Horizon Space Acquisition I Corp. (HSPO), a blank check company incorporated on June 14, 2022, reported its financial results for the three and nine months ended September 30, 2024, in its latest 10-Q filing. The company has not yet commenced any operations and is focused on identifying potential business combinations.

For the three months ended September 30, 2024, HSPO recorded a net income of $296,392, a significant decrease from $794,031 in the same period of 2023. The decline was attributed to lower interest and dividend income, which fell to $795,738 from $936,211 year-over-year, alongside increased operating costs of $499,346 compared to $142,180 in the prior year. For the nine months ended September 30, 2024, net income was $1,659,067, down from $2,250,037 in 2023.

The company’s total assets decreased to $62.25 million as of September 30, 2024, from $68.25 million at the end of 2023. Current assets also fell to $148,420 from $298,908, while cash reserves dropped to $128,169 from $283,281. Total liabilities increased to $4.04 million from $2.83 million, with current liabilities rising sharply to $1.63 million from $413,718. The accumulated deficit grew to $(3.89 million) from $(2.53 million) over the same period.

HSPO's business combination agreement with Squirrel Enlivened Technology Co., Ltd. was entered into on September 16, 2024. This merger will involve Squirrel HoldCo merging into Squirrel Cayman, which will subsequently merge into HSPO. The transaction is valued at $200 million, with shares converting based on a predetermined ratio.

The company has faced liquidity challenges, with a working capital deficit of $1.48 million as of September 30, 2024. Management expressed substantial doubt about HSPO's ability to continue as a going concern, citing insufficient cash and working capital to complete planned activities for a business combination within the upcoming year. If a business combination is not completed by the extended deadline of March 27, 2024, the company may proceed to voluntary liquidation.

In terms of compliance, HSPO received a notification from Nasdaq regarding noncompliance with listing rules, requiring a plan to regain compliance by November 19, 2024. The company has since applied for a transfer to the Nasdaq Capital Market, which was approved on November 12, 2024.

Overall, HSPO's financial performance reflects significant challenges, including reduced income, increased liabilities, and ongoing liquidity concerns as it navigates its business combination efforts.