Pyrophyte Acquisition Corp., an emerging growth company and a Special Purpose Acquisition Corporation (SPAC), reported its financial results for the six months ended June 30, 2024. The company has not yet commenced operations and is focused on completing a business combination, specifically with Sio Silica Corporation, as outlined in a business combination agreement signed on November 13, 2023.

As of June 30, 2024, Pyrophyte's total assets amounted to $72.3 million, a significant decrease from $99.5 million at the end of 2023. This decline was primarily due to a reduction in cash held in the Trust Account, which decreased from $98.9 million to $72.1 million. The company reported total current assets of $207.8 million, down from $589.7 million at the end of the previous fiscal year. The total liabilities increased to $17.4 million from $15.7 million, contributing to an accumulated deficit of $(17.1 million) as of June 30, 2024, compared to $(15.5 million) at the end of 2023.

For the three months ended June 30, 2024, Pyrophyte reported a net income of $50.9 thousand, a sharp decline from $983.5 thousand in the same period of 2023. The decrease in net income was attributed to higher general and administrative expenses, which rose to $412.6 thousand from $594.7 thousand year-over-year. The company also experienced a reduction in gains from cash held in the Trust Account, which fell to $867.8 thousand from $1.1 million.

For the six months ended June 30, 2024, net income was reported at $1.99 million, slightly up from $1.99 million in the same period of 2023. The company incurred general and administrative expenses of $1.13 million, compared to $1.03 million in the prior year. The cash used in operating activities for the first half of 2024 was $657.8 thousand, a notable increase from $84.4 thousand in 2023.

In terms of shareholder activity, the company has seen significant redemptions of Class A ordinary shares. During the first extension period, 11.2 million shares were redeemed, totaling approximately $118 million, leaving 8.97 million shares outstanding. In the second extension, 2.68 million shares were redeemed for about $30.4 million, resulting in 6.29 million shares remaining.

The company has also drawn $2.1 million on extension loans from its sponsor, with an outstanding balance of $1.38 million on working capital loans as of June 30, 2024. The maturity date for these loans has been extended, reflecting ongoing support from the sponsor as the company seeks to finalize its business combination by the extended deadline of April 29, 2025.