Cartesian Growth II(RENE) - 2024 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2024, was $2,107,407, compared to$3,719,216 for the same period in 2023, indicating a decrease of approximately 43.3%[9] - Basic and diluted net income per share for Class A ordinary shares was $0.10 for the three months ended June 30, 2024, down from$0.13 for the same period in 2023, a decrease of approximately 23.08%[10] - Basic net income per ordinary share for the six months ended June 30, 2024, was $0.21, compared to$0.26 for the same period in 2023, reflecting a decrease of 19.2%[47] - For the six months ended June 30, 2024, the company reported a net income of $4,642,279, which included interest earned on cash and marketable securities of$4,584,166[98] Assets and Liabilities - Total assets as of June 30, 2024, increased to $179,915,252 from$174,582,232 as of December 31, 2023, representing a growth of approximately 1.91%[7] - Cash and marketable securities held in the Trust Account amounted to $179,736,364 as of June 30, 2024, up from$174,252,198 as of December 31, 2023[5] - Current liabilities increased to $2,451,313 as of June 30, 2024, from$1,530,978 as of December 31, 2023, reflecting an increase of approximately 60%[7] - The accumulated deficit as of June 30, 2024, was $(19,382,414), compared to$(18,540,527) as of December 31, 2023, showing an increase in the deficit of approximately 4.55%[8] - The Company reported a working capital deficit of $2,272,425 as of June 30, 2024[29] Trust Account and Business Combination - The Company placed$236.9 million in the Trust Account, which will be invested in U.S. government treasury obligations or money market funds[22] - As of June 30, 2024, the Company had $179,736,364 in cash and marketable securities held in the Trust Account for the completion of a Business Combination[29] - On November 6, 2023, shareholders approved an amendment extending the deadline for consummating a business combination to November 10, 2024, allowing for up to twelve one-month extensions[23] - Following the Charter Amendment, approximately 7.1 million Class A Ordinary Shares were redeemed for an aggregate amount of approximately$77.4 million, leaving about $172.4 million in the Trust Account[23] - The Company will provide public shareholders the opportunity to redeem their shares at a price equal to the amount in the Trust Account prior to the consummation of the initial business combination[24] Operating Activities and Costs - The company reported a net cash used in operating activities of$(262,868) for the six months ended June 30, 2024, compared to $(256,034) for the same period in 2023, indicating a slight increase in cash outflow[14] - The company incurred operating costs of$421,481 for the six months ended June 30, 2024, compared to $550,776 for the same period in 2023[101][102] Shareholder and Equity Information - The Company issued 5,750,000 Class B ordinary shares at a total subscription price of$25,000, approximately $0.004 per share, representing 20$179,736,364 as of June 30, 2024[40] Financial Instruments and Valuation - The fair value of the company's financial instruments approximates their carrying amounts due to their short-term nature[48] - The company recorded a liability for the warrants issued in connection with the Initial Public Offering, which must be re-measured at fair value at each balance sheet date[50] - The public warrant liability is valued at $774,333, down from$996,667 as of December 31, 2023, representing a decrease of approximately 22.3%[78] - The private placement warrant liability is valued at $898,900 as of June 30, 2024, compared to$1,165,656 as of December 31, 2023, indicating a decrease of about 22.9%[78] Regulatory and Compliance Matters - The Company is considered an "emerging growth company" and may take advantage of certain exemptions from reporting requirements[33] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[120] Risks and Uncertainties - The Company has substantial doubt about its ability to continue as a going concern due to liquidity conditions[28] - The military conflict in Ukraine and the Middle East has created global economic uncertainties that may adversely affect the Company's operations and ability to complete a Business Combination[27] Miscellaneous - The Company has not generated any operating revenues to date and does not expect to do so until after completing a business combination[96] - The Company has engaged a legal advisor for services related to an initial business combination, with fees contingent upon successful completion[114]