Horizon Space Acquisition I (HSPO) - 2024 Q1 - Quarterly Report

Financial Performance - The company has not generated any revenue since its inception and has incurred losses primarily from formation and operating costs [100]. - As of March 31, 2024, the company reported a net income of $733,464, consisting of interest and dividend income of $881,123, offset by operating costs of $147,659 [115]. - The company had cash of $93,109 available for working capital needs as of March 31, 2024, with a working capital deficiency of $462,469 [119]. IPO and Capital Structure - The company completed its IPO on December 27, 2022, raising gross proceeds of $69,000,000 from the sale of 6,900,000 public units [102]. - 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 [117]. - The company is obligated to pay underwriters deferred underwriting fees of 3.5% of the gross proceeds of the IPO, totaling $2,415,000 upon completion of the business combination [121]. Business Combination and Agreements - The company has entered into a non-binding Letter of Intent with Shenzhen Squirrel Enlivened Media Group for a potential business combination, but no definitive agreements have been made [108]. - The company has the option to extend the deadline for consummating a business combination up to nine times, with each extension costing $60,000 deposited into the Trust Account [106]. - The company has incurred significant professional costs to remain publicly traded and expects to continue incurring transaction costs in pursuit of a business combination [119]. Financial Position and Liabilities - The company has issued an unsecured promissory note of $300,000 to the Sponsor for general working capital purposes [111]. - The company has no off-balance sheet financing arrangements as of March 31, 2024 [120]. - As of March 31, 2024, the assets held in the Trust Account amounted to $60,163,810, primarily in mutual funds [126]. - The company has no long-term debt, capital lease obligations, or long-term liabilities as of March 31, 2024 [121]. Accounting and Taxation - The company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment [128]. - The company has not identified any significant uncertain tax positions requiring recognition in its financial statements [137]. - The company is considered an exempted Cayman Islands Company and is not subject to income taxes in the Cayman Islands or the United States [139]. - The company complies with ASC 718 for share-based compensation, recognizing expenses over the requisite service period [130]. - The fair value of investments held in the Trust Account is determined using available market information, classified as trading securities [126]. - The company has identified critical accounting policies and estimates that may affect reported amounts of assets and liabilities [125]. Investment Strategy - Following the IPO, the net proceeds have been invested in U.S. government treasury bills or money market funds, mitigating exposure to interest rate risk [142].