Horizon Space Acquisition I Corp.(HSPOU) - 2025 Q2 - Quarterly Report

IPO and Funding - The company completed its IPO on December 27, 2022, raising gross proceeds of $69,000,000 from the sale of 6,900,000 units at an offering price of $10.00 per unit[124]. - The company has incurred losses since inception, with no revenue generated to date, relying on working capital from the IPO and private placements to fund operations[123]. - The company intends to use substantially all net proceeds from the IPO to acquire a target business and cover related expenses, including deferred underwriting commissions of $2,415,000[138]. Financial Performance - As of June 30, 2025, the company reported a net income of $147,341 for the six months ended June 30, 2025, primarily from interest and dividend income of $454,628, offset by operating costs of $307,287[136]. - The company has a working capital deficiency of $3,001,291 as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern[141]. - As of June 30, 2025, the company had cash of $13,259 available for working capital needs, with all remaining cash held in the Trust Account[137]. Business Combination and Extensions - The company has until August 27, 2025, to complete its initial business combination, with the option to extend this period up to twelve times for one-month increments[127]. - A total of $840,000 in Monthly Extension Fees has been deposited into the Trust Account to facilitate the extension of the business combination deadline[128]. Debt and Financing - The company has issued unsecured promissory notes totaling $300,000 to the Sponsor for working capital purposes, which may be converted into private units[131][133]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2025[142]. - The Sponsor Note issued on June 13, 2025, has a principal amount of $300,000, bearing no interest and payable upon the consummation of the business combination or at maturity[145]. Assets and Investments - As of June 30, 2025, assets held in the Trust Account amounted to $22,494,719, primarily in mutual funds[148]. - The fair value of investments held in the Trust Account is determined using available market information, classified as trading securities[148]. - The estimated fair values of investments are categorized into three levels based on the inputs used for measurement, with all investments classified as trading securities[158]. Accounting and Taxation - The Company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment upon issuance[150]. - The Company recognizes changes in the redemption value of ordinary shares subject to possible redemption immediately as they occur, adjusting the carrying value accordingly[154]. - The Company has identified no significant uncertain tax positions requiring recognition in its financial statements, with a de minimis tax provision for the period presented[162]. - The Company is not subject to income taxes in the Cayman Islands or the United States, being considered an exempted Cayman Islands Company[162]. - Management does not anticipate that any recently issued accounting pronouncements will materially affect the financial statements[163]. - The Company has the right to convert the Sponsor Note into private units, with conversion units determined by dividing the outstanding principal by $10.00[145].