Company: PAII-WT
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0001213900-25-083487
Chunk: 31

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-09-02
Form: 10-Q
Item: Item 8
Chunk 31
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5 (inception) through June 30, 2025 were organizational activities, those necessary to prepare
for the initial public offering, described below, and subsequent to the initial public offering, the Company’s search for a target
business with which to complete an initial business combination. We do not expect to generate any operating revenues until after the completion
of our initial business combination, at the earliest. Following the initial public offering, we will generate non-operating income in
the form of interest income on marketable securities. We are incurring expenses as a result of being a public company (for legal, financial
reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with completing an initial business
combination.

For the period from May 1, 2025 (inception) through June 30, 2025,
we had $102,000 in general and administrative expenses.

22

Liquidity and Capital Resources

As of June 30, 2025, the Company had a cash balance of $0. However,
following the consummation of the initial public offering, the Company’s liquidity needs are satisfied through using net proceeds
from the initial public offering and sale of Private Placement Warrants for existing accounts payable, identifying and evaluating prospective
acquisition candidates, performing business due diligence on prospective target businesses, traveling to and from the offices, plants
or similar locations of prospective target businesses, reviewing corporate documents and material agreements of prospective target businesses,
selecting the target business to acquire and structuring, negotiating and consummating the initial business combination.

If the Company’s estimates of the costs of identifying a target
business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary
to do so, the Company may have insufficient funds available to operate its business prior to an initial business combination. Moreover,
the Company may need to obtain additional financing either to complete an initial business combination or because it becomes obligated
to redeem a significant number of its public shares upon completion of an initial business combination, in which case the Company may
issue additional securities or incur debt in connection with such initial business combination.

Contractual Obligations

Registration Rights

The holders of the (i) founder shares, which were issued in the Private
Placement prior to the closing of the initial public offering, (ii) Private Placement Warrants and the Class A ordinary shares underlying
such Private Placement Warrants and (iii) Private Placement Warrants that may be issued upon conversion