Financial Performance - Net income for the three months ended September 30, 2023, was $108,936, a recovery from a net loss of $209,044 in the same period of 2022[16]. - For the nine months ended September 30, 2023, the net income was $1,072,088 compared to a net loss of $209,750 for the same period in 2022[22]. - Basic and diluted net income per Class A common stock subject to possible redemption was $0.01 for the three months ended September 30, 2023, compared to a loss of $0.08 in the same period of 2022[16]. - The Company reported a net income allocation of $85,528 for Class A common stock and $23,408 for Class B common stock for the three months ended September 30, 2023, with a basic and diluted income per share of $0.01 for both classes[66]. - For the nine months ended September 30, 2023, the net income allocation was $860,218 for Class A and $211,870 for Class B, resulting in a basic and diluted income per share of $0.09 for both classes[66]. Assets and Liabilities - Total current assets increased to $2,537,074 as of September 30, 2023, compared to $1,109,088 as of December 31, 2022, reflecting a growth of approximately 128.5%[14]. - Total liabilities rose to $6,707,093 as of September 30, 2023, from $3,823,629 as of December 31, 2022, marking an increase of approximately 75.5%[14]. - The total stockholders' deficit increased to $(3,334,181) as of September 30, 2023, from $(2,328,098) as of December 31, 2022[14]. - The Company has a working capital deficit of $950,019 as of September 30, 2023[37]. Cash and Marketable Securities - The company had cash at the end of the period amounting to $2,417,380, an increase from $1,397,490 at the end of the same period in 2022[22]. - Marketable securities held in the Trust Account decreased to $54,604,237 from $95,134,678, representing a decline of about 42.8%[14]. - As of September 30, 2023, the Trust Account held $54,604,237 in cash and marketable securities, with an additional $2,417,380 in operating bank accounts[37]. - The Company has cash and marketable securities held in the Trust Account amounting to $54,604,237 as of September 30, 2023, down from $95,134,678 as of December 31, 2022[119]. Operational Costs - Operational costs for the three months ended September 30, 2023, were $742,722, significantly higher than $260,696 for the same period in 2022, indicating an increase of approximately 184.5%[16]. - The total cash used in operating activities for the nine months ended September 30, 2023, was $(1,056,881), compared to $(49,768) for the same period in 2022[22]. - The Company incurred $30,000 and $91,666 in administrative expenses for the three and nine months ended September 30, 2023, respectively[89]. Business Combination and Future Plans - The Company has until December 22, 2023, to consummate a Business Combination, with a potential extension to June 22, 2024[35]. - The Merger Agreement with K Enter Holdings Inc. was executed on June 15, 2023, involving a merger with K Wave Media Ltd.[41]. - The Company may need to raise additional capital to complete a Business Combination or to redeem a significant number of Public Shares[39]. - The Company has disclosed that it may face liquidity issues if a Business Combination is not completed by the specified deadlines[40]. Shareholder Information - The weighted average number of Class A common stock subject to possible redemption outstanding increased to 8,403,811 from 704,348 year-over-year[16]. - A total of $42,680,726 was redeemed by stockholders for 4,052,066 Public Shares at approximately $10.53 per share[33]. - The Company has 613,225 shares of Class A Common Stock issued and outstanding, excluding 5,147,934 shares subject to possible redemption[101]. - The Company has 2,300,000 shares of Class B Common Stock issued and outstanding as of September 30, 2023[102]. - There are 9,200,000 Public Warrants outstanding as of September 30, 2023, which will become exercisable 30 days after the completion of a Business Combination[106]. Tax and Regulatory Matters - The company reported a provision for income taxes of $212,673 for the three months ended September 30, 2023, with no provision in the same period of 2022[16]. - The effective tax rate for the three months ended September 30, 2023, was 65.1%, compared to 0.0% for the same period in 2022, with a nine-month effective tax rate of 37.5% for 2023 versus 0.0% for 2022[62]. - The Company recorded a 1% excise tax liability of $426,807 related to the redemption of Public Shares[44]. Capital Raising Activities - The company generated gross proceeds of $80,000,000 from its initial public offering (IPO) of 8,000,000 units on September 22, 2022[27]. - The company completed a private placement of 456,225 units generating total gross proceeds of $4,562,250[28]. - The Company incurred $412,500 in additional offering costs related to the overallotment exercise[91]. - The Sponsor extended a line of credit of up to $1,600,000 through a Promissory Note dated July 31, 2023, to finance transaction costs[85]. Miscellaneous - As of September 30, 2023, the Company has not commenced any operations and all activities were related to organizational efforts and identifying a target company for a business combination[25]. - The Company has not experienced losses on its cash accounts, which may exceed the Federal Depository Insurance Corporation coverage limit of $250,000[67]. - The Company has not recognized any unrecognized tax benefits or accrued interest and penalties as of September 30, 2023[61]. - The Company has elected not to opt out of the extended transition period under the JOBS Act, allowing it to adopt new or revised financial accounting standards at the same time as private companies[49].
Global Star Acquisition(GLST) - 2023 Q3 - Quarterly Report