FutureTech II Acquisition Corp. to Restate Financial Statements Due to Accounting Errors

FutureTech II Acquisition Corp. (NASDAQ: FTIIU) announced on November 22, 2024, that the company will be restating its financial statements for the fiscal year ended December 31, 2023, as well as the financial statements for the first and second quarter of 2024. This decision comes after an accounting error was discovered related to the treatment of Extension Loans and potential overpayments in the redemption of shares.

The company’s management, in consultation with the Audit Committee, legal counsel, and accountants, concluded that the previously issued financial statements should not be relied upon due to these errors. The error primarily involves the treatment of Extension Loans made by the Sponsor to the company, as well as potential overpayments made during redemption transactions.

The Extension Loans issued by the Sponsor were initially not considered as liabilities in the financial statements, leading to a reassessment of the company’s internal controls over financial reporting. While these errors were deemed not qualitatively material, the quantitative impact was significant enough to warrant a restatement of the affected financial statements.

Furthermore, during the redemption process, it was discovered that the company might not have withdrawn all allowable interest from the Trust Account, potentially resulting in overpayments to redeeming stockholders. As a result, the company is working with its accountants to recalculate these redemption payments and determine the need for corrections.

As a proactive measure, FutureTech II Acquisition Corp. intends to restate its 2023 Audited Financial Statements, financial statements for Q1 and Q2 of 2024, and may make amendments to related disclosures. The company is diligently pursuing the completion of the review process and aims to file the restated financial statements within five business days.

Although the review is ongoing, management anticipates the discovery of material weaknesses in the company’s internal controls over financial reporting during the affected periods. The description of these restatements and errors is preliminary and subject to further changes as the review progresses.

The company provided a cautionary note regarding forward-looking statements, acknowledging the uncertainties and risks associated with restatements and potential delays in filing the amended financial statements. Future updates on these developments will be provided as needed.

Investors and stakeholders are advised to exercise caution and carefully monitor the company’s filings and disclosures as the situation progresses. The company aims to ensure transparency and accuracy in its financial reporting processes to maintain stakeholders’ trust and confidence.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FutureTech II Acquisition’s 8K filing here.

About FutureTech II Acquisition

FutureTech II Acquisition Corp. does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It focuses on business operating in the technology industry, including artificial intelligence (AI), robotic process automation, and other related technology market.