Wed, Nov 13, 10:06 PM (30 days ago)
For the quarter ending September 30, 2024, Metal Sky Star Acquisition Corporation (MSSA) reported a net income of $144,123, a decline from $662,376 in Q3 2023, attributed to increased operational costs of $329,618 compared to $110,635 a year prior. The company holds $37.3 million in marketable securities, reflecting a rise from $35.4 million at year-end 2023. Despite this, it faces a significant working capital deficit of $3.9 million and an accumulated deficit of $6.8 million, raising concerns about its ability to continue as a going concern. Liquidity remains tight, with no cash available outside the trust account. The company has engaged in various activities to extend its business combination deadline to April 5, 2025, amid ongoing negotiations with potential targets, including Okidoki OÜ and Fedilco Group Limited. However, uncertainties persist regarding its ability to meet Nasdaq listing requirements, following recent compliance issues. The company’s internal controls have been deemed ineffective, prompting management to implement remediation strategies. Overall, while the company has substantial assets in trust, its operational challenges and need for additional capital pose significant risks.