Healthcare AI Acquisition Corp. (HAIA) has reported its financial performance for the fiscal year ending December 31, 2024, revealing a net income of $56,844, a significant decrease from the previous year's net income of $4.3 million. The company attributed this decline primarily to a drop in interest income from its trust account, which fell from $4.7 million in 2023 to $298,294 in 2024. This reduction was largely due to the redemption of approximately 20.97 million Class A ordinary shares, which resulted in a substantial decrease in the trust account balance from $225.4 million to $4.66 million.
In terms of operational developments, HAIA has undergone significant changes in its management structure and shareholder composition. Following a sponsor handover in June 2023, the company transferred 3.18 million founder shares to Atticus Ale, LLC, and subsequently converted Class B shares into Class A shares. As of December 31, 2024, HAIA had 5,789,786 Class A shares and one Class B share outstanding. The company also extended its deadline to complete a business combination to June 14, 2025, allowing for additional time to identify and negotiate with potential target businesses.
The company has not yet completed a business combination but has entered into an agreement with Leading Group Limited, a digital insurance brokerage in China. This agreement is subject to shareholder approval and various closing conditions. The company has indicated that it intends to utilize cash from its initial public offering and private placement warrants to fund the business combination. However, as of the end of 2024, HAIA had only $212 in its operating bank account, raising concerns about its liquidity and ability to sustain operations without additional financing.
Looking ahead, HAIA faces challenges in completing its initial business combination by the extended deadline. The company has acknowledged that if it fails to do so, it will cease operations and liquidate, with public shareholders receiving approximately $10.20 per share, or potentially less. The company has also identified material weaknesses in its internal controls over financial reporting, which it is actively working to address. Despite these challenges, HAIA remains focused on identifying a suitable target business and completing its initial business combination within the stipulated timeframe.
About Healthcare AI Acquisition Corp.
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