Global Gas(HGAS) - 2022 Q1 - Quarterly Report

IPO and Financing - The company completed its initial public offering on December 22, 2020, raising gross proceeds of $172.5 million from the sale of 17,250,000 units at $10.00 per unit[114]. - The company raised approximately $4.9 million from the private placement of 4,850,000 warrants at $1.00 each, which are exercisable at $11.50 per share[115]. - The Sponsor agreed to loan the company up to $200,000 to cover IPO-related expenses, of which approximately $31,000 was borrowed and fully repaid by December 22, 2020[138]. - The company recognized an underwriting discount of $3,450,000 ($0.20 per unit sold) at the closing of the IPO on December 22, 2020[143]. Financial Performance - As of March 31, 2022, the company reported a net income of approximately $3.3 million, primarily from a non-operating gain of $3.6 million related to changes in fair value of derivative warrant liabilities[130]. - The company has not generated any operating revenues to date and will only generate non-operating income from interest on cash equivalents held in the trust account[129]. - The company incurred approximately $354,000 in general and administrative expenses for the three months ended March 31, 2022[130]. - The company incurred $30,000 in administrative services expenses for both the three months ended March 31, 2022 and 2021 under the Administrative Services Agreement[140]. Working Capital and Liquidity - The company has a working capital deficit of approximately $1.8 million as of March 31, 2022, with only about $19,000 in its operating bank account[123]. - The company has no borrowings under working capital loans as of March 31, 2022 and December 31, 2021[139]. - The company has not made any adjustments to asset or liability carrying amounts in anticipation of potential liquidation after June 22, 2022[126]. Business Combination - The company has until June 22, 2022, to complete a business combination; failure to do so will result in mandatory liquidation and dissolution[125]. - The proposed business combination with TradeZero involves a valuation of $500 million, with shares being converted based on an exchange ratio determined by the number of outstanding shares prior to closing[118]. - Holders of TradeZero Common Stock will receive a cash disbursement at closing, capped at $30 million, depending on TradeZero's cash balance[119]. Accounting and Valuation - The company has identified critical accounting policies that may affect reported amounts of assets, liabilities, revenues, and expenses[144]. - The fair value of the public warrants was initially measured using a Monte Carlo simulation model, while the private placement warrants were estimated using Black-Scholes[151]. - The company has not had any off-balance sheet arrangements as of March 31, 2022 and December 31, 2021[155]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[152]. Risk Management - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[156]. - As of March 31, 2022, a total of 17,250,000 shares of Class A common stock subject to possible redemption are presented at redemption value as temporary equity[146].