Metal Sky Star Acquisition Corporation reported its financial results for the third quarter ended September 30, 2024, showing a decline in net income compared to the same period in the previous year. The company recorded a net income of $144,123 for Q3 2024, down from $662,376 in Q3 2023. For the nine months ended September 30, 2024, net income was $833,308, significantly lower than $1,724,307 for the same period in 2023. Basic and diluted net income per share also decreased to $0.12 from $0.16 year-over-year.
Operating costs for Q3 2024 rose to $329,618 from $110,635 in Q3 2023, while interest income fell to $473,741 from $773,011. For the nine-month period, operating costs were $565,585, slightly down from $598,030 in 2023, and interest income decreased to $1,398,893 from $2,322,337.
As of September 30, 2024, total assets increased to $37,287,081 from $35,360,963 at the end of 2023, primarily due to the trust account balance rising to $37,257,981, which is fully allocated to marketable securities. However, total liabilities also increased to $6,814,327 from $5,721,517, contributing to an accumulated deficit of $(6,788,432) compared to $(5,772,847) at the end of 2023. The company reported a working capital deficit of $(3,910,227), up from $(2,844,642) previously.
Strategically, the company faced challenges with compliance, receiving multiple notifications from Nasdaq regarding its failure to file timely reports and maintain the required number of public holders. A hearing was held on September 19, 2024, and the company regained compliance on October 7, 2024, but will be under a mandatory panel monitor for one year.
In terms of acquisitions, Metal Sky Star entered into a non-binding letter of intent for a business combination with Okidoki OÜ, valuing the target at $120 million, and signed a letter of intent with Fedilco Group Limited to acquire shares in Viva Armenia Closed Joint-Stock Company. The company has identified potential targets for business combinations, including telecommunications and classifieds platforms.
The company’s financial position remains precarious, with no cash held outside the trust account and significant reliance on marketable securities for liquidity. Management has acknowledged weaknesses in internal controls and is committed to remediation efforts.
About Metal Sky Star Acquisition Corp
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