Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 214

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 214
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 $428,000 cash transferred
from the Company’s bank account controlled by the Old Sponsor to the account controlled by the New Sponsor (as mentioned above),
the New Sponsor paid $1,948,084 in total, on behalf of the Company under the October 2023 Note, for extension and working capital purposes,
of which $610,000 was used for extension deposits and $1,338,084 was used for working capital purposes.

On July 11, 2024, the Company issued the July
2024 Note to the New Sponsor, for a principal amount of up to $500,000. The Company may apply the amount advanced by the New Sponsor under
the July 2024 Note to fund the Extension Contribution or, as the Company deems appropriate, towards general corporate purposes. As of
December 31, 2024, the total outstanding under the July 2024 Note was $274,854.

On January 15, 2025, the Company consummated the
Business Combination pursuant to the terms of the Merger Agreement as disclosed above. Following the Business Combination, the Company
became part of Cayco, and all its assets and liabilities became assets and liabilities of Cayco; the Company has had no operations on
its own at all and would not incur any additional expenses and liabilities post the Business Combination. The Company’s ability
to meet all of its obligations as of December 31, 2024 depends on Cayco and its subsidiaries, which is out of the control of the management.

In connection with the Company’s
assessment of going concern considerations in accordance with ASC 205-40, “ Going Concern”, the management of the Company believes
the above conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within
one year after the date that the financial statements are issued. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty. The accompanying financial statements have been prepared in conformity with GAAP, which contemplate
continuation of the Company as a going concern.

Risks and Uncertainties

Management is currently evaluating the impact
of the Israel-Hamas conflict, the Russia-Ukraine war and the United States trade and tariff policy and has concluded that while it is
reasonably possible that the war and the United States trade and tariff policy could have a negative effect on the Company’s financial
position, results of its operations and/or search for a target company, the specific impact is not