Wed, Jul 3, 10:01 AM (255 days ago)
Papaya Growth Opportunity Corp. I's Form 10-Q for the quarter ended March 31, 2024, reveals a significant decrease in cash and investments held in the Trust Account, from $24,976,375 at year-end 2023 to $7,827,848. The company reported a net loss of $395,973 for Q1 2024, compared to a net income of $1,006,619 in Q1 2023. Operating expenses were $546,717, down from $667,762 the previous year. The company faces substantial liquidity concerns, with cash outside the Trust Account at $398 and a working capital deficit, necessitating additional funding from the Sponsor. Recent shareholder redemptions and extensions have reduced the number of outstanding public shares and affected cash flow. The company has until January 19, 2025, to complete a Business Combination, failing which it will liquidate. The management has identified a material weakness in internal controls over financial reporting, particularly in the calculation of deferred tax assets.