Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 145

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 145
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 the
financial reporting process to ensure appropriate financial reporting, and 2) a lack of appropriately skilled resources with experience
and technical knowledge in US GAAP.

To address the identified deficiencies,
we plan to implement the following corrective measures:

1. Continuous
improvement of professional knowledge and practical skills: Strengthening staff in-service training for internal finance and accounting
personnel and encouraging participation in courses related to U. S. GAAP to enhance the Company’s ability to handle complex accounting
issues.

2. Engagement
of external professional consultants: Engaging a professional accounting firm with experience in large-scale corporate audits and tax
consulting to help clarify the recognition logic of deferred income taxes and optimize trial balance and reconciliation processes, improving
the accuracy of financial reporting.

3. Optimization
of period-end closing and review mechanisms: Restructuring the monthly and annual closing processes, introducing multi-level review checkpoints,
and standardizing operational procedures to ensure the consistency, accuracy, and timeliness of key accounting entries.

The Company plans to take
corrective measures, but full implementation will require time and resources. The Company expects to continue monitoring their effectiveness
over the coming quarters and make adjustments as necessary until the relevant internal controls are effectively preventing and detecting
errors.

Attestation Report of the Registered Public Accounting
Firm

In accordance with the JOBS
Act enacted on April 5, 2012, the Company qualifies as an “emerging growth company”, which entitles the Company to take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth
companies. Specifically, the JOBS Act defers the requirement to have the Company’s independent auditor assess the Company’s
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act. As such, the Company is exempt from the requirement
to include an auditor attestation report in this Annual Report, and will continue to be exempt from such requirement, for so long as
the Company remains an emerging growth company, which may be for as long as five years following its initial registration in the United
States.

Changes in Internal Control over Financial
Reporting

There have been no changes
in our internal control over financial reporting (as such term is defined in rules 13a-15(f) and 15d-15(f) under
the Exchange Act) during the fiscal quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially
affect,