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 compared to $1,295,815 in the previous year [416]. - The company has incurred net cash used in operating activities of $233,324 for the year ended December 31, 2023, compared to $87,585 in 2022 [421]. - The net loss per ordinary share is calculated using the two-class method, excluding certain shares from the basic calculation [444]. 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 [418]. - The company has no long-term debt or off-balance sheet financing arrangements as of December 31, 2023, but incurs a monthly fee of $10,000 to the Sponsor for administrative services [429][428]. - A total of 5,885,324 public shares were tendered for redemption, leaving 5,614,676 public shares unredeemed as of the last reported date [432]. Capital Raising Activities - The company raised gross proceeds of $115,000,000 from its Initial Public Offering (IPO) and an additional $3,300,000 from the sale of Private Units, with total transaction costs amounting to $5,704,741 [420][421]. - The Company has invested the net proceeds from its Initial Public Offering in U.S. government treasury bills and money market funds, minimizing interest rate risk exposure [446]. Business Combination and Strategic Direction - The company entered into a Merger Agreement on April 12, 2023, with Future Dao Group Holding Limited, which is expected to close prior to the end of 2023 [437]. - The Merger Agreement was mutually terminated on October 6, 2023, indicating a shift in the company's strategic direction [438]. - The company plans to extend the deadline for consummating a business combination to August 5, 2024, following shareholder approval [434]. - The Merger Agreement has been terminated, and neither party will incur fees or expenses due to this termination [439]. Accounting and Financial Reporting - The Company accounts for warrants based on specific terms, assessing whether they are classified as equity or liabilities [441]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value [443]. - The company had investments held in the Trust Account totaling $35,359,088 as of December 31, 2023, which are intended to be used for completing a Business Combination [423].
Metal Sky Star Acquisition Corporation(MSSAU) - 2023 Q4 - Annual Report