Hennessy Capital Investment Corp. VI(HCVIU) - 2022 Q1 - Quarterly Report

Financial Position - As of March 31, 2022, the company had cash of approximately $1,606,000 and working capital of approximately $1,800,000[113]. - As of March 31, 2022, the company had no long-term debt or capital lease obligations, and it pays $15,000 per month for administrative support[119]. - The company has a deferred tax asset of approximately $180,000 primarily related to start-up costs, with a full valuation allowance established[138]. - As of March 31, 2022, all 34,092,954 public shares were classified outside of permanent equity[142]. Initial Public Offering - The net proceeds from the initial public offering amounted to $343,940,000, with approximately $340,930,000 deposited into the Trust Account[108]. - The company incurred approximately $19,741,000 in costs related to its initial public offering, including $18,750,000 in underwriters' discount[135]. - Gross proceeds from the initial public offering amounted to $340,930,000, with $30,953,000 recognized as accretion of carrying value to redemption value[142]. - Proceeds allocated to public warrants were $11,935,000, and offering costs totaled $19,018,000[142]. - All 34,092,954 public shares sold in the initial public offering contain a redemption feature, with a redemption price of $10.00 per share[140]. Business Operations - For the three months ended March 31, 2022, the company reported a loss from operations of approximately $571,000, primarily due to public company costs and compensation expenses[106]. - The company has not yet generated any revenues and will only generate non-operating income post-initial Business Combination[104]. - The company is actively pursuing discussions with potential business combination partners but has not entered into any definitive agreements[101]. - The company expects to incur significant costs in the pursuit of an initial Business Combination, which may affect its financial performance[113]. - The company has engaged in organizational activities and preparations for its initial public offering since its inception[104]. Financial Projections and Requirements - The company expects to use substantially all funds in the Trust Account to complete its initial Business Combination, with withdrawals for taxes as needed[109]. - Anticipated primary liquidity requirements include approximately $900,000 for legal and due diligence expenses, $175,000 for regulatory reporting fees, and $360,000 for officer payments[112]. - The company may need additional financing to complete its initial Business Combination if cash on hand is insufficient[116]. Warrants and Tax Considerations - The company has the option to convert up to $1,500,000 of loans into Warrants at a price of $1.50 per Warrant[114]. - The estimated fair value of the Public Warrants was $0.48 per warrant as of March 31, 2022, and $0.84 per warrant as of December 31, 2021[127]. - The effective tax rate for the three months ended March 31, 2022, was approximately 0% due to start-up costs that are not currently deductible[138]. - The company assesses warrants for equity or liability classification based on specific terms and applicable guidance, requiring professional judgment[144]. - For warrants classified as equity, they are recorded as additional paid-in capital at issuance; otherwise, they are recorded at initial fair value[145]. - Changes in estimated fair value of warrants are recognized as non-cash gains or losses on the statements of operations[145]. - The fair value of warrants is estimated using a binomial lattice simulation approach[145]. Off-Balance Sheet Financing - The company has not entered into any off-balance sheet financing arrangements or established any special purpose entities[118].