Healthcare AI Acquisition Corp. Reports Significant Financial Decline, Net Loss, and Doubt Over Going Concern

Healthcare AI Acquisition Corp. reported significant financial changes in its unaudited results for the three and six months ended June 30, 2024, compared to the same periods in 2023. For Q2 2024, the company generated a net income of $145,656, a stark decline from the $3,421,457 net income reported in Q2 2023. Interest income from investments held in the Trust Account also fell sharply, from $2,134,033 in Q2 2023 to $76,205 in Q2 2024. The basic and diluted net income per Class A ordinary share decreased from $0.15 in Q2 2023 to $0.02 in Q2 2024.

For the six months ended June 30, 2024, the company reported a net loss of $(321,060), contrasting with a net income of $3,195,748 for the same period in 2023. Interest income for the first half of 2024 was $161,433, down from $4,496,872 in the prior year. The basic and diluted net income per Class A ordinary share for the first half of 2024 was $(0.05), compared to $0.13 in 2023.

The company’s financial position has also deteriorated, with total shareholders' deficit increasing from $(1,670,000) as of December 31, 2023, to $(2,136,716) by March 31, 2024. As of June 30, 2024, the company reported a working capital deficit of $751,328, up from $593,046 at the end of the previous fiscal period. The Trust Account balance significantly decreased from $225,411,726 as of March 31, 2023, to $6,750,222 as of June 30, 2024, primarily due to the redemption of 20,970,550 Class A ordinary shares totaling $221,294,640.

Strategically, the company has extended its deadline to complete an initial business combination to December 14, 2024, following a special resolution approved on August 11, 2023. This extension allows for month-to-month extensions by depositing $50,000 into the Trust Account for each extension, up to 12 times. The company has also entered into a Business Combination Agreement with Leading Partners Limited, which will involve the cancellation of existing shares in exchange for new shares in the combined entity.

Management has expressed substantial doubt regarding the company's ability to continue as a going concern for the next twelve months if a business combination is not completed. The company is exploring options to raise additional capital through working capital loans and promissory notes, although there is no obligation for the New Sponsor or its affiliates to provide such funding.