Financial Performance - For the six months ended June 30, 2023, the company reported a net income of $1,061,931 compared to a net loss of $11,255 for the same period in 2022, driven by interest income of $1,549,326[113]. - The company incurred operating costs of $487,395 for the six months ended June 30, 2023, an increase from $172,165 in the same period of 2022[113]. - For the six months ended June 30, 2023, net cash used in operating activities was $344,341, compared to $21,603 for the same period in 2022[118]. Financial Position - As of June 30, 2023, the company has an accumulated deficit of $4,613,145 and a working capital deficit of $1,734,940, raising substantial doubt about its ability to continue as a going concern[114]. - As of June 30, 2023, the company had cash of $1,164 held outside the Trust Account, primarily for identifying and evaluating target businesses[120]. - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of $10,000 to the Sponsor for administrative services[124]. Capital Raising - The company raised gross proceeds of $115,000,000 from its Initial Public Offering and an additional $3,300,000 from the sale of Private Units[116]. - The company issued a Promissory Note for up to $2,500,000 to fund transaction costs, with a portion drawn to extend the time for consummating a Business Combination[126]. Investments and Business Combination - At June 30, 2023, the company had investments held in the Trust Account amounting to $59,452,791, which are intended to be used for completing a Business Combination[119]. - The company entered into a Merger Agreement on April 12, 2023, with Future Dao Group Holding Limited, with the Business Combination expected to close prior to the end of 2023[128]. Risk Management - As of June 30, 2023, the company was not subject to any market or interest rate risk, with net proceeds from the Initial Public Offering invested in U.S. government securities and money market funds[136]. - The company believes there will be no material exposure to interest rate risk due to the short-term nature of its investments[136]. Accounting and Reporting - The company applies the two-class method in calculating earnings per share, excluding ordinary shares subject to possible redemption from the basic net loss per ordinary share calculation[134]. - Management does not anticipate that recently issued accounting standards will have a material effect on interim financial statements[135].
Metal Sky Star Acquisition (MSSA) - 2023 Q2 - Quarterly Report