NorthView Acquisition Corp. Reports Improved Net Income but Faces Financial Challenges

NorthView Acquisition Corp. reported its financial results for the quarter ending September 30, 2024, revealing a net income of $91,177, a significant improvement compared to a net loss of $367,345 in the same period last year. The company’s operating costs for the quarter were $317,270, up from $290,098 in the prior year. For the nine months ending September 30, 2024, NorthView recorded a net loss of $1,126,587, contrasting with a net income of $925,939 for the same period in 2023. The decline in profitability was primarily attributed to increased operating costs and a loss from the change in fair value of warrant liabilities, which totaled $496,020.

The company experienced notable changes in its balance sheet, with total assets decreasing to $8.78 million as of September 30, 2024, down from $10.88 million at the end of 2023. Cash and marketable securities held in the Trust Account also saw a decline, dropping to $8.10 million from $9.31 million. The company’s working capital deficit increased to $4.48 million, reflecting ongoing challenges in managing its financial resources. Additionally, NorthView reported a significant increase in accounts payable and accrued expenses, which rose to $726,980 from $449,114.

Strategically, NorthView is in the process of completing a business combination with Profusa, Inc., which is expected to be finalized by March 22, 2025. The merger agreement includes provisions for potential earnout shares based on future revenue milestones. However, the company has faced challenges, including a Nasdaq notification regarding non-compliance with listing rules, which could lead to delisting if a business combination is not completed within the specified timeframe. As of September 30, 2024, NorthView had 5,881,269 shares of common stock outstanding, with 687,519 shares subject to possible redemption.

Operationally, NorthView has not yet commenced any revenue-generating activities, as all efforts have been focused on identifying a target for its business combination. The company’s liquidity position remains precarious, with only $533 in cash available as of the end of the reporting period. The management has expressed concerns about the company’s ability to continue as a going concern, particularly if the business combination is not consummated by the deadline. The company has also amended its convertible promissory note with its sponsor, increasing the available draw amount to $2.5 million, which may provide some financial flexibility as it navigates these challenges.

Looking ahead, NorthView's management remains focused on completing the merger with Profusa and addressing the liquidity issues. The company has until March 22, 2025, to finalize the business combination, and it is actively working to meet the necessary conditions for the merger while managing its financial obligations. The outcome of these efforts will be critical in determining the company's future viability and operational success.