Based on the provided financial report, the title of the article is: "HORIZON SPACE ACQUISITION I CORP. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024

Overview

Horizon Space Acquisition I Corp. (HSPO) is a blank check company formed in the Cayman Islands on June 14, 2022. The company’s purpose is to identify and merge with a target business through a business combination. HSPO has not generated any revenue or engaged in operations since its inception, and its activities have focused on searching for a suitable merger target.

Recent Developments

• On September 16, 2024, HSPO entered into a Business Combination Agreement to merge with Squirrel Enlivened Technology Co., Ltd, a Cayman Islands company that operates a brand marketing and strategy consulting business through its subsidiaries.

• The proposed business combination involves a series of transactions, including the merger of HSPO with a subsidiary of Squirrel Enlivened Technology Co., Ltd. As a result, the shareholders of Squirrel Enlivened Technology Co., Ltd will receive newly issued shares of the combined company.

• In connection with the business combination, HSPO’s sponsor and the controlling shareholder of Squirrel Enlivened Technology Co., Ltd have entered into support agreements to vote in favor of the transaction.

• HSPO has also received a noncompliance letter from Nasdaq regarding the minimum number of shareholders required for continued listing. The company has applied to transfer its listing to the Nasdaq Capital Market to address this issue.

Results of Operations and Trends

• HSPO has not generated any revenue to date, and its activities have focused on searching for a merger target and facilitating the proposed business combination.

• For the three months ended September 30, 2024, HSPO reported net income of $296,392, consisting of $795,738 in interest and dividend income on investments held in its trust account, offset by $499,346 in operating costs.

• For the nine months ended September 30, 2024, HSPO reported net income of $1,659,067, consisting of $2,461,081 in interest and dividend income, offset by $802,014 in operating costs.

Liquidity and Capital Resources

• As of September 30, 2024, HSPO had $128,169 in cash available for working capital needs. The remaining funds from its initial public offering are held in a trust account and are restricted for use in a business combination or to redeem public shares.

• HSPO intends to use the funds from its trust account, along with debt and equity financing, to complete the proposed business combination with Squirrel Enlivened Technology Co., Ltd.

• HSPO has incurred and expects to continue incurring significant costs to remain a publicly traded company and to pursue the business combination. Management has determined that these conditions raise substantial doubt about the company’s ability to continue as a going concern.

Contractual Obligations and Critical Accounting Estimates

• HSPO is obligated to pay a deferred underwriting fee of $2,415,000 to the underwriters of its initial public offering upon completion of the business combination.

• The company accounts for its ordinary shares subject to possible redemption, warrants, offering costs, share-based compensation, and income taxes in accordance with relevant accounting standards.

• HSPO’s critical accounting estimates include the use of fair value measurements and the assessment of the probability of achieving performance conditions for share-based compensation.

Overall, HSPO’s financial performance has been focused on preparing for and facilitating the proposed business combination with Squirrel Enlivened Technology Co., Ltd. The company’s future success will depend on its ability to complete the merger and integrate the target business effectively.