Horizon Space Acquisition I Corp.

What they do

Horizon Space Acquisition I Corp. is a Cayman Islands exempted company incorporated in 2022 to effect a merger, share exchange, asset acquisition, or similar business combination with one or more targets, with no industry or geographic restrictions. Since its IPO, its sole activity has been identifying and evaluating acquisition candidates; it has no revenue and has relied on IPO proceeds, private placements, and sponsor loans to fund operations. The company terminated its business combination agreement with Squirrel Enlivened Technology Co., Ltd. effective October 3, 2025, and has not selected a new target as of the latest filing.

Revenue drivers

• None (pre-revenue) — The company has no revenue; its only sources of funds have been IPO proceeds, private placements, and loans from the sponsor.

Recent performance

For the fiscal year 2025, the company reported a net income of $203,618, down from $2.1 million in 2024 and $2.9 million in 2023. Operating cash flow was negative $585,924 for 2025, compared to negative $975,466 in 2024. As of June 30, 2026, total assets were $964,521, total liabilities were $6.5 million, and shareholder equity was negative $6.3 million, with cash and equivalents of $204,176. The company voluntarily delisted from Nasdaq on December 12, 2025, and now trades on OTC Markets. In April 2026, shareholders approved amendments extending the deadline to complete a business combination to June 12, 2027, and the company received redemption requests for 34,818 ordinary shares.

Strategy

Management intends to use cash from the IPO, securities, debt, or a combination to effect a business combination, with broad discretion in target selection. Following the termination of the Squirrel Enlivened agreement, the company is actively seeking a new target but has not identified one. The April 2026 shareholder meeting approved charter amendments to allow more time (until June 12, 2027) to complete a deal, and the company has raised additional funds through material agreements and unregistered sales of equity, as disclosed in 8-K filings. The company's strategy remains focused on consummating an initial business combination within the extended deadline.

Risks

• No target identified — As of the latest filing, the company has not selected any target business for its initial business combination, and the previous agreement with Squirrel Enlivened was terminated, leaving the company without a deal.
• Negative equity and liquidity — Shareholder equity was negative $6.3 million as of June 30, 2026, and cash balances are only $204,176, raising concerns about the company's ability to fund operations and pursue a transaction.
• Time pressure and redemption risk — The company must complete a business combination by June 12, 2027, or cease operations and redeem public shares; shareholder redemptions (34,818 shares in April 2026) reduce trust proceeds available for a deal.
• Delisting and liquidity — The ordinary shares, units, warrants, and rights were delisted from Nasdaq and now trade on the OTC, potentially reducing liquidity and marketability.

Outlook

Management expects to continue incurring significant costs in pursuing acquisition plans and cannot assure that raising capital or completing a business combination will be successful. The extended deadline of June 12, 2027 provides time, but the company faces a tight cash position and no identified target. Future actions depend on securing additional financing and finding a suitable acquisition candidate.