Company: SSEA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001829126-25-004429
Chunk: 285

Company: STARRY SEA ACQUISITION CORP
Filing Date: 2025-06-12
Form: S-1
Chunk 285
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 of working capital deficit. As of December 31, 2024, the Company had no cash and $31,974 of
working capital deficit. The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and
acquisition plans. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within
one year after the date that the financial statements are issued. Management plans to address this uncertainty through a Proposed
Public Offering as discussed in Note 3. There is no assurance that the Company’s plans to raise capital or to consummate a
Business Combination will be successful within the Combination Period. On December 1, 2024, the Sponsor agreed to loan the
Company an amount of up to $500,000 as discussed in Note 5 to be used, in part, for transaction costs incurred in connection with
the Proposed Public Offering. The financial statements do not include any adjustments that might result from the Company’s
inability to consummate the Proposed Public Offering or a Business Combination to continue as a going concern.

Ordinary Shares Subject to Possible Redemption

The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument.

Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING