FST (KBSX) Registration filing summary

Company overview and business model

• Manufactures and sells high-performance golf shafts under its proprietary KBS brand and as an OEM/ODM for global golf brands, with operations based in Taiwan and retail presence in the U.S. and Japan.

• Transitioned from OEM to branded supplier, with KBS shafts endorsed by 73 PGA players and 114 tournament wins as of June 2025.

• Vertically integrated model covers R&D, manufacturing, and global marketing, enabling brand-driven growth and higher margins.

• Product portfolio includes premium, standard, and economy shafts, as well as accessories and fitting services through KBS Golf Experience stores.

• Plans to expand graphite shaft production, open new stores globally, and pursue acquisitions to strengthen market position.

Financial performance and metrics

• 2024 revenue grew 27% to $36.5M, with golf shafts accounting for 96.8% of sales; gross profit rose 16.9% to $15.7M.

• Gross margin declined to 43.1% from 46.8% due to lower unit prices and higher per-unit costs.

• Net loss widened to $3.2M in 2024 from $2.2M in 2023, driven by increased selling, G&A, and transaction costs.

• Operating cash flow improved, with net cash used in operations at $1.6M in 2024 versus $11.2M in 2023.

• As of December 31, 2024, cash and equivalents were $5.1M, with $15.3M in short-term and $9.4M in long-term bank loans.

Use of proceeds and capital allocation

• Will not receive proceeds from the resale of shares by selling securityholders; only receives cash if warrants are exercised.

• If all 14.4M warrants are exercised for cash at $11.50/share, potential proceeds are $165.6M, but current share price ($1.56) is below exercise price.

• Proceeds from warrant exercises, if any, would be used for general corporate purposes and growth initiatives.