Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $4,315,449, which includes a realized gain on investments held in the trust account of $551,185 and general and administrative expenses of $253,033[130]. - The company has not generated any revenues to date and does not expect to do so until after completing its initial Business Combination[129]. - Cash used in operating activities for the three months ended March 31, 2025, was $158,115, with cash of $44,006 held outside the Trust Account available for working capital purposes[133][134]. - The Company incurred $30,000 in administrative support fees for both the three months ended March 31, 2025, and 2024[141]. - The Company had approximately $1.1 million outstanding under promissory notes as of March 31, 2025, and incurred $14,856 in interest under a related party promissory note for the three months ended March 31, 2025[142][143]. Financial Position - As of March 31, 2025, the company had a working capital deficit of $5,645,084, excluding marketable securities held in the Trust Account[132]. - As of March 31, 2025, there were no amounts outstanding under any Working Capital Loans provided by the company's sponsor or affiliates[135]. - As of March 31, 2025, 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 completed[137]. - The Company has no long-term debt, capital lease obligations, or long-term liabilities[139]. Business Combination - 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[125]. - The initial shareholders have agreed to waive their rights to liquidating distributions from the Trust Account if the company fails to complete a Business Combination within the Combination Period[128]. - The company may need to obtain additional financing to complete an Initial Business Combination or to redeem a significant number of its Public Shares[136]. - The underwriters are entitled to a deferred fee of $0.35 per Unit, totaling $8,050,000, which will be waived if the Company does not complete a Business Combination[139]. Regulatory Compliance - The company received a notice from Nasdaq indicating that its securities would be subject to suspension and delisting due to non-compliance with listing rules[123]. Accounting and Reporting - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[148]. - The Company has identified critical accounting estimates that could materially differ from actual results, impacting reported amounts of assets and liabilities[145]. - The Company accounted for Public and Private Warrants at fair value, with changes recorded in earnings, classified as Level 3 instruments under the fair value hierarchy[146]. Trust Account Management - The Company deposited $4,213,091 in total into the Trust Account to extend the termination date through March 15, 2025, with additional deposits of $272,484 made to extend it to July 14, 2025[137]. - 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[140]. - The company has broad discretion regarding the application of net proceeds from the IPO, primarily intended for consummating a Business Combination[125].
Patria Latin American Opportunity Acquisition Corp.(PLAOU) - 2025 Q1 - Quarterly Report