Horizon Space Acquisition I (HSPO) - 2025 Q1 - Quarterly Report

Financial Performance - The company has not generated any revenue since inception and has incurred losses primarily from formation and operating costs [123]. - For the three months ended March 31, 2025, the company reported a net income of $71,454, down from $733,464 for the same period in 2024 [134]. - The company incurred cash used in operating activities of $207,007 for the three months ended March 31, 2025 [135]. 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 [124]. - 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 [125]. - The company plans to use substantially all net proceeds from the IPO for acquiring a target business and covering related expenses, including deferred underwriting commissions of $2,415,000 [136]. - The company issued a Sponsor Note of $300,000 for general working capital purposes, which bears no interest and is payable upon the consummation of the business combination [143]. Financial Position - As of March 31, 2025, the company had cash of $50,808 and a working capital deficiency of $2,487,303 [139]. - As of March 31, 2025, assets held in the Trust Account amounted to $21,904,843, primarily in mutual funds classified as trading securities [147]. - The company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2025 [140]. Business Operations - The company has until May 27, 2025, to complete its initial business combination, with the possibility of extending this deadline up to twelve months [128]. Accounting and Taxation - The company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment upon issuance [149]. - Share-based compensation expense is measured at fair value upon grant date and recognized over the requisite service period, with performance conditions affecting the recorded expense [151]. - The company has identified Cayman Islands as its only major tax jurisdiction, concluding no significant uncertain tax positions requiring recognition in financial statements [158]. - The company's tax provision was deemed de minimis, as it is an exempted Cayman Islands Company not subject to income taxes in the Cayman Islands or the United States [162]. - Management does not anticipate that recently issued accounting pronouncements will have a material effect on the unaudited condensed financial statements [163]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [164]. Fair Value Measurement - The fair value of financial instruments is categorized into three levels, with Level 1 based on unadjusted quoted prices in active markets for identical assets [159].