Financial Performance - For the nine months ended September 30, 2023, the company reported a net income of $1,724,307, compared to a net income of $398,558 for the same period in 2022, reflecting a significant increase in interest income from $680,827 to $2,322,337[121]. - For the three months ended September 30, 2023, the company reported a net income of $662,376, compared to a net loss of $409,813 for the same period in 2022[121]. Financial Position - As of September 30, 2023, the company has an accumulated deficit of $5,285,214 and a working capital deficit of $2,407,009, raising substantial doubt about its ability to continue as a going concern[122]. - The company had investments held in the Trust Account amounting to $60,787,237 as of September 30, 2023, which are intended to be used for completing a Business Combination[127]. - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2023[131]. Initial Public Offering and Fund Usage - The company generated gross proceeds of $115,000,000 from its Initial Public Offering and an additional $3,300,000 from the sale of Private Units, with a total of $115,000,000 placed in the Trust Account[124][125]. - The company plans to use funds held outside the Trust Account primarily for identifying and evaluating target businesses and conducting due diligence[128]. Business Combination - The company entered into a Merger Agreement with Future Dao Group Holding Limited, with the Business Combination expected to close prior to the end of 2023, valuing Future Dao at $350 million[138]. - On October 30, 2023, shareholders approved an extension for the company to consummate a business combination until August 5, 2024, with a reduced fee structure for extensions[136][137]. - The Merger Agreement was mutually terminated on October 6, 2023, with no fees or expenses required to be paid by either party[139]. Risk and Accounting Policies - As of September 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 or money market funds[147]. - The company applies the two-class method for calculating earnings per share, excluding ordinary shares subject to possible redemption from the basic net loss per ordinary share calculation[145]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value on the balance sheet[144]. - The company does not anticipate any material effect on interim financial statements from recently issued accounting standards[146]. - Warrants are classified as either equity or liability instruments based on specific terms and conditions, with assessments conducted at issuance and quarterly[142]. - Changes in the estimated fair value of warrants are recognized as non-cash gains or losses on the statements of operations[143]. - Ordinary shares subject to mandatory redemption are classified as a liability instrument and measured at fair value[144]. - The company has identified critical accounting policies that may materially affect reported amounts of assets and liabilities[141]. - Management's estimates and assumptions could lead to actual results differing materially from reported amounts[141].
Metal Sky Star Acquisition (MSSA) - 2023 Q3 - Quarterly Report