Profusa, Inc. quarterly report, Q1 FY2024

Business context and reporting period

NorthView Acquisition Corp. filed this Form 10-Q for the quarter ended March 31, 2024; it was signed on October 9, 2024. NorthView is a shell company seeking to merge with Profusa, Inc. The filing is NorthView’s, not an operating-company financial report for Profusa. NorthView had not begun operations or generated operating revenue.

Financial results and position

MetricQ1 2024 / March 31, 2024Prior comparable period / December 31, 2023
RevenueNoneNone
Formation and operating costs$470,841$443,717 in Q1 2023
Net income (loss)$(820,277)$440,895 in Q1 2023
Trust-account interest income$116,664$1,845,005 in Q1 2023
Warrant fair-value change$(504,723) expense$(574,137) expense in Q1 2023
Cash and marketable securities in trust$8,433,168$10,873,406
Cash outside trust$5,314$4,519
Working-capital deficit$3,898,430Not stated as a comparable figure
Convertible sponsor note$1.5 million principal; $1,262,226 fair value$944,118 fair value
Operating cash flow$(280,853)$(966,607) in Q1 2023

There are no meaningful revenue or operating margins to assess. Total liabilities were $4,625,856, including $614,287 of accounts payable and accrued expenses, $1,874,990 of excise tax payable, and $661,362 of warrant liabilities. NorthView reported no long-term debt or lease obligations.

Changes versus the prior comparable period

  • NorthView moved from net income of $440,895 to a net loss of $820,277. Trust interest income fell substantially, while a $504,723 warrant remeasurement expense and operating costs contributed to the loss; a $60,077 gain from the convertible note’s fair-value change partly offset these items.
  • Trust assets declined by approximately $2.44 million from year-end, principally reflecting redemptions and related transactions. Q1 operating cash use improved from the prior-year quarter.
  • Public shares subject to possible redemption declined from 833,469 at year-end to 738,075 at March 31. The filing describes 95,394 redemptions approved at the March meeting and paid on March 26.

Transaction, outlook, risks and unusual items

  • The proposed Profusa merger is subject to customary conditions, including at least $15 million of available cash, government approvals, and both companies’ stockholder approvals. The filing says completion is uncertain. The merger consideration is based on a $155 million pre-transaction equity value; Profusa stockholders may also receive up to 3,875,000 earnout shares subject to milestones.
  • After quarter-end, the parties extended NorthView’s business-combination deadline to March 22, 2025. The filing states that NorthView may need monthly trust contributions to maintain extensions.
  • A proposed $5 million Vellar investment was intended to fund at closing. Vellar terminated its term sheet on September 25, 2024; related fees were reported as $59,867, subject to payment by NorthView or Profusa. The filing does not establish replacement funding.
  • Management reported substantial doubt about NorthView’s ability to continue as a going concern if it cannot complete a business combination by the deadline. With only $5,314 outside the trust and a working-capital deficit, NorthView relies on sponsor financing; sponsor advances are not guaranteed.
  • NorthView recorded $1,874,990 of excise tax payable related to redemptions. The sponsor note is non-interest-bearing and may, at the sponsor’s election, be converted into shares at $2.22 per share; the filing also describes a possible warrant-conversion feature.
  • Nasdaq had notified NorthView of a public-float market-value deficiency and late-reporting deficiencies. A filing exception required the Q1 and Q2 2024 reports by October 14, 2024; failure to comply could lead to delisting. The annual-meeting deficiency was subsequently resolved.
  • Management concluded disclosure controls were ineffective as of March 31, 2024, citing a material weakness involving insurance expense, income taxes, and fair-value accounting for the convertible note. The filing was signed months after quarter-end.

No operating forecast or revenue guidance for NorthView is provided. Profusa-related earnout provisions are transaction terms, not management guidance.

Important facts for investors to verify

  1. Whether the Profusa merger can meet its $15 million minimum available-cash condition after Vellar’s termination, and what replacement financing is committed.
  2. The amount and accessibility of trust funds at the current date, subsequent redemptions and extension contributions, and the timeline to complete the merger.
  3. NorthView’s current Nasdaq listing and filing-compliance status, including resolution of the late-filing and public-float deficiencies.
  4. The status of the reported control material weakness and whether subsequent filings corrected the identified accounting and reporting issues.
  5. The sponsor note’s outstanding balance, conversion election and dilution implications, as well as the excise-tax liability and any further redemption-related obligations.