
partially offset by formation and operating costs of $556,780.

Liquidity, Capital Resources and Going Concern

On June 20, 2024, we consummated the IPO of 6,900,000 Units, generating gross proceeds of $69,000,000. Simultaneously with the closing of the initial public offering, we consummated the sale of 238,000 private units (the “Private Units”) to the Sponsor at a price of $10.00 per Private Unit generating gross proceeds of $2,380,000.

Following the IPO and the sale of the Private Units, a total of $69,000,000 was placed in the Trust Account. We incurred $3,448,233 in transaction costs, including $1,380,000 of underwriting fees, $1,725,000 of deferred underwriting fees and $343,233 of other offering costs. 

For the nine months ended September 30, 2025,
net cash used in operating activities was $400,496. Net income of $1,620,825 was mainly impacted by interest and dividends earned on
cash and investments held in the trust account of $2,172,140.

23

As of September 30, 2025, we had cash and investments
held in the Trust Account of $32,584,205. We intend to use substantially all of the funds held in the Trust Account, including any amounts
representing interest and dividends earned on the Trust Account, excluding deferred underwriting commissions, to complete our Business
Combination. We may withdraw interest from the Trust Account to pay taxes, if any. To the extent that our share capital or debt is used,
in whole or in part, as consideration to complete a Business Combination, the remaining proceeds held in the Trust Account will be used
as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

As of September 30, 2025, we had cash of $18,751
held outside of the Trust Account. We intend to use the funds loaned to us under the 2024 Note (defined below) and the funds held outside
the Trust Account primarily to complete the proposed GFT Business Combination or if necessary, to identify and evaluate alternative