Horizon Space Acquisition I Corp. Reports Q1 2025 Financial Results with Decreased Net Income

Horizon Space Acquisition I Corp. reported its financial results for the first quarter of 2025, revealing a net income of $71,454, a significant decrease from the $733,464 reported in the same period of 2024. The company generated interest and dividend income of $224,752 from investments held in its Trust Account, down from $881,123 in the previous year. Operating costs for the quarter were $153,298, compared to $147,659 in the prior year, reflecting a slight increase in expenses associated with the company's ongoing operations.

The company's total assets as of March 31, 2025, amounted to $22,019,402, an increase from $21,327,906 at the end of 2024. This growth was primarily driven by an increase in investments held in the Trust Account, which rose to $21,904,843 from $21,320,091. However, the company also reported a working capital deficit of $2,487,303, indicating challenges in meeting its short-term obligations. The cash balance at the end of the quarter was $50,808, a notable increase from $7,815 at the end of 2024.

In terms of strategic developments, Horizon Space Acquisition I Corp. has been actively pursuing a business combination, with a deadline extended to May 27, 2025. The company has entered into a Business Combination Agreement with Squirrel Enlivened Technology Co., Ltd., which is expected to facilitate its merger activities. To support this extension, the company has received additional funding through promissory notes, including a $300,000 note issued to its sponsor, which will be used for general working capital purposes.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on identifying suitable acquisition targets. The total number of ordinary shares outstanding remained stable at 2,310,750, with 1,857,989 shares subject to possible redemption. The company continues to face substantial doubt regarding its ability to continue as a going concern, as indicated by its management's assessment, which highlights the need for successful completion of a business combination to ensure financial viability.

Looking ahead, Horizon Space Acquisition I Corp. aims to leverage its current financial position and strategic partnerships to finalize a business combination within the extended timeframe. However, the company acknowledges the inherent risks and uncertainties associated with this process, including potential challenges in securing additional financing or meeting operational costs. The management's outlook remains cautious, emphasizing the importance of executing its business strategy effectively to achieve long-term growth and stability.