Financial Position and Liquidity - The company had cash of approximately $163,000 and negative working capital of approximately $2,690,000 as of June 30, 2023[107] - The company has approximately $163,000 in cash and approximately $2,690,000 of negative working capital as of June 30, 2023, including $813,000 of deferred compensation payable upon the closing of a Business Combination[122] - The company may need additional financing to complete its initial Business Combination or to meet obligations if cash on hand is insufficient[126] - The company faces substantial doubt about its ability to continue as a going concern if it cannot complete a Business Combination before October 1, 2023[122] Operational Performance and Losses - For the three and six months ended June 30, 2023, the company reported a loss from operations of approximately $2,173,000 and $3,217,000, respectively[111] - The company has not generated any operating revenues to date and relies on non-operating income, primarily interest from the Trust Account[108] - The company’s expenses have increased significantly since its initial public offering, primarily due to costs associated with being a public company and searching for a suitable business combination[108] - An aggregate of approximately $249,000 was charged for operations for the three months ended June 30, 2023[130] Non-Operating Income and Trust Account - The company generated other income of approximately $3,271,000 and $4,767,000 for the three and six months ended June 30, 2023, primarily due to a decrease in warrant liability fair value and interest income from the Trust Account[113] - Interest income from the Trust Account was approximately $4,144,000 and $7,798,000 for the three and six months ended June 30, 2023, respectively[113] - Net proceeds from the initial public offering and private placement warrants totaled approximately $343,940,000, with $340,930,000 deposited into the Trust Account[116] - The company plans to use funds from the Trust Account, including interest earned, to complete its initial Business Combination[118] Tax and Franchise Obligations - The company incurred income tax provisions of $840,000 and $1,610,000 for the three and six months ended June 30, 2023, driven by increased taxable interest income[115] - The company expects annual franchise tax obligations to be capped at $200,000 due to Delaware tax regulations[118] Executive Compensation and Deferred Payments - The company compensates its President, Chief Operating Officer, and Chief Financial Officer $29,000 per month, with $14,000 deferred until the completion of the initial Business Combination[130] - The company compensates a Vice President $25,000 per month, with $12,500 deferred until the completion of the initial Business Combination[130] - Deferred compensation related to key executives totals approximately $813,000 for the period from September 29, 2021, to June 30, 2023[130] Loans and Financing - The company received a $200,000 loan from the Sponsor in June 2023, which may be converted into 133,333 Warrants at the option of the lender[124][129] - The company has no off-balance sheet financing arrangements or obligations as of June 30, 2023[127][128] Administrative and Operational Costs - The company pays $15,000 per month to Hennessy Capital Group LLC for office space, utilities, and administrative support[128]
Hennessy Capital Investment Corp. VI(HCVIU) - 2023 Q2 - Quarterly Report