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HNR Acquisition p(HNRA) - 2023 Q2 - Quarterly Report
HNRAHNR Acquisition p(HNRA)2023-08-18 21:21

Financial Position - As of June 30, 2023, the company had cash of 813,177andmarketablesecuritiesheldintheTrustAccountamountingto813,177 and marketable securities held in the Trust Account amounting to 48,106,123, primarily consisting of U.S. Treasury Bills[117]. - As of June 30, 2023, the Company had 813,177incashandaworkingcapitaldeficitof813,177 in cash and a working capital deficit of 1,699,274[123]. - The Company has not had any off-balance sheet arrangements as of June 30, 2023[133]. Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of 232,803,withoperatingcoststotaling232,803, with operating costs totaling 614,748 and interest income from marketable securities of 842,756[113].−ForthesixmonthsendedJune30,2023,thecompanyhadanetlossof842,756[113]. - For the six months ended June 30, 2023, the company had a net loss of 410,417, with operating costs of 1,268,479andinterestincomeof1,268,479 and interest income of 1,789,672 from marketable securities[114]. - The company incurred 4,793,698inofferingcostsrelatedtoitsIPO,whichreducedequity[116].−TheCompanyhasincurredsignificantcostsinpursuitofitsfinancingandacquisitionplans,withongoingexpensesexpected[123].BusinessOperations−Thecompanyhasnotengagedinanyoperationsorgeneratedrevenuestodate,focusingsolelyonidentifyingatargetcompanyforabusinesscombination[112].−Thecompanyexpectstocontinueincurringsignificantcostsinpursuitofitsacquisitionplans,withnoassuranceofsuccessfulcompletionofitsinitialbusinesscombination[111].−TheCompanyisobligatedtoredeempublicsharesifaBusinessCombinationisnotcompletedbythedeadline,raisingconcernsaboutitsabilitytocontinueasagoingconcern[124].IPOandFunding−ThecompanycompleteditsInitialPublicOfferingonFebruary15,2022,raisinggrossproceedsof4,793,698 in offering costs related to its IPO, which reduced equity[116]. - The Company has incurred significant costs in pursuit of its financing and acquisition plans, with ongoing expenses expected[123]. Business Operations - The company has not engaged in any operations or generated revenues to date, focusing solely on identifying a target company for a business combination[112]. - The company expects to continue incurring significant costs in pursuit of its acquisition plans, with no assurance of successful completion of its initial business combination[111]. - The Company is obligated to redeem public shares if a Business Combination is not completed by the deadline, raising concerns about its ability to continue as a going concern[124]. IPO and Funding - The company completed its Initial Public Offering on February 15, 2022, raising gross proceeds of 86,250,000 from the sale of 8,625,000 Units[115]. - A total of 4,115,597 Public Shares were redeemed from the Trust Account for an aggregate amount of 43,318,207asofMay11,2023[117].−ThecompanyintendstoutilizesubstantiallyallfundsintheTrustAccounttocompleteitsbusinesscombinationandforworkingcapitalofthetargetbusiness[121].ManagementandStrategy−Themanagementteamhasanaverageofover40yearsofexperienceintheenergyindustry,positioningthecompanytoidentifyattractiveacquisitionopportunities[107].−TheSponsorhasextendedtheCombinationperiodmultipletimes,withthelatestextensiontoSeptember15,2023,requiringdepositsof43,318,207 as of May 11, 2023[117]. - The company intends to utilize substantially all funds in the Trust Account to complete its business combination and for working capital of the target business[121]. Management and Strategy - The management team has an average of over 40 years of experience in the energy industry, positioning the company to identify attractive acquisition opportunities[107]. - The Sponsor has extended the Combination period multiple times, with the latest extension to September 15, 2023, requiring deposits of 120,000 for each extension[123][124]. Financing Agreements - The Company has entered into unsecured promissory notes totaling 2,264,000withexistinginvestors,maturingatthefive−yearanniversaryoftheMIPA[135].−TheCompanyhasaCommonStockPurchaseAgreementwithWhiteLionCapital,allowingforthepurchaseofupto2,264,000 with existing investors, maturing at the five-year anniversary of the MIPA[135]. - The Company has a Common Stock Purchase Agreement with White Lion Capital, allowing for the purchase of up to 150,000,000 in common stock[126]. - The purchase price for shares sold to White Lion will be 96% of the lowest daily volume-weighted average price during a specified period[129]. - The Company has paid 154,250totheSponsorforadministrativesupportservicesthroughJune30,2023,andowesanadditional154,250 to the Sponsor for administrative support services through June 30, 2023, and owes an additional 35,000[134]. - The Company cannot assure that new financing will be available on commercially acceptable terms, which may impact its operations[124].