As of September 30, 2024, Alpha Star Acquisition Corporation reported total current assets of $25,125, a significant increase from $12,500 as of December 31, 2023. However, total assets decreased sharply to $10,987,712 from $101,603,162 during the same period. Total liabilities also saw a reduction, falling to $3,523,242 from $9,064,022, leading to an improved total stockholders’ deficit of $(3,415,593) compared to $(9,066,522) at the end of 2023.

Operating expenses for the three months ended September 30, 2024, rose to $459,346, up from $104,592 in the same quarter of 2023. For the nine months ended September 30, 2024, operating expenses totaled $808,801, compared to $316,908 in the prior year. Interest and dividends earned from the trust account also declined, with $320,078 reported for the third quarter of 2024, down from $1,337,332 in 2023. For the nine-month period, interest income decreased to $2,131,683 from $4,035,277.

The company reported a net loss of $(139,268) for the three months ended September 30, 2024, a significant improvement from a net income of $1,232,740 in the same period of 2023. For the nine months, the net loss was $(1,322,882), compared to $(3,718,369) in the previous year. The basic and diluted net loss per share for the third quarter of 2024 was $(0.12) for non-redeemable shares, compared to $(0.08) in 2023.

A notable strategic development occurred with the debt forgiveness by the Sponsor, amounting to $6,984,730 for the nine months ended September 30, 2024, slightly down from $6,998,730 in the previous year. The accumulated deficit also improved to $1,147,084 from $1,338,545 year-over-year.

Cash flows showed a net cash provided by operating activities of $82,524 for the nine months ended September 30, 2024, contrasting with $(126,796) in the same period of 2023. The company withdrew $93,299,758 from the Trust Account for share redemptions, significantly higher than $26,094,884 in the prior year.

On the operational front, Alpha Star Acquisition Corporation has not generated any revenue as of the reporting date and is focused on completing a business combination by December 15, 2024. The company has established a wholly owned subsidiary, Xdata Group, and entered into a Business Combination Agreement on September 12, 2024. The company is currently under scrutiny from Nasdaq for failing to meet the minimum market value requirement, with a compliance period until March 31, 2025, to regain compliance.