Company: FSTWF
Filing Date: 2025-07-22
Form Type: F-1/A
Source: 0001213900-25-066660
Chunk: 65

Company: FST Corp.
Filing Date: 2025-07-22
Form: F-1/A
Chunk 65
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; (ii) the increase of interest expense due to the increase of borrowings. Income Tax Expense (benefit) Income tax expense was $456,246 for the year ended December31, 2024 and income tax benefit was $751,071 for the year ended December31, 2023. This was mainly due to the change in deferred tax asset valuation allowance in the fiscal year of 2024. Liquidity and Capital Resources Historically, we have financed our operations mainly through equity contributions from the Group’s shareholders and cash flow from operating activities in ordinary course of business. As of December31, 2024 and December 31, 2023, we had cash and cash equivalents of $5,098,420 and $8,904,618, which consisted of cash, bank deposits and short -term, highly liquid investments that are readily convertible to known amounts of cash. We maintain good credit relationships with multiple banks and has sufficient unused credit facilities to meet its operating capital needs. The Group began to generate positive operating cashflow in 2024, and our sales and cash collections in Q1 2025 also showed relatively strong performance. As of December31, 2024, the Group had unused credit facilities of approximately $8,238,823. The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to continue operating in the normal course of business and will be able to realize its assets and discharge its liabilities as they become due. As of December31, 2024, the Company has continued to incur operating losses and is facing liquidity pressures. Absent any other action, the Company will require additional liquidity to continue as a going concern within twelve months from the issuance of these financial statements. To address these uncertainties, management has developed specific plans to improve the Company’s liquidity position. If the Company is unable to repay the debt as it comes due with cash generated from operations, management plans to refinance its short term obligations to extend the maturity dates. If the Company is unable to secure longer -termfinancing on acceptable terms, management will sell certain non -coreland assets, which are expected to generate a sufficient amount of cash to service the short -termobligations as they come due. Management believes that if these plans are successfully implemented, they will address the Company’s liquidity needs to enable continuation of operations for the foreseeable future. Cash Flows Summary Presented below is a summary of the Group’s operating, investing, and financing cash flows:

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