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Horizon Space Acquisition I Corp.(HSPOU) - 2023 Q1 - Quarterly Report
HSPOUHorizon Space Acquisition I Corp.(HSPOU)2023-05-09 20:19

Financial Position - As of March 31, 2023, the cash held for working capital needs was 402,754,withtotalassetsintheTrustAccountamountingto402,754, with total assets in the Trust Account amounting to 71,036,987[93][83]. - The company has a working capital of 552,929asofMarch31,2023,butfacessubstantialdoubtaboutitsabilitytocontinueasagoingconcernwithoutcompletingabusinesscombination[87].−Thecompanyhasnolong−termdebtoroff−balancesheetfinancingarrangementsasofMarch31,2023[89][88].−Thecompanyhasestablishedaplantoaddressgoingconcernuncertaintiesthroughworkingcapitalloansfromitssponsororaffiliates[87].IncomeandExpenses−Thecompanyreportedanetincomeof552,929 as of March 31, 2023, but faces substantial doubt about its ability to continue as a going concern without completing a business combination[87]. - The company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2023[89][88]. - The company has established a plan to address going concern uncertainties through working capital loans from its sponsor or affiliates[87]. Income and Expenses - The company reported a net income of 698,136 for the three months ended March 31, 2023, primarily due to an unrealized gain of 816,136oninvestmentsheldintheTrustAccount,offsetbyoperatingcostsof816,136 on investments held in the Trust Account, offset by operating costs of 117,416[82]. - The company incurred cash used in operating activities of $158,652 during the three months ended March 31, 2023[83]. - The company expects to incur significant professional costs to remain publicly traded and pursue a business combination[87]. - The company has not generated any revenues to date and is focused on identifying a suitable target for its initial business combination[81]. Investments and Securities - The company’s investments in the Trust Account are classified as trading securities and are presented at fair value[93]. - As of March 31, 2023, the company is not subject to any market or interest rate risk, with IPO proceeds invested in U.S. government treasury bills and money market funds[111]. Taxation - The company is incorporated in the Cayman Islands and is considered an exempted company, currently not subject to income taxes in the Cayman Islands or the United States[108]. - The tax provision for the period presented is deemed to be de minimis, with no significant uncertain tax positions requiring recognition in the financial statements[108]. - The company has identified the Cayman Islands as its only "major" tax jurisdiction[106]. - The company does not anticipate any adjustments that would result in a material change to its financial position regarding income tax positions[106]. - Potential examinations by foreign taxing authorities may include questioning the timing and amount of deductions and compliance with foreign tax laws[107]. - The company’s policy for recording interest and penalties associated with audits is to include them as a component of income tax expense[106]. - The evaluation of tax positions was performed for the 2022 tax year, which is the only period subject to examination[106]. Accounting Policies - The adoption of ASU 2020-06 on July 1, 2022, did not have a material effect on the company's financial statements[109]. - Management believes that no recently issued accounting pronouncements will have a material effect on the financial statements if adopted[110].