Patria Latin American Opportunity Acquisition Corp. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company’s cash position decreased sharply to $8,670 from $47,046 as of December 31, 2023. Marketable securities held in the Trust Account also saw a substantial decline, dropping to $53.2 million from $187.4 million over the same period. Total current assets fell to $53.4 million, down from $187.5 million, while total assets mirrored this decline, reflecting a similar drop.
The company’s total current liabilities increased to $10.1 million from $7.2 million, contributing to a total shareholders’ deficit of $(9.9 million), compared to $(7.1 million) at the end of the previous fiscal year. The change in fair value of derivative warrant liabilities for the three months ended September 30, 2024, was reported at $306,800, contrasting with a loss of $(353,600) in the same period of 2023.
Net income for the third quarter of 2024 was $814,000, a decrease from $1.8 million in Q3 2023. For the nine months ended September 30, 2024, net income totaled $4.3 million, down from $7.5 million in the prior year. The basic and diluted net income per share for Q3 2024 was $0.19, compared to $0.13 in Q3 2023, while for the nine months, it was $0.44 versus $0.38.
The company reported cash used in operating activities of $(1.0 million) for the nine months ended September 30, 2024, compared to $(522,362) in the same period of 2023. The company also noted a significant redemption of Class A ordinary shares, with 12.3 million shares redeemed in June 2024, leaving 4.5 million shares outstanding.
In terms of strategic developments, the company has not yet commenced operations and will not generate operating revenues until a business combination is completed. Shareholders approved extensions for the termination date of the initial business combination, allowing for monthly extensions up to September 14, 2025. As of September 30, 2024, the company had deposited $272,484 into the Trust Account for these extensions.
The company faces substantial doubt about its ability to continue as a going concern for at least one year from the issuance of its financial statements, primarily due to insufficient cash outside the Trust Account to cover operational needs. Management plans to address this uncertainty through a business combination and may seek additional financing if necessary.
About Patria Latin American Opportunity Acquisition Corp.
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