Financial Performance - For the three months ended June 30, 2024, the company reported a net income of $392,165, down from $466,429 in the same period of 2023, reflecting a decrease of approximately 16%[90]. - For the six months ended June 30, 2024, the company had a net income of $689,185, compared to $1,061,931 for the same period in 2023, indicating a decline of about 35%[92]. - As of June 30, 2024, the company has an accumulated deficit of $6,308,814 and a working capital deficit of $3,480,609, raising substantial doubt about its ability to continue as a going concern[93]. Capital Raising and Investments - The company raised gross proceeds of $115,000,000 from its Initial Public Offering and an additional $3,300,000 from the sale of Private Units, with a total of $115,000,000 placed in the Trust Account[94]. - As of June 30, 2024, the company had investments held in the Trust Account amounting to $36,684,240, which are intended to be used for completing a Business Combination[95]. - The company may need to raise additional capital through loans or investments to meet its working capital needs and complete a Business Combination[99]. Business Combination and Agreements - On April 12, 2023, the company entered into a Merger Agreement with Future Dao Group Holding Limited, which includes a recapitalization of Future Dao's equity securities valued at $350 million[109]. - The company plans to extend the deadline for consummating a business combination to August 5, 2024, following shareholder approval[106]. - The Merger Agreement was mutually terminated on October 6, 2023, with no fees or expenses required to be paid by either party[110]. Financial Obligations and Costs - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of $10,000 to the Sponsor for general and administrative services[101]. - The company has incurred $5,704,741 in transaction costs related to its Initial Public Offering, including underwriting fees[94]. Accounting and Financial Reporting - The company accounts for warrants based on specific terms, classifying them as either equity or liability instruments[112]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value[114]. - The company applies the two-class method for calculating net loss per ordinary share, excluding certain shares from the basic calculation[115]. - As of June 30, 2024, the company was not subject to any market or interest rate risk, with investments in U.S. government securities[118].
Metal Sky Star Acquisition (MSSA) - 2024 Q2 - Quarterly Report