Alpha Star Acquisition Corporation reported a net loss of $200,767 for the three months ending March 31, 2025, a significant decline from a net income of $724,045 during the same period in 2024. The company's operating expenses decreased slightly to $223,812 from $238,932 year-over-year. However, the substantial drop in other income, primarily from interest and dividends earned in the trust account, fell to $23,045 from $962,977, contributing to the overall loss. The basic and diluted net loss per share for non-redeemable ordinary shares was $(0.10), compared to $(0.05) in the previous year.
In terms of operational changes, Alpha Star Acquisition Corporation has not generated any operating revenues as it remains focused on completing a business combination. The company has extended its deadline for consummating a business combination multiple times, with the latest extension approved by shareholders on May 2, 2025, allowing until June 15, 2025. The company is currently pursuing a merger with OU XDATA GROUP, which was formalized in a Business Combination Agreement on September 12, 2024.
The company’s financial position reflects a working capital deficit of $1,072,013 as of March 31, 2025, compared to $743,201 at the end of 2024. Cash used in operating activities was $209,766, while cash provided by investing activities amounted to $10,714,317, primarily from cash withdrawn from the trust account for public share redemptions. The company redeemed 880,335 public shares for a total payment of $10,819,317 during the quarter, a significant increase from the previous year’s redemptions.
Alpha Star Acquisition Corporation's marketable securities held in the trust account decreased to $420,581 as of March 31, 2025, down from $11,111,853 at the end of 2024. The company continues to rely on loans from its sponsor, A-Star Management Corporation, to cover operational costs and transaction expenses. As of the latest report, the company had drawn down $105,000 from promissory notes to pay extension fees. The outlook remains uncertain, as the company must complete a business combination by the June 2025 deadline to avoid liquidation, raising concerns about its ability to continue as a going concern.
About Alpha Star Acquisition Corp
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