Global Star Acquisition Inc. (GLST) reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, classified as a shell entity, has not commenced any operations since its inception in July 2019, focusing solely on organizational efforts and identifying a target for a business combination.

As of September 30, 2024, Global Star's cash and cash equivalents stood at $392,139, a notable decrease from $1,506,914 at the end of 2023. Total current assets also fell to $422,389 from $1,587,696, while total assets plummeted to $13.3 million from $57.3 million. The decline in marketable securities held in the Trust Account was particularly stark, dropping to $12.9 million from $55.7 million. Total liabilities increased to $8.4 million, up from $6.9 million, contributing to an accumulated deficit that rose to $(7.9 million) from $(5.2 million).

For the three months ended September 30, 2024, Global Star reported a net loss of $(107,629), compared to a net income of $108,936 for the same period in 2023. General and administrative expenses decreased significantly to $218,771 from $742,722 year-over-year. However, total operating expenses for the quarter were $(248,771), reflecting a shift from the previous year’s income. For the nine-month period, the net loss was $(404,644), a stark contrast to the net income of $1.1 million reported in the same period of 2023.

The company has been actively managing its cash flow, withdrawing $1.7 million from the Trust Account for tax obligations since the IPO, with $1.3 million remitted to tax authorities. As of September 30, 2024, Global Star had accrued tax liabilities totaling $457,710.

Strategically, Global Star is in the process of merging with K Wave Media Ltd., with the merger agreement signed on June 15, 2023. The merger consideration was reduced from $610 million to $590 million in March 2024. The deadline for completing the business combination has been extended to December 22, 2024, with stockholders approving multiple extensions and redeeming shares for cash, totaling approximately $44.6 million withdrawn from the Trust Account.

The company has also engaged financial and public relations consultants to assist in the merger process, indicating ongoing efforts to secure a successful business combination. However, there are concerns regarding the company’s ability to meet its financial obligations before the merger deadline, raising doubts about its ability to continue as a going concern.