Financial Performance - For the three months ended March 31, 2024, the company reported a net income of $297,020, down from $595,502 in the same period of 2023, primarily due to a decrease in interest income from marketable securities [114]. - The company has an accumulated deficit of $6,084,666 and a working capital deficit of $3,256,461 as of March 31, 2024, raising substantial doubt about its ability to continue as a going concern [116]. Capital Raising and Investments - The company raised 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 [118]. - As of March 31, 2024, the company had investments held in the Trust Account amounting to $36,067,927, which are intended to be used for completing a Business Combination [121]. - The company incurred $5,704,741 in transaction costs related to the Initial Public Offering, including $2,300,000 in underwriting fees [119]. - The company may need to raise additional capital through loans or investments to meet working capital needs and complete a Business Combination [124]. Business Combination and Agreements - On October 30, 2023, the company extended the deadline to consummate a business combination to August 5, 2024, following shareholder approval [132]. - The company entered into a Merger Agreement with Future Dao Group Holding Limited on April 12, 2023, but this agreement was mutually terminated on October 6, 2023 [135][136]. - The Merger Agreement has been terminated, and no fees or expenses will be paid by either party as a result of this termination [137]. Accounting Policies and Risks - The company has identified critical accounting policies that may affect reported amounts of assets and liabilities, which could lead to material differences from estimates [139]. - Warrants are classified as either equity or liability based on specific terms, with assessments conducted at issuance and quarterly thereafter [140]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value, reflecting certain redemption rights outside the company's control [142]. - 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 [143]. - As of March 31, 2024, 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 [146].
Metal Sky Star Acquisition Corporation(MSSAU) - 2024 Q1 - Quarterly Report