Patria Latin American Opportunity Acquisition Corp. Reports $4.3 Million Net Loss for Q1 2025

Patria Latin American Opportunity Acquisition Corp. reported a net loss of $4.3 million for the three months ending March 31, 2025, a significant decline from a net income of $1.4 million during the same period in 2024. The loss was primarily driven by a change in the fair value of derivative warrant liabilities, which amounted to a loss of $4.6 million, compared to a loss of $780,000 in the prior year. General and administrative expenses also increased to $253,033 from $235,669 year-over-year. The company’s basic and diluted net loss per Class A ordinary share was $(0.33), a stark contrast to the previous year’s earnings of $0.11 per share.

The company’s financial position showed a working capital deficit of $5.6 million as of March 31, 2025, compared to a deficit of $25.7 million at the end of the previous fiscal year. Total assets remained relatively stable at approximately $54.9 million, with cash holdings increasing to $44,006 from $2,121 at the end of 2024. The marketable securities held in the Trust Account rose to $54.7 million, up from $54.1 million, reflecting a slight increase in the value of investments.

Operationally, Patria Latin American Opportunity Acquisition Corp. has not yet completed a business combination, which is a key focus for the company. The company has extended its deadline to finalize a business combination to July 14, 2025, following shareholder approvals for extensions in June 2023 and June 2024. As of March 31, 2025, the company had 4,541,424 Class A ordinary shares outstanding, down from 16,880,481 shares at the end of the previous fiscal year, following significant redemptions by shareholders.

The company’s management has expressed concerns regarding its ability to continue as a going concern, citing that the cash held outside the Trust Account may not be sufficient to cover operational costs for the next 12 months if a business combination is not consummated. The company plans to utilize its limited cash reserves for identifying and evaluating potential acquisition targets. Additionally, the company has outstanding promissory notes totaling approximately $1.1 million, which may provide some liquidity support as it seeks to finalize a business combination.

Looking ahead, Patria Latin American Opportunity Acquisition Corp. remains focused on identifying suitable business combination opportunities while navigating the challenges posed by its current financial position and market conditions. The company’s ability to execute its strategy will be critical in determining its future viability and success in the competitive landscape of special purpose acquisition companies (SPACs).