Alpha Star Acquisition Corp Liquidation Value

Alpha Star Acquisition Corporation (ALSAF) is a Cayman Islands blank check SPAC incorporated in March 2021. As of March 31, 2026, the company has not completed a Business Combination and is operating under its seventh extension of the combination deadline, now set to December 15, 2026. The company has been delisted from Nasdaq (trading ceased December 23, 2024; Form 25-NSE filed May 20, 2025) and now trades on the OTCID Market. A Business Combination Agreement with OU XDATA GROUP (an Estonian entity) was signed September 12, 2024, and shareholder approval was obtained May 2, 2025, but the transaction has not closed as of the balance sheet date.

Liquidation posture is severely negative for equity holders outside the trust. The trust account held only $829,887 at March 31, 2026, down from $718,072 at December 31, 2025 after $105,000 in extension contributions were deposited during Q1 2026. The trust balance at any point is substantially less than the aggregate liability stack. The redeemable share count has been reduced to 21,962 shares through serial redemption events since IPO (original 11,500,000 shares; cumulative redemptions of approximately 11,478,038 shares). At approximately $31.61 per share redemption price (the December 2025 redemption price), the trust is inadequate to cover even the residual redeemable share redemption obligation, let alone other liabilities.

On the liability side: (1) Sponsor promissory notes and loans payable totaled $1,880,216 at March 31, 2026, up from $1,431,298 at December 31, 2025, an increase of $448,918 driven by Q1 2026 drawdowns; (2) deferred underwriting commission of $950,000 remains on-balance-sheet, payable at Business Combination close (reduced from $2,875,000 via October 2025 amendment); (3) accrued administrative service fees payable to Sponsor of $471,129 at March 31, 2026 (up from $441,129); (4) $22,190 in redemption liabilities accrued for 702 shares tendered in December 2025 (distributed April 2026, a subsequent event). Total working capital deficit reported by management was $2,293,398 at March 31, 2026 versus $2,015,785 at December 31, 2025. Non-redeemable stockholders' deficit widened to $(3,243,398) from $(2,965,785).

On the asset side, the entire asset base consists of the trust ($829,887 at face, 100% recovery applicable as US government securities/money market), prepaid expenses (approximately $55,660 increase in prepaid per cash flow), and no cash outside trust. All intangibles are zero; no PP&E, inventory, or AR exists.

Under strict liquidation analysis: recoverable assets approximate $830K (trust) plus negligible prepaids. Obligations at face include at minimum: Sponsor notes/loans $1.88M, deferred underwriting $950K, accrued admin fees $471K, and redemption liabilities $22K, totaling approximately $3.32M before any other accrued liabilities. Recovery to equity is deeply negative — estimated deficit in excess of $2.5M against essentially no tangible asset base outside the trust. The trust itself is encumbered by the redeemable share redemption obligation, meaning public shareholders have priority on those funds. Non-redeemable equity (founder shares, 3,205,000 shares) has no recoverable value in a wind-up scenario.

Material weakness in internal controls over financial reporting was disclosed — management determined controls were not effective as of March 31, 2026. TAG_CONTEXT returned empty; no XBRL tags were provided for this filing. All quantitative references above are sourced from narrative and financial statement disclosures within the filing body.