Horizon Space Acquisition I Corp. (HSPO) has reported its financial performance for the fiscal year ending December 31, 2024, revealing a net income of $2.1 million, a decrease from the previous year's net income of $2.9 million. The company generated interest and dividend income of $3.17 million from investments held in its Trust Account, which was offset by operating costs of $1.06 million. This marks a significant increase in operating costs compared to $560,155 in the prior year, reflecting the company's ongoing expenses related to its search for a business combination.
The company has not yet completed a business combination since its initial public offering (IPO) on December 27, 2022, which raised $69 million through the sale of 6.9 million public units. As of December 31, 2024, HSPO had $21.32 million in assets held in the Trust Account, a decrease from $67.95 million the previous year, primarily due to redemptions by shareholders. The company reported a working capital deficiency of $1.97 million, raising concerns about its ability to continue as a going concern without additional financing.
In terms of strategic developments, HSPO entered into a Business Combination Agreement with Squirrel Enlivened Technology Co., Ltd. on September 16, 2024. This agreement outlines a merger plan that includes a series of transactions aimed at combining the two entities. The company has also engaged in multiple shareholder meetings to extend the deadline for completing its initial business combination, with the latest extension allowing until December 27, 2025. During these meetings, HSPO has seen significant redemptions, with 3.66 million ordinary shares redeemed in December 2024 alone.
Operationally, HSPO has faced challenges in maintaining its shareholder base, as evidenced by a Nasdaq notification regarding non-compliance with listing rules due to insufficient shareholders. The company has since applied to transfer its listing to the Nasdaq Capital Market, which was approved on November 12, 2024. As of March 27, 2025, HSPO had 4,168,739 ordinary shares outstanding, with a market value of approximately $63.37 million based on a share price of $11.04.
Looking ahead, HSPO's management has expressed uncertainty regarding its ability to complete a business combination within the required timeframe. The company has relied on loans from its sponsor and other parties to fund operations, and it may need to secure additional financing to meet its obligations. The outcome of the proposed merger with Squirrel and the company's overall financial health will be closely monitored as it navigates these challenges in the coming months.
About Horizon Space Acquisition I Corp.
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