Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 567

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 567
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, Fair Value Measurementusing Level 3 inputs. The fair value was determined by calculating the fair value of the underlying shares that would be received upon conversion at closing of the Business Combinations, discounted to present value using a discount rate 60% and a time to merger of approximately five months and applying a probability of closing the Business Combination of approximately 72%. The Company determined that there is no value in the underlying promissory notes if the Business Combination were terminated.

| F-45 |

longevity biomedical, inc.

notes to the financial statements (unaudited)

Second Modification

On September 16, 2024, the Company entered into the Amendment to the Assignment, Assumption and Note Conversion Agreement (“Convertible Note Amendment”) whereby the conversion was amended to be as follows:

(i) in exchange for the first $6.215 million of principal amount of promissory notes outstanding, that number of shares of Company Common Stock equal to 20% of the total number of shares of Company Common Stock to be outstanding immediately prior to the merger, plus (ii) in exchange for each additional $750,000 of principal amount of promissory notes outstanding, that number of shares of Company Common Stock equal to an additional 1% of Company common stock outstanding.

The modification to the convertible notes was evaluated in accordance with FASB Accounting Standards Codification (“ASC”) 470-50, Debt – Modifications and Extinguishmentsand was determined to be recognized as an extinguishment as the modification to the embedded conversion feature resulted in a change in fair value of the carrying amount of the original debt instrument of at least ten percent. The Company calculated the fair value of the debt on the date of modification to be $7,610,610 and recognized a loss on extinguishment of $1,080,610.

The Company determined the fair value of the convertible notes on the date of modification in accordance with ASC 820, Fair Value Measurementusing Level 3 inputs. The fair value was determined by calculating the fair value of the underlying shares that would be received upon conversion at closing of the Business Combinations, discounted to present value using a discount rate of 60% and a time to merger of approximately five months and applying a probability of closing the Business Combination of approximately 50%. The Company determined that there is no value in the underlying convertible notes if the Business Combination was terminated.

The following table outlines the original principal of the promissory notes issued and outstanding as of September 30, 2024:

| Date of Issu