Wed, Jun 26, 11:51 AM (117 days ago)
Papaya Growth Opportunity Corp. I filed this 10-K/A to amend its annual report for the fiscal year ended December 31, 2023, restating financial statements due to an error in accounting for deferred tax assets. The amendment reveals a material weakness in internal controls, leading to understated deferred tax assets and the need for a full valuation allowance. Key financial highlights include a decrease in deferred tax assets and total assets. The company, a blank check entity, had until January 19, 2025, to complete a business combination. Significant redemptions reduced public shares substantially, affecting liquidity. The sponsor assumed all liabilities and expenses, including extension costs and excise taxes, ensuring the company's ability to meet obligations. Risk factors highlighted include the potential inability to complete a business combination, competition for targets, and challenges in raising additional financing. The amendment underscores the importance of robust internal controls and the impact of financial restatements on investor confidence.