Horizon Space Acquisition I (HSPO) - 2023 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2023, the company reported a net income of $794,031, consisting of interest and dividend income of $936,211, offset by operating costs of $142,180 [126]. - For the nine months ended September 30, 2023, the company had a net income of $2,250,037, with interest and dividend income of $2,577,275, offset by operating costs of $327,238 [127]. - The company has not generated any revenue to date and has incurred losses since inception due to formation and operating costs [108]. - The company has incurred increased expenses due to being a public company, impacting its financial position [125]. - Significant professional costs are expected to continue as the company remains publicly traded and pursues a business combination [134]. Cash and Investments - As of September 30, 2023, the company had cash of $289,464 available for working capital needs, with all remaining cash held in the Trust Account [129]. - As of September 30, 2023, the company had cash of $289,464 and working capital of $228,107 [134]. - The Trust Account held assets of $72,868,126, primarily in mutual funds, classified as trading securities [140]. - The net proceeds from the IPO have been invested in U.S. government treasury bills, notes, or bonds with a maturity of 185 days or less [159]. - The company has also invested in certain money market funds that invest solely in U.S. treasuries [159]. - Due to the short-term nature of these investments, the company believes there will be no associated material exposure to interest rate risk [159]. Business Combination and Operations - On October 24, 2023, a total of $70,000 was deposited into the Trust Account, extending the deadline for the initial business combination from October 27, 2023, to November 27, 2023 [104]. - The company has the option to extend the deadline for the initial business combination up to six times, each by one month, potentially extending to March 27, 2024 [115]. - On September 25, 2023, shareholders approved an amendment allowing the company to cease operations if it fails to complete a business combination by the termination date [114]. - If unable to complete a business combination by September 27, 2023, the company may commence voluntary liquidation [134]. - The company incurred deferred underwriting commissions of $2,415,000 payable to underwriters upon completion of the business combination [136]. Financing and Debt - The company issued unsecured promissory notes totaling $140,000 to evidence the payment of Monthly Extension Fees [120]. - The company may need additional financing to consummate the initial business combination or to meet obligations if cash on hand is insufficient [133]. - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2023 [135]. Accounting and Compliance - The company accounts for share-based compensation expense in accordance with ASC 718, recognizing it over the requisite service period [144]. - The adoption of ASU 2020-06 on July 1, 2022, did not have a material effect on the company's financial statements [157]. - The company has no significant uncertain tax positions requiring recognition in its financial statements [151]. - As of September 30, 2023, the company was not subject to any market or interest rate risk [159].