Bayview Acquisition Corp, incorporated on February 16, 2023, and having completed its IPO on December 19, 2023, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated a net income of $583,558 for the three months ended September 30, 2024, a notable improvement compared to a net loss of $(3,823) for the same period in 2023. For the nine months ended September 30, 2024, net income totaled $1,771,223, contrasting sharply with a net loss of $(6,928) from inception through September 30, 2023.

The company’s revenue primarily stemmed from interest earned on investments held in its trust account, amounting to $856,587 for the quarter and $2,324,692 for the nine-month period. However, this was offset by formation and operating costs, which resulted in a net loss including accretion of temporary equity to redemption value of $(398,029) for the third quarter of 2024.

As of September 30, 2024, Bayview reported total assets of $39.05 million, a decrease from $60.79 million as of December 31, 2023. Current assets also fell significantly from $654,322 to $292,294, while cash reserves dwindled from $582,308 to $225,472. Total liabilities increased to $2.70 million from $2.41 million, and the accumulated deficit grew to $(2.41 million) from $(1.73 million) over the same period.

The company has been actively pursuing a business combination, with a proposed merger agreement executed on June 7, 2024, involving Oabay Holding Company and multiple merger subsidiaries. On June 26, 2024, the merger agreement was amended to revise earnout milestones based on consolidated revenue metrics. A general meeting held on September 16, 2024, extended the deadline for completing the initial business combination from September 19, 2024, to June 19, 2025.

In terms of liquidity, Bayview reported a working capital deficit of $308,229 as of September 30, 2024, and has raised concerns regarding its ability to continue as a going concern due to ongoing professional costs and the risk of liquidation if the business combination is not completed within the specified timeframe. The company has incurred $311,200 in business combination-related costs, which were reimbursed by Oabay.

Management has acknowledged a material weakness in internal controls over financial reporting, attributing it to a lack of qualified SEC reporting professionals. Plans are in place to enhance these controls, including improving the review process for complex securities and potentially hiring additional qualified staff.