Company: FSHPU
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001829126-25-008620
Chunk: 40

Company: Flag Ship Acquisition Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 balance of the 2024 Note and all other sums payable with regard
to the 2024 Note becoming immediately due and payable.

In order to extend the time available for the
Company to consummate a Business Combination, the initial shareholders or their affiliates or designees were initially required to deposit
into the Trust Account $230,000 (approximately $0.033 per public share in either case) on or prior to the date of the applicable
deadline for each one month extension, and up to an aggregate of $2,070,000, or $0.30 per public share. On August 26, 2025, through
the Extraordinary General Meeting, the shareholders approved to reduce the payment from $0.033 per each outstanding public share (for
each monthly extension) to an amount equal to the lesser of (i) $60,000 for all outstanding public shares and (ii) $0.033 for each outstanding
public share. Any such payments would be made in the form of a loan. As of September 30, 2025 and December 31, 2024, the extension loan
balance was $60,000 and $0, respectively, such amounts are included in “Promissory
Notes – Related Party” presented on the balance sheets included in the financial statements filed with this Quarterly Report
on Form 10-Q.

We have incurred and expect to continue to incur significant professional costs to remain as a publicly traded company and to incur significant transaction costs in pursuit of the consummation of a business combination. In order to complete a Business Combination, we will need to raise additional capital through loans or additional investments from our Sponsor, shareholders, officers, directors, or third parties. Our officers, directors and Sponsor may, but are not obligated to, loan us funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet our working capital needs. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all. These conditions raise substantial doubt about our ability to continue as a going concern one year from the issuance date of the unaudited financial statements.

The