Healthcare AI Acquisition Corp. Reports Q3 2024 Financial Results with Net Loss

Healthcare AI Acquisition Corp. reported its financial results for the third quarter of 2024, revealing a net loss of $7,658 for the three months ended September 30, 2024, compared to a net income of $828,847 for the same period in 2023. For the nine months ended September 30, 2024, the company recorded a net loss of $328,718, a significant decline from the net income of $4,024,595 reported in the prior year. The decrease in profitability was attributed to a drop in interest income from investments held in the Trust Account, which fell to $76,792 in Q3 2024 from $163,452 in Q3 2023, alongside increased formation and operating costs.

The company's total assets as of September 30, 2024, amounted to $6,847,477, up from $6,589,002 at the end of 2023. This increase was primarily driven by cash and investments held in the trust account, which rose to $6,827,015 from $6,588,790. However, total liabilities also increased significantly, reaching $1,732,486 compared to $1,145,293 at the end of the previous fiscal year. The rise in liabilities was largely due to an increase in accrued offering costs and expenses, as well as a promissory note from a related party.

In terms of operational developments, the company has not yet identified a target for its initial business combination, which is a key focus moving forward. The company has extended its deadline to complete a business combination to December 14, 2024, with the possibility of further extensions. As of September 30, 2024, the company had 591,851 Class A shares outstanding, down from 21,562,401 shares at the end of 2023, following significant redemptions by public shareholders. The company’s management team has undergone changes, with new officers and directors appointed after the transfer of shares to a new sponsor in June 2023.

Looking ahead, Healthcare AI Acquisition Corp. faces challenges in securing a business combination by the extended deadline. The company has indicated that it may need to rely on additional working capital loans from its new sponsor and other related parties to sustain operations until a business combination is completed. The management has expressed uncertainty regarding its ability to raise additional capital, which could impact its operational viability. The company continues to evaluate potential acquisition candidates and aims to leverage its existing resources to facilitate a successful business combination in the near future.