Patria Latin American Opportunity Acquisition (PLAO) - 2023 Q1 - Quarterly Report

Financial Performance - As of March 31, 2023, the company reported a net income of $2,278,938, driven by realized gains of $2,569,175 on investments held in the Trust Account[112]. - For the three months ended March 31, 2022, the company experienced a net loss of $829,640, primarily due to general and administrative expenses and changes in fair value of derivative warrant liabilities[113]. - Cash used in operating activities for the three months ended March 31, 2023, was $146,024, with a net income of $2,278,938 offset by changes in operating assets and liabilities[115]. Working Capital and Cash Management - The company had working capital of $669,897 as of March 31, 2023, excluding marketable securities held in the Trust Account and other liabilities[114]. - As of March 31, 2023, the company held cash of $561,725 outside the Trust Account for working capital purposes[116]. - The Company anticipates that cash held outside of the Trust Account as of March 31, 2023, will not be sufficient to operate for at least the next 12 months if a Business Combination is not completed[119]. Trust Account and Business Combination - The company placed $236,900,000 in cash into the Trust Account from the IPO proceeds, which is designated for funding a Business Combination or shareholder redemptions[114]. - The company must complete a Business Combination with an aggregate fair market value of at least 80% of the net assets held in the Trust Account[106]. - The company has broad discretion regarding the application of net proceeds from the IPO, primarily aimed at consummating a Business Combination[106]. - The company may need to obtain additional financing to complete an Initial Business Combination or to redeem a significant number of Public Shares[118]. - There is no assurance that the Company's plans to consummate the Business Combination will be successful within the Combination Period[119]. Administrative Expenses - The Company incurred and paid $30,000 in administrative support fees for the three months ended March 31, 2023, compared to $5,484 for the same period in 2022, reflecting a significant increase of approximately 447%[122]. Debt and Liabilities - The Company has no long-term debt, capital lease obligations, operating lease obligations, or long-term liabilities[121]. - As of March 31, 2023, the Company did not have any off-balance sheet arrangements[124]. Going Concern and Reporting - Management plans to address the uncertainty regarding the Company's ability to continue as a going concern through a Business Combination[119]. - The unaudited condensed financial statements do not include adjustments related to the recovery of recorded assets or liabilities if the Company cannot continue as a going concern[120]. - The Company is evaluating the benefits of relying on reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for up to five years[129]. - The Company has not identified any critical accounting estimates that could materially differ from actual results[125].