Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 226

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 226
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25 -11. Following Prepayment in full, the Company will no longer have an obligation to transfer assets and the Forward Purchase of Relevant Shares will no longer be subject to the accounting requirements of ASC 480, (ii) the embedded put option feature in connection with the Terminated Shares is not indexed to the Company’s own equity because the settlement terms are not fixed, which preclude the embed put option from equity classification. Accordingly, the embedded put option in connection with the Terminated Shares is required to be bifurcated and accounted for separately as an embedded derivative under ASC 815. The Company recognizes the embed put option as an OET derivative liability at fair value on the consolidated balance sheets. Changes in the fair value of OET derivative liability are recorded in the consolidated statements of operations as a component of other income (expense). For the year ended December31, 2024, the company recorded $917,764 fair value changes of the OET derivative liability. The fair value of the OET derivative liability was measure at Black -Scholesmodel, with the key inputs as following:

|                                              |     |   | December 31, 
         2024 |   |     |   | December 27, 2024 
   (Initial Value) |   |
|:---------------------------------------------|:----|:--|-------------:|:--|:----|:--|------------------:|:--|
| Stock price                                  |     | $ |         9.63 |   |     | $ |             11.49 |   |
| Exercise price                               |     | $ |        11.79 |   |     | $ |             11.79 |   |
| Risk-free rate                               |     |   |         4.16 | % |     |   |              4.16 | % |
| Volatility                                   |     |   |        30.17 | % |     |   |             30.17 | % |
| Expected terms (years)                       |     |   |         1.08 |   |     |   |              1.10 |   |
| Estimated weighted average Terminated Shares |     |   |    1,582,101 |   |     |   |         1,582,101 |   |

NOTE 7 — COMMITMENTS & CONTINGENCIES Registration and Shareholder Rights The holders of the (i) founder shares, (ii) Private Placement Warrants, which were issued