(MARK ONE) Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39599 HOLLEY INC. (Exact Name of Registrant as Specified in Its Charter) 001-39599 (Commission File Numb ...

Financial Performance - For the three months ended March 31, 2021, the company reported a net loss of $3,017,488, which included formation and operating costs of $2,937,356 and a change in fair value of warrant liability of $436,667 [125]. - Cash used in operating activities for the three months ended March 31, 2021, was $53,691, with changes in operating assets and liabilities providing $2,883,665 of cash from operating activities [127]. Initial Public Offering - The company generated gross proceeds of $250,000,000 from its Initial Public Offering of 25,000,000 units at a price of $10.00 per unit, with net proceeds of $245,000,000 after underwriting fees [126]. - The company plans to issue an aggregate of 24 million shares of common stock at a price of $10.00 per share for a total of $240,000,000 concurrent with the consummation of the business combination [134]. Cash and Securities - As of March 31, 2021, the company had cash and marketable securities held in the trust account amounting to $250,109,441, intended for the completion of its initial business combination [128]. - The company intends to use funds held outside the trust account primarily for identifying and evaluating target businesses and performing due diligence [129]. Debt and Capital Needs - The company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2021 [132]. - The company may need to raise additional capital through loans or investments if the merger with Holley does not close [131]. Business Combination - The company has entered into a merger agreement with Holley Intermediate Holdings, Inc., as part of its proposed business combination [123]. - The company expects to incur increased expenses due to being a public company, including legal, financial reporting, accounting, and auditing compliance costs [124].

Financial Performance - The company had a net loss of $5,000 from inception through September 30, 2020, primarily due to formation costs [94]. - The company incurred $14,215,163 in transaction costs related to the Initial Public Offering, including $5,000,000 in underwriting fees [97]. Initial Public Offering - The Initial Public Offering on October 9, 2020, raised gross proceeds of $250,000,000 from the sale of 25,000,000 Units at $10.00 per Unit [96]. - An additional $7,000,000 was generated from the sale of 4,666,667 Private Placement Warrants at $1.50 each [96]. - After the Initial Public Offering, $250,000,000 was placed in the Trust Account, with $1,122,742 in cash available for working capital [97]. - The underwriter is entitled to a deferred fee of $8,750,000, payable only if a Business Combination is completed [104]. Liquidity and Funding - As of September 30, 2020, the company had no cash prior to the Initial Public Offering, relying on initial share purchases and loans from the Sponsor for liquidity [95]. - The company intends to use funds in the Trust Account primarily to complete a Business Combination and may withdraw interest to pay taxes [98]. - The company does not anticipate needing additional funds for operating expenditures for at least the next 12 months, but may require financing for a Business Combination [101]. - There are no off-balance sheet financing arrangements or long-term liabilities as of September 30, 2020 [102][103].