What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-06-13 compared with 2024-12-17 · 1097 added, 955 removed, 158 unchanged (93% of the section changed)

Financial Statements.

ACQUISITION CORPORATION

CONSOLIDATED BALANCE SHEETS

September 30,

NORTHVIEW ACQUISITION CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

Current Assets:

Restricted Cash

Prepaid expenses and other current assets

Prepaid income taxes

Cash and marketable securities held in Trust Account

Prepaid franchise tax

Total Current Assets

Cash and marketable securities held in Trust Account

Cash held in Trust Account

Liabilities, Redeemable Common Stock and Stockholders’ Deficit

3 unchanged sentences

Excise tax payable

Common stock to be redeemed (1)

Income tax payable

Convertible promissory note – related party

Securities purchase agreement

Due to related party

Total Current Liabilities

Deferred tax liability

Warrant liabilities

1 unchanged sentence

Commitments and Contingencies (Note 6)

Common stock subject to possible redemption, 687,519 and 833,469 shares at redemption value of approximately $ 11.84 and $ 11.10 at September 30, 2024 and December 31, 2023, respectively

Common stock subject to possible redemption, 154,561 and 687,519 shares at redemption value of approximately $ 12.83 and $ 12.13 at March 31, 2025 and December 31, 2024, respectively

Stockholders’ Deficit:

4 unchanged sentences

100,000,000 shares authorized;

5,193,750 shares issued and outstanding at September 30, 2024 and December 31, 2023 (excluding 687,519 and 833,469 shares subject to possible redemption at September 30, 2024 and December 31, 2023, respectively)

5,193,750 shares issued and outstanding at March 31, 2025 and December 31, 2024 (excluding 154,561 and 687,519 shares subject to possible redemption at March 31, 2025 and December 31, 2024, respectively)

Accumulated deficit

5 unchanged sentences

Total Liabilities, Redeemable Common Stock and Stockholders’ Deficit

connection with the special meeting of stockholders to vote on extending the Combination Period, on December 21, 2023, 140,663 shares

of the Company’s common stock were redeemed at a per share price of $11.13.

In January 2024, $1,565,078 was paid from the Trust

Account to redeeming stockholders in connection with the extension.

As a result, the Company has recorded a liability of $1,565,078 as

common stock to be redeemed and reduced common stock subject to possible redemption as of December 31, 2023 on the consolidated balance

connection with the special meeting of stockholders to vote on extending the Combination Period, on September 30, 2024, 50,556

shares of the Company’s common stock were redeemed at a per share price of $11.78.

In October 2024, $595,439 was paid from the

Trust Account to redeeming stockholders in connection with the extension.

As a result, the Company has recorded a liability of

$595,439 as common stock to be redeemed and reduced common stock subject to possible redemption as of September 30, 2024 on the

condensed consolidated balance sheet .

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

ACQUISITION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

NORTHVIEW ACQUISITION CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS

For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

Formation and operating costs

Loss from operations

( 1,041,241 )

( 1,048,525 )

Other income (expense):

Interest income earned on cash and marketable securities held in Trust Account

Interest income earned on cash held in Trust Account

Change in fair value of convertible promissory note

Change in fair value of securities purchase agreement

Change in fair value of warrant liabilities

Total other income (expense), net

Income (loss) before provision for income tax

Total other expense, net

Loss before provision for income tax

( 1,100,558 )

Income tax provision

Net Income (Loss)

$ ( 1,119,910 )

1 unchanged sentence

Basic and diluted weighted average shares outstanding, common stock subject to possible redemption

Basic and diluted net income (loss) per share, common stock subject to possible redemption

Basic and diluted net loss per share, common stock subject to possible redemption

Basic and diluted weighted average shares outstanding, common stock

Basic and diluted net income (loss) per share, common stock

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

ACQUISITION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

Basic and diluted net loss per share, common stock

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

NORTHVIEW ACQUISITION CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Stockholders’

Balance as of

December 31, 2023

$ ( 3,459,829 )

$ ( 3,459,310 )

Accretion of common stock

to redemption value

tax payable attributable to redemption of common stock

Balance as of March 31, 2024

Balance as of December 31, 2024

$ ( 12,957,266 )

$ ( 12,956,747 )

Accretion of common stock

to redemption value

Balance as of June 30, 2024

Accretion of common stock to redemption value

Excise tax payable attributable to redemption of common stock

( 1,119,910 )

Accretion of common stock

to redemption value

tax payable attributable to redemption of common stock

as of September 30, 2024 (unaudited)

Balance as of March 31, 2025 (unaudited)

$ ( 14,298,283 )

$ ( 14,297,764 )

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

FOR THE THREE MONTHS ENDED MARCH 31, 2024

Stockholders’

as of December 31, 2022

$ ( 619,995 )

$ ( 619,476 )

of common stock to redemption value

( 1,279,617 )

tax payable attributable to redemption of common stock

( 1,848,455 )

as of March 31, 2023 (unaudited)

( 3,307,172 )

( 3,306,653 )

of common stock to redemption value

as of June 30, 2023 (unaudited)

Balance as of December 31, 2023

$ ( 3,459,829 )

$ ( 3,459,310 )

of common stock to redemption value

as of September 30, 2023 (unaudited)

Accretion of common stock to redemption value

Excise tax payable attributable to redemption of common stock

Balance as of March 31, 2024 (unaudited)

$ ( 4,496,722 )

$ ( 4,496,203 )

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

ACQUISITION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended

September 30,

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

NORTHVIEW ACQUISITION CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF CASH FLOWS

For the Three Months Ended

Cash flows from operating activities:

Net (loss) income

$ ( 1,119,910 )

Adjustments to reconcile net (loss) income to net cash used in operating activities:

Interest income on cash and marketable securities held in Trust Account

$ ( 820,277 )

Adjustments to reconcile net loss to net cash used in operating activities:

Interest income on cash held in Trust Account

Change in fair value of warrant liabilities

Changes in fair value of convertible promissory note

Changes in fair value of securities purchase agreement

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

Prepaid income taxes

Accounts payable and accrued expenses

Income tax payable

Deferred tax liability

Prepaid income taxes

Prepaid Franchise taxes

Due to related party

Deferred tax benefit

Net cash used in operating activities

( 1,719,650 )

Cash flows from investing activities:

16 unchanged sentences

Supplemental disclosure of cash flow information:

Income taxes paid, inclusive of interest and penalties

Excise tax payable attributable to redemption of common stock

Accretion of common stock to redemption value

Reclassification of common stock subject to redemption to common stock to be redeemed

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

ACQUISITION CORPORATION

TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – Description of Organization and Business Operations

Acquisition Corporation (the “Company” or “Northview”) is a blank check company incorporated in Delaware on April

The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization

or similar business combination with one or more businesses (“Business Combination”).

The Company has identified a target

company for a business combination and is consummating the acquisition of Profusa.

Company has a wholly-owned subsidiary, NV Profusa Merger Sub Inc.

(“Merger Sub”), a Delaware corporation incorporated on

October 13, 2022, formed solely in contemplation of the Merger with Profusa (See Note 6).

Merger Sub has not commenced any operations

and has only nominal assets and no liabilities or contingent liabilities, nor any outstanding commitments other than in connection with

December 22, 2021, the Company consummated its Initial Public Offering (“IPO”) of 18,975,000 units (the “Units”),

which included 2,475,000 Units issued pursuant to the full exercise of the over-allotment option granted to the underwriters.

consists of one share of common stock of the Company, par value $ 0.0001 per share, one right (the “Rights”), and one-half

of one redeemable warrant of the Company (the “Warrants”).

Each Right entitles the holder thereof to receive one-tenth (1/10)

of one share of common stock.

Each Warrant entitles the holder thereof to purchase one share of common stock for $ 11.50 per share, subject

to adjustment.

The Units were sold at a price of $ 10.00 per Unit, generating gross proceeds to the Company of $ 189,750,000 .

Simultaneously

with the closing of the IPO, the Company completed the private sale of an aggregate of 7,347,500 warrants (the “Private Placement

Warrants”), which included 697,500 Private Placement Warrants issued pursuant to the full exercise of the over-allotment option

granted to the underwriters, to NorthView Sponsor I, LLC (“the Sponsor”), I-Bankers Securities, Inc., and Dawson James Securities,

at a purchase price of $ 1.00 per Private Placement Warrant, generating gross proceeds to the Company of $ 7,347,500 , which is discussed

costs amounted to $ 7,959,726 consisting of $ 3,450,000 of underwriting discount, $ 3,570,576 of Representative’s Shares cost, $ 259,527

of Representative’s Warrants cost and $ 679,623 of other offering costs.

Company’s Business Combination must be with one or more target businesses that together have a fair market value equal to at least

80 % of the value of the assets held in the Trust Account (as defined below) (excluding taxes payable on the interest earned on the Trust

Account) at the time of the signing a definitive agreement in connection with the initial Business Combination.

However, the Company

will only complete a Business Combination if the post-transaction company owns or acquires 50 % or more of the outstanding voting securities

of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment

company under the Investment Company Act.

Reconciliation of Cash and Restricted Cash:

cash, beginning of the period

Restricted cash – beginning of the period

Cash and Restricted Cash, Beginning of the period

Reconciliation of Cash and Restricted Cash:

cash, end of the period

Restricted cash – end of the period

Cash and Restricted Cash, End of the period

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

NORTHVIEW ACQUISITION CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Note 1 – Description of Organization and Business Operations

NorthView Acquisition Corporation (the “Company”

or “Northview”) is a blank check company incorporated in Delaware on April 19, 2021.

The Company was formed for the purpose

of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with

one or more businesses (“Business Combination”).

The Company has identified a target company for a business combination and

is consummating the acquisition of Profusa.

The Company has a wholly-owned subsidiary, NV

Profusa Merger Sub Inc.

(“Merger Sub”), a Delaware corporation incorporated on October 13, 2022, formed solely in contemplation

of the Merger with Profusa (See Note 6).

Merger Sub has not commenced any operations and has only nominal assets and no liabilities or

contingent liabilities, nor any outstanding commitments other than in connection with the Merger.

On December 22, 2021, the Company consummated

its Initial Public Offering (“IPO”) of 18,975,000 units (the “Units”), which included 2,475,000 Units issued

pursuant to the full exercise of the over-allotment option granted to the underwriters.

Each Unit consists of one share of common stock

of the Company, par value $ 0.0001 per share, one right (the “Rights”), and one-half of one redeemable warrant of the Company

(the “Warrants”).

Each Right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock.

entitles the holder thereof to purchase one share of common stock for $ 11.50 per share, subject to adjustment.

The Units were sold at

a price of $ 10.00 per Unit, generating gross proceeds to the Company of $ 189,750,000 .

Simultaneously with the closing of the IPO, the

Company completed the private sale of an aggregate of 7,347,500 warrants (the “Private Placement Warrants”), which included

697,500 Private Placement Warrants issued pursuant to the full exercise of the over-allotment option granted to the underwriters, to

NorthView Sponsor I, LLC (“the Sponsor”), I-Bankers Securities, Inc., and Dawson James Securities, Inc.

at a purchase price

of $ 1.00 per Private Placement Warrant, generating gross proceeds to the Company of $ 7,347,500 , which is discussed in Note 4.

Transaction costs amounted to $ 7,959,726 consisting

of $ 3,450,000 of underwriting discount, $ 3,570,576 of Representative’s Shares cost, $ 259,527 of Representative’s Warrants

cost and $ 679,623 of other offering costs.

The Company’s Business Combination must

be with one or more target businesses that together have a fair market value equal to at least 80 % of the value of the assets held in

the Trust Account (as defined below) (excluding taxes payable on the interest earned on the Trust Account) at the time of the signing

a definitive agreement in connection with the initial Business Combination.

However, the Company will only complete a Business Combination

if the post-transaction company owns or acquires 50 % or more of the outstanding voting securities of the target or otherwise acquires

a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company

There is no assurance that the Company will be able to successfully effect a Business Combination.

the closing of the Public Offering on December 22, 2021, an amount of $ 191,647,500 ($ 10.10 per Unit), excluding $ 741,228 that was wired

to the Company’s operating bank account on December 31, 2021 for working capital purposes, from the net proceeds of the sale of

the public units in the IPO and the sale of the Private Placement Warrants was placed in a Trust Account (“Trust Account”)

and invested in United States government treasury bills with a maturity of 185 days or less or in money market funds investing solely

in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act as determined by the Company.

Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if

any, the proceeds from the IPO will not be released from the Trust Account until the earliest of (i) the completion of the Company’s

initial Business Combination, (ii) the redemption of any public shares properly tendered in connection with a stockholder vote to amend

the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation

to redeem 100 % of the public shares if the Company does not complete the initial Business Combination within the extended period (or

any additional extension from the closing of our IPO if we extend the period of time to consummate a business combination) (the “Combination

Period”), or (B) with respect to any other provision relating to stockholders’ rights or pre-Business Combination activity,

and (iii) the redemption of all of the Company’s public shares if the Company is unable to complete the Business Combination within

the Combination Period, subject to applicable law.

The proceeds deposited in the Trust Account could become subject to the claims of

the Company’s creditors, if any, which could have priority over the claims of the Company’s public stockholders.

Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion

of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination

or (ii) by means of a tender offer.

The decision as to whether the Company will seek stockholder approval of a proposed initial

Business Combination or conduct a tender offer will be made by the Company, solely in its discretion.

The stockholders will be entitled

to redeem all or a portion of their public shares upon the completion of the initial Business Combination at a per-share price,

payable in cash, equal to the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation

of the initial Business Combination, including interest (which interest shall be net of taxes payable) divided by the number of then

outstanding public shares, subject to the limitations described herein.

The per share amount the Company will distribute to investors

who properly redeem their shares will not be reduced by the fee payable to I-Bankers and Dawson James pursuant to the Business Combination

Marketing Agreement (see Note 6).

the Company is unable to complete an initial Business Combination within the Combination Period, it will:

(i) cease all operations except

for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public

shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust account, including interest

(which interest shall be net of taxes payable, and less up to $ 100,000 of interest to pay dissolution expenses) divided by the number

of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including

the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible

following such redemption, subject to the approval of the Company’s remaining stockholders and its board of directors, dissolve

and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the

requirements of other applicable law.

There will be no redemption rights or liquidating distributions with respect to the Company’s

rights and warrants, which will expire worthless if the Company fails to complete the Business Combination within the Combination Period.

December 21, 2023, the Company held a special meeting of stockholders to vote on extending the Combination Period.

As a result, the Company

extended the Combination Period from December 22, 2023 to March 22, 2024.

In connection with the extension, 140,663 shares of the Company’s

common stock were redeemed, with 6,027,219 shares of Common Stock remaining outstanding after the Redemption;

833,469 shares of Common

Stock remaining outstanding after the Redemption are shares issued in connection with our initial public offering.

In January 2024, $ 1,565,078

was paid from the Trust Account to redeeming stockholders in connection with the extension.

January 2, 2024, the Company and Continental Stock Transfer & Trust Company (“CST”) entered into Amendment No.

1 to Investment

Management Trust Agreement, dated December 20, 2021, by and between the Company and CST, to allow CST, upon written instruction of the

Company, to (i) hold the funds in the Company’s trust account uninvested or (ii) hold the funds in an interest-bearing bank demand

deposit account.

January 10, 2024, the Company’s Board of Directors approved, and the Company amended, its Convertible Working Capital Promissory

Note (the “Note”) with the sponsor to increase the principal amount of the Note that could be drawn on to $ 1.5 million.

The amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares

of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

March 21, 2024, the Company held its 2024 Annual Meeting of Stockholders (the “Meeting”).

At the meeting, the Company’s

stockholders approved the amendment of the Company’s amended and restated certificate of incorporation to extend the date by which

the Company must consummate a business combination or, if it fails to do so, cease its operations and redeem or repurchase 100 % of the

shares of the Company’s common stock issued in the Company’s initial public offering, from March 22, 2024, monthly for up

to six additional months at the election of the Company and only upon contribution of $ 0.05 per month per outstanding public share, ultimately

until September 22, 2024.

connection with the meeting, the holders of 95,394 Public Shares properly exercised their right to redeem, with 5,931,825 shares

of Common Stock remaining outstanding after the Redemption;

Following the closing of the Public Offering

on December 22, 2021, an amount of $ 191,647,500 ($ 10.10 per Unit), excluding $ 741,228 that was wired to the Company’s operating

bank account on December 31, 2021 for working capital purposes, from the net proceeds of the sale of the public units in the IPO and

the sale of the Private Placement Warrants was placed in a Trust Account (“Trust Account”) and invested in United States

government treasury bills with a maturity of 185 days or less or in money market funds investing solely in United States Treasuries and

meeting certain conditions under Rule 2a-7 under the Investment Company Act as determined by the Company.

Except with respect to interest

earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the proceeds from the IPO

will not be released from the Trust Account until the earliest of (i) the completion of the Company’s initial Business Combination,

(ii) the redemption of any public shares properly tendered in connection with a stockholder vote to amend the Company’s amended

and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100 % of the

public shares if the Company does not complete the initial Business Combination within the extended period (or any additional extension

from the closing of our IPO if we extend the period of time to consummate a business combination) (the “Combination Period”),

or (B) with respect to any other provision relating to stockholders’ rights or pre-Business Combination activity, and (iii) the

redemption of all of the Company’s public shares if the Company is unable to complete the Business Combination within the Combination

Period, subject to applicable law.

The proceeds deposited in the Trust Account could become subject to the claims of the Company’s

creditors, if any, which could have priority over the claims of the Company’s public stockholders.

The Company will provide its public stockholders

with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either

(i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender

The decision as to whether the Company will seek stockholder approval of a proposed initial Business Combination or conduct a

tender offer will be made by the Company, solely in its discretion.

The stockholders will be entitled to redeem all or a portion of their

public shares upon the completion of the initial Business Combination at a per-share price, payable in cash, equal to the aggregate

amount then on deposit in the Trust Account as of two business days prior to the consummation of the initial Business Combination, including

interest (which interest shall be net of taxes payable) divided by the number of then outstanding public shares, subject to the limitations

described herein.

The per share amount the Company will distribute to investors who properly redeem their shares will not be reduced

by the fee payable to I-Bankers and Dawson James pursuant to the Business Combination Marketing Agreement (see Note 6).

If the Company is unable to complete an initial

Business Combination within the Combination Period, it will:

(i) cease all operations except for the purpose of winding up, (ii) as promptly

as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash,

equal to the aggregate amount then on deposit in the Trust account, including interest (which interest shall be net of taxes payable,

and less up to $ 100,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption

will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions,

if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of

the Company’s remaining stockholders and its board of directors, dissolve and liquidate, subject in each case to the Company’s

obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

There will be no redemption

rights or liquidating distributions with respect to the Company’s rights and warrants, which will expire worthless if the Company

fails to complete the Business Combination within the Combination Period.

On March 10, 2023, the Company held a vote to

amend its amended and restated certificate of incorporation to extend the date by which the Company must consummate a Business Combination

from March 22, 2023 to December 22, 2023 (the “First Extension Meeting”).

On December 21, 2023, the Company held a special

meeting of stockholders to vote on extending the Combination Period.

As a result, the Company extended the Combination Period from December

22, 2023 to March 22, 2024.

In connection with the extension, 140,663 shares of the Company’s common stock were redeemed, with

6,027,219 shares of Common Stock remaining outstanding after the Redemption;

are shares issued in connection with the initial public offering.

Consequently, the contribution is $ 36,904 per month needed for

the Company to continue to extend the Combination Period monthly.

On May 8, 2024 and May 31, 2024, the Company made two deposits of $ 36,904

each for April and May extension contributions.

On September 10, 2024, the Company made a deposit of $ 112,114 , of which $ 110,714 was

for June, July and August extension contributions and $ 1,400 for lost interest due to late trust payments.

833,469 shares of Common Stock remaining outstanding after

the Redemption are shares issued in connection with our initial public offering.

In January 2024, $ 1,565,078 was paid from the Trust

Account to redeeming stockholders in connection with the extension.

On January 2, 2024, the Company and Continental

Stock Transfer & Trust Company (“CST”) entered into Amendment No.

1 to Investment Management Trust Agreement, dated December

20, 2021, by and between the Company and CST, to allow CST, upon written instruction of the Company, to (i) hold the funds in the Company’s

trust account uninvested or (ii) hold the funds in an interest-bearing bank demand deposit account.

On January 10, 2024, the Company’s Board

of Directors approved, and the Company amended, its Convertible Working Capital Promissory Note (the “Note”) with the sponsor

to increase the principal amount of the Note that could be drawn on to $ 1.5 million.

The amended and restated Note also allows for

the conversion of the outstanding principal balance of the Note to be repaid in shares of Company common stock at a price of $ 2.22 per

share at the election of the sponsor.

On May 31, 2024, the Company’s Board of Directors approved and the Company entered into a

second amendment of its Convertible Working Capital Promissory Note with the sponsor to increase the principal amount of the Note that

could be drawn on to $ 2.5 million.

The second amended and restated Note also allows for the conversion of the outstanding principal

balance of the Note to be repaid in shares of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

On March 21, 2024, the Company held its 2024

Annual Meeting of Stockholders (the “Meeting”).

At the meeting, the Company’s stockholders approved the amendment of

the Company’s amended and restated certificate of incorporation to extend the date by which the Company must consummate a business

combination or, if it fails to do so, cease its operations and redeem or repurchase 100 % of the shares of the Company’s common

stock issued in the Company’s initial public offering, from March 22, 2024, monthly for up to six additional months at the election

of the Company and only upon contribution of $ 0.05 per month per outstanding public share, ultimately until September 22, 2024.

In connection with the meeting, the holders of 95,394 Public

Shares properly exercised their right to redeem, with 5,931,825 shares of Common Stock remaining outstanding after the Redemption;

shares of Common Stock remaining outstanding after the Redemption are shares issued in connection with the initial public offering.

Consequently,

the contribution is $ 36,904 per month needed for the Company to continue to extend the Combination Period monthly.

On May 8, 2024

and May 31, 2024, the Company made two deposits of $ 36,904 each for April and May extension contributions.

On September 10, 2024, the

Company made a deposit of $ 112,114 , of which $ 110,714 was for June, July and August extension contributions and $ 1,400 for lost interest

due to late trust payments.

On September 19, 2024, the Company held an extraordinary general meeting

8 unchanged sentences

the contribution is $ 34,376 per month needed for the Company to continue to extend the Combination Period monthly.

On October 4,

2024, the Company made a deposit of $ 34,376 for the September extension contribution.

On December 13, 2024, the Company made a deposit

of $ 68,752 for the October and November extension contributions.

On December 13,

2024, the Company made a deposit of $ 68,752 for the October and November extension contributions and on December 23, 2024, the Company

made a deposit of 34,376 for the December extension contribution.

In October 2024, $ 595,439 was paid from the trust account to redeeming

stockholders in connection with the extension.

of the Public Shares, or shares of our common stock sold as part of the IPO, contain a redemption feature which allows for the redemption

of such Public Shares in connection with our liquidation, if there is a stockholder vote or tender offer in connection with our initial

business combination and in connection with certain amendments to our amended and restated certificate of incorporation.

In accordance

with SEC and its guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely

within the control of a company require common stock subject to redemption to be classified outside of permanent equity.

Given that the

Public Shares were issued with other freestanding instruments (i.e., public warrants), the initial carrying value of common stock classified

as temporary equity was the allocated proceeds determined in accordance with ASC 470-20.

On February 27, 2025, the Company made a deposit of $ 49,376 for the January extension contribution

and a portion ($ 15,000 ) of the February extension contribution.

On March 7, 2025, the Company deposited the remainder of the February

extension contribution of $ 19,376 , plus interest.

On March 18, 2025, the Company commenced a special

meeting of stockholders, which was adjourned until March 21, 2025 without conducting any business.

On March 21, 2025, the Company reconvened

the meeting and the stockholders approved the extension of the business combination period until June 22, 2025.

In connection with the

approval of the extension amendment, holders of 532,958 shares of the Company’s common stock exercised their right to

redeem, for an aggregate redemption amount of approximately $ 6.5 million, with 5,348,311 shares of common stock remaining outstanding

after the redemption;

154,561 shares of common stock remaining outstanding after the redemption are shares issued in connection with

our initial public offering.

As a condition of the extension, the Company contributed $ 30,000 to the Trust Account, for the entire extension

period, on March 21, 2025.

Additionally, the stockholders at the meeting approved the amendment of the Company’s charter to remove

the requirement that prevented the Company from redeeming public shares to the extent that it would cause the Company’s net tangible

assets to be less than $ 5,000,001 (the “NTA Requirement”), and our charter was amended on March 21, 2025 to reflect the extension

of the business combination and the removal of the NTA Requirement.

The Company agreed to waive its right to withdraw

up to $ 100,000 of interest from the Company’s trust account to pay dissolution expenses, should the Company ultimately liquidate

prior to a business combination (the “Dissolution Expense Waiver”).

As a result, the Company will not be able to withdraw

up to $ 100,000 of interest for such dissolution expenses upon liquidation, and such interest will be held in the trust account and no

be released until the earliest to occur of (i) the completion of the initial business combination, (ii) the redemption of 100 %

of the Offering Shares (as defined below) if the Company is unable to complete its initial Business Combination within the Extension,

and (iii) the redemption of Public Shares in connection with a vote seeking to amend the provisions of our Charter.

The Company also agreed to waive its right to

withdraw interest from the Company’s trust account to pay the Company’s tax expenses (the “Tax Expense Waiver”).

As a result, the Company will not be able to withdraw interest in order to pay future tax expenses, and such interest will be held in

the trust account and not be released until the earliest to occur of (i) the completion of the initial business combination, (ii) the

redemption of 100 % of the Offering Shares (as defined below) if the Company is unable to complete its initial Business Combination within

the Extension, and (iii) the redemption of Public Shares in connection with a vote seeking to amend the provisions of our Charter.

Prior to such announcement, and subsequent to

the record date of February 21, 2025, for the Special Meeting, the Company withdrew approximately $ 23,200 of interest from the trust

account for tax expenses.

All of the Public Shares, or shares of our common

stock sold as part of the IPO, contain a redemption feature which allows for the redemption of such Public Shares in connection with

our liquidation, if there is a stockholder vote or tender offer in connection with our initial business combination and in connection

with certain amendments to our amended and restated certificate of incorporation.

In accordance with SEC and its guidance on redeemable

equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of a company require

common stock subject to redemption to be classified outside of permanent equity.

Given that the Public Shares were issued with other

freestanding instruments (i.e., public warrants), the initial carrying value of common stock classified as temporary equity was the allocated

proceeds determined in accordance with ASC 470-20.

The common stock is subject to ASC 480-10-S99.

If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the

redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become

redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately

as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period.

Company has elected to recognize the changes immediately.

While redemptions cannot cause the Company’s net tangible assets to fall

below $ 5,000,001 , the Public Shares are redeemable and will be classified as such on the consolidated balance sheets until such date

that a redemption event takes place.

Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to their Founder Shares and public shares

in connection with the completion of the initial Business Combination, (ii) waive their rights to liquidating distributions from the

Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination

Period (although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares they hold

if the Company fails to complete the Business Combination within such time period);

and (iii) vote their Founder Shares and any public

shares purchased during or after the IPO in favor of the initial Business Combination.

Company’s Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a vendor for services rendered

or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement,

reduce the amount of funds in the Trust Account to below (i) $ 10.10 per public share or (ii) such lesser amount per public share held

in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in value of the trust assets, in each case

net of the amount of interest which may be released to the Company to pay taxes, except as to any claims by a third party who executed

a waiver of any and all rights to seek access to the Trust Account and except as to any claims under indemnity of the underwriters of

the IPO against certain liabilities, including liabilities under the Securities Act.

Moreover, in the event that an executed waiver is

deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party

Delisting Notification

January 11, 2024, we received a written notice (the “Notice”) from the Listing Qualifications Department of Nasdaq indicating

that we are not in compliance with Nasdaq Listing Rule 5620(a) (the “Annual Stockholders Meeting Rule”) due to our failure

to hold an annual meeting of stockholders within twelve months of the end of our fiscal year end.

The Notice is only a notification

of deficiency, not of imminent delisting, and has no current effect on the listing or trading of our securities on the Nasdaq Stock Market.

The Company subsequently held its annual stockholders meeting on March 21, 2024.

On March 25, 2024, the Company received a notice from

the Listing Qualifications Department of Nasdaq indicating that it had demonstrated compliance with the Annual Stockholders Meeting Rule.

March 7, 2024, the Company received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq

Stock Market LLC (“Nasdaq”) stating that the Company is not in compliance with the requirement to maintain a minimum Market

Value of Publicly Held Shares (MVPHS) of $ 15 million, as set forth in Nasdaq Listing Rule 5450(b)(2)(C) (the “MVPHS Requirement”),

because the MVPHS of the Company was below $ 15 million for the 30 consecutive business days prior to the date of the Notice.

Notice does not impact the listing of the Common Stock on The Nasdaq Global Market at this time.

The Notice provided that, in accordance

with Nasdaq Listing Rule 5810(c)(3)(D), the Company has a period of 180 calendar days from the date of the Notice, or until September

3, 2024, to regain compliance with the MVPHS Requirement.

During this period, the Common Stock will continue to trade on The Nasdaq Global

If at any time before September 3, 2024 the MVPHS closes at $ 15 million or more for a minimum of ten consecutive business days ,

Nasdaq will provide written notification that the Company has achieved compliance with the MVPHS Requirement and the matter will be closed.

June 3, 2024, the Company received a delinquency notification letter from the Listing Qualifications Staff (the “Staff”)

of the Nasdaq Stock Market LLC (“Nasdaq”) due to the Company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) (the

“Listing Rule”) as a result of the Company’s failure to timely file its Quarterly Report on Form 10-Q for the period

ended March 31, 2024.

Notice provides that the Company may be eligible to transfer the listing of its securities to The Nasdaq Capital Market (provided that

it then satisfies the requirements for continued listing on that market).

Prior to September 3, 2024, the Company submitted an application

to transfer the listing of its securities to the Nasdaq Capital Market.

September 12, 2024, the Company received a letter (the “Nasdaq Letter”) from the Staff indicating the Company’s non-compliance

with the Listing Rule as a result of the Company’s failure to timely file its Quarterly Report on Form 10-Q for the period ended

June 30, 2024.

Nasdaq Letter has no immediate effect on the listing of the Company’s securities on Nasdaq.

However, if the Company fails to timely

regain compliance with the Rule, the Company’s securities will be subject to delisting from Nasdaq.

Nasdaq Letter also notified the Company that the Staff has granted the Company an exception to enable it to regain compliance with the

Listing Rule.

Pursuant to the terms of the exception, the Company must file the following on or prior to October 14, 2024:

Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024;

Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2024.

October 9, 2024, the Company filed its Quarterly Report on Form 10-Q for the period ended March 31, 2024.

October 15, 2024, the Company received a letter (the “Extension Notice”) from the Staff notifying the Company that it had

partially regained compliance with the Listing Rule by filing its Quarterly Report on Form 10-Q for the period ended March 31, 2024.

Extension Notice also notified the Company that the Staff had determined to grant the Company a further exception to enable it to regain

compliance with the Listing Rule.

Pursuant to the terms of the exception, the Company must file its Quarterly Report on Form 10-Q for

the period ended June 30, 2024 on or prior to November 18, 2024.

On November 15, 2024, the Company filed its Quarterly Report on Form

10-Q for the period ended June 30, 2024.

the Prior Notice nor the Extension Notice has an immediate effect on the listing of the Company’s securities on Nasdaq.

if the Company fails to timely regain compliance with the Rule, the Company’s securities will be subject to delisting from Nasdaq.

the Company does not satisfy the terms of the exception, the Staff will provide written notification that the Company’s securities

will be delisted.

At such time, the Company could appeal the Staff’s determination to a Hearings Panel.

December 6, 2024, the Company received a notice from the Nasdaq’s Listing Qualifications’ Staff stating that since the Company

has not filed its Form 10-Q for the period ended September 30, 2024, the Company no longer complies with Listing Rules for continued

The Company has 60 calendar days to submit a plan to regain compliance and if Nasdaq accepts the plan, the Company will be granted

an exception of up to 180 calendar days from filing’s due date or until May 19, 2025 to regain compliance.

On October 7, 2024, Nasdaq Rule 5815 was amended, companies failing

to complete a business combination within 36 months, as required by Rule IM 5101-2(b), will face immediate suspension and delisting after

receiving a Nasdaq determination letter.

and Going Concern

As of September 30, 2024, the Company had $ 533 in cash and a working

capital deficit of $ 4,483,517 .

Prior to the completion of the Company’s IPO, the Company’s liquidity needs had been satisfied

through a capital contribution from the Sponsor of $ 25,000 for the founder shares to cover certain of the offering costs and the loan

under an unsecured promissory note from the Sponsor of $ 204,841 , which was fully paid upon the IPO.

Subsequent to the consummation of

the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied through the proceeds from the

consummation of the Private Placement not held in the Trust Account, and the drawdowns on the convertible promissory note.

order to finance transaction costs in connection with an intended Business Combination, the initial stockholders or an affiliate of the

initial stockholders or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working

Capital Loans (see Note 5).

April 27, 2023, the Company signed a Convertible Working Capital Promissory Note (“the Note”) with the Sponsor for $ 1,200,000 .

The Note is non-interest bearing and is due the earlier of the consummation of a business combination or the date of liquidation.

Sponsor may elect to convert all or any portion of the unpaid principal balance of this Note into warrants, at a price of $ 1.00 per warrant.

January 10, 2024, the Company’s Board of Directors approved, and the Company amended the Note to increase the principal amount

of the Note that could be drawn on to $ 1.5 million.

The amended and restated Note also allows for the conversion of the outstanding

principal balance of the Note to be repaid in shares of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

May 31, 2024, the Company’s Board of Directors approved, and the Company second amended its Convertible Working Capital Promissory

Note with the sponsor to increase the principal amount of the Note that could be drawn on to $ 2.5 million.

The second amended and

restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares of Company common

stock at a price of $ 2.22 per share at the election of the sponsor.

Company had principal outstanding of $ 1,909,796 and is presenting the Note at fair value on its balance sheet at September 30, 2024 in

the amount of $ 1,591,380 .

Company has until March 22, 2025 to consummate a Business Combination.

It is uncertain that the Company will be able to consummate a

Business Combination by March 22, 2025.

If a Business Combination is not consummated by the required date, there will be an option to

either extend the time available for us to consummate our initial business combination or execute a mandatory liquidation and subsequent

In connection with the Company’s assessment of going concern considerations in accordance with the authoritative guidance

in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosure

of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” management has determined that mandatory liquidation,

and subsequent dissolution, should the Company be unable to complete a business combination, raises substantial doubt about the Company’s

ability to continue as a going concern for the next twelve months from the issuance of these condensed consolidated financial statements.

No adjustments have been made to the carrying amounts of assets and liabilities should the Company be required to liquidate after March

and Uncertainties

August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law.

The IR Act provides for,

among other things, a new U.S.

federal 1 % excise tax on certain repurchases of stock occurring on or after January 1, 2023, by publicly

domestic corporations, by certain U.S.

domestic subsidiaries of publicly traded foreign corporations, by “covered surrogate

foreign corporations” (as defined in the IR Act) and by certain affiliates of the foregoing.

The excise tax is imposed on the repurchasing

corporation itself, not its stockholders from which shares are repurchased.

The amount of the excise tax is generally 1 % of the fair

market value of the shares repurchased at the time of the repurchase.

However, for purposes of calculating the excise tax, repurchasing

corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases

during the same taxable year.

In addition, certain exceptions apply to the excise tax.

redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise,

may be subject to the excise tax.

Whether and to what extent the Company would be subject to the excise tax in connection with a Business

Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions

and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii)

the nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued

not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content

of regulations and other guidance from the Treasury.

The foregoing could cause a reduction in the cash available on hand to complete

a Business Combination and in the Company’s ability to complete a Business Combination.

March 22, 2023 and December 21, 2023, the Company’s stockholders redeemed 18,000,868 and 140,663 shares, respectively, for a total

of $ 184,845,836 and $ 1,565,078 , respectively.

On March 26, 2024, the Company’s stockholders redeemed 95,394 shares for a total

of $ 1,088,361 .

On September 30, 2024, the Company’s stockholders redeemed 50,556 shares for a total of $ 595,439 .

The Company determined

that an excise tax liability should be recorded due to the redeemed shares.

As of September 30, 2024, the Company has a charge to stockholders’

deficit of $ 1,880,944 of excise tax liability, including $ 16,838 charged during the nine months ended September 30, 2024, calculated

as 1 % of the value of shares redeemed.

April 12, 2024, the Treasury released Proposed Regulations on the Excise Tax On Repurchase of Corporate Stock.

In the Proposed Regulations

the Treasury declined to adopt special rules for Special Purpose Acquisition Corporations.

The Proposed Regulations do not exempt redemptions

of stock pursuant to a mandatory redemption right or a unilateral holder put option.

The Proposed Regulations clarify that a distribution

pursuant to a plan of complete Liquidation is not a repurchase and thus generally not subject to the stock repurchase excise tax.

July 3, 2024, the Treasury issued final regulations with respect to the procedure and administration of the Excise Tax.

These regulations

provided that the filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023

would be October 31, 2024.

As of September 30, 2024 and the date of this report, the excise tax was not paid and recorded as excise tax

The Company is currently evaluating its options with respect to this obligation, and it is planning to seek a postponement of

the 2023 Excise tax payment and return filing deadline to February 3, 2025 based on the Hurricane Beryl relief announced in TX-2024-08.

Any amount of such Excise Tax not paid in full, could be subject to additional interest and penalties which are currently estimated at

10 % interest per annum and a 5 % underpayment penalty per month or portion of a month up to 25 % of the total liability for any amount

that is unpaid.

2 – Significant Accounting Policies

of Presentation

accompanying unaudited condensed consolidated financial statements are presented in U.S.

dollars in conformity with accounting principles

generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations

Accordingly, they do not include all of the information and footnotes required by GAAP.

In the opinion of management, the

unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary

for the fair statement of the balances and results for the periods presented.

The interim results for the three and nine months ended

September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future

accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial

statements and notes thereto included in the Form 10-K annual report filed by the Company with the SEC on February 26, 2024.

of Consolidation

accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary.

All significant intercompany

balances and transactions have been eliminated in consolidation.

Growth Company Status

Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our

Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements

that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required

to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced

disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements

of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting

standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do

not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting

The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements

that apply to non-emerging growth companies but any such election to opt out is irrevocable.

The Company has elected not to opt out of

such extended transition period, which means that when a standard is issued or revised and it has different application dates for public

or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies

adopt the new or revised standard.

This may make comparison of the Company’s condensed consolidated financial statements with another

public company, which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended

transition period difficult or impossible because of the potential differences in accounting standards used.

preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed

consolidated financial statements.

estimates requires management to exercise significant judgment.

It is at least reasonably possible that the estimate of the effect of

a condition, situation or set of circumstances that existed at the date of the condensed consolidated financial statements, which management

considered in formulating its estimate, could change in the near term due to one or more future confirming events.

Some of the more significant

estimates are in connection with determining the fair value of the warrant liabilities and convertible promissory note.

the actual results could differ significantly from those estimates.

Concentration

of Credit Risk

instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,

which, at times, may exceed the Federal Depository Insurance Coverage of $ 250,000 .

If it is probable that the equity instrument

will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date

of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption

date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of

the instrument to equal the redemption value at the end of each reporting period.

The Company has elected to recognize the changes immediately.

The Sponsor, officers and directors have agreed

to (i) waive their redemption rights with respect to their Founder Shares and public shares in connection with the completion of the

initial Business Combination, (ii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder

Shares if the Company fails to complete the initial Business Combination within the Combination Period (although they will be entitled

to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the

Business Combination within such time period);

and (iii) vote their Founder Shares and any public shares purchased during or after the

IPO in favor of the initial Business Combination.

The Company’s Sponsor has agreed that it

will be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a

prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in

the Trust Account to below (i) $ 10.10 per public share or (ii) such lesser amount per public share held in the Trust Account as of the

date of the liquidation of the Trust Account due to reductions in value of the trust assets, in each case net of the amount of interest

which may be released to the Company to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights

to seek access to the Trust Account and except as to any claims under indemnity of the underwriters of the IPO against certain liabilities,

including liabilities under the Securities Act.

Moreover, in the event that an executed waiver is deemed to be unenforceable against

a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims.

Nasdaq Delisting Notification

On December 20, 2024, the Company received a

written notice from the Nasdaq Listing Qualifications Department of The Nasdaq Stock Market that the Company’s securities would

be delisted from The Nasdaq Stock Market by reason of the failure of the Company to complete its initial business combination by December

20, 2024 (36 months from the effectiveness of its IPO registration statement) as required by Listing Rule IM-5101-2.

Accordingly, trading

in the Company’s Common Stock, Rights and Warrants was suspended at the opening of business on December 27, 2024 and a Form 25-NSE

was filed by Nasdaq with the Securities and Exchange Commission, which removed the Company’s securities from on the Nasdaq Stock

The Company’s Common Stock, Rights and Warrants began to be quoted its on the Pink Markets operated on The OTC Market systems

(“OTC Market”) under the symbols “NVAC,” “NVACR” and “NVACW.”

Use of Funds Restricted for Payment of Taxes

From inception to date, the Company has

withdrawn a total of $ 1,484,158 of interest from the Trust Account of which $ 1,452,546 was paid for franchise and income taxes.

the aggregate withdrawals, $ 31,612 was restricted for the payment of the Company’s income taxes.

The Company utilized $ 13,162

of these withdrawals towards funding operating expenses, as well as the monthly extension deposits.

As of March 31, 2025, the

Company has restricted cash of $ 18,450 .

The Company intends to deposit $ 13,162 back into the Trust Account or use the $ 13,162 (or a

portion thereof) for tax obligations until a deposit is made into the trust on a future date.

Liquidity and Going Concern

As of March 31, 2025, the Company had $ 18,450

in restricted cash and a working capital deficit of $ 13,191,353 .

Prior to the completion of the Company’s IPO, the Company’s

liquidity needs had been satisfied through a capital contribution from the Sponsor of $ 25,000 for the founder shares to cover certain

of the offering costs and the loan under an unsecured promissory note from the Sponsor of $ 204,841 , which was fully paid upon the IPO.

Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied

through the proceeds from the consummation of the Private Placement not held in the Trust Account, and the drawdowns on the convertible

promissory note.

In order to finance transaction costs in connection

with an intended Business Combination, the initial stockholders or an affiliate of the initial stockholders or certain of the Company’s

officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 5).

On April 27, 2023, the Company signed a Convertible

Working Capital Promissory Note (“the Note”) with the Sponsor for $ 1,200,000 .

The Note is non-interest bearing and is due

the earlier of the consummation of a business combination or the date of liquidation.

The Sponsor may elect to convert all or any portion

of the unpaid principal balance of this Note into warrants, at a price of $ 1.00 per warrant.

On January 10, 2024, the Company’s Board

of Directors approved, and the Company amended the Note to increase the principal amount of the Note that could be drawn on to $ 1.5 million.

The amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares

of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

On May 31, 2024, the Company’s Board of

Directors approved, and the Company second amended its Note to increase the principal amount of the Note that could be drawn on to $ 2.5 million.

The second amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in

shares of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

The Company had principal outstanding of $ 1,919,796

and is presenting the Note at fair value on its balance sheet at March 31, 2025 in the amount of $ 9,133,382 .

As of March 31, 2025, no

amounts were repaid against the loan.

The Company has until June 22, 2025 to consummate

a Business Combination.

It is uncertain that the Company will be able to consummate a Business Combination by June 22, 2025.

If a Business

Combination is not consummated by the required date, there will be an option to either extend the time available for us to consummate

our initial business combination or execute a mandatory liquidation and subsequent dissolution.

In connection with the Company’s

assessment of going concern considerations in accordance with the authoritative guidance in Financial Accounting Standards Board (“FASB”)

Accounting Standards Update (“ASU”) 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue

as a Going Concern,” management has determined that mandatory liquidation, and subsequent dissolution, should the Company be unable

to complete a business combination, raises substantial doubt about the Company’s ability to continue as a going concern for the

next twelve months from the issuance of these condensed consolidated financial statements.

No adjustments have been made to the carrying

amounts of assets and liabilities should the Company be required to liquidate after June 22, 2025.

Risks and Uncertainties

On August 16, 2022, the Inflation Reduction Act

of 2022 (the “IR Act”) was signed into federal law.

The IR Act provides for, among other things, a new U.S.

federal 1 % excise

tax on certain repurchases of stock occurring on or after January 1, 2023, by publicly traded U.S.

domestic corporations, by certain

domestic subsidiaries of publicly traded foreign corporations, by “covered surrogate foreign corporations” (as defined

in the IR Act) and by certain affiliates of the foregoing.

The excise tax is imposed on the repurchasing corporation itself, not its

stockholders from which shares are repurchased.

The amount of the excise tax is generally 1 % of the fair market value of the shares repurchased

at the time of the repurchase.

However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the

fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year.

addition, certain exceptions apply to the excise tax.

Any redemption or other repurchase that occurs

after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax.

and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise

would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business

Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE”

or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination

but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury.

The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability

to complete a Business Combination.

On March 22, 2023 and December 21, 2023, the

Company’s stockholders redeemed 18,000,868 and 140,663 shares, respectively, for a total of $ 184,845,836 and $ 1,565,078 , respectively.

On March 26, 2024, the Company’s stockholders redeemed 95,394 shares for a total of $ 1,088,361 .

On September 30, 2024, the Company’s

stockholders redeemed 50,556 shares for a total of $ 595,439 .

On March 26, 2025, the Company’s stockholders redeemed 532,958 shares

for a total of $ 6,510,830 .

The Company determined that an excise tax liability should be recorded due to the redeemed shares.

31, 2025 and December 31, 2024, the Company has a charge to stockholders’ deficit of $ 1,946,052 and $ 1,880,944 of excise tax liability,

including $ 65,108 and $ 16,838 charged during the periods ended March 31, 2025 and December 31, 2024, calculated as 1 % of the value of

shares redeemed.

On July 3, 2024, the Treasury issued final regulations with respect

to the procedure and administration of the Excise Tax.

These regulations provided that the filing and payment deadline for any liability

incurred during the period from January 1, 2023 to December 31, 2023 would be October 31, 2024.

As of March 31, 2025 and the date of this

report, the excise tax was not paid and was recorded as excise tax payable.

Any amount of such Excise Tax not paid in full, could be subject

to additional interest and penalties which are currently estimated at 7 % interest per annum and a 0.5 % underpayment penalty per month

or portion of a month up to 25 % of the total liability for any amount that is unpaid.

As of March 31, 2025 and December 31, 2024, $ 1,946,052 and $ 1,880,944

in excise tax was accrued on the accompanying condensed consolidated balance sheets, respectively.

On January 29, 2025, the Company claimed

disaster relief under IRC Section 7508A relating to Hurricane Beryl as announced in IRS Announcement TX-2024-08.

Under the disaster

relief claim, the time for filing of the September 30, 2024 Quarterly Federal Excise Tax Return and payment of the 2023 excise taxes on

repurchases of corporate stock normally due on October 31, 2024 should be postponed to February 3, 2025.

The Company was not subject to

excise tax interest and penalties until February 3, 2025.

On January 29, 2025, the Company filed their 2024 excise tax return.

Company did not repay the excise tax in full by March 31, 2025.

As of March 31, 2025, the Company accrued approximately $ 39,000 interest

and penalties in the accompanying condensed consolidated statement of operations.

Note 2 – Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated

financial statements are presented in U.S.

dollars in conformity with accounting principles generally accepted in the United States of

America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC.

Accordingly, they do not

include all of the information and footnotes required by GAAP.

In the opinion of management, the unaudited condensed consolidated financial

statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances

and results for the periods presented.

The interim results for the three months ended March 31, 2025 are not necessarily indicative of

the results to be expected for the year ending December 31, 2025 or for any future periods.

The accompanying unaudited condensed consolidated

financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in

the Form 10-K annual report filed by the Company with the SEC on March 31, 2025.

Principles of Consolidation

The accompanying condensed consolidated financial

statements include the accounts of the Company and its wholly-owned subsidiary.

All significant intercompany balances and transactions

have been eliminated in consolidation.

Emerging Growth Company Status

The Company is an “emerging growth company,”

as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”),

and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that

are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public

accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive

compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote

on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts

emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that

is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered

under the Exchange Act) are required to comply with the new or revised financial accounting standards.

The JOBS Act provides that a company

can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but

any such election to opt out is irrevocable.

The Company has elected not to opt out of such extended transition period, which means that

when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging

growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

This may make

comparison of the Company’s condensed consolidated financial statements with another public company, which is neither an emerging

growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because

of the potential differences in accounting standards used.

Use of Estimates

The preparation of these condensed consolidated

financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of

assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements.

Making estimates requires management to exercise

significant judgment.

It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances

that existed at the date of the condensed consolidated financial statements, which management considered in formulating its estimate,

could change in the near term due to one or more future confirming events.

Some of the more significant estimates are in connection with

determining the fair value of the warrant liabilities and convertible promissory note.

Accordingly, the actual results could differ significantly

from those estimates.

Concentration of Credit Risk

Financial instruments that potentially subject

the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal

Depository Insurance Coverage of $ 250,000 .

The Company has not experienced losses on this account.

and Cash Equivalents

Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.

The Company did not have any cash equivalents as of September 30, 2024 and December 31, 2023.

and Marketable Securities Held in Trust Account

September 30, 2024, the assets held in the Trust Account were in cash.

At December 31, 2023, the assets held in the Trust Account were

Treasury Bills with a maturity of 185 days or less and in money market funds which invest in U.S.

the nine months ended September 30, 2024, pursuant to the trust agreement dated as of December 20, 2021 between the Company and Continental

Stock Transfer & Trust Company (“CST”), the trustee of the Trust Account, $ 204,459 of interest income from the Trust

Account was withdrawn by the Company for the payment of franchise and income taxes.

the nine months ended September 30, 2023, pursuant to the trust agreement dated as of December 20, 2021 between the Company and Continental

Stock Transfer & Trust Company (“CST”), the trustee of the Trust Account, $ 1,171,438 of interest income from the Trust

Account was withdrawn by the Company for the payment of franchise and income taxes.

decline in the market value of held-to-maturity securities below cost that is deemed to be other than temporary, results in an impairment

that reduces the carrying costs to such securities’ fair value.

The impairment is charged to earnings and a new cost basis for

the security is established.

To determine whether an impairment is other than temporary, the Company considers whether it has the ability

and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment

is recoverable outweighs evidence to the contrary.

Evidence considered in this assessment includes the reasons for the impairment, the

severity and the duration of the impairment, changes in value subsequent to year-end, forecasted performance of the investee, and the

general market condition in the geographic area or industry in which the investee operates.

and discounts are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective-interest

Such amortization and accretion are included in the “interest income” line item in the consolidated statements of

Interest income is recognized when earned.

January 1, 2023, the Company changed its accounting policy for the investments in trust to the fair value method.

September 30, 2024, substantially all of the assets held in the Trust Account were held in an interest-bearing demand deposit account

at a bank and at December 31, 2023, substantially all of the assets held in the Trust Account were held in U.S.

Treasury Bills.

the Company’s investments held in the Trust Account are classified as trading securities.

Trading securities are presented on the

consolidated balance sheets at fair value at the end of each reporting period.

Gains and losses resulting from the change in fair value

of investments held in the Trust Account are shown in the accompanying statements of operations.

The estimated fair values of investments

held in the Trust Account are determined using available market information.

September 30,

Treasury Bills

December 21, 2023, the Company held a special meeting of stockholders to vote on extending the Combination Period.

As a result, the Company

extended the Combination Period from December 22, 2023 to March 22, 2024, which was later extended to September 22, 2024.

In connection

with the extension, 140,663 shares of the Company’s common stock were redeemed.

In January 2024, $ 1,565,078 was paid from the Trust

Account to redeeming stockholders in connection with the extension.

As a result, the Company recorded a liability of $ 1,565,078 as common

stock to be redeemed and reduced common stock subject to possible redemption as of December 31, 2023 on the balance sheet.

Additionally,

as part of the adjustment of common stock subject to possible redemption, the Company classified $ 1,565,078 of the trust account as a

current asset on the consolidated balance sheets, which was paid from the Trust Account in January 2024 to redeeming stockholders.

of September 30, 2024, all of the Trust assets with the exception of $ 595,439 were classified as noncurrent assets.

The $ 595,439 that

is classified as a current asset is related to the common stock to be redeemed liability reflected on the condensed consolidated balance

sheets and was paid subsequent to September 30, 2024 with the use of Trust assets.

Value of Financial Instruments

fair value of the Company’s assets and liabilities approximates the carrying amounts represented in the accompanying condensed

consolidated balance sheets, primarily due to their short-term nature, except for the warrant liabilities and convertible promissory

Cash and Cash Equivalents and Restricted Cash

The Company considers all short-term investments

with an original maturity of three months or less when purchased to be cash equivalents.

At March 31, 2025 and December 31, 2024, the

Company had $ 18,450 and $0 of restricted cash, respectively, related to funds withdrawn from the Trust Account reserved for

the payment of income and state franchise taxes.

The Company did not have any cash equivalents as of March 31, 2025 and December 31, 2024.

Cash Held in Trust Account

At March 31, 2025 and December 31, 2024, substantially

all of the assets held in the Trust Account were held in an interest-bearing demand deposit account at a bank.

During the three months ended March 31, 2025, pursuant

to the trust agreement dated as of December 20, 2021 between the Company and Continental Stock Transfer & Trust Company (“CST”),

the trustee of the Trust Account, $ 78,813 of interest income from the Trust Account was withdrawn by the Company for the payment of franchise

and income taxes.

During the three months ended March 31,

2024, pursuant to the trust agreement dated as of December 20, 2021 between the Company and Continental Stock Transfer & Trust

Company (“CST”), the trustee of the Trust Account, $ 28,484 of interest income from the Trust Account was withdrawn by

the Company for the payment of franchise and income taxes.

March 31, 2025

On December 21, 2023, the Company held a special

meeting of stockholders to vote on extending the Combination Period.

As a result, the Company extended the Combination Period from December

22, 2023 to March 22, 2024, which was later extended to March 22, 2025.

In connection with the extension voted on December 21, 2023,

140,663 shares of the Company’s common stock were redeemed.

In January 2024, $ 1,565,078 was paid from the Trust Account to redeeming

stockholders in connection with the extension.

As a result, the Company recorded a liability of $ 1,565,078 as common stock to be redeemed

and reduced common stock subject to possible redemption as of December 31, 2023 on the balance sheet.

Additionally, as part of the adjustment

of common stock subject to possible redemption, the Company classified $ 1,565,078 of the trust account as a current asset on the condensed

consolidated balance sheets, which was paid from the Trust Account in January 2024 to redeeming stockholders.

On March 18, 2025, the Company commenced a special

meeting of stockholders, which was adjourned until March 21, 2025 without conducting any business.

On March 21, 2025, the Company reconvened

the special meeting to approve an extension of time for the Company to consummate an initial business combination from March 22, 2025

to June 22, 2025.

The meeting was adjourned until March 21, 2025, at which the stockholders approve the extension of the business combination

period until June 22, 2025.

As a condition of the extension, the Company contributed $ 30,000 to the Trust Account, for the entire extension

period, on March 21, 2025.

As of March 31, 2025, all of the Trust assets

were classified as noncurrent assets.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities approximates

the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature,

except for the warrant liabilities, convertible promissory note, and securities purchase agreement.

The Company accounts for income taxes under ASC

740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the

expected impact of differences between the consolidated financial statements and tax basis of assets and liabilities and for the expected

future tax benefit to be derived from tax loss and tax credit carry forwards.

ASC 740 additionally requires a valuation allowance to

be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

As of September 30,

2024 and December 31, 2023, the Company’s deferred tax asset had a full valuation allowance recorded against it.

Our effective

tax rate was 17.62 % and ( 7.46 )% for the three months ended September 30, 2024 and 2023, respectively, and ( 6.02 )% and 31.74 % for the

nine months ended September 30, 2024 and 2023, respectively.

The effective tax rate differs from the statutory tax rate of 21 % for the

three and nine months ended September 30, 2024 and 2023, due to changes in fair value of warrant liabilities and convertible loan, business

combination expenses and the valuation allowance on the deferred tax assets.

740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes

a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected

to be taken in a tax return.

For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination

by taxing authorities.

ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim

period, disclosure and transition.

Company recognizes interest and penalties related to unrecognized tax benefits as a formation cost expense.

The Company is currently

not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

and penalties expense amounted to $ 0 and $ 0 during the three and nine months ended September 30, 2024.

Interest and penalties expense

amounted to $ 0 and $ 19,158 during the three and nine months ended September 30, 2023, respectively.

Company has identified the United States as its only “major” tax jurisdiction.

The Company is subject to income taxation

by major taxing authorities since inception.

These examinations may include questioning the timing and amount of deductions, the nexus

of income among various tax jurisdictions and compliance with federal and state tax laws.

The Company’s management does not expect

that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Financial Instruments

Company evaluates its financial instruments, such as warrants, to determine if such instruments are derivatives or contain features that

qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”.

Derivative instruments are initially

recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the consolidated

statements of operations.

Derivative assets and liabilities are classified in the consolidated balance sheets as current or non-current based

on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet

Promissory Note

fair value of the Company’s convertible promissory note is valued using a compound option formula on the convertible feature and

a present value of the host contract.

The valuation technique requires inputs that are both unobservable and significant to the overall

fair value measurement.

These inputs reflect management’s own assumption about the assumptions a market participant would use in

pricing the working capital loan.

Company accounts for the 17,404,250 warrants issued in connection with the IPO (the 9,487,500 Public Warrants, the 7,347,500 Private

Placement Warrants, and the 569,250 Representative Warrants inclusive of the underwriters’ over-allotment option)

in accordance with the guidance contained in ASC 815-40.

Such guidance provides that because the warrants do not meet the criteria for

equity treatment thereunder, each warrant must be recorded as a liability.

Accordingly, the Company has classified each warrant as a

liability at its fair value.

This liability is subject to re-measurement at each balance sheet date.

With each such re-measurement,

the warrant liabilities will be adjusted to fair value, with the change in fair value recognized in the Company’s consolidated

statements of operations (See Note 8).

determining the fair value of the Private Placement Warrants and the Representative’s Warrants, assumptions related to expected

share-price volatility, expected life and risk-free interest rate are utilized.

The Company estimates the volatility of its common stock

based on historical volatility that matches the expected remaining life of the warrants.

Income (Loss) Per Common Stock

Company has two categories of shares, which are referred to as common stock subject to possible redemption and common stock.

and losses are shared pro rata between the two categories of shares.

The 17,404,250 potential shares of common stock for outstanding

warrants to purchase the Company’s shares were excluded from diluted earnings per share for the three and nine months ended September

30, 2024 and 2023 because the warrants are contingently exercisable, and the contingencies have not yet been met.

As a result, diluted

net income (loss) per share of common stock is the same as basic net income (loss) per share of common stock for the periods presented.

table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share

for each category of common stock:

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

Basic and diluted net income (loss) per share:

Allocation of net income (loss)

expected impact of differences between the condensed consolidated financial statements and tax basis of assets and liabilities and for

the expected future tax benefit to be derived from tax loss and tax credit carry forwards.

ASC 740 additionally requires a valuation

allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

March 31, 2025 and December 31, 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it.

ASC 740 also clarifies the accounting for uncertainty

in income taxes recognized in an enterprise’s condensed consolidated financial statements and prescribes a recognition threshold

and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax

For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.

ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and

The Company recognizes interest and penalties

related to unrecognized tax benefits as a formation cost expense.

The Company is currently not aware of any issues under review that

could result in significant payments, accruals or material deviation from its position.

There were no interest and penalty expenses incurred

during the three months ended March 31, 2025 and 2024.

The Company has identified the United States

as its only “major” tax jurisdiction.

The Company is subject to income taxation by major taxing authorities since inception.

These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and

compliance with federal and state tax laws.

The Company’s management does not expect that the total amount of unrecognized tax

benefits will materially change over the next twelve months.

Derivative Financial Instruments

The Company evaluates its financial instruments,

such as warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance

with ASC Topic 815, “Derivatives and Hedging”.

Derivative instruments are initially recorded at fair value on the grant date

and re-valued at each reporting date, with changes in the fair value reported in the condensed consolidated statements of operations.

Derivative assets and liabilities are classified in the condensed consolidated balance sheets as current or non-current based on

whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet

Convertible Promissory Note

The fair value of the Company’s convertible

promissory note is valued using a compound option formula on the convertible feature and a present value of the host contract.

The valuation

technique requires inputs that are both unobservable and significant to the overall fair value measurement.

These inputs reflect management’s

own assumption about the assumptions a market participant would use in pricing the working capital loan.

Securities Purchase Agreement

The fair value of the Company’s securities purchase agreement

is valued using Monte Carlo models on the convertible feature and a present value of the host contract.

The valuation technique requires

inputs that are both unobservable and significant to the overall fair value measurement.

The instrument is subject to re-measurement at

each balance sheet date, with changes in fair value recognized in the condensed consolidated statements of operations.

Warrant Liabilities

The Company accounts for the 17,404,250 warrants

issued in connection with the IPO (the 9,487,500 Public Warrants, the 7,347,500 Private Placement Warrants, and the 569,250 Representative

Warrants inclusive of the underwriters’ over-allotment option) in accordance with the guidance contained in ASC 815-40.

guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as

Accordingly, the Company has classified each warrant as a liability at its fair value.

This liability is subject to re-measurement at

each balance sheet date.

With each such re-measurement, the warrant liabilities will be adjusted to fair value, with the change in fair

value recognized in the Company’s condensed consolidated statements of operations (See Note 8).

In determining the fair value of the Private

Placement Warrants and the Representative’s Warrants, assumptions related to expected share-price volatility, expected life and

risk-free interest rate are utilized.

The Company estimates the volatility of its common stock based on historical volatility that matches

the expected remaining life of the warrants.

Net Loss Per Common Stock

The Company has two categories of shares, which

are referred to as common stock subject to possible redemption and common stock.

Earnings and losses are shared pro rata between the

two categories of shares.

The 17,404,250 potential shares of common stock for outstanding warrants to purchase the Company’s

shares were excluded from diluted earnings per share for the three months ended March 31, 2025 and 2024 because the warrants are contingently

exercisable, and the contingencies have not yet been met.

As a result, diluted net loss per share of common stock is the same as basic

net loss per share of common stock for the periods presented.

The table below presents a reconciliation of the numerator and denominator

used to compute basic and diluted net loss per share for each category of common stock:

The table below presents a reconciliation of

the numerator and denominator used to compute basic and diluted net loss per share for each category of common stock:

For the Three Months Ended March 31,

Basic and diluted net loss per share:

Allocation of net loss

$ ( 125,913 )

1 unchanged sentence

$ ( 112,816 )

$ ( 707,461 )

Weighted-average shares outstanding

Basic and diluted net income (loss) per share

Basic and diluted net loss per share

Common Stock Subject to Possible Redemption

Company’s common stock sold as part of the Units in the IPO (“public common stock”) contain a redemption feature which

allows for the redemption of such public shares in connection with the Company’s liquidation, or if there is a stockholder vote

or tender offer in connection with the Company’s initial Business Combination.

In accordance with ASC 480-10-S99, the Company classifies

public common stock outside of permanent equity as the redemption provisions are not solely within the control of the Company.

common stock was issued with other freestanding instruments (i.e., Public Warrants) and as such, the initial carrying value of public

common stock classified as temporary equity was the allocated proceeds determined in accordance with ASC 470-20.

of September 30, 2024 and December 31, 2023, the amount of public common stock reflected on the consolidated balance sheets is reconciled

in the following table:

The Company’s common stock sold as part

of the Units in the IPO (“public common stock”) contain a redemption feature which allows for the redemption of such public

shares in connection with the Company’s liquidation, or if there is a stockholder vote or tender offer in connection with the Company’s

initial Business Combination.

In accordance with ASC 480-10-S99, the Company classifies public common stock outside of permanent equity

as the redemption provisions are not solely within the control of the Company.

The public common stock was issued with other freestanding

instruments (i.e., Public Warrants) and as such, the initial carrying value of public common stock classified as temporary equity was

the allocated proceeds determined in accordance with ASC 470-20.

As of March 31, 2025 and December 31, 2024, the

amount of public common stock reflected on the condensed consolidated balance sheets is reconciled in the following table:

Contingently redeemable common stock, December 31, 2023

6 unchanged sentences

Accretion of redeemable common stock

Contingently redeemable common stock, September 30, 2024

Issued Accounting Standards

November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which

requires the disclosure of additional segment information.

2023-07 is effective for fiscal years beginning after December 15,

2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company is currently evaluating the impact of adopting

December 2023, the FASB issued ASU No.

Contingently redeemable common stock, March 31, 2025

Recently Issued Accounting Standards

Standards Adopted

In November 2023, the FASB issued ASU 2023-07, Segment

Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments in this ASU require disclosures,

on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer decision maker

(“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the

reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

Public entities

will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a

single reportable segment are required to provide all the disclosures required by the amendments in this ASU and existing segment

disclosures in Topic 280.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods

within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company adopted ASU 2023-07, which was applied

retrospectively to all prior periods presented.

See Note 9 for further details regarding this adoption.

Standards not yet Adopted

In December 2023, the FASB issued ASU No.

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”),

which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional

information for reconciling items that meet a quantitative threshold.

ASU 2023-09 will also require the Company to disaggregate its income

taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions.

ASU 2023-09 will become effective for annual periods beginning after December 15, 2024.

The Company is still reviewing the impact of

does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material

effect on the Company’s condensed consolidated financial statements.

3 – Initial Public Offering

December 22, 2021, the Company sold 18,975,000 Units, (which included 2,475,000 Units issued pursuant to the full exercise of the over-allotment

option) at a purchase price of $ 10.00 per Unit.

Each unit that the Company is offering has a price of $ 10.00 and consists of one share

of common stock, one right, and one-half of one redeemable warrant.

Each right entitles the holder thereof to receive one-tenth (1/10)

of one share of common stock upon the consummation of an initial business combination.

Each whole warrant entitles the holder thereof

to purchase one share of common stock at a price of $ 11.50 per share, subject to adjustment as described herein.

whole warrant entitles the holder to purchase one share of common stock at a price of $ 11.50 per share, subject to adjustment as

discussed herein.

In addition, if (x) the Company issues additional shares of common stock or equity-linked securities for

capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price

of less than $ 9.20 per share of common stock (with such issue price or effective issue price to be determined in good faith by the

board of directors and, in the case of any such issuance to the initial stockholders or their affiliates, without taking into account

any founder shares held by such stockholders or their affiliates, as applicable, prior to such issuance (the “Newly Issued Price”)),

(y) the aggregate gross proceeds from such issuances represent more than 60 % of the total equity proceeds, and interest thereon,

available for funding the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of

the common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the Business

Combination (such price, the “Market Value”) is below $ 9.20 per share, the exercise price shall be adjusted (to the

nearest cent) to be equal to 115 % of the higher of the Market Value and the Newly Issued Price, and the $ 18.00 per share redemption

trigger price described in the section “Redemption of warrants” will be adjusted (to the nearest cent) to be equal to 180 %

of the higher of the Market Value and the Newly Issued Price.

warrants will become exercisable on the later of 12 months from the closing of the IPO or 30 days after the completion of its

initial Business Combination and will expire five years after the completion of the Company’s initial Business Combination, at

5:00 p.m., New York City time, or earlier upon redemption or liquidation.

Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of the initial Business

Combination, the Company will use its reasonable best efforts to file, and within 60 business days after the closing of the initial Business

Combination, to have declared effective, a registration statement relating to those shares of common stock, and to maintain a current

prospectus relating to such shares of common stock until the warrants expire or are redeemed.

Notwithstanding the foregoing, if a registration

statement covering the shares of common stock issuable upon exercise of the warrants is not effective within the above specified period

following the consummation of the initial Business Combination, warrant holders may, until such time as there is an effective registration

statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants

on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act of 1933, as amended, or the Securities

Act, provided that such exemption is available.

If that exemption, or another exemption, is not available, holders will not be able to

exercise their warrants on a cashless basis.

the warrants become exercisable, the Company may redeem the outstanding warrants:

Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose

specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that

meet a quantitative threshold.

ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal,

state and foreign taxes, with further disaggregation required for significant individual jurisdictions.

ASU 2023-09 will become effective

for annual periods beginning after December 15, 2024.

The Company is still reviewing the impact of ASU 2023-09.

Management does not believe that any recently

issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s condensed

consolidated financial statements.

Note 3 – Initial Public Offering

On December 22, 2021, the Company sold 18,975,000

Units, (which included 2,475,000 Units issued pursuant to the full exercise of the over-allotment option) at a purchase price of $ 10.00

Each unit that the Company is offering has a price of $ 10.00 and consists of one share of common stock, one right, and one-half of

one redeemable warrant.

Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the

consummation of an initial business combination.

Each whole warrant entitles the holder thereof to purchase one share of common stock

at a price of $ 11.50 per share, subject to adjustment as described herein.

Public Warrants

Each whole warrant entitles the holder to purchase

one share of common stock at a price of $ 11.50 per share, subject to adjustment as discussed herein.

In addition, if (x) the

Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the

closing of the initial Business Combination at an issue price or effective issue price of less than $ 9.20 per share of common stock

(with such issue price or effective issue price to be determined in good faith by the board of directors and, in the case of any such

issuance to the initial stockholders or their affiliates, without taking into account any founder shares held by such stockholders or

their affiliates, as applicable, prior to such issuance (the “Newly Issued Price”)), (y) the aggregate gross proceeds

from such issuances represent more than 60 % of the total equity proceeds, and interest thereon, available for funding the initial

Business Combination (net of redemptions), and (z) the volume weighted average trading price of the common stock during the 20 trading

day period starting on the trading day prior to the day on which the Company consummates the Business Combination (such price, the “Market

Value”) is below $ 9.20 per share, the exercise price shall be adjusted (to the nearest cent) to be equal to 115 % of the

higher of the Market Value and the Newly Issued Price, and the $ 18.00 per share redemption trigger price described in the section

“Redemption of warrants” will be adjusted (to the nearest cent) to be equal to 180 % of the higher of the Market Value

and the Newly Issued Price.

The warrants will become exercisable on the later

of 12 months from the closing of the IPO or 30 days after the completion of its initial Business Combination and will expire

five years after the completion of the Company’s initial Business Combination, at 5:00 p.m., New York City time, or earlier

upon redemption or liquidation.

The Company has agreed that as soon as practicable,

but in no event later than 15 business days after the closing of the initial Business Combination, the Company will use its reasonable

best efforts to file, and within 60 business days after the closing of the initial Business Combination, to have declared effective,

a registration statement relating to those shares of common stock, and to maintain a current prospectus relating to such shares of common

stock until the warrants expire or are redeemed.

Notwithstanding the foregoing, if a registration statement covering the shares of common

stock issuable upon exercise of the warrants is not effective within the above specified period following the consummation of the initial

Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when

the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant to the

exemption provided by Section 3(a)(9) of the Securities Act of 1933, as amended, or the Securities Act, provided that such exemption

is available.

If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless

Redemption of Warrants

Once the warrants become exercisable, the Company

may redeem the outstanding warrants:

whole and not in part;

3 unchanged sentences

period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

the Company calls the warrants for redemption as described above, management will have the option to require all holders that wish to

exercise warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants

on a “cashless basis,” management will consider, among other factors, the Company’s cash position, the number of warrants

that are outstanding and the dilutive effect on the stockholders of issuing the maximum number of shares of common stock issuable upon

the exercise of the warrants.

In such event, each holder would pay the exercise price by surrendering the warrants for that number of

shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying

the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined

below) by (y) the fair market value.

The “fair market value” shall mean the average reported last sale price of the

common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the

holders of warrants.

4 – Private Placement

Company’s Sponsor, I-Bankers and Dawson James have purchased an aggregate of 7,347,500 Private Placement Warrants (which included

697,500 Private Placement Warrants issued pursuant to the full exercise of the over-allotment option) at a price of $ 1.00 per warrant

($ 7,347,500 in the aggregate) in a private placement that closed simultaneously with the closing of the IPO.

Of such amount, 5,162,500

Private Placement Warrants were purchased by the Sponsor and 2,185,000 Private Placement Warrants were purchased by I-Bankers and Dawson

Private Placement Warrants are identical to the warrants included in the units sold in the IPO, except that the Private Placement Warrants:

(i) will not be redeemable by the Company and (ii) may be exercised for cash or on a cashless basis, in each case so long as they are

held by the initial purchasers or any of their permitted transferees.

If the Private Placement Warrants are held by holders other than

the initial purchasers or any of their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable

by the holders on the same basis as the warrants included in the Units being sold in the IPO.

5 – Related Party Transactions

April 2021, the Sponsor paid $ 25,000 , or approximately $ 0.005 per share, to cover certain of the offering costs in exchange for an aggregate

of 5,175,000 shares of common stock, par value $ 0.0001 per share (the “Founder Shares”).

In October 2021, the Sponsor irrevocably

surrendered to the Company for cancellation and for no consideration 862,500 shares of common stock.

On December 20, 2021, the Company

effected a 1.1- for-1 stock dividend of its common stock , resulting in the Sponsor holding an aggregate of 4,743,750 shares of common

The Founder Shares include an aggregate of up to 618,750 shares subject to forfeiture if the over-allotment option is not exercised

by the underwriters in full.

On December 22, 2021, the over-allotment option was fully exercised and such shares are no longer subject

to forfeiture.

Sponsor has agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of:

(A) one year after the

completion of the initial Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or

other similar transaction after the initial Business Combination that results in all of the Company’s public stockholders having

the right to exchange their shares of common stock for cash, securities or other property (the “Lock-up”).

Notwithstanding

the foregoing, if the last sale price of the Company’s common stock equals or exceeds $ 12.00 per share (as adjusted for stock splits,

stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30 -trading day period commencing

at least 150 days after the initial Business Combination, the Founder Shares will be released from the Lock-up.

Promissory Note – Related Party

April 27, 2023, the Company signed a Convertible Working Capital Promissory Note (“the Note”) with the Sponsor for $ 1,200,000 .

The Note is non-interest bearing and is due the earlier of the consummation of a business combination or the date of liquidation.

Sponsor may elect to convert all or any portion of the unpaid principal balance of this Note into warrants, at a price of $ 1.00 per warrant.

On January 10, 2024, the Company’s Board of Directors approved, and the Company amended the Note to increase the principal amount

of the Note that could be drawn on to $ 1.5 million.

The amended and restated Note also allows for the conversion of the outstanding

principal balance of the Note to be repaid in shares of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

On May 31, 2024, the Company’s Board of Directors approved and the Company entered into a second amendment of its Convertible Working

Capital Promissory Note with the sponsor to increase the principal amount of the Note that could be drawn on to $ 2.5 million.

second amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares

of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

As of September 30, 2024, the Company had

principal outstanding of $ 1,909,796 and is presenting the Note at fair value on its balance sheet at September 30, 2024 in the amount

of $ 1,591,380 .

order to finance transaction costs in connection with an intended initial Business Combination, the initial stockholders or an affiliate

of the initial stockholders or certain of the Company’s officers and directors may, but are not obligated to, loan the Company

funds as may be required (the “Working Capital Loans”).

If the Company completes the initial Business Combination, the Company

would repay such loaned amounts out of the proceeds of the Trust Account released to the Company.

Otherwise, such loans would be repaid

only out of funds held outside the Trust Account.

In the event that the initial Business Combination does not close, the Company may

use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from the Trust Account

would be used to repay such loaned amounts.

Up to $ 1,500,000 of such loans may be convertible, at the option of the lender, into warrants

at a price of $ 1.00 per warrant of the post Business Combination entity.

The warrants would be identical to the Private Placement Warrants,

including as to exercise price, exercisability and exercise period.

At September 30, 2024 and December 31, 2023, the Company had no borrowings

under the Working Capital Loans, other than the Note described in “Note 5 – Related Party Transactions – Convertible

Promissory Note – Related Party”.

Administrative

on the effective date of the IPO, the Company began paying its Sponsor a total of $ 5,000 per month for office space, utilities,

secretarial support and other administrative and consulting services.

As of June 30, 2023, the Company and the Sponsor terminated this

For the three and nine months ended September 30, 2024, $ 0 had been incurred and billed relating to the administrative service

fee, respectively.

For the three and nine months ended September 30, 2023, $ 0 and $ 30,000 , respectively, had been incurred and billed

relating to the administrative service fee.

As of September 30, 2024 and December 31, 2023, $ 50,000 relating to the administrative service

fee was not paid and recorded as due to related party.

the nine months ending September 30, 2024, Profusa agreed to advance funds to the Company to pay for operating expenses.

As of September

30, 2024, there was $ 320,717 owed to Profusa, which is due upon demand or at the completion of the Business Combination.

6 – Commitments and Contingencies

holders of the Founder Shares, the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans

(and any underlying securities) are entitled to registration rights pursuant to a registration rights agreement signed on the closing

date of the IPO requiring the Company to register such securities for resale.

The holders of these securities are entitled to make up

to three demands, excluding short form demands, that the Company registers such securities.

In addition, the holders have certain “piggy-back”

registration rights with respect to registration statements filed subsequent to the completion of the initial Business Combination.

the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act

to become effective until termination of the applicable Lock-up period described in Note 5.

The Company will bear the expenses incurred

in connection with the filing of any such registration statements.

underwriters had a 30 -day option from the date of IPO to purchase up to an additional 2,475,000 units to cover over-allotments,

On December 22, 2021, the over-allotment was fully exercised.

underwriters received a cash underwriting discount of approximately 1.82 % of the gross proceeds of the IPO, or $ 3,450,000 .

Combination Marketing Agreement

a Business Combination marketing agreement, the Company engaged I-Bankers and Dawson James as advisors in connection with the Business

Combination to assist the Company in holding meetings with the stockholders to discuss the potential Business Combination and the target

business’s attributes, introduce the Company to potential investors that are interested in purchasing the Company’s securities

in connection with the potential Business Combination, assist the Company in obtaining stockholder approval for the Business Combination

and assist the Company with its press releases and public filings in connection with the Business Combination.

The Company was obligated

to pay I-Bankers and Dawson James a cash fee for such marketing services upon the consummation of the initial Business Combination in

an amount of 3.68 % of the gross proceeds of the IPO, or $ 6,986,250 .

The agreement was amended on November 7, 2022 and calls for

the 3.68 % business combination fee to be paid as (a) 27.5 % cash and (b) 72.5 % to be rolled into equity at closing.

Representative’s

December 22, 2021, the Company issued 450,000 shares (Representative Shares) of common stock (which included 37,500 Representative

Shares issued pursuant to the full exercise of the over-allotment option) at the consummation of the IPO to I-Bankers and Dawson

James (and/or their designees).

I-Bankers and Dawson James (and/or their designees) have agreed not to transfer, assign or sell

any such shares until the completion of the initial Business Combination.

In addition, I-Bankers and Dawson James (and/or their

designees) have agreed (i) to waive their redemption rights with respect to such shares in connection with the completion of the

initial Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account with respect to

such shares if the Company fails to complete its initial Business Combination within the Combination Period.

The fair value of the Representative’s

Shares issued are recognized as offering costs directly attributable to the issuance of an equity contract to be classified in equity

and are recorded as a reduction of equity (see Note 1).

Representative’s

Company granted to I-Bankers and Dawson James (and/or their designees) 569,250 warrants (which included 74,250 warrants

issued pursuant to the full exercise of the over-allotment option) exercisable at $ 11.50 per share (or an aggregate exercise price

of $ 6,546,375 ) at the closing of the IPO.

The Representative Warrants issued are recognized as derivative liabilities in accordance with

ASC 815-40 and recorded as liabilities at fair value each reporting period (see Notes 1 and 8).

The warrants may be exercised for cash

or on a cashless basis, at the holder’s option, at any time during the period commencing on the later of the first anniversary

of the effective date of the registration statement of which the IPO forms a part and the closing of the initial Business Combination

and terminating on the fifth anniversary of such effectiveness date.

Notwithstanding anything to the contrary, I-Bankers and Dawson

James have agreed that neither they nor their designees will be permitted to exercise the warrants after the five year anniversary

of the effective date of the registration statement of which the IPO forms a part.

The warrants and such shares purchased pursuant to

the warrants have been deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days immediately

following the date of the effectiveness of the registration statement of which the IPO forms a part pursuant to FINRA Rule 5110I(1).

Pursuant to FINRA Rule 5110I(1), these securities will not be the subject of any hedging, short sale, derivative, put or call transaction

that would result in the economic disposition of the securities by any person for a period of 180 days immediately following the

effective date of the registration statement of which the IPO forms a part, nor may they be sold, transferred, assigned, pledged or hypothecated

for a period of 180 days immediately following the effective date of the registration statement of which the IPO forms a part except

to any underwriter and selected dealer participating in the offering and their bona fide officers or partners.

The warrants grant to

holders demand and “piggy back” rights for periods of five and seven years, respectively, from the effective date of the

registration statement of which the IPO forms a part with respect to the registration under the Securities Act of the shares issuable

upon exercise of the warrants.

The Company will bear all fees and expenses attendant to registering the securities, other than underwriting

commissions, which will be paid for by the holders themselves.

The exercise price and number of shares issuable upon exercise of the

warrants may be adjusted in certain circumstances including in the event of a share dividend, or the Company’s recapitalization,

reorganization, merger or consolidation.

However, the warrants will not be adjusted for issuances of shares at a price below its exercise

The Company will have no obligation to net cash settle the exercise of the warrants.

The holder of the warrants will not be entitled

to exercise the warrants for cash unless a registration statement covering the securities underlying the warrants is effective or an

exemption from registration is available.

November 7, 2022, NorthView entered into a Merger Agreement and Plan of Reorganization (the “Merger Agreement”), by and among

Merger Sub., and Profusa, Inc., a California corporation (“Profusa”).

The Merger Agreement provides that, among other things,

at the closing of the transactions contemplated by the Merger Agreement, Merger Sub will merge with and into Profusa (the “Merger”),

with Profusa surviving as a wholly-owned subsidiary of NorthView.

In connection with the Merger, NorthView will change its name to “Profusa,

Business Combination is subject to customary closing conditions, including the satisfaction of the minimum available cash condition of

$ 15,000,000 , the receipt of certain governmental approvals and the required approval by the stockholders of NorthView and Profusa.

is no assurance that the Business Combination will be completed.

aggregate consideration to be received by the Profusa stockholders is based on a pre-transaction equity value of $ 155,000,000 .

ratio will be equal to (a) $ 155,000,000 , divided by an assumed value of NorthView Common Stock of $ 10.00 per share.

Subject to certain

future revenue and stock-price based milestones, Profusa stockholders will have the right to receive an aggregate of up to an additional

3,875,000 shares of NorthView Common Stock.

September 12, 2023, the parties to the Merger Agreement entered into Amendment No.

1 to the Merger Agreement (the “Amendment”)

pursuant to which the parties agreed to revise the revenue earnout milestones to reflect updated projections provided by Profusa.

Specifically,

Amendment No.

1 revised the definition of “Milestone Event III” and “Milestone Event IV” such that one-quarter

of the Earnout Shares would be issued to Profusa stockholders if the combined company achieves Earnout Revenue of $ 11,864,000 for the

fiscal year ended December 31, 2024, and one-quarter of the Earnout Shares would be issued to Profusa stockholders if the combined company

achieves Earnout Revenue of $ 99,702,000 for the fiscal year ended December 31, 2025.

Amendment No.

1 also clarified the exercise price

of certain of the Company’s Warrants.

September 14, 2023 and September 29, 2023, the Company paid Profusa related expenses in the amount of $ 25,000 , respectively, for a total

of $ 50,000 .

The Profusa related expenses will not be repaid and did not incur such expenses as of the date of filing.

January 12, 2024, the parties to the Merger Agreement entered into an Amendment No.

2 to the Merger Agreement pursuant to which the parties

agreed to revise the definition of “Milestone Event III” and such that the Earnout Revenue milestone of $ 11,864,000 for the

fiscal year ended December 31, 2024, was replaced with a milestone of consummating the Tasly JV (as defined in the amended Merger Agreement)

and receipt of the related funding during the fiscal year ended December 31, 2024.

All other aspects of the Merger Agreement were unmodified.

March 4, 2024, the parties to the Merger Agreement entered into Amendment No.

3 to the Merger Agreement pursuant to which the parties

agreed to revise the definition of Company Reference Value (as defined in the Merger Agreement) to adjust for financing proceeds and

debt conversions that could be received by Profusa prior to the Business Combination.

All other aspects of the Merger Agreement were

February 16, 2024, the Company’s Board of Directors approved and authorized the Company to execute a binding term sheet between

the Company and Profusa, Inc.

(the “Target”) for PIPE funding with Vellar Opportunities Fund Master, Ltd.

Vellar agreed to subscribe for 2,500,000 shares of common and/or preferred stock of the Target upon the closing of the Business Combination

at a price of $ 2.00 per share, for a total amount of $ 5,000,000 to be funded by Vellar immediately prior to the Business Combination.

May 9, 2024, the Original term sheet between the Company and Profusa was amended and restated to clarify certain provisions of the Original

September 25, 2024, Vellar terminated the Amended and Restated Binding Principal Terms and Conditions with the Company and Profusa,

dated May 9, 2024.

7 – Stockholders’ Deficit

stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $ 0.0001 and

with such designations, rights and preferences as may be determined from time to time by the Company’s board of directors.

of September 30, 2024 and December 31, 2023, there was no preferred stock issued or outstanding.

Stock — The Company is authorized to issue a total of 100,000,000 shares of common stock at par value of

$ 0.0001 each.

In April 2021, the Company issued 5,175,000 shares of common stock to its Sponsor for $ 25,000 , or approximately

$ 0.005 per share.

In October 2021, the Sponsor irrevocably surrendered to the Company for cancellation and for no consideration 862,500 shares

of common stock.

On December 20, 2021, the Company effected a 1.1- for-1 stock dividend of its common stock , resulting

in an aggregate of 4,743,750 Founder Shares issued and outstanding.

On December 22, 2021, the Company has also issued 450,000 shares

(Representative’s Shares) of common stock (which included 37,500 Representative Shares issued pursuant to the full exercise

of the over-allotment option) at the consummation of the IPO to I-Bankers and Dawson James (and/or their designees).

September 30, 2024 and December 31, 2023, there were 5,193,750 shares of common stock issued and outstanding, excluding 687,519

and 833,469 shares of common stock subject to redemption, respectively.

stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders.

Unless specified in

the Company’s amended and restated certificate of incorporation or bylaws, or as required by applicable provisions of the DGCL

or applicable stock exchange rules, the affirmative vote of a majority of the Company’s common stock that are voted is required

to approve any such matter voted on by the stockholders.

There is no cumulative voting with respect to the election of directors, with

the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors (prior

to consummation of the initial Business Combination).

The Company’s stockholders are entitled to receive ratable dividends when,

as and if declared by the board of directors out of funds legally available therefor.

8 – Fair Value Measurements

value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction

between market participants at the measurement date.

GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs

used in measuring fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets

or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The Company’s financial

instruments are classified as either Level 1, Level 2 or Level 3.

If the Company calls the warrants for redemption

as described above, management will have the option to require all holders that wish to exercise warrants to do so on a “cashless

basis.” In determining whether to require all holders to exercise their warrants on a “cashless basis,” management

will consider, among other factors, the Company’s cash position, the number of warrants that are outstanding and the dilutive effect

on the stockholders of issuing the maximum number of shares of common stock issuable upon the exercise of the warrants.

In such event,

each holder would pay the exercise price by surrendering the warrants for that number of shares of common stock equal to the quotient

obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference

between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value.

The “fair market value” shall mean the average reported last sale price of the common stock for the 10 trading days ending

on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

Note 4 – Private Placement

The Company’s Sponsor, I-Bankers and Dawson

James have purchased an aggregate of 7,347,500 Private Placement Warrants (which included 697,500 Private Placement Warrants issued pursuant

to the full exercise of the over-allotment option) at a price of $ 1.00 per warrant ($ 7,347,500 in the aggregate) in a private placement

that closed simultaneously with the closing of the IPO.

Of such amount, 5,162,500 Private Placement Warrants were purchased by the Sponsor

and 2,185,000 Private Placement Warrants were purchased by I-Bankers and Dawson James.

The Private Placement Warrants are identical

to the warrants included in the units sold in the IPO, except that the Private Placement Warrants:

(i) will not be redeemable by the

Company and (ii) may be exercised for cash or on a cashless basis, in each case so long as they are held by the initial purchasers or

any of their permitted transferees.

If the Private Placement Warrants are held by holders other than the initial purchasers or any of

their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same

basis as the warrants included in the Units being sold in the IPO.

Note 5 – Related Party Transactions

Founder Shares

In April 2021, the Sponsor paid $ 25,000 , or approximately

$ 0.005 per share, to cover certain of the offering costs in exchange for an aggregate of 5,175,000 shares of common stock, par value

$ 0.0001 per share (the “Founder Shares”).

In October 2021, the Sponsor irrevocably surrendered to the Company for cancellation

and for no consideration 862,500 shares of common stock.

On December 20, 2021, the Company effected a 1.1- for-1 stock dividend of its

common stock , resulting in the Sponsor holding an aggregate of 4,743,750 shares of common stock.

The Founder Shares include an aggregate

of up to 618,750 shares subject to forfeiture if the over-allotment option is not exercised by the underwriters in full.

22, 2021, the over-allotment option was fully exercised and such shares are no longer subject to forfeiture.

The Sponsor has agreed not to transfer, assign

or sell any of their Founder Shares until the earlier to occur of:

(A) one year after the completion of the initial Business Combination

or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the initial Business

Combination that results in all of the Company’s public stockholders having the right to exchange their shares of common stock

for cash, securities or other property (the “Lock-up”).

Notwithstanding the foregoing, if the last sale price of the Company’s

common stock equals or exceeds $ 12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and

the like) for any 20 trading days within any 30 -trading day period commencing at least 150 days after the initial Business Combination,

the Founder Shares will be released from the Lock-up.

Convertible Promissory Note – Related

On April 27, 2023, the Company signed a Convertible

Working Capital Promissory Note (“the Note”) with the Sponsor for $ 1,200,000 .

The Note is non-interest bearing and is due

the earlier of the consummation of a business combination or the date of liquidation.

The Sponsor may elect to convert all or any portion

of the unpaid principal balance of this Note into warrants, at a price of $ 1.00 per warrant.

On January 10, 2024, the Company’s

Board of Directors approved, and the Company amended the Note to increase the principal amount of the Note that could be drawn on to

$ 1.5 million.

The amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be

repaid in shares of Company common stock at a price of $ 2.22 per share at the election of the sponsor.

On May 31, 2024, the Company’s

Board of Directors approved and the Company entered into a second amendment of its Convertible Working Capital Promissory Note with the

sponsor to increase the principal amount of the Note that could be drawn on to $ 2.5 million.

The second amended and restated Note

also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares of Company common stock at a price

of $ 2.22 per share at the election of the sponsor.

As of March 31, 2025 and December 31, 2024, the Company had principal outstanding

of $ 1,919,796 and is presenting the Note at fair value on its balance sheet at March 31, 2025 and December 31, 2024 in the amount of

$ 9,133,382 and $ 8,908,052 , respectively.

Securities Purchase Agreement

On February 11, 2025, in a private transaction,

the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”).

Pursuant to the SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase from

the Company’s senior secured convertible promissory notes (“Ascent Note”) in an aggregate principal amount of up to

$ 22,222,222 for a purchase price of up to $ 20,000,000 , after a 10 % original issue discount (“OID”).

As of March 31, 2025 and

December 31, 2024, the Company is presenting the Ascent Note at fair value on its balance sheet at March 31, 2025 and December 31, 2024

in the amount of $ 23,487 and $0 , respectively (See details on Note 6).

Related Party Loans

In order to finance transaction costs in connection

with an intended initial Business Combination, the initial stockholders or an affiliate of the initial stockholders or certain of the

Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital

If the Company completes the initial Business Combination, the Company would repay such loaned amounts out of the proceeds

of the Trust Account released to the Company.

Otherwise, such loans would be repaid only out of funds held outside the Trust Account.

In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside

the Trust Account to repay such loaned amounts but no proceeds from the Trust Account would be used to repay such loaned amounts.

to $ 1,500,000 of such loans may be convertible, at the option of the lender, into warrants at a price of $ 1.00 per warrant of the post

Business Combination entity.

The warrants would be identical to the Private Placement Warrants, including as to exercise price, exercisability

and exercise period.

At March 31, 2025 and December 31, 2024, the Company had no borrowings under the Working Capital Loans, other than

the Note described in “Note 5 – Related Party Transactions – Convertible Promissory Note – Related Party”.

Administrative Service Fee

Commencing on the effective date of the IPO,

the Company began paying its Sponsor a total of $ 5,000 per month for office space, utilities, secretarial support and other administrative

and consulting services.

As of June 30, 2023, the Company and the Sponsor terminated this agreement.

For the three months ended March

31, 2025 and 2024, $ 0 had been incurred and billed relating to the administrative service fee, respectively.

As of March 31, 2025 and

December 31, 2024, $ 50,000 relating to the administrative service fee was not paid and recorded as due to related party.

Advances from Profusa

For the three months ended March 31, 2025 and

2024, Profusa agreed to advance funds to the Company to pay for operating expenses.

As of March 31, 2025 and December 31, 2024, there

was $ 1,176,565 and $ 791,407 , respectively owed to Profusa, which is due upon demand or at the completion of the Business Combination.

Due to Related Party

As of March 31, 2025 and December 31, 2024, $ 50,000 relating to the

administrative service fee was not paid and recorded as due to related party.

On February 24, 2025, the Company paid costs on behalf of

its Sponsor which reduced the balance due by $ 8,820 .

Note 6 – Commitments and Contingencies

Registration Rights

The holders of the Founder Shares, the Private

Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any underlying securities) are entitled

to registration rights pursuant to a registration rights agreement signed on the closing date of the IPO requiring the Company to register

such securities for resale.

The holders of these securities are entitled to make up to three demands, excluding short form demands, that

the Company registers such securities.

In addition, the holders have certain “piggy-back” registration rights with respect

to registration statements filed subsequent to the completion of the initial Business Combination.

However, the registration rights agreement

provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination

of the applicable Lock-up period described in Note 5.

The Company will bear the expenses incurred in connection with the filing

of any such registration statements.

Underwriters Agreement

The underwriters had a 30 -day option from

the date of IPO to purchase up to an additional 2,475,000 units to cover over-allotments, if any.

On December 22, 2021, the

over-allotment was fully exercised.

The underwriters received a cash underwriting

discount of approximately 1.82 % of the gross proceeds of the IPO, or $ 3,450,000 .

Business Combination Marketing Agreement

Under a Business Combination marketing agreement,

the Company engaged I-Bankers and Dawson James as advisors in connection with the Business Combination to assist the Company in holding

meetings with the stockholders to discuss the potential Business Combination and the target business’s attributes, introduce the

Company to potential investors that are interested in purchasing the Company’s securities in connection with the potential Business

Combination, assist the Company in obtaining stockholder approval for the Business Combination and assist the Company with its press

releases and public filings in connection with the Business Combination.

The Company was obligated to pay I-Bankers and Dawson James

a cash fee for such marketing services upon the consummation of the initial Business Combination in an amount of 3.68 % of the gross

proceeds of the IPO, or $ 6,986,250 .

The agreement was amended on November 7, 2022 to allow for the 3.68 % business combination fee to

be paid as (a) 27.5 % cash and (b) 72.5 % to be rolled into equity at closing.

Subsequently, on January 19, 2025, the agreement was modified

by the parties such that the Company will be required to pay $ 2,000,000 , payable in cash, if a business combination is consummated.

Representative’s Shares

On December 22, 2021, the Company issued 450,000 shares

(Representative Shares) of common stock (which included 37,500 Representative Shares issued pursuant to the full exercise of

the over-allotment option) at the consummation of the IPO to I-Bankers and Dawson James (and/or their designees).

I-Bankers and

Dawson James (and/or their designees) have agreed not to transfer, assign or sell any such shares until the completion of the initial

Business Combination.

In addition, I-Bankers and Dawson James (and/or their designees) have agreed (i) to waive their redemption

rights with respect to such shares in connection with the completion of the initial Business Combination and (ii) to waive their

rights to liquidating distributions from the Trust Account with respect to such shares if the Company fails to complete its initial Business

Combination within the Combination Period.

The fair value of the Representative’s Shares issued are recognized as offering

costs directly attributable to the issuance of an equity contract to be classified in equity and are recorded as a reduction of equity

(see Note 1).

Representative’s Warrants

The Company granted to I-Bankers and Dawson

James (and/or their designees) 569,250 warrants (which included 74,250 warrants issued pursuant to the full exercise of the over-allotment

option) exercisable at $ 11.50 per share (or an aggregate exercise price of $ 6,546,375 ) at the closing of the IPO.

The Representative

Warrants issued are recognized as derivative liabilities in accordance with ASC 815-40 and recorded as liabilities at fair value each

reporting period (see Notes 1 and 8).

The warrants may be exercised for cash or on a cashless basis, at the holder’s option, at

any time during the period commencing on the later of the first anniversary of the effective date of the registration statement of which

the IPO forms a part and the closing of the initial Business Combination and terminating on the fifth anniversary of such effectiveness

Notwithstanding anything to the contrary, I-Bankers and Dawson James have agreed that neither they nor their designees will

be permitted to exercise the warrants after the five year anniversary of the effective date of the registration statement of

which the IPO forms a part.

The warrants and such shares purchased pursuant to the warrants have been deemed compensation by FINRA and

are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness of the registration

statement of which the IPO forms a part pursuant to FINRA Rule 5110I(1).

Pursuant to FINRA Rule 5110I(1), these securities

will not be the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic disposition

of the securities by any person for a period of 180 days immediately following the effective date of the registration statement

of which the IPO forms a part, nor may they be sold, transferred, assigned, pledged or hypothecated for a period of 180 days immediately

following the effective date of the registration statement of which the IPO forms a part except to any underwriter and selected dealer

participating in the offering and their bona fide officers or partners.

The warrants grant to holders demand and “piggy back”

rights for periods of five and seven years, respectively, from the effective date of the registration statement of which the IPO forms

a part with respect to the registration under the Securities Act of the shares issuable upon exercise of the warrants.

The Company will

bear all fees and expenses attendant to registering the securities, other than underwriting commissions, which will be paid for by the

holders themselves.

The exercise price and number of shares issuable upon exercise of the warrants may be adjusted in certain circumstances

including in the event of a share dividend, or the Company’s recapitalization, reorganization, merger or consolidation.

the warrants will not be adjusted for issuances of shares at a price below its exercise price.

The Company will have no obligation to

net cash settle the exercise of the warrants.

The holder of the warrants will not be entitled to exercise the warrants for cash unless

a registration statement covering the securities underlying the warrants is effective or an exemption from registration is available.

Merger Agreement

On November 7, 2022, NorthView entered into a

Merger Agreement and Plan of Reorganization (the “Merger Agreement”), by and among Merger Sub., and Profusa, Inc., a California

corporation (“Profusa”).

The Merger Agreement provides that, among other things, at the closing of the transactions contemplated

by the Merger Agreement, Merger Sub will merge with and into Profusa (the “Merger”), with Profusa surviving as a wholly-owned

subsidiary of NorthView.

In connection with the Merger, NorthView will change its name to “Profusa, Inc.”

The Business Combination is subject to customary

closing conditions, including the satisfaction of the minimum available cash condition of $ 15,000,000 , the receipt of certain governmental

approvals and the required approval by the stockholders of NorthView and Profusa.

There is no assurance that the Business Combination

will be completed.

On February 11, 2025, the parties to the Merger

Agreement entered into Amendment No.

4 to the Merger Agreement (the “Amendment”) pursuant to which the parties agreed to

revise the Company Reference Value (as defined in the Merger Agreement) to adjust for financing proceeds received by Profusa prior to

the Business Combination, along with debt conversions and incentive shares to be issued.

Additionally, the Amendment (i) revised the

definition of “Milestone Event III” such that the parties extended the period for Profusa to consummate the APAC Joint Venture

(as defined in the Merger Agreement) and receive the related funding from December 31, 2024 until December 31, 2025, and (ii) revised

the definition of “Milestone Event IV” to change the earnout revenue target from $ 99,702,000 for the fiscal year ended December

31, 2025 to an earnout revenue target of $ 11,864,000 for the fiscal year ended December 31, 2026.

Advisory Agreement

On December 19, 2024, the Company engaged A.G.P

to serve as the placement agent in connection with a proposed business combination transaction.

The Company shall pay to A.G.P.

fee (the “Cash Fee”) equal to 9.0 % in a convertible note offering, note, or other similar equity-linked offerings, and shall

be calculated from the face value of notes issued, which is payable at the close of a Business Combination.

If the Business Combination

does not successfully close, A.G.P.

will not be entitled to any cash fee.

Securities Purchase Agreement

On February 11, 2025, in a private transaction,

the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”).

Pursuant to the SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase from

the Company’s senior secured convertible promissory notes in an aggregate principal amount of up to $ 22,222,222 (the “Convertible

Notes”) for a purchase price of up to $ 20,000,000 , after a 10 % original issue discount (“OID”).

The SPA contemplates

that the Convertible Notes will be purchased in multiple tranches:

(i) The initial closing amount of $ 9,000,000 will be purchased, subject to the conditions set forth in the SPA, at the consummation (the “Initial Closing Date”)

of the Business Combination.

The Convertible Notes to be issued by the Company on the Initial Closing Date will be in an aggregate principal

amount of $ 10,000,000 .

(ii) Prior to the one-year anniversary of the Initial Closing Date,

subject to the conditions set forth in the SPA, the Company may request that the Investor purchase additional Convertible Notes having

an aggregate principal amount of up to $ 12,222,222 at a purchase price of $ 11,000,000 (reflecting a 10 % OID), as follows:

(a) Provided a registration statement has been filed for the shares

underlying the Initial Note, shares of combined company common stock, par value $ 0.0001 (“New Profusa Common Stock”) have

traded a volume of at least 15,000,000 shares in the aggregate, and no default or event of default has occurred, the Company may call

and thereby require the Investor to purchase Convertible Notes in the aggregate principal amount of $ 2,222,222 for a purchase price of

$ 2,000,000 (reflecting a 10 % OID) (“Second Purchase”);

(b) Provided a registration statement is effective for the shares

underlying the Initial Note, New Profusa Common Stock has traded a volume of at least $ 35,000,000 in the aggregate after the $ 2,000,000

Second Purchase has closed, no default or event of default has occurred and the stock has traded at a trading price of no less than $ 4.00

for a period of five trading days preceding such purchase, the Company may call and thereby require the Investor to purchase Convertible

Notes in the aggregate principal amount of $ 5,555,555 for a purchase price of $ 5,000,000 (reflecting a 10 % OID);

and thereby require the Company to sell an additional Convertible Note having an aggregate principal amount of $ 4,444,444 at a purchase

price of $ 4,000,000 (reflecting a 10 % OID) to be purchased at any time within 12 months of the Initial Closing.

Note 7 – Stockholders’ Deficit

Preferred stock — The

Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $ 0.0001 and with such designations,

rights and preferences as may be determined from time to time by the Company’s board of directors.

As of March 31, 2025 and

December 31, 2024, there was no preferred stock issued or outstanding.

Common Stock — The

Company is authorized to issue a total of 100,000,000 shares of common stock at par value of $ 0.0001 each.

2021, the Company issued 5,175,000 shares of common stock to its Sponsor for $ 25,000 , or approximately $ 0.005 per

In October 2021, the Sponsor irrevocably surrendered to the Company for cancellation and for no

consideration 862,500 shares of common stock.

On December 20, 2021, the Company effected a 1.1-

for-1 stock dividend of its common stock , resulting in an aggregate of 4,743,750 Founder Shares issued and

On December 22, 2021, the Company has also issued 450,000 shares (Representative’s Shares) of

common stock (which included 37,500 Representative Shares issued pursuant to the full exercise of the over-allotment

option) at the consummation of the IPO to I-Bankers and Dawson James (and/or their designees).

As of March 31, 2025 and

December 31, 2024, there were 5,193,750 shares of common stock issued and outstanding, excluding 154,561 and 687,519

shares of common stock subject to redemption, respectively.

Common stockholders of record are entitled to

one vote for each share held on all matters to be voted on by stockholders.

Unless specified in the Company’s amended and restated

certificate of incorporation or bylaws, or as required by applicable provisions of the DGCL or applicable stock exchange rules, the affirmative

vote of a majority of the Company’s common stock that are voted is required to approve any such matter voted on by the stockholders.

There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50 % of the

shares voted for the election of directors can elect all of the directors (prior to consummation of the initial Business Combination).

The Company’s stockholders are entitled to receive ratable dividends when, as and if declared by the board of directors out of

funds legally available therefor.

Note 8 – Fair Value Measurements

Fair value is defined as the price that would

be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement

GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.

The hierarchy gives

the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the

lowest priority to unobservable inputs (Level 3 measurements).

The Company’s financial instruments are classified as either Level

1, Level 2 or Level 3.

These tiers include:

4 unchanged sentences

such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

following tables present information about the Company’s assets and liabilities that are measured at fair value on September 30,

2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair

September 30,

The following tables present information about

the Company’s assets and liabilities that are measured at fair value on March 31, 2025 and December 31, 2024, and indicates the

fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Cash and marketable securities held in trust

2 unchanged sentences

Warrant liabilities – Representative’s Warrants

Convertible promissory note

Convertible Promissory Note – Related Party

Securities Purchase Agreement

Cash and marketable securities held in trust

2 unchanged sentences

Warrant liabilities – Representative’s Warrants

Convertible promissory note

Public Warrants, the Private Placement Warrants and the Representative’s Warrants were accounted for as liabilities in accordance

with ASC 815-40 and are presented within liabilities on the consolidated balance sheets.

The warrant liabilities are measured at fair

value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities

in the condensed consolidated statements of operations.

Company utilized a Monte Carlo simulation model for the initial valuation of the Public Warrants.

The subsequent measurement of the Public

Warrants at September 30, 2024 was classified as Level 2 due to the lack of an active market.

At December 31, 2023, the Public Warrants

was classified as Level 1 due to the use of an observable market quote in an active market.

As of September 30, 2024 and December 31,

2023, the aggregate value of Public Warrants was $ 355,781 and $ 85,388 , respectively.

Company uses a Monte Carlo simulation model to value the Private Placement Warrants and the Representative’s Warrants.

allocated the proceeds received from (i) the sale of Units (which is inclusive of one shares of Common Stock and one-half of one Public

Warrant) and (ii) the sale of Private Placement Warrants, first to the warrants based on their fair values as determined at initial measurement,

with the remaining proceeds allocated to Common Stock subject to possible redemption (temporary equity) based on their relative fair

values at the initial measurement date.

The Private Placement Warrants and the Representative’s Warrants were classified within

Level 3 of the fair value hierarchy at the measurement dates due to the use of unobservable inputs.

Inherent in pricing models are assumptions

related to expected share-price volatility, expected life and risk-free interest rate.

The Company estimates the volatility of its common

stock based on historical volatility that matches the expected remaining life of the warrants.

The risk-free interest rate is based on

Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants.

expected life of the warrants is assumed to be equivalent to their remaining contractual term.

key inputs into the Monte Carlo simulation model for the warrant liabilities were as follows at September 30, 2024 and December 31, 2023:

September 30,

2024 December 31,

Risk-free interest rate 3.95 % 5.06 %

Convertible Promissory Note – Related Party

The Public Warrants, the Private Placement Warrants

and the Representative’s Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented within liabilities

on the condensed consolidated balance sheets.

The warrant liabilities are measured at fair value at inception and on a recurring basis,

with changes in fair value presented within change in fair value of warrant liabilities in the condensed consolidated statements of operations.

The Company utilized a Monte Carlo simulation

model for the initial valuation of the Public Warrants.

The subsequent measurement of the Public Warrants at March 31, 2025 and December

31, 2024 was classified as Level 2 due to the lack of an active market.

As of March 31, 2025 and December 31, 2024, the aggregate value

of Public Warrants was $ 569,250 and $ 379,500 , respectively.

The Company uses a Monte Carlo simulation model

to value the Private Placement Warrants and the Representative’s Warrants.

The Private Placement Warrants and the Representative’s

Warrants were classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs.

Inherent in pricing models

are assumptions related to expected share-price volatility, expected life and risk-free interest rate.

The Company estimates the volatility

of its common stock based on historical volatility that matches the expected remaining life of the warrants.

The risk-free interest rate

is based on the U.S.

Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the

The expected life of the warrants is assumed to be equivalent to their remaining contractual term.

The key inputs into the Monte Carlo simulation

model for the warrant liabilities were as follows at March 31, 2025 and December 31, 2024:

Risk-free interest

Expected term (years)

Expected volatility De minimis % De minimis %

Expected volatility

Exercise price

Fair value of Common stock

key inputs into the Monte Carlo simulation model for the convertible promissory note were as follows at September 30, 2024 and December

September 30,

The key inputs into the Monte Carlo simulation

model for the convertible promissory note were as follows at March 31, 2025 and December 31, 2024:

Risk-free interest

Expected term (years)

Expected volatility

Exercise price

Fair value of Common stock

The key inputs into the Monte Carlo simulation

model for the securities purchase agreement were as follows at March 31, 2025 and December 31, 2024:

Risk-free interest rate

3 unchanged sentences

Fair value of Common stock

following table provides a summary of the changes in the fair value of the Company’s Level 3 financial instruments that are measured

at fair value on a recurring basis for the three and nine months ended September 30, 2024 and 2023:

The following table provides a summary of the

changes in the fair value of the Company’s Level 3 financial instruments that are measured at fair value on a recurring basis for

the three months ended March 31, 2025 and 2024:

Representative’s

2 unchanged sentences

Fair value at March 31, 2025

Change in fair value of warrant liabilities

Fair value at June 30, 2024

Change in fair value of warrant liabilities

Fair value at September 30, 2024

Representative’s

2 unchanged sentences

Fair value at March 31, 2024

Change in fair value of warrant liabilities

Fair value at June 30, 2023

Change in fair value of warrant liabilities

Fair value at September 30, 2023

Note – related party

Fair value at December 31, 2024

Principal proceeds

Change in fair value of convertible promissory note

Fair value at March 31, 2025

Proceeds received through convertible promissory note

Change in fair value of convertible promissory note

Fair value at June 30, 2024

Note – related party

Fair value at December 31, 2023

Proceeds received through convertible promissory note

Change in fair value of convertible promissory note

Fair value at September 30, 2024

to/from Levels 1, 2 and 3 are recognized at the end of the reporting period.

There was a transfer out of Level 3 to Level 1

for the fair value of the Public Warrants when they began to trade separately from the Units during the three and six months ended March

fair value of the Company’s working capital loan is valued using a compound option formula on the convertible feature and a present

value of the host contract.

The valuation technique requires inputs that are both unobservable and significant to the overall fair value

These inputs reflect management’s own assumption about the assumptions a market participant would use in pricing the

working capital loan.

convertible promissory note was classified within Level 3 of the fair value hierarchy at the measurement dates due to the use of unobservable

Inherent in pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate.

The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the

Fair value at March 31, 2024

The fair value of the Company’s convertible

promissory note is valued using a compound option formula on the convertible feature and a present value of the host contract.

The valuation

technique requires inputs that are both unobservable and significant to the overall fair value measurement.

These inputs reflect management’s

own assumption about the assumptions a market participant would use in pricing the working capital loan.

The convertible promissory note was classified

within Level 3 of the fair value hierarchy due to the use of unobservable inputs.

Inherent in pricing models are assumptions related

to expected share-price volatility, expected life and risk-free interest rate.

The Company estimates the volatility of its common stock

based on historical volatility that matches the expected remaining life of the note.

The risk-free interest rate is based on the U.S.

Treasury zero-coupon yield curve on the grant date for a maturity similar to the

expected remaining life of the note.

Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the note.

The expected life

of the note is assumed to be equivalent to their remaining contractual term.

Securities Purchase Agreement

Fair value at February 11, 2025

Change in fair value of securities purchase agreement

Fair value at March 31, 2025

The Company utilizes a Monte Carlo model to estimate

the fair value of the conversion feature within the securities purchase agreement, which is required to be recorded at its initial fair

value on the date of issuance, and each balance sheet date thereafter.

Changes in the estimated fair value of the conversion feature are

recognized as non-cash gains or losses in the accompanying condensed consolidated statements of operations.

The key assumptions in the model relate to expected

share-price volatility, risk-free interest rate, exercise price, expected term and the probability of occurrence of the transaction.

expected volatility was based on the average volatility of special purpose acquisition companies that are searching for an acquisition

The risk-free interest rate is based on the U.S.

Treasury zero-coupon yield curve on the grant date for a maturity similar to

the expected remaining life of the note.

The expected life of the note is assumed to be equivalent to their remaining contractual term.

9 – Subsequent Events

Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the unaudited condensed

consolidated financial statements were issued.

Based on the Company’s review, the Company did not identify any subsequent events

that would have required adjustment or disclosure in the unaudited condensed consolidated financial statements, except as disclosed in

Note 9 – Segment Information

ASC Topic 280, “Segment Reporting,”

establishes standards for companies to report in their financial statement information about operating segments, products, services,

geographic areas, and major customers.

Operating segments are defined as components of an enterprise that engage in business activities

from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly

evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

The Company’s chief operating decision

maker (“CODM”) has been identified as its Chief Financial Officer, who reviews the assets, operating results, and financial

metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance.

Accordingly, management

has determined that there is only one reportable segment.

The CODM assesses performance for the single

segment and decides how to allocate resources based on net loss that also is reported on the statement of operations as net loss.

measure of segment assets is reported on the balance sheet as total assets.

When evaluating the Company’s performance and making

key decisions regarding resource allocation, the CODM reviews several key metrics included in net loss and total assets, which

include the following:

Trust Account

Restricted Cash

Three Months Ended

General and administrative expenses

Interest earned on the Trust Account

The key measures of segment profit or loss

reviewed by our CODM are interest earned on the Trust Account and general and administrative expenses.

The CODM reviews interest earned

on the Trust Account to measure and monitor stockholder value and determine the most effective strategy of investment with the Trust

Account funds while maintaining compliance with the trust agreement.

General and administrative expenses are reviewed and monitored by

the CODM to manage and forecast cash to ensure enough capital is available to complete a business combination within the business combination

The CODM also reviews general and administrative costs to manage, maintain and enforce all contractual agreements to ensure costs

are aligned with all agreements and budget.

Note 10 – Subsequent Events

The Company evaluated subsequent events and transactions

that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued.

the Company’s review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the

condensed consolidated financial statements, other than as previously disclosed, and as described below.

On April 2, 2025, the parties to the Merger Agreement entered into

an Amendment No.

5 to the Merger Agreement (“Amendment No.

5”) pursuant to which Section 9.01 of the Merger Agreement is hereby

amended such that the reference to “March 22, 2025” shall be replaced with “June 22, 2025” by which the Company

must consummate a Business Combination.

On April 30, 2025, Marcum informed the Company

that Marcum resigned as the Company’s independent registered public accounting firm.

Also on April 30, 2025, the Company, with

the approval of the Audit Committee of the Registrant’s Board of Directors, engaged CBIZ CPAs P.C.

as the Company’s independent

registered public accounting firm.

On May 8, 2025, the Company entered into a non-redemption agreement

(the “Non-Redemption Agreement”) with I-Bankers Securities, Inc.

and Dawson James Securities, Inc.

(together, the “Investors”),

pursuant to which such Investors agreed that to the extent that redemptions in connection with the vote to approve the Business Combination

reduces the Company’s trust account balance below $ 1.25 million, the Investors would offer such redeeming shareholders an

opportunity to rescind the redemption of their shares and would instead purchase such shares.

Such purchases would be structured in compliance

with the requirements of Rule 14e-5 under the Exchange Act or would otherwise not constitute a tender offer pursuant

to the Exchange Act.

On June 9, 2025, the Company held its a special

meeting of stockholders.

At the meeting, the Company’s stockholders approved Merger Agreement and the actions and transactions contemplated

thereby, including (i) adopt an amended and restated Certificate of Incorporation, to be effective upon closing of the Merger (ii) approving

certain advisory proposals related to the amended and restated Certificate of Incorporation, (iii) approved the issuance of new shares

of the Company’s Common Stock as merger consideration, (iv) elected new directors, and (v) approved new employee incentive plans.

In connection with the meeting, the holders of

52,784 Public Shares properly exercised their right to redeem, with 5,295,527 shares of Common Stock remaining outstanding after such

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements