Alpha Star Acquisition Corporation(ALSAU) - 2022 Q2 - Quarterly Report

Part I. Financial Information Financial Statements This section presents the unaudited financial statements for Alpha Star Acquisition Corporation, reflecting its status as a blank check company with no operations, a net loss from operational costs, and a going concern uncertainty Balance Sheets (Unaudited) As of June 30, 2022, the unaudited balance sheet shows $115.4 million in total assets, primarily marketable securities, with a $2.8 million stockholders' deficit and $115.2 million in ordinary shares subject to redemption Balance Sheet Summary (as of June 30, 2022 vs. December 31, 2021) | Metric | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Assets | $115,416,935 | $115,530,794 | | Marketable securities held in trust account | $115,173,461 | $115,000,744 | | Total Liabilities | $3,008,939 | $2,927,999 | | Deferred underwriting commissions | $2,875,000 | $2,875,000 | | Ordinary shares subject to possible redemption | $115,173,461 | $115,000,000 | | Total Stockholders' Deficit | $(2,765,465) | $(2,397,205) | Statements of Operations (Unaudited) For the three and six months ended June 30, 2022, the company reported net losses of $15,320 and $194,799, respectively, driven by operational costs offset by interest income Results of Operations Highlights | Period | Net Loss | Key Drivers | | :--- | :--- | :--- | | Three Months Ended June 30, 2022 | $(15,320) | Formation/Operational Costs: $(178,656)
Interest Income: $163,331 | | Six Months Ended June 30, 2022 | $(194,799) | Formation/Operational Costs: $(367,521)
Interest Income: $172,717 | Statements of Changes in Stockholders' Deficit (Unaudited) The stockholders' deficit increased from $(2.40) million to $(2.77) million as of June 30, 2022, due to a net loss and remeasurement of ordinary shares Change in Stockholders' Deficit (For the six months ended June 30, 2022) | Description | Amount | | :--- | :--- | | Balance at December 31, 2021 | $(2,397,205) | | Net loss | $(194,799) | | Remeasurement to redemption value | $(173,461) | | Balance at June 30, 2022 | $(2,765,465) | Statements of Cash Flows (Unaudited) For the six months ended June 30, 2022, net cash used in operating activities was $212,192, resulting in a decrease in the cash balance to $175,666 Cash Flow Summary (For the six months ended June 30, 2022) | Cash Flow Item | Amount | | :--- | :--- | | Net cash used in operating activities | $(212,192) | | Net cash provided by financing activities | $0 | | Net decrease in cash | $(212,192) | | Cash at beginning of period | $387,858 | | Cash at end of period | $175,666 | Notes to Unaudited Financial Statements These notes detail the company's blank check nature, IPO and private placement proceeds, trust account establishment, and a significant going concern uncertainty due to the business combination deadline - The company is a blank check company formed to effect a business combination, focusing on businesses with an Asian market connection[20][21] - Management has determined substantial doubt about the company's ability to continue as a going concern due to the September 15, 2023, liquidation date and insufficient working capital[33][34] - The company completed its IPO on December 15, 2021, issuing 11.5 million units at $10.00 per unit and generating $115 million in gross proceeds[24][57] - A deferred underwriting commission of $2.875 million is payable from the trust account upon completion of an initial business combination[70] Management's Discussion and Analysis of Financial Condition and Results of Operations As a blank check company with no revenue, activities are limited to organizational matters and target search, resulting in a $194,799 net loss and a need for additional funds - The company has not generated operating revenues and focuses solely on identifying a target for a business combination[88] Financial Highlights (Six Months Ended June 30, 2022) | Metric | Amount | | :--- | :--- | | Net Loss | $(194,799) | | Cash held outside Trust Account (as of June 30, 2022) | $175,666 | | Marketable Securities in Trust Account (as of June 30, 2022) | $115,173,461 | - Management anticipates needing to raise additional funds to cover operating expenditures and complete a business combination[98] - The company pays its Sponsor a $10,000 monthly fee for administrative services until a business combination or liquidation[101] Quantitative and Qualitative Disclosures Regarding Market Risk The company faces no material market or interest rate risk, as IPO proceeds in the trust account are invested in short-term U.S. government securities or money market funds - Funds in the Trust Account are invested in short-term U.S. government securities or money market funds, resulting in no material interest rate risk exposure[112] Controls and Procedures As of March 31, 2022, disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the most recent fiscal quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2022[114] - No material changes occurred in internal control over financial reporting during the most recent fiscal quarter[115] Part II. Other Information Legal Proceedings As of the filing date, the company is not a party to any legal proceedings - The company is not a party to any legal proceedings[117] Risk Factors No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes to risk factors have occurred since the Annual Report on Form 10-K for the fiscal year ended December 31, 2021[118] Unregistered Sales of Equity Securities and Use of Proceeds This section details the $3.3 million private placement of 330,000 units to the sponsor and the $115 million IPO proceeds placed into a trust account - Concurrently with the IPO, 330,000 Private Units were sold to the sponsor at $10.00 per unit, generating $3.3 million in proceeds[119] - The IPO of 11.5 million units generated $115 million in gross proceeds, all of which was placed in the trust account[120][122] Defaults Upon Senior Securities The company has no defaults upon senior securities - There are no defaults upon senior securities[124] Mine Safety Disclosures This item is not applicable to the company - This item is not applicable[126] Other Information There is no other information to report - There is no other information to report[127] Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including officer certifications and XBRL data files - The report includes filed exhibits such as CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101 series)[129]