Financial Performance - For the three months ended June 30, 2024, the company reported a net income of $2,048,967, consisting of a realized gain on investments held in the trust account of $2,254,058[123]. - For the six months ended June 30, 2024, the company reported a net income of $3,469,437, primarily from a realized gain on investments held in the trust account of $4,690,197[125]. - The company reported a change in fair value of derivative warrant liabilities of $135,200 for the three months ended June 30, 2024[123]. Working Capital and Cash Management - As of June 30, 2024, the company had working capital of $42,461,028, including cash placed in the Trust Account of $236,900,000[128]. - The company had cash of $23,645 held outside the Trust Account as of June 30, 2024, intended for identifying and evaluating target businesses[130]. - The Company anticipates that cash held outside of the Trust Account will not be sufficient to operate for at least the next 12 months if a Business Combination is not consummated[133]. - The Company has deposited $3,668,121 in total into the Trust Account to extend the termination date through July 14, 2024[133]. Business Combination and Compliance - The company must complete one or more initial Business Combinations with an aggregate fair market value of at least 80% of the net assets held in the Trust Account[118]. - If the company fails to complete a Business Combination within 42 months from the closing of the IPO, it will redeem Public Shares at a per-share price equal to the amount in the Trust Account[120]. - The company submitted a plan to regain compliance with Nasdaq listing criteria by July 31, 2024, after being notified of non-compliance due to a market value of outstanding warrants below $1 million[117]. Expenses and Fees - The company incurred general and administrative expenses of $334,496 for the three months ended June 30, 2024, compared to $407,651 for the same period in 2023[123][124]. - The Company incurred $60,000 in administrative support fees for both the six months ended June 30, 2024 and 2023[138]. - The underwriters are entitled to a deferred fee of $8,050,000, which will be waived if the Company does not complete a Business Combination[136]. - The Company received a waiver letter from J.P. Morgan Securities LLC regarding deferred underwriting fees, but Citigroup Global Market Inc. is still entitled to $4,025,000[137]. Operational Outlook - The company has not generated any operating revenues to date and does not expect to do so until after completing its initial Business Combination[122]. - The Company plans to use funds held outside of the Trust Account for various operational expenses, including due diligence and travel expenditures[133]. - The Company has no long-term debt, capital lease obligations, or long-term liabilities[136]. Accounting and Reporting - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[142]. - The Company has not identified any critical accounting estimates that could materially differ from actual results[140].
Patria Latin American Opportunity Acquisition Corp.(PLAOU) - 2024 Q2 - Quarterly Report