Horizon Space Acquisition I (HSPO) - 2024 Q2 - Quarterly Report

Financial Performance - The company has not generated any revenue since inception and has incurred losses primarily from formation and operating costs [76]. - For the three months ended June 30, 2024, the company reported a net income of $629,211, with interest and dividend income of $784,220 offset by operating costs of $155,009 [86]. - As of June 30, 2024, the company had cash of $21,876 and a working capital deficiency of $797,478 [91]. Capital Raising - The IPO raised gross proceeds of $69,000,000 from the sale of 6,900,000 units at an offering price of $10.00 per unit [77]. - The private placement generated gross proceeds of $3,857,500 from the sale of 385,750 units at a purchase price of $10.00 per unit [78]. - The company plans to use substantially all net proceeds from the IPO to acquire a target business and cover related expenses, including deferred underwriting commissions of $2,415,000 [88]. Business Combination - The company has until August 27, 2024, to complete its initial business combination, with the possibility of extending this period up to nine months [79]. - A non-binding Letter of Intent was signed with Shenzhen Squirrel Enlivened Media Group for a potential business combination, but no definitive agreements have been made [80]. - The company has incurred significant professional costs to remain publicly traded and expects to continue incurring transaction costs in pursuit of a business combination [91]. Financial Position - As of June 30, 2024, the assets held in the Trust Account amounted to $61,128,031, primarily in mutual funds [97]. - As of June 30, 2024, the company has no long-term debt or off-balance sheet financing arrangements [92]. - The Company issued an unsecured promissory note of $300,000 to the Sponsor, which will be used for general working capital purposes [95]. Accounting and Taxation - The Company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment upon further review [99]. - The Company does not have any critical accounting estimates that could significantly affect reported amounts [96]. - The fair value of investments held in the Trust Account is determined using available market information, classified as trading securities [97]. - The Company is considered an exempted Cayman Islands Company and is not subject to income taxes in the Cayman Islands or the United States [109]. - The Company complies with ASC 740 for income taxes, recognizing deferred tax assets and liabilities [107]. - The adoption of ASU 2020-06 on January 1, 2024, did not have a material effect on the Company's financial statements [110]. - Ordinary Shares subject to possible redemption are classified as temporary equity and presented at redemption value [102]. - The Company does not anticipate any adjustments that would result in a material change to its financial position regarding tax positions [108].