Financial Performance - For the three months ended June 30, 2024, the company reported a net income of $392,165, compared to a net income of $466,429 for the same period in 2023, reflecting a decrease of approximately 16%[112] - For the six months ended June 30, 2024, the company had a net income of $689,185, down from $1,061,931 in 2023, representing a decline of about 35%[114] Financial Position - 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[115] - 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[120] - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2024[125] Initial Public Offering - The company generated gross proceeds of $115,000,000 from its Initial Public Offering and an additional $3,300,000 from the sale of Private Units[117] - The company incurred $5,704,741 in transaction costs related to the Initial Public Offering, including $2,300,000 in underwriting fees[118] Business Combination and Merger Agreement - On April 12, 2023, the company entered into a Merger Agreement with Future Dao Group Holding Limited, with a valuation of $350 million for the outstanding shares[135] - The company plans to extend the deadline for consummating a Business Combination to August 5, 2024, following shareholder approval[132] - As of June 30, 2024, 3,202,416 public shares remain unredeemed after the exercise of redemption rights by shareholders[133] - The Merger Agreement was mutually terminated on October 6, 2023, with no fees or expenses required to be paid by either party[136] - The termination of the Merger Agreement means that the Transaction Agreements will either be terminated or have no further effect[137] Accounting Policies and Risks - The company has identified critical accounting policies that may materially affect reported amounts of assets and liabilities[139] - Warrants are classified as either equity or liability instruments based on specific terms and applicable accounting standards[140] - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value on the balance sheet[142] - The company applies the two-class method for calculating earnings per share, excluding certain ordinary shares from the basic net loss per share calculation[143] - As of June 30, 2024, the company was not subject to any market or interest rate risk due to investments in U.S. government securities[146]
Metal Sky Star Acquisition Corporation(MSSAU) - 2024 Q2 - Quarterly Report