Metal Sky Star Acquisition Corporation Reports Significant Financial Decline for Quarter Ending June 30, 2025

Metal Sky Star Acquisition Corporation has reported its financial results for the quarter ending June 30, 2025, revealing a significant decline in both revenue and profitability compared to the previous fiscal period. The company recorded a net loss of $198,020 for the three months ended June 30, 2025, a stark contrast to a net income of $392,165 during the same period in 2024. For the first half of 2025, the net loss totaled $351,198, compared to a net income of $689,185 in the prior year. The operating expenses for the second quarter increased to $225,904 from $74,148 in the previous year, primarily due to higher formation and operational costs.

The company’s total assets have decreased significantly, dropping to $863,188 as of June 30, 2025, from $6,683,844 at the end of 2024. This decline is largely attributed to a reduction in marketable securities held in the trust account, which fell to $861,784 from $6,677,519. Current liabilities also increased, reaching $4,973,645, up from $4,303,842 at the end of the previous fiscal year, driven by higher accrued expenses and amounts due to related parties.

In terms of strategic developments, Metal Sky has faced challenges in executing its business combination plans. The company’s securities were delisted from Nasdaq on April 9, 2025, after failing to complete a business combination within the required 36-month period following its IPO. As a result, the company’s shares are now traded on the OTCID Market, which may limit investor access and liquidity. The company is actively seeking to complete a business combination and has filed a preliminary proxy statement to extend the deadline for this process to January 5, 2026.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on identifying a suitable target for acquisition. As of June 30, 2025, the company had 3,205,000 ordinary shares outstanding, with an accumulated deficit of $7,850,446. The company’s management has indicated that it may require additional financing to meet its working capital needs and to cover transaction costs associated with a potential business combination.

Looking ahead, Metal Sky's management acknowledges the uncertainty surrounding its ability to complete a business combination by the extended deadline. The company plans to continue its efforts to identify and evaluate potential targets while managing its liquidity challenges. The outcome of these efforts will be critical in determining the company's future viability and operational direction.