Horizon Space Acquisition I Corp.(HSPOU) - 2023 Q2 - Quarterly Report

Financial Performance - The company had a net income of $757,286 for the three months ended June 30, 2023, primarily from interest and dividend income of$824,928 on investments held in the Trust Account, offset by operating costs of $67,642[87]. - For the six months ended June 30, 2023, the company reported a net income of$1,456,006, with interest and dividend income totaling $1,641,064 and operating costs of$185,058[87]. - The company reported a net income (loss) per ordinary share, calculated based on undistributed income (loss) allocable to redeemable and non-redeemable shares[105]. Cash and Working Capital - As of June 30, 2023, the company had cash of $374,628 available for working capital needs, with a total working capital of$440,287[93]. - The company raised gross proceeds of $69,000,000 from the IPO by selling 6,900,000 Public Units at an offering price of$10.00 per unit[81]. - The company completed a Private Placement of 385,750 units at a purchase price of $10.00 per unit, generating gross proceeds of$3,857,500[82]. Assets and Investments - The total assets held in the Trust Account amounted to $71,861,915 as of June 30, 2023, primarily invested in mutual funds[99]. - As of June 30, 2023, the assets held in the Trust Account were primarily in mutual funds and U.S. Treasury securities, classified as trading securities[109]. Business Operations and Risks - The company has not engaged in any operations or generated any revenues since its inception, relying on working capital from the IPO and loans from sponsors[80]. - If a business combination is not completed by September 27, 2023, the company may commence voluntary liquidation[93]. - The company expects to incur significant costs related to being a public company and pursuing a business combination, including deferred underwriting commissions of$2,415,000[90]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2023[94]. Tax and Valuation - The company's tax provision was deemed de minimis, as it is an exempted Cayman Islands Company and not subject to income taxes in the Cayman Islands or the United States[113]. - The company has established a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized[110]. - The company has identified no significant uncertain tax positions requiring recognition in its financial statements[111]. - The company does not anticipate any adjustments that would result in a material change to its financial position regarding income tax positions[111]. Financial Instruments and Measurement - The fair value hierarchy for financial instruments is categorized into three levels, with Level 1 based on unadjusted quoted prices in active markets[107]. - The fair value measurement techniques include market approach, income approach, and cost approach[106]. - The adoption of ASU 2020-06 on July 1, 2022, did not have a material effect on the company's financial statements[114]. - The company is not subject to any market or interest rate risk as of June 30, 2023, with investments in U.S. government treasury bills and money market funds[116].