Pyrophyte Acquisition Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net income and significant changes in its financial position compared to the previous fiscal period. The company, classified as a shell entity, had 11,321,961 Class A ordinary shares outstanding as of November 14, 2024, with a par value of $0.0001 per share.
As of September 30, 2024, Pyrophyte's cash balance was $2,184, an increase from $1,253 as of December 31, 2023. However, cash held in the Trust Account decreased to $72.9 million from $98.9 million during the same period. Total assets fell to $73.3 million from $99.5 million, while total current liabilities rose to $4.6 million from $2.6 million. The accumulated deficit increased to $(17.6 million) from $(15.5 million) at the end of the previous fiscal year.
For the three months ended September 30, 2024, the company reported a net income of $299,080, a significant decrease from $1.4 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $2.3 million, down from $3.4 million in the prior year. The decline in net income was attributed to higher general and administrative expenses and a reduction in gains from cash investments held in the Trust Account.
The company has not commenced any operations and has generated no operating revenues. Its income primarily stems from interest and dividend income on investments from its Initial Public Offering (IPO) proceeds. The IPO, completed on October 29, 2021, raised $201.3 million, with net proceeds totaling $206.3 million after accounting for underwriting fees.
Strategically, Pyrophyte entered into a Business Combination Agreement on November 13, 2023, with Sio Silica Corporation, which includes plans for a merger and subsequent amalgamation. The company is under pressure to complete this business combination by April 29, 2025, or face liquidation. As of September 30, 2024, the company had drawn $2.1 million on extension loans from its Sponsor, reflecting ongoing financial support amid liquidity challenges.
The company’s shares were suspended from trading on the New York Stock Exchange on October 29, 2024, due to the three-year listing limit for special purpose acquisition companies, and began trading on the OTC Pink Marketplace. The Sio Business Combination Agreement was amended on November 12, 2024, extending the deadline for completion to December 31, 2024.
About Pyrophyte Acquisition Corp.
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