Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 864

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 2
Chunk 864
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 any. The design of disclosure controls and procedures also is based partly on certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions.

Management’s
Report on Internal Control Over Financial Reporting

Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined
in Exchange Act Rules 13a-15(f) and 15d-15(f)) for us. Under the supervision and with the participation of our Certifying Officers, our
management assessed the effectiveness of our internal control over financial reporting as of December 31, 2024 based on criteria specified
in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based
on our assessment, our management, including our chief executive officer and chief financial officer, concluded that, as of December
31, 2023, the internal control over financial reporting was not effective due to a material weakness related to the accounting of the
Extension Loans in the form of non-interest-bearing promissory notes and related to the calculation of redemption price. Additionally,
based on management’s assessment, we determined that there was a material weakness in our internal control over financial reporting
as of December 31, 2024.

25

We
have identified a material weakness in our internal control over financial reporting as of December 31, 2024. If we are unable to develop
and maintain an effective system internal control over financial reporting, we may not be able to accurately report our financial results
in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating
results.

To
address this material weakness, our management has expended, and will continue to expend, a substantial amount of effort and resources
for the remediation and improvement of our internal control over financial reporting. While we have processes to properly identify and
evaluate the appropriate accounting of extension loans, redemption payments, technical pronouncements and other literature for all significant
or unusual transactions, we will continue to improve these processes to ensure that the nuances of such transactions are effectively
evaluated in the context of the increasingly complex accounting standards. In addition, we are assessing our resource needs as well as
roles and responsibilities with a particular focus on accounting and financial reporting staff and will make additional changes as needed,
but we can offer no assurance that our controls will not require additional review