Horizon Space Acquisition I Corp.(HSPOU) - 2024 Q2 - Quarterly Report

Financial Performance - The company has not generated any revenue since its inception and has incurred losses primarily from formation and operating costs[92]. - For the three months ended June 30, 2024, the company reported a net income of $629,211, down from $757,286 in the same period of 2023[104]. - The company incurred operating costs of $155,009 for the three months ended June 30, 2024, compared to $67,642 in the same period of 2023[104]. Capital Structure - The IPO raised gross proceeds of $69,000,000 from the sale of 6,900,000 units at an offering price of $10.00 per unit[93]. - A private placement generated an additional $3,857,500 from the sale of 385,750 units at the same price of $10.00 per unit[94]. - The company plans to use the net proceeds from the IPO to acquire a target business and cover related expenses, including deferred underwriting commissions of $2,415,000[107]. - The Company issued an unsecured promissory note of $300,000 to the Sponsor, which will be used for general working capital purposes[114]. Financial Position - As of June 30, 2024, the company had cash of $21,876 and a working capital deficiency of $797,478[110]. - As of June 30, 2024, the assets held in the Trust Account amounted to $61,128,031, primarily in mutual funds[116]. - The fair value of investments held in the Trust Account is determined using available market information, classified as trading securities[116]. Business Combination - The company has until August 27, 2024, to complete its initial business combination, with the possibility of extending this deadline up to nine months[96]. - A non-binding Letter of Intent was signed with Shenzhen Squirrel Enlivened Media Group for a potential business combination[97]. Accounting and Taxation - The Company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment upon further review[118]. - The Company does not have any critical accounting estimates that could significantly affect reported amounts[115]. - The Company is considered an exempted Cayman Islands Company and is not subject to income taxes in the Cayman Islands or the United States[130]. - The Company’s tax provision was deemed to be de minimis for the period presented[130]. - The adoption of ASU 2020-06 on January 1, 2024, did not have a material effect on the Company’s financial statements[131]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[133].