Metal Sky Star Acquisition Corporation Reports Q1 2025 Financial Results with Net Loss of $153,178

Metal Sky Star Acquisition Corporation has reported its financial results for the first quarter of 2025, revealing a net loss of $153,178 compared to a net income of $297,020 in the same period of 2024. The company, which has not yet commenced operations, attributed the loss primarily to increased formation and operational costs, which rose to $223,820 from $161,819 year-over-year. Other income, derived from interest and unrealized gains on marketable securities held in a trust account, significantly decreased to $70,642 from $458,839 in the prior year, reflecting a decline in interest earned on marketable securities.

As of March 31, 2025, Metal Sky's total assets amounted to $6,965,505, an increase from $6,683,844 at the end of 2024. The rise in total assets was primarily driven by an increase in marketable securities held in the trust account, which grew to $6,898,161 from $6,677,519. However, the company also reported a working capital deficit of $4,671,337, up from $4,297,517 at the end of the previous fiscal year, indicating ongoing liquidity challenges.

In terms of operational developments, Metal Sky has not yet completed a business combination, which is the primary goal of the company. The company has extended its deadline to consummate a business combination to January 5, 2026, following shareholder approval at an Extraordinary General Meeting on April 2, 2025. This extension allows the company additional time to identify and negotiate with potential target businesses. The company has also indicated that it may need to raise additional capital to meet its operational needs and complete a business combination.

The company’s financial position remains precarious, with an accumulated deficit of $7,549,542 as of March 31, 2025. Management has expressed substantial doubt about the company's ability to continue as a going concern if a business combination is not consummated by the new deadline. The company has indicated that it may seek additional financing from its sponsor or other sources to address its liquidity needs.

Looking ahead, Metal Sky is actively pursuing potential business combinations and has entered into discussions with various entities, including a non-binding letter of intent with Okidoki OÜ and a letter of intent with Fedilco Group Limited. However, there are no guarantees that these negotiations will result in a definitive agreement or successful transaction. The company remains committed to completing a business combination and intends to apply for listing on the OTC market following its delisting from Nasdaq, which is set to occur due to its failure to meet the business combination deadline.