Nova Vision Acquisition Corporation Reports Significant Financial Decline and Net Loss in Latest 10-Q Filing

Nova Vision Acquisition Corporation reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company experienced a notable decline in cash reserves, with cash decreasing to $18,488 from $97,273 as of December 31, 2023. Total current assets increased to $144,050 from $106,627, while total assets saw a substantial drop to $2,752,035 from $17,939,203. This decline in total assets was accompanied by an increase in total current liabilities, which rose to $3,506,380 from $2,318,177, leading to total liabilities increasing to $4,256,380 from $3,068,177. The accumulated deficit also widened, reaching $(4,112,507) compared to $(2,961,727) at the end of the previous fiscal year.

For the three months ended September 30, 2024, Nova Vision reported a net loss of $(77,581), a stark contrast to a net income of $10,696 for the same period in 2023. The basic and diluted net loss per ordinary share was $(0.03), compared to $0.00 in the prior year. For the nine-month period, the net loss was $(64,590), down from a net income of $80,081 in 2023. The company’s operating activities consumed $750,535 in cash, compared to $480,746 in the previous year.

The company’s other income for the three months ended September 30, 2024, was $115,409, a decrease from $233,942 in 2023. Similarly, for the nine months, other income fell to $585,243 from $665,118. The cash withdrawn from the Trust Account for redemptions significantly increased to $16,310,781 from $2,756,067 in the previous year.

Strategically, Nova Vision is in the process of a merger with Real Messenger Holdings Limited, which has undergone several amendments since the initial agreement on March 27, 2023. The Aggregate Stock Consideration has been adjusted multiple times, with the latest amendment on August 13, 2024, specifying 6,400,000 shares, including 5,950,000 Closing Payment Shares and 450,000 Holdback Shares for indemnity obligations. The closing date for this business combination has been extended several times, with the latest extension to August 10, 2024.

Overall, the financial results reflect a challenging period for Nova Vision, marked by increased liabilities, a growing deficit, and a strategic focus on completing its merger.