Financial Performance - For the year ended December 31, 2023, the company reported a net income of $2,152,160, an increase from $1,274,669 in 2022, driven by interest income on marketable securities of $2,794,771[359]. - The company experienced net cash used in operating activities of $233,324 for the year ended December 31, 2023, compared to $87,585 in 2022[362]. Financial Position - As of December 31, 2023, the company has an accumulated deficit of $5,772,847 and a working capital deficit of $2,844,642, raising substantial doubt about its ability to continue as a going concern[361]. - As of December 31, 2023, the company had investments held in the Trust Account amounting to $35,359,088, which are intended to be used for completing a Business Combination[363]. - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of $10,000 to the Sponsor for administrative services[369]. - The company has the option to raise additional capital through loans or investments from its Sponsor or affiliates to meet working capital needs[367]. - As of December 31, 2023, 3,202,416 public shares remain unredeemed after the exercise of redemption rights by shareholders[374]. Business Combination Activities - On April 12, 2023, the company entered into a Merger Agreement with Future Dao Group Holding Limited, with the Business Combination expected to close prior to the end of 2023[376]. - The company plans to extend the deadline for consummating a Business Combination to August 5, 2024, following shareholder approval on October 30, 2023[373]. - The Merger Agreement was mutually terminated on October 6, 2023, with no fees or expenses required to be paid by either party[377]. Accounting and Reporting - The company accounts for warrants based on specific terms, classifying them as either equity or liabilities, which requires professional judgment[378]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value, reflecting uncertain future events[380]. - The company applies the two-class method for calculating net loss per ordinary share, excluding certain shares from the basic calculation[381]. - The net proceeds from the Initial Public Offering have been invested in U.S. government treasury bills or money market funds, minimizing interest rate risk exposure[383]. Initial Public Offering - The company raised gross proceeds of $115,000,000 from its Initial Public Offering (IPO) on April 5, 2022, and incurred transaction costs of $5,704,741[362].
Metal Sky Star Acquisition (MSSA) - 2023 Q4 - Annual Report