Financial Performance - For the nine months ended September 30, 2023, the company reported a net income of $1,724,307, compared to a net income of $398,558 for the same period in 2022, reflecting a significant increase [123]. - The company reported net cash used in operating activities of $422,843 for the nine months ended September 30, 2023, compared to $77,835 for the same period in 2022 [127]. Financial Position - The company had a working capital deficit of $2,407,009 and an accumulated deficit of $5,285,214 as of September 30, 2023, raising substantial doubt about its ability to continue as a going concern [124]. - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2023 [134]. Initial Public Offering (IPO) - The company generated gross proceeds of $115,000,000 from its Initial Public Offering (IPO) and an additional $3,300,000 from the sale of Private Units [126]. - The company incurred $5,704,741 in transaction costs related to the IPO, including $2,300,000 in underwriting fees [127]. Business Combination - The company has entered into a Merger Agreement with Future Dao Group Holding Limited, with the Business Combination expected to close prior to the end of 2023 [142]. - The company plans to extend the deadline for completing a Business Combination to August 5, 2024, with a reduced fee structure for extensions [139][140]. - The Merger Agreement was mutually terminated on October 6, 2023, with no fees or expenses required to be paid by either party [143]. Investments - As of September 30, 2023, the company had investments held in the Trust Account amounting to $60,787,237, which are intended to be used for completing a Business Combination [129]. Management Changes - The company appointed Wenxi He as the new Chief Executive Officer on September 28, 2023, following the resignation of the previous CEO [119]. Accounting Policies - The Company accounts for warrants based on specific terms, assessing whether they are classified as equity or liabilities under FASB ASC 480 and ASC 815 [146]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value, reflecting uncertain future events [149]. - The Company applies the two-class method for calculating earnings per share, excluding certain ordinary shares from the basic net loss per ordinary share calculation [150]. - As of September 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 [152].
Metal Sky Star Acquisition Corporation(MSSAU) - 2023 Q3 - Quarterly Report