Financial Performance - For the six months ended June 30, 2023, the company reported a net income of $1,061,931 compared to a net loss of $11,255 for the same period in 2022, driven by interest income of $1,549,326 [117]. - For the six months ended June 30, 2023, net cash used in operating activities was $344,341, compared to $21,603 for the same period in 2022 [122]. - The company applies the two-class method for calculating earnings per share, excluding ordinary shares subject to possible redemption from the basic net loss per ordinary share calculation [140]. Financial Position - The company had an accumulated deficit of $4,613,145 and a working capital deficit of $1,734,940 as of June 30, 2023, raising substantial doubt about its ability to continue as a going concern [119]. - As of June 30, 2023, the company had investments held in the Trust Account amounting to $59,452,791, which are intended to be used for completing a Business Combination [124]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2023 [128]. Capital Raising and Costs - The company generated gross proceeds of $115,000,000 from its Initial Public Offering of 11,500,000 Units on April 5, 2022, and an additional $3,300,000 from the sale of 330,000 Private Units [121]. - The company incurred $5,704,741 in transaction costs related to the Initial Public Offering, including $2,300,000 in underwriting fees [122]. - The company plans to raise additional capital to meet its operational needs and to finance transaction costs related to the Business Combination [127]. Business Combination - 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 [134]. - The company has a contractual obligation to pay the Sponsor a monthly fee of $10,000 for general and administrative services until the completion of a Business Combination [129]. Risk Management - As of June 30, 2023, the company was not subject to any market or interest rate risk, with net proceeds from the Initial Public Offering invested in U.S. government securities and money market funds [142]. - The management does not anticipate that any recently issued accounting standards will have a material effect on interim financial statements [141].
Metal Sky Star Acquisition Corporation(MSSAU) - 2023 Q2 - Quarterly Report