Catcha Investment Corp. Reports Significant Financial Decline, Net Loss, and Strategic Developments in Latest 10-Q Filing

Catcha Investment Corp. reported significant financial changes in its latest 10-Q filing for the period ending June 30, 2024. The company experienced a notable decline in cash reserves, with cash decreasing to $900 from $30,850 as of December 31, 2023. Additionally, cash held in the Trust Account fell to $15.9 million from $24.8 million during the same period. Total assets decreased to $18.4 million, down from $28.3 million, while total liabilities increased to $16.2 million from $13.4 million, resulting in an accumulated deficit that widened to $(13.7 million) from $(10.0 million).

For the three months ended June 30, 2024, Catcha reported a net loss of $(842,424), compared to a loss of $(179,762) in the same period of the previous year. Operating expenses surged to $1.5 million from $637,470 year-over-year. For the six-month period, the net loss escalated to $(3.3 million) from $(368,093) in 2023, driven by increased operating costs and unrealized losses on financial instruments.

The company’s strategic developments included the completion of a business combination with Crown LNG Holdings Limited on July 9, 2024. This merger resulted in Catcha becoming a wholly-owned subsidiary of PubCo, with each Class A and Class B ordinary share of Catcha converted into newly issued ordinary shares of PubCo. The business combination generated gross proceeds of approximately $7.9 million.

Catcha also engaged in various financing activities, including entering into subscription agreements for convertible promissory notes totaling $1.05 million and a PIPE subscription agreement that raised $1.5 million. The company has drawn down $1.5 million under a convertible promissory note from the Sponsor, with a fair value of $1.1 million as of June 30, 2024.

The company faced challenges, including a working capital deficit of $12 million and substantial doubt regarding its ability to continue as a going concern, contingent on its capacity to raise additional financing. Furthermore, Catcha's management identified material weaknesses in internal controls over financial reporting, particularly concerning the accounting for complex financial instruments and fair value determinations.

Overall, Catcha Investment Corp. is navigating a period of financial strain while pursuing strategic growth through its recent merger and financing initiatives.